I've a question on exit strategy. Suppose you've decided to do DCA on IWDA (for eg), is there a position where you will stop buying in? Like if it drops 30%? Or we lose 50% of our invested amount etc? From what I read, it seems we should ignore the flunctuations and continue with our monthly strategy regardless and have faith it will recover eventually.
A sale price on the fund you're buying is delightful. It means you're buying at a lower price, and that's exactly what you want when you're accumulating.
I’d echo BBCWatcher’s points, and I’d just ask another question: if the market drops 30%, why would you want to sell everything and lock in that loss?
I know it takes some discipline to not do this—to resist the understandable urge to sell everything and hide under the bed. A lot of retail investors in America made this mistake in December, when the S&P 500 tanked 15% in a month. But since then, the market has rallied nearly 10%; if you’d panicked and sold, you would have missed out on that rally.
Just a gentle reminder to justify the text for all chapters!
I'm not sure if it was an issue unique to the hardcopy I ordered via Amazon, but the text for random parts of some chapters weren't justified. Nothing catastrophic, but it did make for a more uncomfortable read at some points
Oh yeah, the formatting was pretty busted in some parts; I've been through it and fixed up all the justification (and also laid it out in a much nicer font, Palatino Linotype).
Yes, there is almost no protection on bank deposits in India. But there is an implicit guarantee that banks won't be allowed to go down.
People thought Lehman wouldn't be allowed to fail,
as late as the day before it exploded.
And I'm honestly a bit surprised. You've said yourself that you're super-duper-risk-averse, but you were loaded up on deposits in Indian banks which are... frankly not great credit risks, especially if you look through the implicit guarantee. They're not as bad as Deutsche, but they're also not as good as a JPM or a DBS.
Hi all,
I just started trading becos i got insomnia and too bored at night
apparently i think i am paying too much to SCB for my trades so just wondering how i can reduce
already spent like 150usd just on fees.
a) You're in the wrong thread;
b) Use Interactive Brokers.
You're welcome.
I'm wondering realistically, how likely will the ES3-IWDA-MBH portfolio last for say a 20 year investment horizon. I.e., do we have to periodically change/move holdings to another ETF?
Yes, but you don’t
have to.
As markets develop, there’ll be better investment vehicles popping up. MBH came along, and it’s a better choice than A35 for the bond component of your portfolio. Someone might launch a roboadvisor tomorrow that does all this for you for a reasonable price. The ES3-IWDA-MBH three-fund portfolio is the best for now, but there might be better, cheaper ways to get that same exposure in the future.
For $2k a month, what will be your suggested distribution into the below? Even 25% in each?
- MBH (for bond ETF)
- ES3 (for STI ETF)
- IWDA (for global market ETF)
- N2IU and C38U (for REITs, still have a soft spot for property
)
Have substantial savings in high interest bank accounts (average around 3%), hence does it make sense to skip bonds all together then?
I mean, I think it’s pretty clear what my recommended distribution is. Assuming you’re about 35, I’d put 25% in MBH, and 37.5% each in ES3 and IWDA.
Also, as everyone’s already told you, ES3 already gives you plenty of real estate exposure; and over the long term, real estate underperforms a stock-and-bond portfolio; it will make you do worse. You don’t need a REIT allocation.