*Official* Shiny Things club - Part 2

[Shiny Things]

hi ST,

Hi mate - I think you're overcomplicating this a lot for yourself!

1. why is it that some stock counters that are listed on NYSE have it's info found on the Nasdaq website?

Because the Nasdaq website aggregates financial data from a lot of different sources, just like Google Finance or Yahoo Finance does.

2. Which would u subscribe to for Data on IB as a retail investor?
L1 or L2 data? Care to share why?

For anyone who doesn't know: "Level 1" data is "top of book"; it just shows you the best bid and offer. "Level 2" data is "full book" - it shows you all the bids and offers currently in the market. You only need level 1 data (or, now IB has snapshot data, you might not need any data at all).

3. Pls let me know if this understanding is correct.
Say I have 5m usd in funds on IB...
3.1. the first 250k usd would be covered by SPIC insurance, which is backed by Well Fargos?
3.2. the next 2.5m usd would be covered by the FDIC sweep program, which is covered by the list of banks listed below? ( the 18 banks that I copied and paste in my earlier question )
Federal Deposit Insurance Corporation, created by the US congress
3.3. the balance 2.25m usd would be covered by IB... assuming it doesn't turn turtle?

Is this understanding correct? What would u advice if u have 5m usd, would u park to a max of 2.75m usd on IB because that's the max insurance coverage it possesses?

Err, not quite. Firstly, why would you be parking five million bucks' cash at Interactive instead of buying bonds with it?

If you actually have five million bucks, ping me a DM and we can put a consulting agreement in place so I can give you tailored advice. Otherwise just switch on the FDIC sweep program, stop worrying about broker risk, and get on with your life.

4. There's this "Excess Funds Sweep", may I know what is this?
This "Excess Funds Sweep" isn't the same as the FDIC Sweep program, right?

So that's a separate thing, yes. That sweeps cash back and forth between your futures account (which you don't care about, because you're not trading futures, right?) and your stocks-and-bonds-and-everything-else account. It's there for your benefit, because the regular trading account has stronger protections than the futures account.

 

[Trader11]

Is it worth buying ShinyThing book in 2019? If you already have the first edition

 

[smart alex]

Is it worth buying ShinyThing book in 2019? If you already have the first edition

i want to know also sia

Sent from Xiaomi POCOPHONE F1 using GAGT

 

[Ilovemathstutor]

hi hi, ST,

ok, once I hit my target, you would be the first person I get in touch with... on monies management.

 

[Shiny Things]

Is it worth buying ShinyThing book in 2019? If you already have the first edition

I'm obviously a bit biased here, but I think it's worth it! There have been a few changes in the market (the rise of MBH is a big one); I've changed my preferred brokers in some cases (MBKE MIP is now a good option for smaller investors); and I've added some extra content as well.

 

[Ilovemathstutor]

I'm obviously a bit biased here, but I think it's worth it! There have been a few changes in the market (the rise of MBH is a big one); I've changed my preferred brokers in some cases (MBKE MIP is now a good option for smaller investors); and I've added some extra content as well.

this is what I find peculiar...

we should be grateful that ST is taking out his time to update the information in his book, because nothing is constant.

as time passes, things change.

the price he is selling per book it's public service!

 

[Ilovemathstutor]

hi ST,

say @ 5m usd, wouldn't u feel that bonds allocation is quite... suckers-dodo?

bond yields a terrible rate.

I am a maximal returns type with a preference for maximum stocks exposure.

But I read, so is Warren B. He allocates his @ 90% stocks, 10% bonds, upon his RIP.

 

[parkson]

Wow there's a new version of the book for 2019? Perfect timing, I read the first version but sat on the previous one for 2 years!

 

[Trader11]

Hi St, how do you rebalanced if you use CPF as a bond like asset?

 

[Shiny Things]

hi ST,

say @ 5m usd, wouldn't u feel that bonds allocation is quite... suckers-dodo?

bond yields a terrible rate.

Not at all; it depends on what you want to use the money for.

If five million bucks is your f*ck-you-money number, and you just want to live off the interest with no risk of ever running out of money, you could park it in 30-year Singapore government bonds yielding 2.65%, and pocket $132,500 a year with no risk.

On the other hand, if you aren't ever planning to tap the principal and you want to grow it as much as you can—say you're a university's investment fund that has an effectively infinite time horizon—you could put it all into equities, PE, VC, real estate, whatever, that's significantly riskier (and locked up!). Taking on more upside means taking on more risk of losses as well.

 

[Zink00]

Whats the best, or cost efficient way to invest in iwda for small investor? Or is this meant for ppl with bigger capital?

 

[tangent314]

Whats the best, or cost efficient way to invest in iwda for small investor? Or is this meant for ppl with bigger capital?

One way would be to create an account with POEMS or DollarDex and set up an RSP into one of these two unit trusts: "Lion Global Infinity Global Stock Index Fund" or "Lion Global All Seasons Fund (Growth)". Each time you reach US$4000, redeem everything and purchase IWDA through the SCB platform.

 

[bobobob]

Not at all; it depends on what you want to use the money for.

If five million bucks is your f*ck-you-money number, and you just want to live off the interest with no risk of ever running out of money, you could park it in 30-year Singapore government bonds yielding 2.65%, and pocket $132,500 a year with no risk.

Wouldn't you risk getting screwed by a rise in inflation though?

 

[Ilovemathstutor]

Wouldn't you risk getting screwed by a rise in inflation though?

well, I think ST painted 2 extreme ends of the scenarios for us to visualise.

one is to live off comfortably via bonds, secured and carefree for one's lifetime.

the other is to still strive and try to grow maximal, really dependent on your values, risk appetite, no right / wrong answers in this instance.

 

[littleredboy]

Wow Thanks! They allow MBH and CFA! And so many others for MIP!!!!! Best news I heard this week!

Best of all, kim eng is just beside my office!

I'm obviously a bit biased here, but I think it's worth it! There have been a few changes in the market (the rise of MBH is a big one); I've changed my preferred brokers in some cases (MBKE MIP is now a good option for smaller investors); and I've added some extra content as well.

 

[Trader11]

Hi St, how do you rebalanced if you use CPF as a bond like asset?

Anyone else use CPF as a bond?

 

[Thoreldan]

Anyone else use CPF as a bond?

I'm using cpf as bond component. Unable to rebalance but i take it a 'good' problem.

My equities - bond ratio at 51%-49% at the moment although I'm supposed to have more equities based on my age.

 

[Trader11]

I'm using cpf as bond component. Unable to rebalance but i take it a 'good' problem.

My equities - bond ratio at 51%-49% at the moment although I'm supposed to have more equities based on my age.

CPF might be growing lesser if housing loans need to be paid. I see that we might need to top up CPF if there is imbalance. But for young adult, they will have more CPF than stocks in the beginning stage. What do you think?

 

[Miffyhui]

Would like to seek opinions on in view of us China trade uncertainty. I Bought Iwda currently if now I sell can still lock in a bit of profits first. Then I can buy again on expected price drop. But if continue to hold this lot will soon incur paper loss. So which is better sell first buy again on dip or hold and expect to do DCA? Im quite new to investing hence the questions. Thanks for your advice

 

[limster]

Would like to seek opinions on in view of us China trade uncertainty. I Bought Iwda currently if now I sell can still lock in a bit of profits first. Then I can buy again on expected price drop. But if continue to hold this lot will soon incur paper loss. So which is better sell first buy again on dip or hold and expect to do DCA? Im quite new to investing hence the questions. Thanks for your advice

First you have to ask yourself what is your track record in forecasting price movements for IWDA.

If you have a track record that is more than 50% accurate (my preference is for at least 60% accuracy), then yes, believe in your forecast and start selling IWDA now.

If your accuracy in forecasting IWDA price movement is below 50%, then you have to ask yourself.. would you base your investment decision on someone who is wrong most of the time?