*Official* Shiny Things club - Part 2

[limster]

So it looks like FSMOne is good for trades up to $12,500

Why only up to $12,500?

If you want to buy $1,000,000 worth of ES3, FSMone is the best because the comm is only $10 once you hit $200k AUM

 

[limster]

What are you buying?

definitely buying 2800.HK as part of my regular DCA though my hope is that it falls about 3% more before i buy...

Also interested in bond ETF 3141.HK

Of course I'm still waiting for STI ETF under $3 as well!

 

[skywander]

Why only up to $12,500?

If you want to buy $1,000,000 worth of ES3, FSMone is the best because the comm is only $10 once you hit $200k AUM

That's a long long way away

 

[BBCWatcher]

Why only up to $12,500?

If you want to buy $1,000,000 worth of ES3, FSMone is the best because the comm is only $10 once you hit $200k AUM

That's a long long way away

Also a little crazy for most. There's no analog to the SIPC for FSMOne, so for every dollar of wealth in FSMOne's care I'd suggest having at least one dollar of wealth elsewhere. There's no cavalry coming to the rescue if FSMOne screws up.

Assets you buy via FSMOne then transfer to CDP presumably wouldn't count toward that $200K figure for commission calculation purposes, because assets held at CDP aren't under FSMOne's management any more.

 

[Listopad]

anyone knows for SCB , is the equities traded counted as part of AUM ?

 

[flikmy]

anyone knows for SCB , is the equities traded counted as part of AUM ?

Yes, it seems to be. Though I think SCB is less strict on hitting the AUM than say DBS for their priority accounts. Managed to get on a "trial" priority account a few years back, and seems like they've left me on it.

 

[duhZduhZ]

Thanks, BBCWatcher, i get the idea.

No, probably not.

The reason you’re investing in G3B (or ES3) is for long-term higher returns. Otherwise you wouldn’t be doing it. Delaying your investments, especially so significantly, has a cost. The cost is the difference between what your dollars yield elsewhere (in a bank account, for example) and what they yield, on average, invested in the STI shares — while they remain uninvested for as many as 23 months. ($5K per 2 years suggests you’re currently at a $200/month pace into G3B via POSB Invest-Saver.) That cost is compounded, meaning the loss is compounded.

The calculation for this is a little complicated, but basically you’d take 23 months worth of $200 and estimate the difference in yield I’ve just described. Let’s suppose you expect the STI stocks to yield 4% on average and your bank account yields 1% on average. That’s a 3% gap, which translates into about 0.25% per month. (I picked some deliberately easier numbers here.) So delaying $200 by one month costs about 50 cents. Delaying $200 by 23 months costs about $11.50 (23 times 50 cents). Add up all those “delay fees” ($200 delayed by 1 month, $200 delayed by 2 months, etc.) and it’s pretty substantial. To repeat, this calculation is approximate — “good enough” to get the idea.

 

[InvestingDummy]

Regarding what duhZ has said:

I’m also investing in G3B via investsaver, but I’m also allocating some funds to put into ES3 annually (already holding on to a little, hence intending to continue)

Should I just stop ES3 and put more into G3B? Essentially they’re almost the same, but ES3 has higher volume and lower expense ratio.

 

[BBCWatcher]

I’m also investing in G3B via investsaver, but I’m also allocating some funds to put into ES3 annually (already holding on to a little, hence intending to continue)

Should I just stop ES3 and put more into G3B? Essentially they’re almost the same, but ES3 has higher volume and lower expense ratio.

Yes, probably, but it depends on your income pattern. If you receive a once a year windfall, such as a big bonus, then it makes perfect sense to have a "special" annual purchase of your investment funds. (Not only G3B and ES3, I hope.)

I'm just pointing out there's a cost to delaying investments in your long-term vehicles. You expect those vehicles to yield more, on average, over the long term, than, say, your bank account. Otherwise you wouldn't be investing in that way. So if you delay then factor the expected cost of delaying investments into your overall cost equation, that's all.

Yes, ES3 does have a slightly lower annual expense ratio than G3B has. Include that difference in your cost calculations, too.

 

[Falcondiaz]

new 2019 book by shiny?

Hi ST/BBC/all, was doing some catching up on the thread to see if IWDA, G3B/ES3, A35 remains relevant and realised there was a new fund MBH recommended in replacement of A35. Also, I saw that there was an update ebook for 2019 from ST. Can I check if the new ebook for 2019 is for real and can I have the link to buy it?

 

[Shiny Things]

anyone knows for SCB , is the equities traded counted as part of AUM ?

Yes, they'd count the value of equities that you hold with Stanchart (not the value you trade. Subtle difference there).

Hi ST/BBC/all, was doing some catching up on the thread to see if IWDA, G3B/ES3, A35 remains relevant and realised there was a new fund MBH recommended in replacement of A35. Also, I saw that there was an update ebook for 2019 from ST. Can I check if the new ebook for 2019 is for real and can I have the link to buy it?

It is, and you can buy it through Amazon or through the book's website (which I won't link, to make sure I don't breach the forum's rules against advertising).

No discussion on markets? Is it wise to DCA into ETFs where the market is falling and turning bearish?

You kidding me? This is great; everything's on sale. I bought some more equities yesterday as part of my usual regular investment.

Hi all, i have been investing small into g3b for some months with posb investsaver. The buying fee is 0.84%, with no selling fee as of now.
[...]
Long term wise, seems like dbs vickers cash upfront is better right?

Nah. As BBCW explained, by leaving the cash in the bank for two years at a time, you'll be missing out on more than you'd save in transaction costs. Also, if you're doing it regularly each month, it becomes a habit instead of a big, terrifying once-every-two-years event.

 

[Ilovemathstutor]

Hi ST/BBC/all, was doing some catching up on the thread to see if IWDA, G3B/ES3, A35 remains relevant and realised there was a new fund MBH recommended in replacement of A35. Also, I saw that there was an update ebook for 2019 from ST. Can I check if the new ebook for 2019 is for real and can I have the link to buy it?

Google "Rich by Retirement"
https://gumroad.com/l/FxsMU

hope it helps!

 

[Ilovemathstutor]

ST,

I bought so much ADRs... the ADR fees per year is not funny even if it's 1c per share.

any thoughts on this?

 

[Shiny Things]

ST,

I bought so much ADRs... the ADR fees per year is not funny even if it's 1c per share.

any thoughts on this?

Yeah, I have a thought - why are you buying ADRs instead of the home country listing? Get a better broker.

 

[BBCWatcher]

Yeah, I have a thought - why are you buying ADRs instead of the home country listing?

There might be some weird tax-related situations when the ADRs are better than holding the "native" shares. I haven't dug into it enough to know, but it's possible.

But why buy individual company stocks (or analogs) at all?

 

[Ilovemathstutor]

hi ST,

it's listed in US but they are china stocks.
there's no other alternatives.
I am quite surprised about the ADR / ADS fees though...
I am overall bullish on china as I am v impressed when I last visited them.
I just have to suck it up and pay the ADR / ADS fees for the boatloads of it that I hold, right? ( I enabled loaning to shorties so that I earn shorting comm )
That's the best that I can do, right?

 

[Ilovemathstutor]

There might be some weird tax-related situations when the ADRs are better than holding the "native" shares. I haven't dug into it enough to know, but it's possible.

But why buy individual company stocks (or analogs) at all?

I totally subscribe to what ST writes.
but so far, my stock picks have yielded 100% gains in less than 3 years for each stock. ( ok, to be fair... less than 2 years ).
I plan to pump it till it's a sizeable figure then throw it into a passive instrument for income, and become a travelling family office OMO.
( one-man operator ).

hope that explains.

 

[Shiny Things]

hi ST,

it's listed in US but they are china stocks.
there's no other alternatives.

Interactive Brokers will give you access to onshore Chinese stocks through the HKSE northbound link. Haven't actually tried it myself, but you can check if the stock you're after is listed: Shanghai is here, Shenzhen is here.

The onshore listings shoouuuullldddd trade in line with the ADRs - I haven't actually checked whether the arbitrage works but I'd assume it does.

 

[Ilovemathstutor]

Interactive Brokers will give you access to onshore Chinese stocks through the HKSE northbound link. Haven't actually tried it myself, but you can check if the stock you're after is listed: Shanghai is here, Shenzhen is here.

The onshore listings shoouuuullldddd trade in line with the ADRs - I haven't actually checked whether the arbitrage works but I'd assume it does.

hi ST,

it's actually more common stocks that I dabble in, like Baidu.


thanks for your pointers though.

I don't dare to go raw on the China A stocks... I have no problems w them if they are based on American exchanges.

of course, there's a trust gap... people will taunt that it's caymans, but it's not just Chinese co that are caymans...

 

[Trader11]

Yes, they'd count the value of equities that you hold with Stanchart (not the value you trade. Subtle difference there).



It is, and you can buy it through Amazon or through the book's website (which I won't link, to make sure I don't breach the forum's rules against advertising).



You kidding me? This is great; everything's on sale. I bought some more equities yesterday as part of my usual regular investment.



Nah. As BBCW explained, by leaving the cash in the bank for two years at a time, you'll be missing out on more than you'd save in transaction costs. Also, if you're doing it regularly each month, it becomes a habit instead of a big, terrifying once-every-two-years event.

Which equities you bought? Twitter? Apple?