*Official* Shiny Things club - Part 2

[Ilovemathstutor]

Any investment tool for disciplined saving every month for compound interest other than FD?

seriously, education failed u...

care to tell us which schools u went to, that contributed to the above?

v keen to know.

 

[ericlzh]

Investing in ETFs

Dear Shiny Things,

I have intention to invest ETFs with a initial capital of SGD20K, and subsequently invest SGD500 every month to achieve DCA.

My investment plan is as follows:

- 40% iShares Core MSCI World ETF USD Acc (IWDA)
- 20% SPDR Straits Times Index ETF (ES3)
- 40% Nikko AM SGD Investment Grade Corporate Bond ETF (MBH)

and i will invest SGD500 monthly as below:

- 1st month iShares Core MSCI World ETF USD Acc (IWDA)
- 2nd month SPDR Straits Times Index ETF (ES3)
- 3rd month Nikko AM SGD Investment Grade Corporate Bond ETF (MBH)
- Repeat (will not be in running sequence)

Could you kindly be able to share your advise and insights on the feasibility of the above plan?
Also, which broker is more suitable to be used for the above plan, i.e. SCB or IB?

Thank you very much.

 

[ftpofmpo]

Any idea why are people, including outside of this forum, saying that hot money from hongkong might pour into singapore properties? I've never heard of people saying money pouring into singapore stocks, seems like our recommended sgx blue chips are overlooked by prc folks

 

[Kopisi_xiudai]

Hi,
I'm planning to invest $1200 a month.
Month 1 IWDA
Month 2 ES3
Month 3 IWDA
Month 4 ES3
Month 5 MBH

Since I'm only buying IWDA 4 times a year, is it still worth it to buy through IB?
For ES3 and MBH is SCB the best choice?

Thanks!

 

[Shiny Things]

Hi,
I'm planning to invest $1200 a month.

Since I'm only buying IWDA 4 times a year, is it still worth it to buy through IB?

Yes, because the money you'll save on FX spreads and brokerage outweighs the minimum monthly brokerage you'll pay in the months you're not buying IWDA.

Any idea why are people, including outside of this forum, saying that hot money from hongkong might pour into singapore properties? I've never heard of people saying money pouring into singapore stocks, seems like our recommended sgx blue chips are overlooked by prc folks

Stuffed if I know. Singapore resi RE doesn't seem like a great investment, but then again mainland China resi RE seems like an even worse investment. I'd love to know if anyone's got any color on this.

Hi Shiny, do you happen to know of a cost-effective way of getting a sum of MYR (from a MY bank acct) into IBKR? I thought of using an online money transfer service to send the MYR into my SG bank acct as SGD. Unfortunately, after checking with InstaReM, I'd need to have a face-to-face interview in MY in order to create the acct to send MYR.

Try MoneyMatch (they're a customer of mine at my day job).

Hi. I've been reading about investing in Ireland-Domiciled S&P 500 ETFs.

Why are you looking to buy the S&P 500 specifically, instead of a broader global-stocks ETF?

Dear Shiny Things,

I have intention to invest ETFs with a initial capital of SGD20K, and subsequently invest SGD500 every month to achieve DCA.

Could you kindly be able to share your advise and insights on the feasibility of the above plan?
Also, which broker is more suitable to be used for the above plan, i.e. SCB or IB?

Thank you very much.

Hi mate - is there any reason you wouldn't want to follow the usual "POSB IS for local stocks, Stanchart for global stocks" rule? It seems like that would be best for you.

 

[iceblendedchoc]

https://www.linkedin.com/pulse/paradigm-shifts-ray-dalio/?published=t

Hi shiny and bbcwatcher, what are your views on this? Have we really reached the end of cheap credit?

 

[Shiny Things]

Hi shiny and bbcwatcher, what are your views on this? Have we really reached the end of cheap credit?

That's the opposite of what the article says. Dalio argues that interest rates are going to collapse, which would mean that credit's going to get even cheaper.

Anyway honestly Ray Dalio must be doing something right because boy oh boy does he run a lot of money, but this reads to me like crankery. His thesis is "buy gold because governments are going to monetise their debts and blah blah hyperinflation", which was what people were shouting about nonstop from about 2010 and look how gold's done since then. If I was invested in a Bridgewater fund and Mr D was charging two-and-twenty to invest my money in shiny yellow rocks I'd be calling him up and demanding my cash back.

 

[Zink00]

Hello. I’m doing small dca with scb, buying iwda in 3-4months intervals.

I’m planning to transfer everything to ib once my dca amount gets larger since my net expense will be less with the fx spread and commission. Also when i cash out , I won’t get hit by a second 0.008% fx by scb.

Is it wise to do so, and is it possible? Its a flat fee of usd 39 right? Just want to confirm what i read is correct.

 

[yellownova]

Does anyone know if there's a way to automate DCA in SCB?

 

[kurtgoh]

Yes, because the money you'll save on FX spreads and brokerage outweighs the minimum monthly brokerage you'll pay in the months you're not buying IWDA.

Why are you looking to buy the S&P 500 specifically, instead of a broader global-stocks ETF?

Hi mate - is there any reason you wouldn't want to follow the usual "POSB IS for local stocks, Stanchart for global stocks" rule? It seems like that would be best for you.

pardon me..

at times, when Shiny Things replies..

i can't help thinking of posing such questions..
how to get rich..
not those bloody rich type but early retirement..
with passive income

 

[iceblendedchoc]

That's the opposite of what the article says. Dalio argues that interest rates are going to collapse, which would mean that credit's going to get even cheaper.

Anyway honestly Ray Dalio must be doing something right because boy oh boy does he run a lot of money, but this reads to me like crankery. His thesis is "buy gold because governments are going to monetise their debts and blah blah hyperinflation", which was what people were shouting about nonstop from about 2010 and look how gold's done since then. If I was invested in a Bridgewater fund and Mr D was charging two-and-twenty to invest my money in shiny yellow rocks I'd be calling him up and demanding my cash back.

Thanks for sharing. Personally, I also do not think of gold as investment.

 

[iceblendedchoc]

Does anyone know if there's a way to automate DCA in SCB?

No such option but you can pay me and I “automate” DCA for you. Just need your account and password.

Just kidding

 

[steven_cong]

Yes, because the money you'll save on FX spreads and brokerage outweighs the minimum monthly brokerage you'll pay in the months you're not buying IWDA.



Stuffed if I know. Singapore resi RE doesn't seem like a great investment, but then again mainland China resi RE seems like an even worse investment. I'd love to know if anyone's got any color on this.



Try MoneyMatch (they're a customer of mine at my day job).



Why are you looking to buy the S&P 500 specifically, instead of a broader global-stocks ETF?



Hi mate - is there any reason you wouldn't want to follow the usual "POSB IS for local stocks, Stanchart for global stocks" rule? It seems like that would be best for you.

Hi Shiny, I’m currently relocated to Dubai,just wanna check if you know any reputable company to transfer AED to SGD?

 

[supremo0]

Hi Shiny, finished reading your book and I have some questions.

1. If we put all our investments in Interactive Brokers or SCB/MBKE, what happens if Interactive Brokers or SCB goes bankrupt? Would it be wise to split our investments across different platforms?

2. I understand the rationale for buy term life and invest the rest. What about Critical Illness insurance? Would it be worthwhile to have CI coverage in case we require treatment for critical illnesses at an early age?

3. Do we discount our CPF funds entirely when planning for retirement? Or should I include my CPF funds as part of my retirement planning? I've read some people suggesting to consider CPF as the Bonds allocation of our portfolio. What are you thoughts on this?

Thank you.

 

[Pikuniku]

Hi Shiny Things,

I bought your book and followed your recommendation to buy IWDA, ES3 and MBH. However, some websites suggest that, for the bond component, we should buy A35 instead.

Could you let me know which one we should buy for the bond component please?

Thanks

 

[Shiny Things]

I bought your book and followed your recommendation to buy IWDA, ES3 and MBH. However, some websites suggest that, for the bond component, we should buy A35 instead.

Could you let me know which one we should buy for the bond component please?

MBH is better if it’s an option for you.

A35 was the best option before MBH was launched, and in some places (notably POSB IS) A35 is the only bond fund offered - which is good, because A35’s still fine.

Hi Shiny, finished reading your book and I have some questions.

1. If we put all our investments in Interactive Brokers or SCB/MBKE, what happens if Interactive Brokers or SCB goes bankrupt? Would it be wise to split our investments across different platforms?

2. I understand the rationale for buy term life and invest the rest. What about Critical Illness insurance? Would it be worthwhile to have CI coverage in case we require treatment for critical illnesses at an early age?

3. Do we discount our CPF funds entirely when planning for retirement? Or should I include my CPF funds as part of my retirement planning? I've read some people suggesting to consider CPF as the Bonds allocation of our portfolio. What are you thoughts on this?

Thank you.

1- Generally nothing will happen. Your stocks are still safe, because they’re generally held in a ring-fenced subsidiary company that the parent company isn’t allowed to touch. IBKR carries extra insurance as well, to compensate you in case anything does happen. And splitting your accounts across multiple brokers is a massive waste of time and energy. Don’t bother.

2- No, CI coverage is a waste of money, and early-CI is an even bigger waste of money. As long as you’ve got hospitalisation insurance (even MediSave is fine!), you’ve got everything you need.

3- This is a tough question, and reasonable people disagree on it - that’s why I explicitly say in the book that either way is fine. I personally would keep it entirely separate, because if you count your CPF as part of your bond allocation, then your regular account would be basically 100% stocks - and that'd be pretty volatile! It makes rebalancing tougher as well.

I’m planning to transfer everything to ib once my dca amount gets larger since my net expense will be less with the fx spread and commission. Also when i cash out , I won’t get hit by a second 0.008% fx by scb.

Is it wise to do so, and is it possible? Its a flat fee of usd 39 right? Just want to confirm what i read is correct.

I don't know exactly what the fee is, but yes, you're right. A good rule of thumb is to switch over from Stanchart to IBKR when you hit $100k of assets in Stanchart, or when you reach $1k a month of investments.

Hi Shiny, I’m currently relocated to Dubai,just wanna check if you know any reputable company to transfer AED to SGD?

Not off the top of my head, unfortunately.

 

[ahboy82]

Whyy is CI n early CI wasting money? Thot they r impt as much

MBH is better if it’s an option for you.

A35 was the best option before MBH was launched, and in some places (notably POSB IS) A35 is the only bond fund offered - which is good, because A35’s still fine.



1- Generally nothing will happen. Your stocks are still safe, because they’re generally held in a ring-fenced subsidiary company that the parent company isn’t allowed to touch. IBKR carries extra insurance as well, to compensate you in case anything does happen. And splitting your accounts across multiple brokers is a massive waste of time and energy. Don’t bother.

2- No, CI coverage is a waste of money, and early-CI is an even bigger waste of money. As long as you’ve got hospitalisation insurance (even MediSave is fine!), you’ve got everything you need.

3- This is a tough question, and reasonable people disagree on it - that’s why I explicitly say in the book that either way is fine. I personally would keep it entirely separate, because if you count your CPF as part of your bond allocation, then your regular account would be basically 100% stocks - and that'd be pretty volatile! It makes rebalancing tougher as well.



I don't know exactly what the fee is, but yes, you're right. A good rule of thumb is to switch over from Stanchart to IBKR when you hit $100k of assets in Stanchart, or when you reach $1k a month of investments.



Not off the top of my head, unfortunately.

 

[pylpoh]

i also think early ci is important, especially if you have dependents. health insurance covers the hospital bills, term/whole life whicn may cover death/tpd/ci/eci give you or your family a lump sum.

 

[bobobob]

i also think early ci is important, especially if you have dependents. health insurance covers the hospital bills, term/whole life whicn may cover death/tpd/ci/eci give you or your family a lump sum.

You want :

Hospitalization insurance to cover hospital bills.

Term life if you have dependants, to cover the loss of income should you die.

Disability insurance income, to cover loss of income should you be medically unfit to work.

That's all

 

[limster]

i also think early ci is important, especially if you have dependents. health insurance covers the hospital bills, term/whole life whicn may cover death/tpd/ci/eci give you or your family a lump sum.

CI is questionable but no harm having a small amount of CI coverage like 50k so that you get 50k quickly on diagnosis.

ECI is pointless. If your ECI turn into CI, you are going to get the insurance monies anyway.

If your ECI doesn't develop into full-blown CI, and you are healed, can go back to work after a short period, your emergency funds can easily cover. No different from any other illness where you are hospitalised.