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Old 02-02-2020, 10:48 PM   #1762
yesimvested
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Join Date: Apr 2019
Posts: 217
thats damn bloody detail... thanks and appreciate!

There is this part I can never understand how to do:

"you'd adjust your monthly savings flow to spread it across MBH, ES3, and IWDA to maintain your desired portfolio allocations. And you'd periodically rebalance (once or twice per year)"


Actually I have not commit the 100k into the endowment yet. About to do it already as im not sure for how long will Etiqa offer the 2.59%pa endowment plan.


if thats the case, i would think your recommendation will be to up the monthly DCA by another say 60% while the IWDA and ES3 are still considerably "low cost" as of now... And the balance funds to start with MBH now?

Basically to drop the whole endowment plan idea until probably when i already enter the retirement age...

Then perhaps i will do the below mthly with the 200k for the next 8 years+ and perhaps reduce the monthly investment thereafter depending on my income at that time.

IDWA - $900
ES3 - $600
MBH - $500



Those aren't the only two choices. What you probably want to do is this:

1. Save at your $1,300/month pace until retirement. If you can increase that pace as you progress in your career and feel comfortable with a new, higher monthly savings flow, that'd be great.

2. In addition, when the endowment plan matures about 6 years from now, take the proceeds and also invest them in your low cost, age and risk appropriate investment portfolio. So let's suppose that's $100K worth of endowment plan at maturity, for example. If you like, you can divide that up into 10 monthly installments of $10K each. So for a 10 month period you'd add $10K to each of your regular monthly investments (regular is $1,300, or more if you're at a higher pace by then).


No, there's no requirement that you maintain an all stock portfolio. You could add in some MBH, for example, if you feel you want some Singapore dollar denominated bond exposure.

Let's suppose 6 years from now you have $100K worth of stocks (IWDA and ES3) and $100K worth of a matured endowment plan. At that point you're still at least 9 years away from retirement and more like 14 probably. Let's suppose you decide that a 70%-30% stocks-bonds split is what you want to have for this particular $200K at that particular age. (Remember, you're also dragging a lot of cash, and presumably you have CPF assets. So all that is quite conservative.) OK, you already have 50% in stocks ($100K) by then, so to get to 70% you'd take another $40K from the endowment plan and add it to your stock investing, and you'd take the other $60K and buy MBH. So for that 10 month period (as suggested above), you'd do this:

a. Regular $1,300/month (or your higher regular monthly savings flow) still goes into stocks;
b. Add another $4,000/month, split the same way across IWDA and ES3;
c. Buy $5,000/month of MBH.

After the 10 month reinvestment period has passed, you'd adjust your monthly savings flow to spread it across MBH, ES3, and IWDA to maintain your desired portfolio allocations. And you'd periodically rebalance (once or twice per year).

Make sense?

Last edited by yesimvested; 02-02-2020 at 11:31 PM..
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