View Single Post
Old 16-07-2020, 12:19 AM   #2493
Sweetangtang
Junior Member
 
Join Date: Jun 2020
Posts: 29
So that's $300/month into ES3 and $200/month into MBH.

<It's roughly there based on the buying price of the index.>


So that's $750/month into VWRA. As percentages it works to be:

ES3: 24%
MBH: 16%
VWRA: 60%


Assuming you plan to retire in Singapore and have a right to do so, and assuming you're at least 10 years away from retirement (since you're tilted toward stocks), your allocations seem fairly reasonable. It's a little STI heavy for my tastes, but that's probably just due to rounding to nearest hundred dollar increments.

<I an 35 yo this year and plan to retire in Singapore. My investment horizon will be at least 20 years. Do you recommend me to transfer some from STI to VWRA? What should the right mix be? Is the current proportion ok? I am buying VWRA via SC.>


First of all, assuming you're not a U.S. person you probably don't want to touch OGIG for tax-related reasons. VWRA already includes all the stocks in CSPX and OGIG, quite substantially, so yes, they're correlated. I'd just stick with VWRA.

CSPX and OGIG have been really high flying lately, near or at record all-time highs. If you're trying to time markets (you shouldn't), then this isn't the obvious time to get more interested in CSPX and OGIG.

<I am a Singaporean. Agree with you that it is too expensive to go into CSPX and OGIG now. Probably have missed the boat. I am actually looking at DCA monthly but still the price is too high now. Since you mentioned VWRA is correlated to these 2 index, I will just stick with VWRA. Regarding tax reason, is it correct to say the tax on dividend is actually very small as ETF generally pay very little?>

It has been 7% or better retrospectively. That doesn't mean it will be even 7% going forward. I generally use 6% (nominal, U.S. dollar terms) as a long-term projection for the U.S. S&P 500, but I "stress test" using much lower figures.
<Am I right to say it is genarally safe to put money into S&P500 for long term till retirement since the long term projection is 6%? would you even recommend using CPA OA to buy into S&P500 with endowus? Thanks!>

Last edited by Sweetangtang; 16-07-2020 at 12:22 AM..
Sweetangtang is offline   Reply With Quote