Investment advice for 200k

Shiny Things

Supremacy Member
Joined
Dec 13, 2009
Messages
9,415
Reaction score
607
Hi guys,

Simply put, I have 200k cash that has been rotting in my posbkids account for awhile now - what are the best options available to me, given that I do not need liquidity, prefer dividend payouts, and am NOT very risk adverse?

Just to be sure - you're not risk averse, so you're comfortable with taking some risk? And you don't need liquidity - I'm assuming you mean you won't need the cash for five years or more - so you can handle taking some drawdowns?

In your case, you can invest it into a reasonably aggressive mix of ETFs. And if you've got a high tolerance for risk, then you can skew it international, rather than staying onshore.

Here (edit: changed some to take into account platopus's high-div-yield suggestions)
* 30% STI ETF (yields 2.6% plus capital growth)
* 20% VUSD (the UK-listed SPY equivalent) (yields 1.6% plus capital growth)
* 20% VHYD (the UK-listed Vanguard high-div ETF) (yields 3.65% plus capital growth)
* 20% QL2 (the SG-listed Asia Credit Bond ETF, yields 4.75%)
* 10% QL3 (the SG-listed Asia High Yield Bond ETF, yields about 7%)

Normally someone who labels themselves as "risk-tolerant" would want to skew toward stocks rather than bonds, but because you mentioned you wanted yield I've nudged you that way; and I've replaced the money I'd usually allocate to A35 with the higher-yielding QL2 and QL3. Be warned that these are higher risk as well, and they're not appropriate for smaller investors.

I figure your total yield is going to be something like 3.5%, which is pretty good in a zero-interest-rate world, and you should get plenty of capital growth from the stock ETFs as well.

As for which broker - you'll definitely want to use Interactive Brokers for the two UK-listed ones. For the SG-listed ones, you'll probably have to use Stanchart, because IB doesn't let you buy Singaporean stocks if your address is in Singapore. (If you've got an overseas mailing address you can use, you can sign up to IBKR with that, and that'll let you trade Singaporean stocks as well at IBKR's rock-bottom brokerage rates.)
 
Last edited:

platopus

Senior Member
Joined
Dec 11, 2014
Messages
686
Reaction score
9
Maybe he can consider

Vhyd instead of vwrd. vanguard all world dividend etf. Basket of 1060 stocks

Also, he can consider udvd, which is the spdr US dividend aristocrats. Basket of 80 us stocks who pay higher dividend over time

Both are listed on the London stock exchange

. Full disclosure, I own vhyd n vwrd. I also don't deny that the S n P 500 has been giving great returns since the crisis, if u believe in US continue dominance do go ahead. Jack bogle has said that US companies are actually international companies and owning us stocks sorta gives you international diversification
 

Shiny Things

Supremacy Member
Joined
Dec 13, 2009
Messages
9,415
Reaction score
607
Maybe he can consider

Vhyd instead of vwrd. vanguard all world dividend etf. Basket of 1060 stocks

Also, he can consider udvd, which is the spdr US dividend aristocrats. Basket of 80 us stocks who pay higher dividend over time

Both are listed on the London stock exchange

Yep, those are both good ideas too. (Actually they're even better than my suggestions. I'll edit my post.)

(Update: Kept VUSD, because UDVD only yields an extra 0.15% or so - not much of an aristocracy - but changed VWRD to VHYD.)
 
Last edited:

Carnesir

Supremacy Member
Joined
Aug 21, 2005
Messages
6,129
Reaction score
232
50K OCBC 360 account. (3% risk free and very liquid, pls make an effort to know t&c of getting all 3%. they are very achievable)
20k Gold
30k Bond or money market funds
100k Equities (30% Reits, 70% divdend paying blue chip, STI etc)
 

platopus

Senior Member
Joined
Dec 11, 2014
Messages
686
Reaction score
9
Oh yes, the ocbc360 50k is a very good one (for now). At the end $1500 for a year is very safe play.

Sidetrack with some more 'risky' ideas, DONT follow blindly.
Dividend warrior portfolio is around 200k, we with dividends of 1k+a mth. u can reference it but don't copy blindly because entry price and understanding the company and exit points make all the difference in the world.

Do go and do your due diligence and research before as attempting anything.

The ocbc 360 is okay, at least capital guaranteed so go ahead with that
 

platopus

Senior Member
Joined
Dec 11, 2014
Messages
686
Reaction score
9

wahkao3

High Supremacy Member
Joined
Mar 6, 2005
Messages
26,835
Reaction score
19
invest in low risk, high return opportunities, such as stocks that have good chance of moving up and with limited downside
 

Gaara1989

Supremacy Member
Joined
Mar 6, 2007
Messages
6,891
Reaction score
241
invest in low risk, high return opportunities, such as stocks that have good chance of moving up and with limited downside

Let me join in to troll.

Hmm u can invest in 0 risk stock that gives high return. Must choose those that r low risk high return. Not high risk low return. :)
 

zhane

Master Member
Joined
Jan 11, 2002
Messages
3,266
Reaction score
1
is it cheaper to buy ETF on my own, or cheaper to leave it to POSB/OCBC/POEMS plan to buy for me?
 

platopus

Senior Member
Joined
Dec 11, 2014
Messages
686
Reaction score
9
Cheaper to buy on your own through stanchart online broker.

E.g. sti etf g3b. $3.30

Scb commission = 0.2% , 1 lot = $330 + $0.66 (Commission)

Posb invest saver = 1%, commission = $3.30

Over one year the difference is $30

This is for small amounts, bigger amounts is a different math.
 

zhane

Master Member
Joined
Jan 11, 2002
Messages
3,266
Reaction score
1
Cheaper to buy on your own through stanchart online broker.

E.g. sti etf g3b. $3.30

Scb commission = 0.2% , 1 lot = $330 + $0.66 (Commission)

Posb invest saver = 1%, commission = $3.30

Over one year the difference is $30

This is for small amounts, bigger amounts is a different math.

woo.. then buying through poems also more ex than invest saver?
since poems comm is 0.28%
 

platopus

Senior Member
Joined
Dec 11, 2014
Messages
686
Reaction score
9
Got minimum commission for poems right. Poems sharebuilder if I rmb is $6 monthly, so if u buy more than $600 is cheaper than posb Liao lor.

I am talking about RSP plans though
 

platopus

Senior Member
Joined
Dec 11, 2014
Messages
686
Reaction score
9
UK vanguard because dividend tax is 15% in uk, it is 30% in us. U earn more (get taxed less) buying the uk version
 

Niaoson

Master Member
Joined
Apr 20, 2007
Messages
4,306
Reaction score
6
Here (edit: changed some to take into account platopus's high-div-yield suggestions)
* 30% STI ETF (yields 2.6% plus capital growth)
* 20% VUSD (the UK-listed SPY equivalent) (yields 1.6% plus capital growth)
* 20% VHYD (the UK-listed Vanguard high-div ETF) (yields 3.65% plus capital growth)
* 20% QL2 (the SG-listed Asia Credit Bond ETF, yields 4.75%)
* 10% QL3 (the SG-listed Asia High Yield Bond ETF, yields about 7%)

Hey Shiny, do you know what is the official stock name for QL3 and QL2? I can't seem to be able to find their dividend payout history from SGX here: Company Disclosure & Information | SGX

Also, any idea why the chart for QL3 has random spikes and falls every now and then? Am I looking at the right chart at https://sg.finance.yahoo.com/echarts?s=QL3.SI#symbol=QL3.SI;range=1d ? The spikes and falls can be seen starting from the 6M view upwards :s22: is it because of CD and XD? Cannot be the dividends so often and so much, right? :o
 

lushiris

Master Member
Joined
Nov 19, 2004
Messages
2,861
Reaction score
2
Hey Shiny, do you know what is the official stock name for QL3 and QL2? I can't seem to be able to find their dividend payout history from SGX here: Company Disclosure & Information | SGX

Also, any idea why the chart for QL3 has random spikes and falls every now and then? Am I looking at the right chart at https://sg.finance.yahoo.com/echarts?s=QL3.SI#symbol=QL3.SI;range=1d ? The spikes and falls can be seen starting from the 6M view upwards :s22: is it because of CD and XD? Cannot be the dividends so often and so much, right? :o

IS ASIA BND S$D (QL2) - ISHARES USD ASIA BOND ETF S$

IS ASIA HYG S$D (QL3) - ISHARES USD ASIA HY BOND ETFS$
 

Niaoson

Master Member
Joined
Apr 20, 2007
Messages
4,306
Reaction score
6
IS ASIA BND S$D (QL2) - ISHARES USD ASIA BOND ETF S$

IS ASIA HYG S$D (QL3) - ISHARES USD ASIA HY BOND ETFS$

Hmm under SGX corporate actions, the dividends are in USD but the stock itself trades in SGD. Is this correct i.e. the stock is in SGD but pays out dividends in USD?
 

yukari_san3

Supremacy Member
Joined
Feb 16, 2010
Messages
9,173
Reaction score
0
Hi guys,

Simply put, I have 200k cash that has been rotting in my posbkids account for awhile now - what are the best options available to me, given that I do not need liquidity, prefer dividend payouts, and am NOT very risk adverse?


my opinion:

Just buy IBM.
 
Important Forum Advisory Note
This forum is moderated by volunteer moderators who will react only to members' feedback on posts. Moderators are not employees or representatives of HWZ. Forum members and moderators are responsible for their own posts.

Please refer to our Community Guidelines and Standards, Terms of Service and Member T&Cs for more information.
Top