*Official* Shiny Things club

[wealth_farmer]

1.) not worth it unless you're trading big amounts. DBSV is $25 minimum. SC is $10 minimum which is a significant savings. We must watch our costs. If you still cannot open with SC, then Maybank Kim Eng pre-funded is also $10 minimum, or you can open with Saxo Bank with $15 minimum per trade. No real advantage with stocks being in CDP. Once you buy overseas stock, they won't be held in CDP anyway.

2.) you're a very honest man.

3.) Depends on your trade size. Generally if its $1,000 or more per month, you can consider Interactive Brokers. Research the costs of both and decide which is more suitable for you. Main bad thing about IBKR is that they "suck" USD 10 from your account every month, whether you trade or not. Note though, that if you do trade, those oare offset from the USD 10. For e.g. you need to convert SGD to USD to buy IWDA, so that's USD 2 commission. Then you buy IWDA, assuming you're using fixed tier pricing, and that's USD 5. So all in you incur USD 7 commission. So they'll "suck" another USD 3 from your account to bring it up to ten bucks.

4.) google "Rich by Retirement Indiegogo" and you should find it.

Hi all, would like to seek advice from seniors here
i started passive investing in 2015 via DBS Vickers (bought ES3 and A35) and rebalance them once every year.

My questions are:
1) Is it worth continuing to trade via DBS Vickers? any advantages that will be useful to me (other than owning the shares in CDP, not sure if that's any advantage actually)? i started with that as i do not qualify for SC

2) How strict is SC with their requirements? I have performed 4 trades to far. Wondering if i should try my luck with opening an account with them.

3) i wish to diversify my portfolio with IWDA. Which is the most ideal broker to use for this? IB? SC?

4) i read alot about Shining Things book and would like to get a copy. May i know where can i get one?

Thank you all! HUAT everyone!

 

[akwl88]

posb invest saver if want dca

 

[Maeda_Toshiie]

1.) not worth it unless you're trading big amounts. DBSV is $25 minimum. SC is $10 minimum which is a significant savings. We must watch our costs. If you still cannot open with SC, then Maybank Kim Eng pre-funded is also $10 minimum, or you can open with Saxo Bank with $15 minimum per trade. No real advantage with stocks being in CDP. Once you buy overseas stock, they won't be held in CDP anyway.

2.) you're a very honest man.

3.) Depends on your trade size. Generally if its $1,000 or more per month, you can consider Interactive Brokers. Research the costs of both and decide which is more suitable for you. Main bad thing about IBKR is that they "suck" USD 10 from your account every month, whether you trade or not. Note though, that if you do trade, those oare offset from the USD 10. For e.g. you need to convert SGD to USD to buy IWDA, so that's USD 2 commission. Then you buy IWDA, assuming you're using fixed tier pricing, and that's USD 5. So all in you incur USD 7 commission. So they'll "suck" another USD 3 from your account to bring it up to ten bucks.

4.) google "Rich by Retirement Indiegogo" and you should find it.

1. DBSV's minimum is $18 for the cash upfront account when buying, where the shares go to the CDP under your own name (not a CDP custodian, or custodian by the bank).

If you want to go to AGMs, best to put them inside CDP.

2. HAHAHAHAHA

 

[kehyi4]

Fyi, dbsv having CUFT promo now till end-Jun - 0.12%, $10 min. There's also a $5 per trade rebate but not 100% sure it stacks with the CUFT promo

edit: DBSV Cash Upfront Account page confirm that the two promos stack. $10 min, with $5 rebate per trade...

 

[wealth_farmer]

Thanks man, good share. Going to go with them for these few months then.

Fyi, dbsv having CUFT promo now till end-Jun - 0.12%, $10 min. There's also a $5 per trade rebate but not 100% sure it stacks with the CUFT promo

edit: DBSV Cash Upfront Account page confirm that the two promos stack. $10 min, with $5 rebate per trade...

 

[Surrealz]

Hi guys,

Got a question about trading in German market Xetra. If there's a German stock I'm interested in, how do I go about purchasing it in the best way?

Any pros and cons of buying overseas stock? Personally have not done it before. Would appreciate any input. Thanks!

(I currently own a trading account with OCBC.)

 

[wealth_farmer]

Hi Shiny Things

I've been wondering why SC's brokerage would be lower than the others. I know you mentioned that shares are safe with them, safer than cash. But I've been thinking: could they be doing stock loans with our shares to generate additional income?

 

[orange_sky]

Hi Shiny Things

I've been wondering why SC's brokerage would be lower than the others. I know you mentioned that shares are safe with them, safer than cash. But I've been thinking: could they be doing stock loans with our shares to generate additional income?

It's not really lower. Anyway it's lower because the prefunded model takes away the credit risk hence they can afford to lower their commission.

Cimb and dbs have similar commission except they have higher minimum

 

[zissou]

Finally, I've read the entire thread, and while some areas can get repetitive, it was worthwhile. To anyone who wants to take good care of their money over the long term, I'd advocate reading the entire thread. The time put in is nothing compared to what you can potentially get.

Just to return to the community (specifically for the new investors), I would recommend also reading John Bogle's "Little Book of Common Sense Investing", which I did not see being mentioned here. Combined with Benjamin Graham's "The Intelligent Investor" and ST's "Rich by Retirement", I reckon you will feel pretty grounded (and mobilised at the same time, as ST's book effectively holds your hand through the baby steps). Graham's writing style can be quite difficult to digest (to be fair, the man is of a different era), but his personality is enjoyable.

I feel that the additional readings are critical; otherwise, any random, novel product with 'attractive returns' that will surely appear during one's financial journey can be rather damaging. Of course, the flip view is that the ultra prolific trader may consider ST's offering damaging instead, in that more gains can be had with even more specialised knowledge. Having said that, I think the point here is to share the tool that has a good balance between ease of execution and meaningful gains. And if you read Graham and Bogle, the case of the ultra prolific trader would be well contextualised for one's own consideration (hint: it's not easy to be that guy).

For a newbie, I reckon starting with ST's book before Bogle's book would be more effective. If I may throw in an analogy, that would be akin to knowing how to ride a bicycle first, before knowing why a bicycle was built. In other words, how most humans interact with the world.

Been thinking about SRS too.

I wonder about its true tax benefits. I crunched some quick numbers (did not lay the figures down on a spreadsheet for certainty though), and it feels like the tax savings may not be worth the illiquidity. I also took into account of investing the savings, and including that as a benefit. Overall, the benefits do not seem very convincing. The savings seems to get worse as your investments get more profitable. Of course, this can get a little subjective, as the savings mean different things to different profiles. It could be that the sweet spot is to keep it at around $400,000 upon withdrawal age (figure is based on current tax rates). I'd need to plant the figures on a spreadsheet to be more certain. I could easily be very wrong.

I hope my post is not too presumptuous. Just wanted to give back. Thank you to all contributors here. I hope to continue learning more from you folks!

 

[Maeda_Toshiie]

If you intend to retire young (voluntary or forced), SRS is out of question. If you inherited substantial wealth such that you do not have to rely on SRS for a major part of your portfolio, SRS can be useful.

 

[zissou]

If you intend to retire young (voluntary or forced), SRS is out of question. If you inherited substantial wealth such that you do not have to rely on SRS for a major part of your portfolio, SRS can be useful.

Agreed that the illiquidity doesn't help.

Edited the post from here to fix some mistakes.

Just a rough one with rough figures (taken from OCBC's SRS page) to play around with the idea:

Person earns $110,000, puts away about $15,000 into SRS annually.

Tax savings of about $1,700 per year invested over 25 years with an optimistic annual yield of 7% becomes about $107,000.

$15,000 is put into SRS every year. If this is invested with the same yield of 7%, the SRS account becomes about $948,000. If withdrawn over 10 years, the 50% tax takes away a total of about $11,000 at current tax rates.

Deducting the 50% tax from the returns gained, $107,000 - $11,000 = $96,000. In this particular case, that is the sum gone if not for SRS.

Suppose the person invests his available cash at about $15,000 per year over the same 25 years with the same optimistic yield, he will end up with about $948,000. Basically, the amount mirrors the SRS one.

All combined (sans CPF), this part of his retirement pool becomes ($948,000 x 2) + $96,000 = $1,992,000

All in all, in this example, the tax savings from SRS yields about 5% more ($96,000 / $1,896,000).

Granted, the example also does not take into account any change in the tax rates, the SRS contribution ceiling, and any salary changes. The final SRS amount in this example may not be even subjected to tax if the 0% tax tier is raised in 25 years. The annual yield is also an optimistic one.

For some, any amount gained is worth the consideration. For some, the illiquidity and effort may dwarf the gains.

Of course, I hope to be corrected and to learn.

 

[OngHuatHuat]

If your share price increase a lot or if there are a lot of dividend income over the 25 years, the tax will be at a much higher bracket and it will still be sky high even after 50 % tax rebate.

 

[Maeda_Toshiie]

http://www.forbes.com/sites/robertb...ule-heres-what-you-need-to-know/#7d85e4225fa3

tl;dr: Fiduciaries are actually quite useless, and so is the fiduciary rule.

 

[alexilaiho]

anyone here instead of 20% bonds turn to 20% blue chips?

 

[orange_sky]

anyone here instead of 20% bonds turn to 20% blue chips?

What do you mean

Sent from Sony E2053 using GAGT

 

[orange_sky]

Inherently I realized I'm still very much risk adverse

After 1.5 years of implementing my plan, I'm still holding 50% cash

Sent from Sony E2053 using GAGT

 

[sherman1213]

What do you mean

Sent from Sony E2053 using GAGT

Think he means use the bond allocation for buying blue chips?

蓦然回首 你在渡船口 HardwareZone Forums app

 

[orange_sky]

Think he means use the bond allocation for buying blue chips?

蓦然回首 你在渡船口 HardwareZone Forums app

So 100% equity?

Sent from Sony E2053 using GAGT

 

[Melvink22]

Hi ST and all,

This is a great thread. I read all 371 pages and it took me about 1 week I think. I also bought the book to support ST contributions.

I just got the book last night.

Based on the reading, I am a bit confused and was wondering if you can help me clarify my confusion.

After catering for emergency cash and insurance and monthly expenses. Do I put the rest of the cash into the three part investments continuously.

a) Is there a limit to when you stop ? 100,000 300,000? 500,000? 700,000 etc..etc...etc...

Isn't it risky to have so much cash in stocks and bonds?

If it is risky, then should you keep the rest in fixed deposits? or what should you do ?

Sorry if this is a newbie question. just confused and wanted to clarify before I start on my adventure.

Thank You so very much.

 

[zissou]

anyone here instead of 20% bonds turn to 20% blue chips?

Almost everyone here is likely to have a stash of bonds.