*Official* Shiny Things club - Part 2

[kehyi4]

hi, shinythings, I am a 22 year old new to investing, recently I wanted to buy some IWDA etf stocks but I transferred money into GBP standard charted settlements account instead of the USD account (i thought trading in the london stock exchange means GBP T T) Should i just transfer(lose 150sgd) or buy other etf?

Would this work? IWDG

sorry for being a noob, but that's the same ETF, right? Just in GBP, also why is it so much more expensive?

The GBP version of IWDA is SWDA. Since you have GBP, just buy SWDA lah. IWDG is GBP hedged, which you don't need since your home currency is SGD, not GBP

 

[tan175777]

Ah okok, just want to make sure as swda cost 4.1k, do I need to be worried about that? ,

The GBP version of IWDA is SWDA. Since you have GBP, just buy SWDA lah

 

[kehyi4]

Ah okok, just want to make sure as swda cost 4.1k, do I need to be worried about that? ,

The price is quoted in pence (kinda like cents) so 4,155 GBX is just 41.55 GBP lah

 

[tan175777]

OK HAHA PARDON MY STUPIDITY

The price is quoted in pence (kinda like cents) so 4,155 GBX is just 41.55 GBP lah

 

[Shiny Things]

I'm intending to buy S$150k of IWDA (+EIMI?) to start off my IB account once it gets approved. The main reason is to avoid having to pay the monthly subscription fees.

Few questions:

(1) Some folks say to buy at one shot whilst others say to spread it out over 3 months for psychological comfort. Does IB's $10 monthly fee start from the first month of funding, or is there some grace period? If the former, then the psychological comfort may come at some cost.

(2) I vaguely recall reading about this concept called "cash subscription" that can be used to buy large quantities without having to cross the spread or buy from the market. What I've read relate mainly to local ES3 where we have to ask the bank/broker to see if they know how to do this.

Specifically for IWDA (+EIMI?), who do we approach to do a cash subscription? Can IB handle this?

(3A) I recall reading that at this sum, 10% should go into EIMI as it is now "more than 6 figures". Would this be correct?

(3B) I anticipate buying between $3,000 to $6,000 every month moving forward, and I presume this is also a good reason to also go into EIMI as it has now reached critical mass?

1) There's a three-month grace period. Like people said, don't get too hung up on the commissions, though; the important thing is to get into good habits going forward.
2) Cash subscriptions only really exist for A35 and MBH unfortunately. For IWDA, EIMI, etc etc etc, you can just buy them on-market.
3a) Yep.
3b) Yep.

Thanks Shiny, really appreciate your input. Just curious on the STRIPS. Is EDV ETF the same as what you are describing over here?

Sooorrrrrtttttt of. I think EDV owns a lot of STRIPS principals, but it also pays a dividend, which STRIPS principals don't do, so I'm honestly a bit confused about what it owns.

What's your return expectation?

If I have to invest S$150K, I would sell an out of money (OTM) put option at a strike price where I'm comfortable being long incase the option gets exercised. This way you earn a premium which helps you reduce the acquisition cost.

So, couple of things here:
1) Selling options is a bit advanced for someone who's a totally new investor;
2) Did you check to see if there's a listed options market on IWDA / EIMI / etc? They're not US stocks, and I'm not sure what the UK listed derivatives market is like.

 

[Shiny Things]

I'm a noob and I'm just following Shiny Thing's recommendations.

Not too sure what an OTM put option is....

Just politely I'd disregard this. I don't think it's necessarily the best advice for a brand-new investor.

 

[dllmhkc]

Hey need some help here. I've recently bought an endowment plan and I realised it was a big mistake.

The projected 3.25% and 4.75% is a lie. That's the amount before deductions but the actual returns is just roughly 1 to 2% after the deductions and I wasn't even told about this until I had the time to look at the policy document.

I intent to terminate it but it's been a few days past their 7 days posting + 14 days freelook. Anyone have any experiences of terminating and actually getting back the premiums paid?

My premiums is paid annually 3.6k and it's less than a month since I bought the policy. Should I proceed to terminate it in the event (highly likely) that I really can't get my premiums paid refunded?

 

[Maeda_Toshiie]

Hey need some help here. I've recently bought an endowment plan and I realised it was a big mistake.

The projected 3.25% and 4.75% is a lie. That's the amount before deductions but the actual returns is just roughly 1 to 2% after the deductions and I wasn't even told about this until I had the time to look at the policy document.

I intent to terminate it but it's been a few days past their 7 days posting + 14 days freelook. Anyone have any experiences of terminating and actually getting back the premiums paid?

My premiums is paid annually 3.6k and it's less than a month since I bought the policy. Should I proceed to terminate it in the event (highly likely) that I really can't get my premiums paid refunded?

Lose one year of premiums or remain stuck with a bad product?

One thing to consider, if you don't buy this product, what do you do with the money? Investing in the stock market doesn't guarantee gains, especially if you do not have the psychological resources to avoid panics or subcumbing to typical behaviours of buying high and selling low.

 

[dllmhkc]

Lose one year of premiums or remain stuck with a bad product?

One thing to consider, if you don't buy this product, what do you do with the money? Investing in the stock market doesn't guarantee gains, especially if you do not have the psychological resources to avoid panics or subcumbing to typical behaviours of buying high and selling low.

Oh actually i don't really need the money. i'm just thinking if i free up 300$ per month I can put more into etf which I'm already DCA-ing. Which would be a better choice? Keeping the policy and wait for it to mature (15 years) or terminate now and tank the 3600$ loss then use money freed up to put into etfs?

 

[Maeda_Toshiie]

Oh actually i don't really need the money. i'm just thinking if i free up 300$ per month I can put more into etf which I'm already DCA-ing. Which would be a better choice? Keeping the policy and wait for it to mature (15 years) or terminate now and tank the 3600$ loss then use money freed up to put into etfs?

Well, you can calculate how much your investment portfolio needs to gain in order to make up for that $3600. (I suspect not very much).

 

[dllmhkc]

Well, you can calculate how much your investment portfolio needs to gain in order to make up for that $3600. (I suspect not very much).

Oh well. But the thought of burning 3.6k for nothing still hurts.

 

[revhappy]

Hey need some help here. I've recently bought an endowment plan and I realised it was a big mistake.

The projected 3.25% and 4.75% is a lie. That's the amount before deductions but the actual returns is just roughly 1 to 2% after the deductions and I wasn't even told about this until I had the time to look at the policy document.

I intent to terminate it but it's been a few days past their 7 days posting + 14 days freelook. Anyone have any experiences of terminating and actually getting back the premiums paid?

My premiums is paid annually 3.6k and it's less than a month since I bought the policy. Should I proceed to terminate it in the event (highly likely) that I really can't get my premiums paid refunded?

I think you should study the insurance products thoroughly and see what is the value of the plan. It is not like some gimmick sold to you, it must have its own utility. Insurance is a regulated product. After studying, if you decide that termination is the best way out then do it.

Sent from Dont Take Any Of My Statment As Investment Advice. Do Your Own Due Diligence. using GAGT

 

[Wishdom]

Oh well. But the thought of burning 3.6k for nothing still hurts.

Call the insurer and try appealing to freelook. They should have a grace period after the 14 days.

Sent from Ilovennp using GAGT

 

[iceblendedchoc]

Oh well. But the thought of burning 3.6k for nothing still hurts.

just cut loss. Since you already know they are written big big as illustrated % and take it as a lesson in life to read through anything before signing.

 

[Lasogette]

Vanguard

Hi Just wanted to learn something here from you guys.

1. How do you all search for VT, VWRD and know which one is better?

2. I wanted to do a small investment in Vanguard tech ETF (VGT), however just wanted to find the equivalent of an ireland domiciled one(something similar to VWRD as compared to VT) so i can save on some taxes. But not sure how to go about finding it. I found one called 0LMY

 

[ELKYme]

How old are you? Actually endowment plans are not all that bad. Especially as part of retirement planning.
Personally I bought an endowment plan to supplement CPF Life when I reach 65.

For me, the main consideration is whether the GUARANTEED PAYOUT amount is sufficient to make my retirement life better during the first 10 years. 65-75.

Statistics have shown that an average Singapore male’s life expectancy is 80.7 years.
https://www.singstat.gov.sg/find-da...ulation/death-and-life-expectancy/latest-data

But there are NO specific studies done on what the average age Singapore males can maintaining a decent quality of life. (would be thankful if someone can attach a link here if there is)

With the limited information I had in hand, I “guesstimated” that 65-75 is the age I would be able-bodied to travel and have a good time.

This additional payout from the endowment plan will allow me to do that.
If the insurance coy do payout the additional amount from the “non-guaranteed” portion, it’s a bonus and not a must.

Oh well. But the thought of burning 3.6k for nothing still hurts.

 

[limster]

How old are you? Actually endowment plans are not all that bad. Especially as part of retirement planning.
Personally I bought an endowment plan to supplement CPF Life when I reach 65.

My retirement strategy is to assemble a dividend portfolio to provide me with regular passive income after I retire. No reason for me to buy a low yielding endowment plan.

If endowment plan is so good, then perhaps buying shares in the insurance company that sold you the endowment plan will be even better. Is it any coincidence that many insurance company are also good dividend stocks? (vested in Prudential and Aviva)

Endowment plan cannot be given to next of kin. My dividend portfolio can be passed on to next of kin or given away to charity after I pass on. Dividend stocks are a gift that keeps on giving.

 

[ELKYme]

You may be right Bro...different strokes for different folks.

My retirement strategy is to assemble a dividend portfolio to provide me with regular passive income after I retire. No reason for me to buy a low yielding endowment plan.

If endowment plan is so good, then perhaps buying shares in the insurance company that sold you the endowment plan will be even better. Is it any coincidence that many insurance company are also good dividend stocks? (vested in Prudential and Aviva)

Endowment plan cannot be given to next of kin. My dividend portfolio can be passed on to next of kin or given away to charity after I pass on. Dividend stocks are a gift that keeps on giving.

 

[SnakeRabbit]

Oh actually i don't really need the money. i'm just thinking if i free up 300$ per month I can put more into etf which I'm already DCA-ing. Which would be a better choice? Keeping the policy and wait for it to mature (15 years) or terminate now and tank the 3600$ loss then use money freed up to put into etfs?

Buying into ETF is the simple job, rebalancing + fighting your emotion is the battle you need to fight every few months.

 

[Reds1984]

Hi,

I am currently 35 years old and plan to retire in 30 years time. I have saved up a lump sum of $200 000 and on top of that I plan to invest $1000 every month to invest towards retirement.

I have calculated that to meet my investment objective I need reach a return of around 4.5 to 5% per annum.

My plan is use dollar cost averaging to invest my money into the following ETFs. The allocation of the portfolio I am planning for is as follows,

* 35% ES3
* 35% IWDA
* 10% Technology ETF (VGT,FTEC, IXN?)
* 20% A35

I intend to slowly invest my lump sum money of $200 000 over the span of 3 years. Which I calculated to be $5555 per month over the next 36 months on top of my monthly investment of $1000. Do you think it is a good idea?

However I would like to seek some views about the ETF selection, do you think it is a good idea invest in Technology ETFs such as VGT or FTEC or IXN, my intention for investing in technology ETFs is because I think it is the upcoming things for the next 20 to 30 years and I hope to use it boost my returns. Or do you think it will be better to allocate it to invest in a S&P 500 ETFs?

Lastly, I would like to find out how should I craft out my exit plan eventually when I reach closer to my retirement age. Is there a website or books or guideline?