*Official* Shiny Things club - Part 2

[zhane]

If you’re doing really anything monthly (such as buying IWDA), Interactive Brokers (IB) will win the cost contest. At relatively low (and lower) dollar amounts into a single vehicle on a bimonthly, quarterly, or some other less than monthly basis, Standard Chartered or possibly a unit trust (e.g. Lion Global’s “Infinity” unit trust via POEMS or DollarDex) will be more cost efficient than IB...until you get to a total account value of US$100,000 at IB.

if dont foresee ever hitting 100k usd, shld juz keep to scb?

 

[smart alex]

if dont foresee ever hitting 100k usd, shld juz keep to scb?

just slowly accumulate till u hit US10,0000

it is achieveable actually

 

[BBCWatcher]

IBKR need US$100,000 to waive off monthly charge
so it is actually for rich people

Ah, no.

It’s for those who have a total account balance of at least US$100,000 OR those who are doing anything (such as buying IWDA) at least monthly.

 

[limster]

IBKR need US$100,000 to waive off monthly charge

so it is actually for rich people

middle class can easily have US$100k portfolio, rich people you are talking about 7 figures

you can read "Millionaire Next Door" to understand how people with perfectly normal jobs can become millionaires.

Focus on reducing your spending and increasing your skillset and therefore your income, if $100k is currently out of reach for you, and don't spend so much time in internet forums.

 

[BBCWatcher]

middle class can easily have US$100k portfolio, rich people you are talking about 7 figures

For reference, according to Credit Suisse median per capita (per adult) wealth in Singapore in 2017 was US$91,656.

 

[crystalnox]

IBKR need US$100,000 to waive off monthly charge

so it is actually for rich people

100K not even enough for priority banking at a lot of banks here.

They just want to target active traders and keep out the buy and hold types because cannot earn commission from them.

 

[tangent314]

If I already have GB3 via POSB invest saver as well as IWDA through SCB. Should I add a robo advisor stashaway to the mix? I see some getting very good returns on stashaway...

Stashaway already invests in the same things and charge you 0.5% per year to do it for you, so there's no point in doing that unless you like giving money away to Stashaway. Your returns will already be slightly higher than Stashaway's "good returns"

 

[Ilovemathstutor]

hi ST,

if a company raises cash through convertible bonds and states this for the cash raised...

The convertible bonds can be converted into shares @ $100/share by say 2030.

Say the stock is $1 now, does it mean that the above means this stock has a chance of being a $100 stock by 2030? (if the bond holders choose to convert their bonds to shares)

is that correct?


thanks in advance!

 

[ttxqq1]

Hi, I'm new to investment and been reading this thread for awhile. I still don't really get it.
I've lump sum of 40k planning to split between IWDA, ES3 and MBH for 6months. I'm able to DCA $1000 IWDA, $200 ES3, $100 MBH every month. I understand using IB is better than SCB for IWDA. Do I invest monthly or quarterly for lesser transaction fee? USD$10 per month activity fee + transaction fee? (Can someone explain the fee? Don't quite get it)**
For ES3 and MBH which platform is better? Is doing quarterly or monthly a better choice? Since I want to avoid transaction charger as much as possible.

 

[wannabelazy]

In Rich by Retirement, Shiny suggests a target of $1m as a retirement goal. But this target is expressed in terms of $1m of today's dollars, is that right?

So if say we assume inflation of 2%, and an investment horizon of 30 years, the equivalent of $1m of today's dollars' worth of purchasing power would be $1.8m. If inflation is 3%, that number goes up to $2.5m.

So we'd actually have to aim a little higher, or risk ending up with, say, $540k instead of our "$1m". Am I getting the maths right?

 

[Hopeful33]

Ah, no.

It’s for those who have a total account balance of at least US$100,000 OR those who are doing anything (such as buying IWDA) at least monthly.

Hi, if I’m thinking of buying Iwda quarterly via scb for some years first. Then when the portfolio hits above us100K, transfer over to interactive Brokers. Is this method sensible?

Also, what’s the commission for purchasing iwda via scb? Thanks.

 

[smart alex]

Hi, if I’m thinking of buying Iwda quarterly via scb for some years first. Then when the portfolio hits above us100K, transfer over to interactive Brokers. Is this method sensible?

Also, what’s the commission for purchasing iwda via scb? Thanks.

I plan to do something like that

 

[smart alex]

Ah, no.

It’s for those who have a total account balance of at least US$100,000 OR those who are doing anything (such as buying IWDA) at least monthly.

I rmb last time the rule is at least minimum US$100,000 to waive off the charge

did they change the rule recently?

 

[BBCWatcher]

Hi, if I’m thinking of buying Iwda quarterly via scb for some years first. Then when the portfolio hits above us100K, transfer over to interactive Brokers. Is this method sensible?

Maybe, maybe not. You’ll need to calculate what the total costs would be in both scenarios and compare them. If you’re delaying 2 out of 3 of your purchases of IWDA, there’s a cost to that in terms of average lost gain. (Otherwise you wouldn’t be buying IWDA.)

For example, let’s assume for sake of argument that IWDA will perform 6%/year better, on average, than funds in your bank account (source funds). If you have quarterly instead of monthly buys, then one third of your purchases will lose two months of gains, and one third will lose one month of gains. Let’s suppose you’re buying S$3,000 per quarter (what would otherwise be S$1,000 per month). So your annual “opportunity” loss is:

S$1,000 * 4 quarters * 2 months of loss * 6% gain / 12 (per month) + S$1,000 * 4 quarters * 1 month of loss * 6% gain / 12 (per month) =
S$60.

IB will definitely cost US$120 per year in this scenario (S$1,000/month into IWDA), including currency conversion. If Standard Chartered charges 0.5% for the currency conversion (yes, about right) and US$10 for the trade (which we’ll treat as S$14), then your fees are:

S$12,000 per year * 0.5% conversion + S$14 * 4 = S$116

plus the lost opportunity cost (S$60) = S$176

S$176 converted back into U.S. dollars is ... slightly more than US$120. IB wins in this scenario and with these assumptions.

Do your own calculation, but frequently Interactive Brokers wins these comparisons.

Also, what’s the commission for purchasing iwda via scb?

Usually minimum commission (US$10) plus the higher currency conversion cost; potentially higher if you’re buying enough IWDA.

I rmb last time the rule is at least minimum US$100,000 to waive off the charge
did they change the rule recently?

No, but the US$10 minimum (age 26 and above) is often also the maximum for long-term investors, unless you’re a pretty big whale or bigger.

 

[BBCWatcher]

Actually, for low dollar per month investing/just starting out, you may be better off buying Lion Global’s Infinity global stock index unit trust via POEMS or DollarDex. There’s no cost to get into that unit trust through those platforms, but the annual expense ratio is about 0.62 percentage points higher than IWDA’s, it looks like. That cost structure is going to work better over the first several thousands of dollars, maybe couple tens of thousands.

 

[SpeedingBullet]

I follow Ray Dalio & Buffett early days strategy in stocks trading, but stocks easy to long but difficult & costly to short. I remember somebody here mentioned can short using stock futures (is it ervino?). Is this the only way & best way?

Short selling is an art and timing is key. The latter is what determines your return - you could have a sound thesis on a stock, but the market will choose to ignore your thesis and push the stock higher until you get a margin call or the interest costs itself buries you.

There are only a handful of highly successful short sellers, and even they only pick battles they know they can win and at the right time.

If you're talking about shorting something to hedge a long position for a market neutral position, then it's an entirely different ballgame but that too has its risks.

 

[Geeezz]

hi ST,

if a company raises cash through convertible bonds and states this for the cash raised...

The convertible bonds can be converted into shares @ $100/share by say 2030.

Say the stock is $1 now, does it mean that the above means this stock has a chance of being a $100 stock by 2030? (if the bond holders choose to convert their bonds to shares)

is that correct?


thanks in advance!

it doesn’t work that way. it just means that in 2030 u hv an option to get at 100 per share. if the mkt price then is below 100 it doesn’t make sense to use the option. if the mkt price then is above 100 that is whr this option comes in

 

[Geeezz]

In Rich by Retirement, Shiny suggests a target of $1m as a retirement goal. But this target is expressed in terms of $1m of today's dollars, is that right?

So if say we assume inflation of 2%, and an investment horizon of 30 years, the equivalent of $1m of today's dollars' worth of purchasing power would be $1.8m. If inflation is 3%, that number goes up to $2.5m.

So we'd actually have to aim a little higher, or risk ending up with, say, $540k instead of our "$1m". Am I getting the maths right?

i would nt say aim a little higher in monetary value but aim to hv returns abv the inflation rate. generally in sg, the targeted rate is ard 2% to be safe aim a return of at least 2.5%(cpf oa) the good thing with this is that after u achieve say 1m, ur buying power will be protected frm inflation.

 

[peipei1]

Hey all, look at lse website for iwda and eimi, somebody sold usd9.6m of iwda and usd68m of eimi, last Friday before market close and offbook! Today market is going to crash after Trump twit! This is insider manipulation??? Can still invest long iwda and eimi?

 

[pmstudent]

Can still invest long iwda and eimi?

LOL, no, we no longer can long IWDA and EIMI, because of insider manipulation.