*Official* Shiny Things club - Part 2

[Thoreldan]

CPF might be growing lesser if housing loans need to be paid. I see that we might need to top up CPF if there is imbalance. But for young adult, they will have more CPF than stocks in the beginning stage. What do you think?

Dont get a too expensive property i guess.



I do the following to grow my 'bond' component:
1. 7k to SA annually for tax rebate
2. top up MA to cap beginning of each year, so that excess MA will flow to SA each month nicely. (MA interest will flow to SA at the end of the yr too)
3. OA to SA transfer for additional interest. (i have cleared my housing loan)


of course 1&3 not possible once FRS is hit.

 

[Trader11]

Dont get a too expensive property i guess.



I do the following to grow my 'bond' component:
1. 7k to SA annually for tax rebate
2. top up MA to cap beginning of each year, so that excess MA will flow to SA each month nicely. (MA interest will flow to SA at the end of the yr too)
3. OA to SA transfer for additional interest. (i have cleared my housing loan)


of course 1&3 possible once FRS is hit.

If don't mind, how old are you now?

 

[Thoreldan]

If don't mind, how old are you now?

haha 40 uncle here

 

[Trader11]

haha 40 uncle here

Wah okay. I am under 40

 

[Han Shot First]

How is MBKE MIP better than POSB InvestSaver (for small investor)?

 

[ehsevol]

Should I go with MBH, SSB or stick to A35 on POSB if I intend to keep my bond allocation to 10%? It should be 20% because of my age but I'll use my CPF-SA as part of the bond allocation. The bond component was always the most confusing to me

 

[jacky817]

Hi ST, sry if this has been asked before. How do you find Stashaway? Other than the 0.2-0.8% that they'll eat away from you, it seems pretty suitable for people who just wana buy one fund all the way? As far as financially not-bothered-people go, it seems to me that this is one of the better options?

 

[Ilovemathstutor]

hi ST,

a couple of beginner questions to a trade vet...

1. how do u find High Frequency Trading, is it a win only outcome?
Have u dabbled in this?

2. I remember that you mentioned options and crypto are in your realm, so have options and crypto been overall profitable to you?

3. is trading / investing an overall life-changing activity that can free us from active income? Or do you advise against that, as it means undertaking a huge element of risk?

4. Do you agree with the following? I found short term trading a under-performance activity as it means I leave a lot on the table for magnificient companies. The best way to capitalise on them seems to be to buy & forget.

kindly let me know your thoughts on the above, thanks as usual!

 

[Calpha K]

One way would be to create an account with POEMS or DollarDex and set up an RSP into one of these two unit trusts: "Lion Global Infinity Global Stock Index Fund" or "Lion Global All Seasons Fund (Growth)". Each time you reach US$4000, redeem everything and purchase IWDA through the SCB platform.

What's the rationale for this instead of just pumping it into Iwda straight

 

[Calpha K]

To BBCW,

The cheapest Term plan is offered by NTUC Income to date.

What about the health insurance that you so advocate? We are talking about Integrated Shield Plan here right, do correct me if I'm wrong. Which would you recommend?

Also, the DII that you advocate as well, is already covered by the CPF/Singapore Government, is it not?

 

[Calpha K]

Hi everyone,

Read somewhere that one should only put 10%net worth into offshore accounts. Going with this line, we all advocate the IBKR route, but how much does one actually save, let's say to get to US100k?

Since IBKR is not MAS regulated, is it rationally sound risking the entire portfolio for a couple hundred bucks?

Especially so given the nature of DCA, trading fees incurred would not rack up as much as active trading anyway.

We all talk about DCA in this thread, minimizing risks, preserving wealth so on. but why then do we seem to neglect this big (relative) risk?

Thoughts~?

 

[tangent314]

What's the rationale for this instead of just pumping it into Iwda straight

Minimum commission for SCB brokerage is US$10 per transaction before forex. If you want to pump into IWDA every month, then you should be using IBKR instead, and pay US$10 per month which covers the forex.


By using the unit trust as an intermediary, you buffer up until you have US$4000 to reach the US$10 minimum commission before purchasing the IWDA. You do lose a little from the higher TER for the period that the amount that is held in the UT, that would be $4000 / 2 * (.82% - .2%) = ~US$12.4 per year

 

[tangent314]

Anyone else use CPF as a bond?

I use my CPF as my bond component, and I don't care that this will mean I'm holding too much bonds. CPF OA/SA are good bonds. Just make sure everything outside of CPF (i.e. cash and SRS) are in equities.

 

[limster]

I use my CPF as my bond component, and I don't care that this will mean I'm holding too much bonds. CPF OA/SA are good bonds. Just make sure everything outside of CPF (i.e. cash and SRS) are in equities.

i would rather have a % allocation then to say everything that is not CPF should be equities....

 

[tangent314]

In that case your best option is to CPFIS-OA into ES3

 

[BBCWatcher]

The cheapest Term plan is offered by NTUC Income to date.

What about the health insurance that you so advocate? We are talking about Integrated Shield Plan here right, do correct me if I'm wrong. Which would you recommend?

Given that the premiums aren't guaranteed I don't think you should take minor premium differences into consideration. They could vanish quickly.

Which do I recommend? "It depends." Oversimplifying only slightly, for citizens I suggest Great Eastern's SupremeHealth B PLUS as a reasonable baseline. If you have covered all genuine insurance necessities and want to splurge, you could buy something more expensive (and with more benefits), but that particular plan is a nice baseline -- currently best in its class (designed for public hospital B1 ward coverage).

The baseline (non-luxury) coverage for foreigners and PRs is probably a choice between Prudential's PRUshield Plus, Raffles Shield A, and AXA Shield Plan B. These three plans are bunched close together and very competitive with one another.

Foreigners probably ought to buy the lowest cost rider that caps their annual expenses for covered services unless they have employer-provided coverage that fills such gaps pretty well. For citizens and PRs, the lowest cost rider that caps annual expenses for covered services could have merit, but citizens and PRs with significant wealth, fat MediSave balances, and/or employer-provided coverage could probably skip the rider.

Also, the DII that you advocate as well, is already covered by the CPF/Singapore Government, is it not?

No, not really. There's ComCare, but you definitely won't enjoy living on ComCare as your sole or primary source of income even if you did qualify. (It's quite tough to qualify.) CareShield Life will be compulsory for younger cohorts sometime this year, but CSL is only for profound disability ("3 out of 6 ADLs") and also a very low amount of income (but more than ComCare). DII is really, really important stuff for most working people.

 

[Ilovemathstutor]

Given that the premiums aren't guaranteed I don't think you should take minor premium differences into consideration. They could vanish quickly.

Which do I recommend? "It depends." Oversimplifying only slightly, for citizens I suggest Great Eastern's SupremeHealth B PLUS as a reasonable baseline. If you have covered all genuine insurance necessities and want to splurge, you could buy something more expensive (and with more benefits), but that particular plan is a nice baseline -- currently best in its class (designed for public hospital B1 ward coverage).

The baseline (non-luxury) coverage for foreigners and PRs is probably a choice between Prudential's PRUshield Plus, Raffles Shield A, and AXA Shield Plan B. These three plans are bunched close together and very competitive with one another.

Foreigners probably ought to buy the lowest cost rider that caps their annual expenses for covered services unless they have employer-provided coverage that fills such gaps pretty well. For citizens and PRs, the lowest cost rider that caps annual expenses for covered services could have merit, but citizens and PRs with significant wealth, fat MediSave balances, and/or employer-provided coverage could probably skip the rider.


No, not really. There's ComCare, but you definitely won't enjoy living on ComCare as your sole or primary source of income even if you did qualify. (It's quite tough to qualify.) CareShield Life will be compulsory for younger cohorts sometime this year, but CSL is only for profound disability ("3 out of 6 ADLs") and also a very low amount of income (but more than ComCare). DII is really, really important stuff for most working people.

err... aviva saf is the cheapest term insurance as long as u did your NS or your spouse did his NS.

the rest don't come close.

 

[Han Shot First]

One way would be to create an account with POEMS or DollarDex and set up an RSP into one of these two unit trusts: "Lion Global Infinity Global Stock Index Fund" or "Lion Global All Seasons Fund (Growth)". Each time you reach US$4000, redeem everything and purchase IWDA through the SCB platform.

Interesting strategy for small investor. But it applies only for SCB and not for IBKR, right?

Accumulating "Lion Global Infinity Global Stock Index Fund" units first (a UT tracking MSCI World Index) and after the threshold of US$4,000 is reached, redeeming the UT to buy IWDA (an ETF tracking MSCI World Index). I think I understand the rationale because the UT and ETF track the same index.

However, what about your alternative recommended UT of "Lion Global All Seasons Fund (Growth)"? Why use this UT if it does not track the same index as the ETF?

 

[BBCWatcher]

err... aviva saf is the cheapest term insurance as long as u did your NS or your spouse did his NS.
the rest don't come close.

I don't think Aviva sells its Integrated Shield plans through that program (MINDEF and MHA Group).

There is a Disability Income Insurance (DII) rider available through Aviva's MINDEF/MHA Group Insurance program. And you're quite right, it does have the lowest premium among DII policies offered in Singapore. But it's also (overall) the lowest quality DII policy offered in Singapore, meaning that the policy terms and conditions are generally the most restrictive.

I'd say it this way. If the choice is between no DII policy and this Aviva MINDEF/MHA DII policy, obviously the latter is best. However, I still think you ought to shop around and closely compare the policy letters (T&Cs). You might even decide to buy some of Aviva's MINDEF/MHA DII policy but also get some DII coverage from other insurer, such as Great Eastern. Yes, it is possible to buy DII coverage from two carriers as long as you're insuring within insurable limits.

 

[Ilovemathstutor]

I don't think Aviva sells its Integrated Shield plans through that program (MINDEF and MHA Group).

There is a Disability Income Insurance (DII) rider available through Aviva's MINDEF/MHA Group Insurance program. And you're quite right, it does have the lowest premium among DII policies offered in Singapore. But it's also (overall) the lowest quality DII policy offered in Singapore, meaning that the policy terms and conditions are generally the most restrictive.

I'd say it this way. If the choice is between no DII policy and this Aviva MINDEF/MHA DII policy, obviously the latter is best. However, I still think you ought to shop around and closely compare the policy letters (T&Cs). You might even decide to buy some of Aviva's MINDEF/MHA DII policy but also get some DII coverage from other insurer, such as Great Eastern. Yes, it is possible to buy DII coverage from two carriers as long as you're insuring within insurable limits.

sorry, I thought we were talking about term insurance.

if integrated shield plan, then one should get the most comprehensive one which doesn't change at AIA.

the rest are flip floppers and it's penny-wise to save on hospitalisation insurance.

AIA was the only one that didn't change at the recent policy fine-tuning.
they stuck to what they promise their clients.

Not the rest.