*Official* Shiny Things club - Part 2

[smart alex]

I've had an IB account for six or seven years now; I use it for the vast majority of my net worth.



That's just because US stocks have outperformed the rest of IWDA's universe over the last five years, and that may not (in fact, probably won't) continue.

In term of tax, does both IWDA and VUSD pay the amount of tax?

 

[FinalDestiny...]

Some FA's argument against BTIR

FB link

Found this particular logic quite funny - "Used correctly the lousiest product still have a reason for its existence". It is more like existence for people to profit from others

 

[Shiny Things]

There’s another “fun” story in Singapore’s shorter financial history: Pan-Electric, in 1985. The Pan-Electric collapse was so catastrophic that trading on the whole SES (SGX predecessor) was suspended for three days back in November, 1985!

This is seriously fascinating. I honestly thought I was a connoisseur of market scandal stories (ask me about the National Australia Bank options fiasco of 2003-04!), but I'd never heard of Pan-Electric before, and it seems to have sunk almost without trace in the annals of stockmarket disasters. There's a couple of pieces about it in the archives of the Gray Lady, which are worth a read.

My local public library's got the Wall Street Journal on microfilm back to the late 50s, so there might be some juicy stuff in there as well; I'll have a look when I get some free time next.

 

[Shiny Things]

In term of tax, does both IWDA and VUSD pay the amount of tax?

Yes. They both pay the same amount of tax on their US-sourced dividends (the treaty-advantaged rate of 15%, instead of the 30% that you'd pay if you held the underlying US shares directly).

 

[JuniorLion]

Some FA's argument against BTIR

FB link

Found this particular logic quite funny - "Used correctly the lousiest product still have a reason for its existence". It is more like existence for people to profit from others

That guy is a noob, and he uses wrong figures in his comparison to distort his conclusion.

 

[duhZduhZ]

Hi all, i have been investing small into g3b for some months with posb investsaver. The buying fee is 0.84%, with no selling fee as of now.

But i am thinking to use dbs vickers cash upfront to buy es3 (lump sum 5k every 2 yrs?). Buying fee is only 0.12% (min $10). I understand the shares will be held with cdp, so when i need to sell, i will need to find one brokerage to sell it. Selling fee will be at 0.28% (min $25).

Long term wise, seems like dbs vickers cash upfront is better right?

 

[BBCWatcher]

Hi all, i have been investing small into g3b for some months with posb investsaver. The buying fee is 0.84%, with no selling fee as of now.

But i am thinking to use dbs vickers cash upfront to buy es3 (lump sum 5k every 2 yrs?). Buying fee is only 0.12% (min $10). I understand the shares will be held with cdp, so when i need to sell, i will need to find one brokerage to sell it. Selling fee will be at 0.28% (min $25).

Long term wise, seems like dbs vickers cash upfront is better right?

No, probably not.

The reason you’re investing in G3B (or ES3) is for long-term higher returns. Otherwise you wouldn’t be doing it. Delaying your investments, especially so significantly, has a cost. The cost is the difference between what your dollars yield elsewhere (in a bank account, for example) and what they yield, on average, invested in the STI shares — while they remain uninvested for as many as 23 months. ($5K per 2 years suggests you’re currently at a $200/month pace into G3B via POSB Invest-Saver.) That cost is compounded, meaning the loss is compounded.

The calculation for this is a little complicated, but basically you’d take 23 months worth of $200 and estimate the difference in yield I’ve just described. Let’s suppose you expect the STI stocks to yield 4% on average and your bank account yields 1% on average. That’s a 3% gap, which translates into about 0.25% per month. (I picked some deliberately easier numbers here.) So delaying $200 by one month costs about 50 cents. Delaying $200 by 23 months costs about $11.50 (23 times 50 cents). Add up all those “delay fees” ($200 delayed by 1 month, $200 delayed by 2 months, etc.) and it’s pretty substantial. To repeat, this calculation is approximate — “good enough” to get the idea.

 

[smart alex]

Hi all, i have been investing small into g3b for some months with posb investsaver. The buying fee is 0.84%, with no selling fee as of now.

But i am thinking to use dbs vickers cash upfront to buy es3 (lump sum 5k every 2 yrs?). Buying fee is only 0.12% (min $10). I understand the shares will be held with cdp, so when i need to sell, i will need to find one brokerage to sell it. Selling fee will be at 0.28% (min $25).

Long term wise, seems like dbs vickers cash upfront is better right?

I think G3B is good enough, and no selling fee is a bonus

The transaction fee will be return in a form of cashback in paylah!

Each eligible Customer is entitled to a full rebate of sales charge for all Unit Trust transactions done via Internet Banking during the Promotional Period, capped at S$125 cashback per RSP per quarter.

https://www.posb.com.sg/personal/promotion/investing-in-unit-trust

 

[BBCWatcher]

Should I sell my HDB and buy a much cheaper HDB or even rent ?

Interesting question.

There are a several possible ways to play this:

1. Some people move out, live in (usually more modest) rental housing elsewhere, and rent their entire HDB unit. If the rental yield on the HDB unit is attractive enough (net of costs, including income tax), then that equation might work. They can change their minds and move back, of course, when the tenants’ lease is up.

2. Some people have a HDB unit that’s too big in the circumstances, so they rent out one room to generate some returns.

3. Some people exchange units for something more appropriately sized, often in favor of a longer leasehold (a leasehold “reset”), especially if they have children who might live in the unit in the future. Or trade for a shorter leasehold/differently sized unit that’s still plenty long enough to cover their entire lives.

4. Some people sell the unit outright and live in rental housing elsewhere.

5. Some people use the HDB Lease Buyback Scheme if they qualify.

6. Some people live in another country with more affordable housing.

7. Some people stay put but remodel.

8. A few of the options above are combinable.

Deciding between these options, and the status quo, isn’t necessarily purely a financial exercise.

 

[Trader11]

No discussion on markets? Is it wise to DCA into ETFs where the market is falling and turning bearish?

 

[Thoreldan]

No discussion on markets? Is it wise to DCA into ETFs where the market is falling and turning bearish?

Isn't that the beauty of dca ?

Buy less when it's expensive and more when it's cheaper.

I see it as an opportunity to accumulate more.

 

[Geeezz]

This is seriously fascinating. I honestly thought I was a connoisseur of market scandal stories (ask me about the National Australia Bank options fiasco of 2003-04!), but I'd never heard of Pan-Electric before, and it seems to have sunk almost without trace in the annals of stockmarket disasters. There's a couple of pieces about it in the archives of the Gray Lady, which are worth a read.

My local public library's got the Wall Street Journal on microfilm back to the late 50s, so there might be some juicy stuff in there as well; I'll have a look when I get some free time next.

since u requested what’s with nab option fiasco?

 

[skywander]

I've just been checking out the other brokers other than SCB. It looks like FSMOne is charging 0.08% and no custody fees for SGX stocks. Is it a better option than SCB which charges 0.20%?

As far as I can tell for FSMOne SGX stock trading:
- Flat 0.08% fee $10 minimum
- No custody fees
- No platform fees
- No activity fees
- Although the default is custodian account, looks like they can transfer to your CDP account for free (fees waived until further notice)

Did I miss anything out?

 

[BBCWatcher]

It looks like FSMOne is charging 0.08% and no custody fees for SGX stocks. Is it a better option than SCB which charges 0.20%?

Only if the $10 minimum commission doesn't apply, i.e. if the trade is at or below $5,000. (0.20% of $5,000 is $10.) If the minimum commission applies, then they're the same.

For the record, CIMB Securities on a cash upfront basis has a minimum commission of $8, which seems to be the current lowest minimum among brokers in Singapore for SGX-listed stuff, except for the $0 minimum (but higher percentages) with the monthly investment plans (e.g. POSB Invest-Saver). CIMB Securities is a CDP broker, so anything you buy should be automatically stored there. Their commission is otherwise 0.18%, so for SGX buys at or below $5,555 they win. (0.18% of $5,555 is very slightly less than $10, the minimum elsewhere.) CIMB Securities would still beat Standard Chartered on every SGX buy (0.18% is less than 0.20%), but FSMOne is less expensive for SGX buys above $5,555.

Some people qualify for Standard Chartered's higher tier of banking, and they may then also qualify for commission discounts. If so, that puts Standard Chartered back in the game.

 

[bin8lee]

Guys,

Should I sell my HDB and buy a much cheaper HDB or even rent ?
If only I'm 55 and could have bought a flexi flat.

Proceeds will be reinvested into an actual investment (IWDA, reits etc) as opposed to a guaranteed zero /depreciating HDB. Might consider freehold property given the right conditions.

I calculated/estimated the IRR of a HDB to be about 3.3 percent to 3.5% or worse from now on.-Can someone confirm the IRR ?

What are your thoughts about the HDB flat, after all I have always perceive anything of monetary value is an investment as long the cash flow warrants the expected rate of return which the HDB flat, given its risk is not justifying.

Thanks guys

Currently. the price for older HDB flat is low.

 

[limster]

FSMone has a 3 free trades promotion for ES3/MBH/etc till 31 May 2019. Good timing if stocks are on sale

 

[revhappy]

FSMone has a 3 free trades promotion for ES3/MBH/etc till 31 May 2019. Good timing if stocks are on sale

What are you buying?

 

[skywander]

So it looks like FSMOne is good for trades up to $12,500 which hits the $10 minimum, while SCB vanilla flavor is $5,000 at $10 minimum.

I do like the idea of (temporarily) free CDP transfers as an extra though.

 

[dumbriyani]

Anyone has any recommendations for tracking stock returns (app or software). For IWDA would be simple enough with a excel but if there are dividends being returned then excel maybe more tedious..

 

[skywander]

Anyone has any recommendations for tracking stock returns (app or software). For IWDA would be simple enough with a excel but if there are dividends being returned then excel maybe more tedious..

I use Sharesight