*Official* Shiny Things club - Part 2

[Thoreldan]

I think this has been mentioned before, but not exactly the same as my situation:
If I am already purchasing ES3 and IWDA regularly, does it make sense to participate in my employer's stock purchase plan? There is no discount but it is capital guaranteed.

How does the stock purchase plan work ?
Can you keep the investment if you're leaving the company ?

 

[eD1s0n]

How does the stock purchase plan work ?
Can you keep the investment if you're leaving the company ?

deduct a fixed amount from salary every month. After 24 months will transfer the equivalent amount of shares to CDP. If leave before that, they will refund the money+interest

 

[hwckhs]

There is no discount but it is capital guaranteed.

How does the capital guarantee work?

 

[bullshitregister]

deduct a fixed amount from salary every month. After 24 months will transfer the equivalent amount of shares to CDP. If leave before that, they will refund the money+interest

How do they account for share price movements during the 24 months?

Why not you just use the amount they deduct to go and buy the share yourself?

 

[eD1s0n]

How does the capital guarantee work?

The acquiring price is declared at the start of the programme. After 24 months if the share price is lower than the acquiring price then they will give option to refund the monthly contribution+ interest

 

[eD1s0n]

How do they account for share price movements during the 24 months?

Why not you just use the amount they deduct to go and buy the share yourself?

Capital guarantee mah

 

[ah_teck81]

Hi all,

I would like to buy IWDA monthly to build my portfolio.
Where can I do that with minimum fees?
How much I should buy monthly?
I tried POEMS but I cannot find IWDA under their RSP.

 

[eD1s0n]

Hi all,

I would like to buy IWDA monthly to build my portfolio.
Where can I do that with minimum fees?
How much I should buy monthly?
I tried POEMS but I cannot find IWDA under their RSP.

Don't think any offer as RSP. Have to manual buy.

 

[ah_teck81]

Don't think any offer as RSP. Have to manual buy.

Thanks for your response.
Where can I manually buy IWDA with minimum fees?
I am planning to allocate around SGD 500 monthly to build up this portfolio.

 

[ehsevol]

Applied for MKE MIP a few days ago, just received a call from CSO saying that the program will be suspended indefinitely so they will not be going ahead with the application. News not made official yet but announced internally yesterday morning

What's the next best way to purchase MBH?

 

[eD1s0n]

Thanks for your response.
Where can I manually buy IWDA with minimum fees?
I am planning to allocate around SGD 500 monthly to build up this portfolio.

According to the pros in this thread, 500 monthly should be SCB cheapest. 1000+ then Interactive Brokers

 

[justwakeup]

Applied for MKE MIP a few days ago, just received a call from CSO saying that the program will be suspended indefinitely so they will not be going ahead with the application. News not made official yet but announced internally yesterday morning

What's the next best way to purchase MBH?

Huh? You mean MIP suspended indefinitely?

 

[eD1s0n]

I prefer invest through DBS, many currencies supported & USD can put in FD earn 3% pa (when not invested).

DBS I tot overseas counter have custodian fee? Vickers still ok. The treasures one is baaaadd

 

[hwckhs]

deduct a fixed amount from salary every month. After 24 months will transfer the equivalent amount of shares to CDP. If leave before that, they will refund the money+interest

The acquiring price is declared at the start of the programme. After 24 months if the share price is lower than the acquiring price then they will give option to refund the monthly contribution+ interest

1. Correct me if I am wrong, it sounds like once the shares are transferred to your CDP, you are subject to capital loss just like any other shareholder? The capital guarantee is overrated if it is only for 24 months.

2. 24 months seems so long. Do you get dividends during that 24 months? If not, then this is worse off than a normal shareholder.

3. What interest is your company giving? Savings account type interest, or FD, SSB-type interest? There may be opportunity cost, if you had invested in better performing alternatives (eg. bonds/stocks/ETF).

4. Ask yourself, would you buy/hold your company stock if you were not an employee?

5. What is your exit strategy once you get the shares? Hold forever? Or sell when price is good? Do you know how to judge when the price is good enough (has peaked)?

6. I think the worst case scenario will be if the share price stays flat. For example, if you bought at $1/share and after 24 months, it is still $1/share, what would you do?

7. Do you already have a long term investment plan, like the one suggested by ST? If you do, I will just keep doing that. If you bought MBH, ES3 and IWDA as suggested by ST, and if your company is a component of STI, you would have gained from the upside of your company stock as well.

Personally, I don't find capital-guarantee for 24 months is attractive at all. It would be a different story if you bought the shares at discount. In that case, there will be guaranteed profit, and I would sell immediately whenever I get the shares.

 

[tangent314]

I would like to buy IWDA monthly to build my portfolio.
Where can I do that with minimum fees?
How much I should buy monthly?
I tried POEMS but I cannot find IWDA under their RSP.

IWDA is listed on the London Stocks Exchange, so none of the locally available RSPs can support that. You will have to purchase this manually, and depending on how much you want to purchase and how often, the recommended brokers are IBKR or SCB.

If you really need to RSP, a decent alternative with higher annual management fees is to use one of these two unit trusts from Lion Global: All Seasons Fund (Growth) or Infinity Global Stock Index Fund. Buy these through either POEMS or DollarDex.

 

[tangent314]

I think this has been mentioned before, but not exactly the same as my situation:
If I am already purchasing ES3 and IWDA regularly, does it make sense to participate in my employer's stock purchase plan? There is no discount but it is capital guaranteed.

Unless there is a significant discount, ST has been telling people not to invest in their own company stocks, because if something happens to the company you end up being doubly screwed, losing both your job and your savings.

 

[Nesplex]

Applied for MKE MIP a few days ago, just received a call from CSO saying that the program will be suspended indefinitely so they will not be going ahead with the application. News not made official yet but announced internally yesterday morning

What's the next best way to purchase MBH?

Don’t think existing Maybank MIP users are informed yet.

 

[intime]

Don’t think existing Maybank MIP users are informed yet.

I also didnt receive any news on it.
I heavily depend on it. Hopefully they don't cancel their MIP programme.

 

[engineergirl]

Hi shiny things

May I know your thoughts about astrea bonds ?
Seems like a good way to make up the bond component
Thank you

 

[ehsevol]

Huh? You mean MIP suspended indefinitely?

Going to be suspended indefinitely, that's what I was told