*Official* Shiny Things club - Part 2

[Shiny Things]

Does anyone know why the historical prices for IWDA are wrong on yahoo finance except for the last day?

See below on the chart, if you select something else than 1D, then the chart shows prices like 4700 USD

That means they're confusing the GBP listing (which is listed in pence) with the USD listing (which is listed in US dollars). It's a data problem.

 

[Prof. Utonium]

The former.

In that case do I take into account of the distribution charges too?

Let's say the lump sum paid is X amount. TDC is Y. So I will input in my portfolio sheet as X-Y to get the present value?

Would that be a better presentation of my current networth/portfolio?

Thanks!

 

[KeytoFreedom]

Hello, what should I buy using SRS - should be ok to buy G3B/ES3, A35/MBH ? But cannot buy IWDA ?

Sent from OnePlus ONEPLUS A5010 using GAGT

 

[BBCWatcher]

In that case do I take into account of the distribution charges too?

Let's say the lump sum paid is X amount. TDC is Y. So I will input in my portfolio sheet as X-Y to get the present value?

Would that be a better presentation of my current networth/portfolio?

Your current financial net worth would be calculated based on the current surrender value of the plan.

For purposes of calculating your current portfolio allocation you can be a little more forgiving if you wish. Specifically, let's suppose the insurer's guaranteed maturity value is $10,900, the guaranteed return equates to $100 per year, and the plan has 9 years to run until maturity. So for portfolio allocation purposes you can evaluate it at $10,000 today, $10,100 next year, $10,200 the year after that, and so on. If a non-guaranteed return actually becomes real (credited, realized), you can adjust. The surrender value could be below, even well below, these figures, but as long as you're committed to keeping the plan until maturity, for portfolio allocation purposes what I describe seems reasonable.

Don't tie yourself in knots over this, though. Being approximately in sync with your own portfolio allocation targets is more than good enough.

 

[Prof. Utonium]

I see, got it then.

Will base on approximate value then for my retirement portfolio so as not to be too stressed out in the details.

 

[Wonderer haha]

Hello, what should I buy using SRS - should be ok to buy G3B/ES3, A35/MBH ? But cannot buy IWDA ?

Sent from OnePlus ONEPLUS A5010 using GAGT

https://www.ifaq.gov.sg/mof/apps/fc...j7pNcJy0hw5+9anIlUGaDHPfBwUY4tJTT4Y=#FAQ_1463

 

[ftpofmpo]

how do we buy puts to short the local market?

 

[Shiny Things]

Would you place your annuity plan (lump sum paid) under bond component (using guaranteed interest) or leave it out entirely from your portfolio?

I wouldn't take out annuities in the first place (I reckon you can do better with bond ETFs), but if you've already got one, then yes, treat it like a bond.

how do we buy puts to short the local market?

I mean, first thing, are you sure you know what you're doing? Why do you want to short the Singapore market? And why do you want to do it via options?

That said, just eyeballing it real quick... for whatever weird reason, the landscape of Singapore index options is really not great!

You've got:

• The MSCI Singapore index options on the SGX, which do literally zero volume;
• Options on EWS, which has very little open interest except in the November series;
• There's actually a couple of STI index put warrants listed on the SGX, but the vol is horrifically expensive—you're going to be paying 22 or 24 vol for something that really only trades about 15 vol.

What are the updates between the second edition and third edition of Rich By Retirement? Worth to buy another copy?

I've updated a lot of the charts and data; updated the sections on bonds to talk about MBH... and, annoyingly, put a lot of work into talking about MBKE's Monthly Investment Program which they promptly cancelled. Can't win 'em all.

Is Singapore's swf temasek following the yale model more fervently than other prudent swf such as norway's?

I wouldn't say Temasek follows the Yale Model at all.

For anyone who's wondering what I'm talking about: the "Yale Model" was, for most of the 2000s and into the mid-2010s, the state-of-the-art in large endowment investing. Basically:
1) Diversify broadly across asset classes;
2) Aggressively trade off liquidity for returns (basically: use external fund managers to invest in alternative assets and private equity).

Both of these are relatively sensible by themselves, at least for an endowment with an infinite investment horizon (and access to higher-quality external fund managers; it doesn't make sense for individual investors to chase private-market returns because you'll never see any of the good private-market deals in the first place).

Temasek takes a different model. They chase the illiquidity premium by directly investing in unlisted companies (about 40% of their portfolio is unlisted), rather than by hiring external fund managers or investing in private-equity funds; and their portfolio is heavily concentrated in Singaporean equity (because Temasek was originally set up to manage the government's stakes in local companies).

Yale's portfolio is 75% in "alternatives" (hedge funds, VC, LBO funds, private equity); Temasek's portfolio is I think nearly 100% in equity, either listed or unlisted.

If an endowment called me in to consult for them, with parameters like those, I'd probably invite them to look at a model closer to Yale's (though maybe not quite so aggressive with their use of external managers).

 

[flowerpalms]

Yes definitely. $30~ for a lifetime man...the kind of book that you want to keep forever

And that if Shiny in the future decides to go for a fourth edition, i will gladly be the first to contribute to the crowdfund to allow shiny to gauge the interest with a latest edition book and fund extra work with the book.

What are the updates between the second edition and third edition of Rich By Retirement? Worth to buy another copy?

 

[evonne_chua]

Hi boss, I think I manage to buy IWDA after the trial yesterday I realise I always get rejected becos I nvr take the CAR test, after I click yes, and then I just "pass" the test

then I proceed to buy IWDA at $58.65

now is at loss I know

does it mean I manage to brought it?

One part I dun understand is, how come the money is not deducted from my USD securities account?

last check the balance is still 2850 USD, will it get deducted eventually?

 

[flowerpalms]

It takes some time for the deduction but not to worry since you have buy limit a few cents above the price. Remember "not more than" so even if the price moves you have already locked your buying price. All explanations are in the book though

Hi boss, I think I manage to buy IWDA after the trial yesterday I realise I always get rejected becos I nvr take the CAR test, after I click yes, and then I just "pass" the test

then I proceed to buy IWDA at $58.65

now is at loss I know

does it mean I manage to brought it?

One part I dun understand is, how come the money is not deducted from my USD securities account?

last check the balance is still 2850 USD, will it get deducted eventually?

 

[evonne_chua]

It takes some time for the deduction but not to worry since you have buy limit a few cents above the price. Remember "not more than" so even if the price moves you have already locked your buying price. All explanations are in the book though

if now I suddenly changed my mind dun want to buy then what should I do?

Just asking a hypo question, or once you submit a buy order, u cannot withdraw?

 

[swordsly]

if now I suddenly changed my mind dun want to buy then what should I do?

Just asking a hypo question, or once you submit a buy order, u cannot withdraw?

When you submit a buy order, it goes into the queue
It will remain in the queue until either 1 of these happens:
1) your order gets matched and your trade is executed
2) you cancel it manually (only if order is not filled)
3) the order is cancelled automatically when it expires (ie GTD)

 

[flowerpalms]

Changing ur mind will not help towards the investment at all...remember time in the market is better than timing the market.

if now I suddenly changed my mind dun want to buy then what should I do?

Just asking a hypo question, or once you submit a buy order, u cannot withdraw?

 

[hwckhs]

if now I suddenly changed my mind dun want to buy then what should I do?

Just asking a hypo question, or once you submit a buy order, u cannot withdraw?

The money needed for your order is already being held. Even if you still see it in your USD securities settlement account, you can't transfer it out. Your purchasing power would have been reduced by the size of your order too. In SC Online Trading, click the "human icon" (Account) at the top and check your USD purchasing power.

When you receive the contract note or your trade is settled on T+2 which is Wed (likely the latter), the money will be officially deducted. Don't worry, SCB won't let your run away.

 

[stu4rt86]

Hi,

just wondering for IBKR as long as u hit 100k (USD?) then we dont have to pay inactivity fee right? Meaning once i accumulate to 100k USD i can just leave it there without paying a cent for years to come?

2. also if i were to buy other global stocks, will it contribute towards the minimum 100k criterion?

That said, is there any other good dividend growth US stocks that anyone can recommend?

 

[crystalnox]

Hi,

just wondering for IBKR as long as u hit 100k (USD?) then we dont have to pay inactivity fee right? Meaning once i accumulate to 100k USD i can just leave it there without paying a cent for years to come?

2. also if i were to buy other global stocks, will it contribute towards the minimum 100k criterion?

That said, is there any other good dividend growth US stocks that anyone can recommend?

1. It’s not an inactivity fee, it’s more of a minimum brokerage fee. Yes, above 100K can just let it sit there forever with no extra fees.

2. It’s includes all your stocks and cash added up together.

 

[limster]

SCB alltime lowest premium for USD I've seen

IBKR selling 1.37695
SCB selling 1.38243

(1.38243-1.37695)/1.37695 = 0.398% premium over IBKR (not including IBKR's $2 comm)

changed some tonite to buy ETF.

 

[Rknight]

So i have calculated that I would need 1.5M to retire at age 60.

Using a compound interest calculator online: https://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php

Base amount: $1,000.00
Interest Rate: 6% (yearly)
Effective Annual Rate: 6.17%
Calculation period: 30 years
Yearly deposit inflation increase: 3%

If i invest $1000/month and reinvest for 30 years on both ETF (STI and IWDA) and Bonds (MBH), putting it at a safe return of 6%.
I will get $1,413,070.02 by 60 years old.

Is this calculation correct ? Because i have no way to know the exact return for each assets, i had it set at 6% to be in the middle.

 

[Kapish]

So i have calculated that I would need 1.5M to retire at age 60.

Using a compound interest calculator online: https://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php

Base amount: $1,000.00
Interest Rate: 6% (yearly)
Effective Annual Rate: 6.17%
Calculation period: 30 years
Yearly deposit inflation increase: 3%

If i invest $1000/month and reinvest for 30 years on both ETF (STI and IWDA) and Bonds (MBH), putting it at a safe return of 6%.
I will get $1,413,070.02 by 60 years old.

Is this calculation correct ? Because i have no way to know the exact return for each assets, i had it set at 6% to be in the middle.

if you look at IWDA 3 years total return is only 11% and it is not even recession yet.