*Official* Shiny Things club - Part 2

[KiroFai]

Yep, that's fine.



Rebalancing always involves selling the winners and buying the losers; that's totally normal.

In your case, I wouldn't bother with an allocation to EIMI until your portfolio gets bigger, otherwise you're just going to be running up transaction costs to buy it and it won't make any appreciable difference to your portfolio returns. (There's no rule that says what kind of allocation to emerging markets you have to have, incidentally. Smaller investors can get by without any explicit allocation to EMs.)

1) Thank you for the insightful reply. So even though I don't have a bond component to rebalance with, it will still work if I just do it with shares even though they might all be related? Should I explore using cpf to purchase sti if an opportunity for rebalancing occur then?

2) May I know how much is considered big? I started with only STI for the past 3 years and have about 40k in it right now (at 1k/mth, increasing by 100 annually due to pay increment/dividends). I decided to use ibkr as I'm investing 1.2k into iwda monthly. And since ibkr has minimums of 10/mth it shouldn't rack up transaction fees if I buy iwda+eimi every month right?

3) And also since my portfolio is so skewed right now, if sti experience a correction, would I miss an opportunity to buy low since if I follow the ratio, I should theoretically just keep buying iwda+eimi until it matches the ratio?

Sorry for opening more cans of worms lol

 

[highsulphur]

Saxo and fsmone both 0.08%, minimum $10 commission.

Prepaid accounts:
Maybank Kim Eng, POEMS, UOB KH all 0.12%, min $10.

Shares bought via saxo and fsm will be held in custodian by them right?

 

[Prof. Utonium]

Hi, wanted to hear if u guys have any views on passive indexing bubble. Seems like a few ppl are talking abt it most notably michael burry.

Been quite a few articles about it, frankly I read through it and that's it. Move on lol.

 

[zoneguard]

Shares bought via saxo and fsm will be held in custodian by them right?

Standard Chartered, Saxo, FSMone and all the prepaid versions of MayBank KE, UOB KH, POEMS are all custodians of holdings bought through them and not with CDP.

 

[flowerpalms]

https://www.tnp.sg/news/business/si...Social&utm_source=Facebook#Echobox=1570604555

 

[RMCWMR]

I'm going to jump in with a suggestion or two.

Many people have variable income for one reason or another. That's perfectly common. Yet they somehow usually manage to pay their electric bills, mortgages, entertainment subscriptions (e.g. Netflix), Internet service bills, mobile phone bills, and so forth. How do they do that? Simple: they have a "buffer" account, an ordinary bank account of some kind.

You've accumulated a cool half million that's just sitting in a bank account, evidently. Now that's a buffer! Your idea for reducing that buffer looks good to me, but going forward one would think you should be able to pick some monthly savings number and "pay yourself" every month. Your buffer may wobble up and down due to your variable income, sure, but there should be some monthly savings flow amount that is sustainable on a long-term (or at least medium-term) basis, one would think. So start saving and prudently investing that number. Then, if your buffer ever gets too big again, do a couple things: (1) consider increasing your monthly savings flow amount to a new, higher plateau, and (2) make a few extraordinary additional investments to restore your buffer to a normal level.

Just hypothetically speaking. If you had $100k cash today, with an expectation of 10% returns p.a. but with certain degree of certainty you won't lose any of your capital with an investment horizon of 5 years. How are you going to play it. Or do you think its impossible?

 

[EagleToThesSky]

Should we use SWRD to replace IWDA?

Hi ST, BBC and other experts,

I came across SWRD today. And it seems to be IWDA with lower TER. Can you help give your opinions?

- SWRD is new. TER is only 0.12% vs 0.2% for IWDA.

- Income treatment is "Capitalisation". Does this mean dividend is "accumulating"?

- If so, and assuming liquidity is not a problem, then this one is basically IWDA with lower TER.

Thank you.

 

[EagleToThesSky]

Just hypothetically speaking. If you had $100k cash today, with an expectation of 10% returns p.a. but with certain degree of certainty you won't lose any of your capital with an investment horizon of 5 years. How are you going to play it. Or do you think its impossible?

10% over 5 years with very low change of losing any capital? That sounds damn good to me. I would probably put the max number in.

 

[BBCWatcher]

I came across SWRD today. And it seems to be IWDA with lower TER. Can you help give your opinions?

It’s fine in principle, but it seems like it has wider bid-ask spreads in practice. LCWD is another competitor you could look at.

 

[hwckhs]

- SWRD is new. TER is only 0.12% vs 0.2% for IWDA

... LCWD is another competitor you could look at.

SWRD and LCWD have the same TER (0.12%) and AUM ($300M). I'll include it in the comparison below.

Saving
If you buy SWRD/LCWD, you will save 0.2% - 0.12% = 0.08% annually, which amounts to:
- 1.61% over 20 years, or
- 3.25% over 40 years

There is some saving, but not as big as saving say 0.5% annually (10.48% over 20y, 22.08% over 40y).

Cost
SWRD/LCWD's larger spread over IWDA's implies a hidden cost. Below is a snapshot of current bid/ask prices:
- IWDA: 57.050 / 57.080 (spread = 0.0526%)
- SWRD: 20.720 / 20.765 (spread = 0.2172%)
- LCWD: 10.444 / 10.452 (spread = 0.0766%)

SWRD's spread premium is 0.2172% - 0.0526% = 0.1646%
LCWD's spread premium is 0.0766% - 0.0526% = 0.0240%

The cost is one-time (not per annum). Surprisingly, LCWD has a much tighter spread than SWRD.


I am not making any recommendation. Just trying to quantify the saving and cost, so that you can make an informed decision. If you buy SWRD/LCWD, you should not mind that they are smaller funds ($300M AUM) compared to IWDA ($18B AUM).

 

[BBCWatcher]

Saving
If you buy SWRD/LCWD, you will save 0.2% - 0.12% = 0.08% annually, which amounts to:
- 1.61% over 20 years, or
- 3.25% over 40 years

There is some saving, but not as big as saving say 0.5% annually (10.48% over 20y, 22.08% over 40y).

Plus compounding.

I think LCWD looks quite tempting, actually. VWRA is also interesting.

 

[duckyboi]

Hi shiny, do you have any views on using cpf oa to invest? If do, what to incest in?

 

[FinalDestiny...]

Should I still continue with IBKR or move the whole lot to Standard Chartered as I have around 7k with IBKR. My monthly investment is <$1000 a month.

 

[flowerpalms]

Less than 1k you should be using SCB instead of IB

Should I still continue with IBKR or move the whole lot to Standard Chartered as I have around 7k with IBKR. My monthly investment is <$1000 a month.

 

[EagleToThesSky]

SWRD and LCWD have the same TER (0.12%) and AUM ($300M). I'll include it in the comparison below.

Saving
If you buy SWRD/LCWD, you will save 0.2% - 0.12% = 0.08% annually, which amounts to:
- 1.61% over 20 years, or
- 3.25% over 40 years

There is some saving, but not as big as saving say 0.5% annually (10.48% over 20y, 22.08% over 40y).

Cost
SWRD/LCWD's larger spread over IWDA's implies a hidden cost. Below is a snapshot of current bid/ask prices:
- IWDA: 57.050 / 57.080 (spread = 0.0526%)
- SWRD: 20.720 / 20.765 (spread = 0.2172%)
- LCWD: 10.444 / 10.452 (spread = 0.0766%)

SWRD's spread premium is 0.2172% - 0.0526% = 0.1646%
LCWD's spread premium is 0.0766% - 0.0526% = 0.0240%

The cost is one-time (not per annum). Surprisingly, LCWD has a much tighter spread than SWRD.


I am not making any recommendation. Just trying to quantify the saving and cost, so that you can make an informed decision. If you buy SWRD/LCWD, you should not mind that they are smaller funds ($300M AUM) compared to IWDA ($18B AUM).

Thank you a lot for the detailed info!

 

[EagleToThesSky]

Plus compounding.

I think LCWD looks quite tempting, actually. VWRA is also interesting.

Yup. I will take a look at LCWD as well. Thank you, BBC.

 

[Sunader]

Critical Illness insurance

Hi everyone,

Can I understand a little more about the argument for and against CI insurance? I get that it's not necessary per say, but would like know more on why/why not?

Thank you.

 

[Listopad]

am expecting some USD dividends from VWRD . can I ask for SCB , typically when will I see it being credited ?

reason being for DBS , funds already in on 9 Oct. but for SCB , I still don't see it.

 

[bin8lee]

am expecting some USD dividends from VWRD . can I ask for SCB , typically when will I see it being credited ?

reason being for DBS , funds already in on 9 Oct. but for SCB , I still don't see it.

11 or 14, I think

 

[Listopad]

11 or 14, I think

thank you !