*Official* Shiny Things club - Part 2

[SingBuddy]

Hi Champs,

I am a foreigner in Singapore on Employment Pass. I moved here 10 months back. Pls suggest some passive investment. I have a very demanding job and I travel frequent so can not do any investment which require daily involvement. I can investment SGD 50K-100K. I can hold it from six months to two years.

Looking forward to your suggestions. TIA.

 

[BBCWatcher]

I am a foreigner in Singapore on Employment Pass.

OK, so you don't have a right of abode in Singapore, meaning you wouldn't necessarily aim for a Singapore dollar-based goal. More likely you'd target some sort of home country currency-oriented outcome, assuming the country you hail from has a quality currency. (But read on....)

I moved here 10 months back. Pls suggest some passive investment. I have a very demanding job and I travel frequent so can not do any investment which require daily involvement.

No problem. If you're doing anything daily you're probably gambling.

I can investment SGD 50K-100K. I can hold it from six months to two years.

OK, so if you're looking for a short-term investment (0.5 to 2.0 years is certainly short-term) and you aren't sure of the hold time, then that really narrows down the range of choices to reasonably liquid, low volatility, comparatively low yielding investments.

If you're OK with a Singapore dollar-oriented outcome (for example, because your home country's currency isn't a quality currency), then take a look at "rewards" and "high yield" local savings accounts that are SDIC insured up to S$75,000. Examples include DBS Multiplier, OCBC 360, UOB One, Citibank MaxiGain, and BOC SmartSaver. Also take a look at laddered fixed deposits and Singapore Savings Bonds.

If you're not OK with a Singapore dollar-oriented outcome, which other currency (or currencies) should form the basis of your desired outcome (0.5 to 2.0 years from now)?

 

[Shiny Things]

Hey, mods: is there any way I can put a sticky post at the top of this thread with some FAQs?

i realise there are some changes in ibkr recently, a few month nvr checked.

is the monthly fee of 10 usd still applied if below 100,000?

any major changes?

No. They announced "IBKR Lite", but that's not available to Singaporean investors.

Hi ST, say if I need to rebalance my portfolio, do I

1- Sell my G3B holdings via POSB IS and use the amount to purchase IWDA
2- Stop investing in G3B and channel all the funds to purchase IWDA on monthly/bi-monthly basis?

Or do you have better advise please?

Option 1.

What is the most economical way to buy IWDA? Standard Chartered or?

If you're buying less frequently than every month, and you're doing less than about $1000 at a clip, it's StanChart.

If you're buying every month, OR you're doing > $1,000 a clip, it's Interactive Brokers.

Would love everyone's input.
It is recommended to use StanChart for our SG stocks .
However since we are holding our stocks for the long term . Is it abit risky ?

Stanchart is the best broker for Singapore stocks right now, and if that ever changes, it's pretty easy to move.

What if StanChart decides to implement a custodian fee one day?
Then we will have no choice but to be stuck with StandChart .
Unless , we decide to pay and move our stocks to CDP which will incur a free.

That's an "if", and the fee to transfer holdings between brokers is relatively small anyway.

Will it be safer to just purchase our stocks with DBSV via cash upfront?
But the fees to sell the stocks will be high .

Exactly right. You'd pay more in brokerage fees at DBSV than you would ever pay in transfer fees.

 

[BBCWatcher]

Stanchart is the best broker for Singapore stocks right now, and if that ever changes, it's pretty easy to move.

I don't think that's actually true, at least not at every clip level.

1. POSB Invest Saver is a better value into G3B at many low clip levels since POSB doesn't levy any minimum commission. For example, at POSB's minimum S$100/month you'd pay ~S$0.82 in commission per month. I suppose you could batch up that S$100/month into a 13 month/S$1,300 lump to clear Standard Chartered's S$10.70 minimum commission hurdle, but there's some cost in delaying 12 of those 13 months.

2. OCBC's BCIP is a somewhat better value into several other counters (including the non-stock ETF MBH) at certain low clip levels since their minimum commission is half that of Standard Chartered's. And OCBC's BCIP has no minimum commission for investors under age 30 who are investing S$500 or less per month per counter.

3. At higher clip levels, FSMOne wins for local stocks since they have no custodial fee, the same minimum commission, but a substantially lower commission percentage (0.08% v. 0.20%).

4. If you happen to have Priority Banking status with Standard Chartered, then low to medium clip levels are attractive at Standard Chartered. But there's a substantial cost to achieving and maintaining Priority Banking status itself, so this is really an "accidental" situation.

5. Relatedly, another problem with Standard Chartered is you have to leave something like S$2,000 or S$3,000 (can't remember which) of idle cash at near zero interest in order to avoid a monthly fall below fee. That's some more cost.

Am I missing something?

 

[EmporioArmani]

I don't think that's actually true, at least not at every clip level.

1. POSB Invest Saver is a better value into G3B at many low clip levels since POSB doesn't levy any minimum commission. For example, at POSB's minimum S$100/month you'd pay ~S$0.82 in commission per month. I suppose you could batch up that S$100/month into a 13 month/S$1,300 lump to clear Standard Chartered's S$10.70 minimum commission hurdle, but there's some cost in delaying 12 of those 13 months.

2. OCBC's BCIP is a somewhat better value into several other counters (including the non-stock ETF MBH) at certain low clip levels since their minimum commission is half that of Standard Chartered's. And OCBC's BCIP has no minimum commission for investors under age 30 who are investing S$500 or less per month per counter.

3. At higher clip levels, FSMOne wins for local stocks since they have no custodial fee, the same minimum commission, but a substantially lower commission percentage (0.08% v. 0.20%).

4. If you happen to have Priority Banking status with Standard Chartered, then low to medium clip levels are attractive at Standard Chartered. But there's a substantial cost to achieving and maintaining Priority Banking status itself, so this is really an "accidental" situation.

5. Relatedly, another problem with Standard Chartered is you have to leave something like S$2,000 or S$3,000 (can't remember which) of idle cash at near zero interest in order to avoid a monthly fall below fee. That's some more cost.

Am I missing something?

On Point 5, I don't think to u actually have to do that. I have been having a $0 balance in my SCB account balances, and no letters have been sent to me talking about the "below min sum". Have been doing this for about 2 years.

Sent from Xiaomi MI 8 using GAGT

 

[BBCWatcher]

On Point 5, I don't think to u actually have to do that. I have been having a $0 balance in my SCB account balances, and no letters have been sent to me talking about the "below min sum". Have been doing this for about 2 years.

Reportedly that works as an unofficial loophole, yes, but it's some extra work. If I understand the loophole correctly, after doing your stock and/or ETF buying early enough in the month for the trade(s) to settle, you'll have to transfer any final residual cash balances (before and across calendar month transitions) to a non-Standard Chartered bank account to avoid deduction of Standard Chartered's fall below fee.

 

[Desking]

May I know why invest in IWDA? What is the potential of this share? I am looking into investing $1000 per month and I am newbie in investing. I hope to get ur advise to start doing investment. especially during current period, is it a good time to start?

 

[flowerpalms]

Don't time the market

May I know why invest in IWDA? What is the potential of this share? I am looking into investing $1000 per month and I am newbie in investing. I hope to get ur advise to start doing investment. especially during current period, is it a good time to start?

 

[converse2010]

Hi ST, say if I need to rebalance my portfolio, do I

1- Sell my G3B holdings via POSB IS and use the amount to purchase IWDA
2- Stop investing in G3B and channel all the funds to purchase IWDA on monthly/bi-monthly basis?

Or do you have better advise please?

Option 1.

But after glancing my portfolio, I realised that if I were to sell all G3B now, that would incur a lost of appox 4%. I understand that I should not time the market, any better solution for such situation?

 

[popol]

Roboadvisor and 3-Fund Portfolio

Hi Shiny
I'd like to get your opinion on the following:
I have been using Autowealth for 16 months. Initial investment was $10,000. Every month I am putting $500. Total injected funds is $18,000. Current market value is $18,895.

I have just started a 3-Fund Portfolio: IWDA, ES3 and A35 or MBH. Monthly contribution will be $1,000.

Would you suggest I terminate the Autowealth and reallocate the $500 to the 3-Fund portfolio?

Thx!

 

[SuperGreenHorn]

More precisely, if the decedent resides in or was otherwise taxably connected to a jurisdiction with an estate tax, then there will be an estate tax.

Singapore used to have an estate tax, and maybe it will again in the future. Right now it doesn’t, nor does Ireland (IWDA’s domicile) except for residents of Ireland.

Thank you for your advice

 

[SuperGreenHorn]

No.

10 characters.

Thank you for advising me.

Is there an upper limit on the size of our holdings in IBKR?
How much is the largest amt. we can fund our account each time?

 

[SingLearner]

Hi Champs,

I am a foreigner living in SG on EP. I moved here 10 months ago. I want to do some passive investment here in SG. Passive because my job is very demanding and I travel alot.

Two reasons for my investment:
1. Get better returns than DBS multiplier account.
2. I will be applying for PR. My consultant has suggested to invest somewhere for a year or more and get an investment proof for submission with application showing financial commitment with SG.

I can invest SGD 50K-100K for a period of one to two years. Looking forward to your expert suggestions.

TIA.

 

[mafan87]

I don't think that's actually true, at least not at every clip level.

1. POSB Invest Saver is a better value into G3B at many low clip levels since POSB doesn't levy any minimum commission. For example, at POSB's minimum S$100/month you'd pay ~S$0.82 in commission per month. I suppose you could batch up that S$100/month into a 13 month/S$1,300 lump to clear Standard Chartered's S$10.70 minimum commission hurdle, but there's some cost in delaying 12 of those 13 months.

Yes I agree that POSB Invest Saver is a better choice for those who even invest up till $1500 monthly. Although Standard Chartered brokerage is $10, there are still fees like GST, Sgx clearing fees which will amount to at least $12.74. So POSB invest saver is 0.82% and an investment of $1500 will only amount to $12.30. There is also no sales charge which is great for rebalancing if there is a need to sell some stocks and POSB invest saver for G3B purchase lot size is only 1! That's triple win for POSB invest saver.

 

[evonne_chua]

Yes I agree that POSB Invest Saver is a better choice for those who even invest up till $1500 monthly. Although Standard Chartered brokerage is $10, there are still fees like GST, Sgx clearing fees which will amount to at least $12.74. So POSB invest saver is 0.82% and an investment of $1500 will only amount to $12.30. There is also no sales charge which is great for rebalancing if there is a need to sell some stocks and POSB invest saver for G3B purchase lot size is only 1! That's triple win for POSB invest saver.

yes SCB is only use for IWDA

 

[BBCWatcher]

But after glancing my portfolio, I realised that if I were to sell all G3B now, that would incur a lost of appox 4%. I understand that I should not time the market, any better solution for such situation?

Yes, buy more. G3B is now 4% cheaper. You're a buyer, and that's wonderful news!

If you buy apples regularly, what do you do when the price of apples is lower -- when Fairprice has a big sale on apples because the apple growers in New Zealand (for example) had a bumper crop? Do you panic, scurry to eBay or Carousel, and sell your stock of apples (at the lower sale price)? No, of course not, that'd be foolish. You buy more apples when they're on sale, if you have room in your refrigerator and it otherwise makes sense.

What you would love to happen is for G3B to be even cheaper now so you can buy more and cheaper shares, then for G3B to be expensive when you retire, when you're going to start selling fewer and more expensive shares. That'll happen automatically if you merely buy a particular number of dollars worth of G3B every month, as long as G3B is relatively flat or appreciates over the long-term. Every month, automatically, that'll mean you buy more shares when they're cheaper and fewer shares when they're more expensive.

Have you calmed down now?

 

[Geeezz]

Yes, buy more. G3B is now 4% cheaper. You're a buyer, and that's wonderful news!

If you buy apples regularly, what do you do when the price of apples is lower -- when Fairprice has a big sale on apples because the apple growers in New Zealand (for example) had a bumper crop? Do you panic, scurry to eBay or Carousel, and sell your stock of apples (at the lower sale price)? No, of course not, that'd be foolish. You buy more apples when they're on sale, if you have room in your refrigerator and it otherwise makes sense.

What you would love to happen is for G3B to be even cheaper now so you can buy more and cheaper shares, then for G3B to be expensive when you retire, when you're going to start selling fewer and more expensive shares. That'll happen automatically if you merely buy a particular number of dollars worth of G3B every month, as long as G3B is relatively flat or appreciates over the long-term. Every month, automatically, that'll mean you buy more shares when they're cheaper and fewer shares when they're more expensive.

Have you calmed down now?

that’s a pretty good way to put it, pray fr bad market during yrs when we are accumulating or investing, be happy when that happens instead of worrying.

pray fr good market when we are retiring, just enjoy

 

[cassowary18]

Hello, quite a newbie here.

I was looking to invest in a total world index fund using my SRS. I'm considering buying VWRA, would that be possible? Or can only buy SGX listed ETFs?

 

[Wonderer haha]

Hello, quite a newbie here.

I was looking to invest in a total world index fund using my SRS. I'm considering buying VWRA, would that be possible? Or can only buy SGX listed ETFs?

SRS can be only used for SGX listed ETFs if I am not wrong. The best to do is to verify with your SRS operator.

 

[FrostWurm]

SRS can be only used for SGX listed ETFs if I am not wrong. The best to do is to verify with your SRS operator.

Yeah the only ETFs you can buy are those listed on SGX, and even then, only some of those ETFs.