*Official* Shiny Things club - Part 2

[Kyubi]

No problem. It's not really about the fees.

According to Shiny's book:

If you put all your money into the market in one lump and everything promptly dropped 5%, you feel you want to withdraw all your money. But you can fight this by splitting your lump sum into 4 parts and invest one part each month. Why?

This way,
1. If you invest your first lump of cash and then the market goes up, you were invested for the move and you can keep investing more

2. If you invest your first lump of cash and the market goes down, dont worry as you didn't have all your money invested. so you lost only a small amount and now you can buy more at cheaper prices

Thanks for all your advise

 

[cytosine12]

Saw someone investing $300 in MBH. How does one do that? That index is not available on POSB Invest Saver.

 

[intime]

Saw someone investing $300 in MBH. How does one do that? That index is not available on POSB Invest Saver.

MBH is on POSB invest-saver.

 

[CWL84]

Saw someone investing $300 in MBH. How does one do that? That index is not available on POSB Invest Saver.

Login DBS Digibank > Invest > Unit Trust & ETFs > View All or search for a Fund > Monthly Recurring > Search for fund (type ETF, then u will see Nikko Am SGD Investment GRD Corp Bd ETF)

Here you go.

 

[Dearboy87]

BBCwatcher is stashaway 0.8% management fees consider expensive in your opinion?

 

[BBCWatcher]

BBCwatcher is stashaway 0.8% management fees consider expensive in your opinion?

Yes, that's expensive.

 

[KeytoFreedom]

What's your opinion on Lion Global All Seasons fund/ infinity global stock index fund?

Sent from OnePlus ONEPLUS A5010 using GAGT

 

[Investnewbie82]

Hi all,

Given the relatively poorer spread for VWRA compared to VWRD, does it make sense to buy VWRD and diligently reinvest dividends? How much difference wil it be either way?

Also, I understand VWRA and VWRD are from the same fund. Does it mean they are both likely to exist as long the fund exist? Or can it be possible V call off VWRA if it doesn't gain traction?

Thanks!

 

[Desking]

Can any of the expert here advise me on BTC investment? Is it good for long term? Normal so high return will come with high risk.

 

[flowerpalms]

No. Dump it.

Can any of the expert here advise me on BTC investment? Is it good for long term? Normal so high return will come with high risk.

 

[Shiny Things]

What's your opinion on Lion Global All Seasons fund/ infinity global stock index fund?

Flat no to both of them. They charge huge markups basically for the privilege of investing in low-cost funds. Don’t bother.

Hi all,

Given the relatively poorer spread for VWRA compared to VWRD, does it make sense to buy VWRD and diligently reinvest dividends? How much difference wil it be either way?

It’s minimal. I’d personally use IWDA instead of VWRD, because it’s the easiest (and the tiny allocation to EM in VWRD doesn’t make much difference).

Can any of the expert here advise me on BTC investment? Is it good for long term? Normal so high return will come with high risk.

I can’t really comment on crypto-currencies, because I work at a crypto-adjacent company—it’d be a bit unseemly.

I thought I read somewhere that individual account transferring to uobkh?

Someone gave you bad information, then. DBSV is closing their remisier business; the rest of their brokerage business is business-as-usual. (And that’s a good thing, because the continued existence of remisiers is just bonkers.)

 

[celeron787]

Changing over from A35 to MBH starting next month.
I have currently about $5800 in A35, is it recommended that I leave the A35 there or should I sell them all now and lump sum all into MBH?

 

[highsulphur]

Changing over from A35 to MBH starting next month.
I have currently about $5800 in A35, is it recommended that I leave the A35 there or should I sell them all now and lump sum all into MBH?

Leave it...

 

[Desking]

No. Dump it.

Without even talking abt it?? I seriously woukd like to hear from u all

 

[normanki5]

1) Yep, that absolutely does make sense.
2) The fund manager debits their expense ratio from the fund each day. You don't pay anything; the fund pays the fund manager. (Fund managers gotta buy their Ferraris, am I right?)



It's not a dumb question at all, it's a great question. Dual-listed stocks trade in line with each other - market-making firms will move their bids and offers for each listing based on movements in the other listings.

Generally for small investors, none of this matters; it's just an interesting feature of the markets. It matters in odd cases like Shell's dual-listed shares between London and Amsterdam, where the shares have different tax treatments; but for IWDA it doesn't matter.



Yeah - you're missing the minimum brokerage fee. Stanchart is 0.2% with a $10 minimum;POSB-IS has no minimum fee, which makes it great for new investors who just want to invest a few hundred dollars a month.



No, you don't need to be concerned about this. If the listing currency strengthens or weakens, then on the one hand, you'll make (or lose) money on the currency exchange, but the value of the shares inside IWDA changes to exactly offset it.



Thanks for the kind words!



Yep, your method is right.



Nope. MBH has a slightly different mix of bonds - it's more bonds issued by banks and such - which have a slightly higher interest rate.

Thanks everyone for the reply, been practicing it, just that I was rather curious on the deeper workings of it. The replies definitely clarified a lot of things.

 

[sgiceboy]

OK, let's run through these items....


This account is currently paying roughly 2.5% interest per year if you've reached the 12th counter month, assuming Citibank doesn't change the rules which it could at any time. (Also, as the one month SIBOR fluctuates, this account's interest rate does, too.) I assume this account is your emergency reserve. Of course if you actually withdraw from it the interest rate falls.


This one doesn't make much sense unless you're expecting some large ~$20K bill to pay when it matures. You're dragging rather a lot of cash already in that Citibank account.


This fund is a "target date" fund, which would be quite nice as a separate matter if you allocated all or nearly all your long-term investment dollars into this fund. The major problem is that it has a typical unit trust cost: a 1.22% annual expense ratio. That's not good.


OK, that's kind of like your fixed deposit. At this point I should say something like, "Great portfolio, Grandma."


Using the CPF Investment Scheme, I assume. It's icky. On top of the CPF Investment Account costs, which are awful when you're buying monthly because there's a charge for each transaction, you're paying the fund manager's fee of 1.44% (annual expense ratio).

If you and your spouse don't need all your OA dollars for housing -- and you do have relatively a lot of cash sitting around, I'd point out -- then you can transfer some or all of your OA dollars into your Special Accounts, up to the Full Retirement Sum. Your SA earns at least 4%, possibly 5% if you haven't yet maxed out bonus interest. That's way better than some expensive CPFIS unit trust.

After your SAs have reached the FRS you might take a look at the CPFIS for remaining OA dollars, but not with that unit trust.


This is also a bit on the expensive side. You can do better.


What's BIP? Do you mean BCIP (Blue Chip Investment Plan)? If so, what's it going into?


And what do your respect MAs look like at this point? Are you both making $7,000/year SA top ups for tax relief? (I'm assuming your spouse's SA is still below the FRS.)

Thanks for the advice.

doing away with stashaway and CPF monthly investment

will be switching to

G35 via posb savers $200 monthly
MBH via posb savers $300 monthly
SSB $1k semi annually.

for buying of IWDA via SC trading platform, do we need to open an savings account w SC?

 

[yellownova]

Hi all, I'm closing in on the >1K per month soon and wondering if I were to move to IB, but if I am investing every 3 months due to

1: STI
2: ABF
3: IWDA

I have 2 months where IB is inactive and I'll rack up charges for it. What should I do with IB for those 2 months?

 

[zwogbwog]

Thanks BBCWatcher, for taking your time to reply. Your comments are highly appreciated.

A few points to contribute:
1) CPF alone as a bond component does return 3+% for me. My current ratio is about 45% O.A (2.5%) and 55% S.A + M.A (4%). And this excludes the additional 1% for the first 60k. You are absolutely right that the way forward right now is to find a low cost way of deploying O.A funds through CPFIS to maintain that return. As of now, I will probably go for MBH.

2) I totally agree with your observation about SGX. The global ETFs have higher returns that STI. I have invested in both in the same manner over the past decade and the global ETFs have better returns than STI. As such, all new capital for equities will be going into IWDA. In short, I will be following your advice of buying global stocks in my cash component.

Thanks once again!

 

[flowerpalms]

Yes. You will need to open esavers account and the trading account

Thanks for the advice.

doing away with stashaway and CPF monthly investment

will be switching to

G35 via posb savers $200 monthly
MBH via posb savers $300 monthly
SSB $1k semi annually.

for buying of IWDA via SC trading platform, do we need to open an savings account w SC?

 

[BBCWatcher]

G35 via posb savers $200 monthly
MBH via posb savers $300 monthly
SSB $1k semi annually.

What amount are you considering for IWDA?

for buying of IWDA via SC trading platform, do we need to open an savings account w SC?

Yes, unfortunately. Absent a compelling reason otherwise, pick the one with the lowest monthly minimum balance requirement.

Hi all, I'm closing in on the >1K per month soon and wondering if I were to move to IB, but if I am investing every 3 months due to
1: STI
2: ABF

You could switch this over to MBH via POSB Invest Saver now.

3: IWDA
I have 2 months where IB is inactive and I'll rack up charges for it. What should I do with IB for those 2 months?

Quarterly IWDA buys via Standard Chartered are still likely to work out better for you, for now.

1) CPF alone as a bond component does return 3+% for me. My current ratio is about 45% O.A (2.5%) and 55% S.A + M.A (4%). And this excludes the additional 1% for the first 60k.

That's right, but it could be 4% plus tax relief for directed MA and SA top ups, and 4% on funds transferred from OA to SA. Yes, I know, OA dollars can be used for housing, but you're well rewarded for MA and SA.

You are absolutely right that the way forward right now is to find a low cost way of deploying O.A funds through CPFIS to maintain that return. As of now, I will probably go for MBH.

ES3 or G3B is usually a better choice for the CPF Investment Scheme (OA). With MBH you'd be incurring substantial volatility and cost that might yield a very little bit better than 2.5%. I don't think that's worth doing, not with those particular dollars and not when OA to SA transfers earn 4%. (That comes first.)

2) I totally agree with your observation about SGX. The global ETFs have higher returns that STI. I have invested in both in the same manner over the past decade and the global ETFs have better returns than STI. As such, all new capital for equities will be going into IWDA. In short, I will be following your advice of buying global stocks in my cash component.

Basically the STI seems to be decoupled and getting more decoupled from Singapore's real economy. I don't have a good solution to this divergence except not to lean too heavily too soon into SGX-listed stocks.