*Official* Shiny Things club - Part 2

[_death_god]

You’re right, equity has no guarantees on returns too, but what they can guarantee is far lower fees using index ETFs. And chances are your policy is based off similar underlying equity funds that you can buy for much lower costs. eg. $10 brokerage +0.2% annual fee vs 1-2% management fees + 1-2% fund fees in annually from insurance firms.

Yup you are right regarding the management fee plus fund fees in regards to my pruwealth2. And since I have been paying and left 5 years premium term for my pruwealth, I think it is logical to finish paying the 5 years and to start investing on equity.

With around 300/mth and roughly 20k in cash I am not sure if...

1) should I treat my pruwealth as bond and start investing in ES3 and IWDA
- if I were to do this, should I go full IWDA or alternate ES3 and IWDA every month.
2) don’t take into consideration my pruwealth and start from fresh (80% equity 20% bonds)

The amount I own isn’t huge but I wish to really tap on equity asap!!!

 

[BBCWatcher]

I don't invest in gold, but if I did I wouldn't be worried about buying on NYSE because (1) gold doesn't pay dividends so no dividend withholding tax (2) it's going to be a relatively small part of my portfolio anyway so estate tax wouldn't be a huge concern. SGLN is a good suggestion though.

If a U.S. gold fund (plus other U.S. estate taxable assets) would be a relatively small part of a hypothetical portfolio, then why bother with a gold fund at all?

 

[havetheveryfun]

Hi experts

How to deal with paper loss?

Even though you have done your research and still share/ ETF price still decreases

Especially during this virus crisis, but it is temporary and share price will rise

provided the company / ETF is sustainable and sound

I am investing for the first time after reading shiny thing’s books

stop looking at your portfolio and get on with your life.

 

[jinsatkilife]

My personal recommendation would to concentrate fully on bringing your VWRA up to US$100k AUM as soon as possible to get rid of the IBKR minimum commission, before considering bonds and STI ETF again.

PIMCO funds gets discussed from time to time. On one hand, it has had excellent past performance. On the other hand, the current weighted average YTM is pretty darn low compared to past performance so one can be skeptical about future performances. LQDE seems to be outperforming these funds (perhaps due to the much lower fees), but doesn't come hedged.



https://www.ishares.com/ch/institutional/en/products/251871/ishares-msci-korea-ucits-etf-inc-fund should be close enough



Yes, I don't really see any option other than VWRD.



No real consensus. ST recommends 50-50. BBCW recommends 80-20 world-sg then slide the other way while approaching retirement. Some people even go for 100-0 (good idea if you want to hit US$100k under IBKR before starting on SG).

Got a question, if u have less than 100k, and plan to go long, other than interactive brokerage, what online trading brokerage is best for sg investor?

 

[lawd2005]

Shifting bond-equity ratio

Hi Folks,

@Shiny - I downloaded your book on my kindle yesterday as last act before the doors closed on my SQ flight (second last act was buying IWDA). Unfortunately, I am only 10% the way through - so apologies if the answer to my question is covered later in the book

Looking for advice on changing bond-equity ratio. Up until a few days ago I was 15% bond, 10% cash and 75% equities. The 10% cash was a December windfall and I was waiting for a market drawdown , I got the 10% cash in to IWDA this week.

I am 32, no debt, well stocked rainy day and adequate health insurance (no kids, yet). I save 40% of my net income per month for investments.

I am considering shifting the 15% MBH bonds in to IWDA - so 100% equities. I have no need for the money in next 5 years.

Simple reason why is that in long term the equities should have a greater return. There is also an urge to get in to the market during the drawdown. Anyone have any arguments against this?

 

[Laachino]

Hi

I have an off-topic question with regards to tracking of real-time stock prices for SG stocks. May I know how do I go about doing it on Google Sheets?

Thanks in advance!

 

[pylpoh]

Rebalancing twice a year, in May and Nov. Not now, dont panic sell

What to buy and sell depends on your target %. Sell X shares of the fund if its % allocation is more and buy Y shares of the fund which has the most shortfall. I don't know what your portfolio amount is but over here you need to punch in the numbers with a calculator.

Basically it is just
May and Nov - rebalancing
Other months - monthly dca to the fund that deviates thr most from the target %

This is to ensure that your portfolio sticks as close as the 110-age rule as possible. Pretty much explained in the book, absorb it

i have actually slightly more than 50% bonds. i started with a lump sum to SSB last year Jan, because i wasnt sure of what to do. So now i hope can take this chance to rebalance my porfolio to 35 / 65..

 

[JetStorm]

i have actually slightly more than 50% bonds. i started with a lump sum to SSB last year Jan, because i wasnt sure of what to do. So now i hope can take this chance to rebalance my porfolio to 35 / 65..

If u just started, just load up more equities for now. it doesnt really make a difference since ur investment horizon is long. When u finally hit ur desired target, u can start rebalancing and sell the ones that are making profits.

I am in a similar position as u but as i take my cpf to be my bond portion, i am currently super overweight in bonds. So just buy equities until u hit ur target.

Sent from Xiaomi REDMI NOTE 8 PRO using GAGT

 

[jacky5297]

If the company / ETF is fundamentally sound, you buy more when the market is dipping.

Hi experts

How to deal with paper loss?

Even though you have done your research and still share/ ETF price still decreases

Especially during this virus crisis, but it is temporary and share price will rise

provided the company / ETF is sustainable and sound

I am investing for the first time after reading shiny thing’s books

 

[celtosaxon]

Exactly right, this is a beautiful correction, and the market was overdue for one.

The more it drops, the more I will buy.

If the company / ETF is fundamentally sound, you buy more when the market is dipping.

 

[BBCWatcher]

Exactly right, this is a beautiful correction, and the market was overdue for one.
The more it drops, the more I will buy.

It’s awfully nice to see stocks on sale while in a monthly saving and investing mode. If I were caught in retirement with 85% of wealth in stocks, different story, but nobody is going to do that, right?

It’s not a big sale yet, though, and it may never be a big sale.

 

[thespell]

how do you buy more if practicing dollar cost averaging?

 

[RuiQi_91]

Hello, I am a newbie currently using the POSB Invest Saver to invest 1k a month into G3B and 500 into A35. I plan to do it until July (5 months) because of the cashback promotion https://www.posb.com.sg/personal/promotion/invest-saver then will probably start using FSMOne if it remains the superior option. I also need to figure out how to set things up because this is all very new to me

My question is if (1) I should simply sell/transfer the funds from G3B to ES3 and from A35 to MBH if I make the switch to FSMOne? I see some mixed opinions like selling https://forums.hardwarezone.com.sg/123443222-post7452.html or keeping the money in https://forums.hardwarezone.com.sg/125273848-post3838.html

Or (2) should I directly just start with FSMOne?

Thank you everyone. This thread and everyone here has been extremely helpful.

 

[hwckhs]

how do you buy more if practicing dollar cost averaging?

It happens naturally.

If there is a dip during your regular DCA:

• The same dollar amount gets you more shares.
• If current month happens to be your scheduled rebalancing month (pure luck), then you will put more dollars on the portion that's down and less on the one that's up. Depending on the monthly DCA amount, portfolio size, and price changes, you may even need to sell the high to buy the low.

 

[dullthings]

Hi all, how does a Stop Limit work when buying in a declining market?

For example, with IWDA at $57 now, if I set a buy order with Limit Price $53 and Stop Price $54, does it mean the order will only become active when the price falls below $54, and turns into a market order when it crosses $53?

And if I set a limit price of $53 and a stop price of $52, nothing happens when the price dips past $53, and it turns into a market order at $52?

I am trying to pre-set orders to DCA into the dip without having to check IBKR every day... thanks!

 

[thespell]

I see. I thought by buying more means investing more money than regular DCA

 

[chrisloh65]

If you are reaching retirement and only another 10 years to go and still continue to buy now with 60% or more of your net worth in stocks, and the stocks continue to fall for another 3 years and stay flat for another 2 out of the 10 years, don't think you will come out smelling good.

It’s awfully nice to see stocks on sale while in a monthly saving and investing mode. If I were caught in retirement with 85% of wealth in stocks, different story, but nobody is going to do that, right?

It’s not a big sale yet, though, and it may never be a big sale.

 

[flowerpalms]

You only set limit price.

Hi all, how does a Stop Limit work when buying in a declining market?

For example, with IWDA at $57 now, if I set a buy order with Limit Price $53 and Stop Price $54, does it mean the order will only become active when the price falls below $54, and turns into a market order when it crosses $53?

And if I set a limit price of $53 and a stop price of $52, nothing happens when the price dips past $53, and it turns into a market order at $52?

I am trying to pre-set orders to DCA into the dip without having to check IBKR every day... thanks!

 

[tangent314]

Hi all, how does a Stop Limit work when buying in a declining market?

For example, with IWDA at $57 now, if I set a buy order with Limit Price $53 and Stop Price $54, does it mean the order will only become active when the price falls below $54, and turns into a market order when it crosses $53?

And if I set a limit price of $53 and a stop price of $52, nothing happens when the price dips past $53, and it turns into a market order at $52?

I am trying to pre-set orders to DCA into the dip without having to check IBKR every day... thanks!

For your use case you don't need to use Stop orders. You can smply set a Buy Limit Order at your desired price that is Good Until Cancelled.

 

[flowerpalms]

Nope. When you DCA it is a consistent amount every month. You dont change the amount as and when you like because the market dips and you want to buy more shares

I see. I thought by buying more means investing more money than regular DCA