recently, i have started RSP on this counter CFA, as i wanna be like dividend warrior too. collecting some dividend for my holiday get away.
Why do you need dividends for a holiday getaway? Let’s set aside the fact getaways aren’t likely soon, why aren’t you just saving for a getaway from employment income?
In other words, you seem to be suggesting that dividends mean you can spend more. No, that’s bad. Higher total returns net of costs let you spend more. You have two choices for dividends: reinvest them, or spend them. If psychologically you are encouraged to spend more than you otherwise would when dividends are flowing, then you definitely shouldn’t be focused on dividends. You shouldn’t be anyway because total returns net of costs are all that matter, but you REALLY shouldn’t be if you think dividends somehow give you license to spend more.
There’s a lot of frankly dumb “dividend investing” ideas out there. Back in the old days — decades ago, really — there was a little bit of sense when it was more difficult and definitely more expensive to sell shares in order to buy bread (while retired typically). You had to dig out stock certificates from safe deposit boxes, visit a broker, sell an even (and too large) block, etc. It was an expensive hassle back then. Also, there were some more and more stable regulated monopolies that paid dividends, and they were something halfway in between investment grade bonds and general stocks in their character. So grandmothers and grandfathers would have them, shares in the telephone, gas, and electric companies — utility stocks, mainly. All of that is history and no longer makes any sense.
So save for your vacation if you like, but do it straight up. Your dividends, if any, are for reinvesting until retirement.
Amazon hasn’t paid even a single penny in dividends, ever. But what a stock it has been. “Dividend investing” means you would have avoided holding Amazon somewhere in your then less diversified portfolio. Dumb, dumb, dumb!
At this pt you still recommend iwda over vwra . Why is that so?
Either is fine! So is LCWD for that matter if you prefer that one. IWDA is a prototypical example, but if you prefer a close substitute, fine! Rock on!
None of these non-U.S. funds are appropriate for U.S. persons, as a reminder. I certainly don’t touch these funds, and I assume Shiny Things doesn’t either.
Also why is there a need for es3 ? Why not just a 2 fund portfolio
If you’re not retiring in Singapore — you’re just passing through, for example — there isn’t. (MBH wouldn’t be your bond fund in that case.) If you are then ES3 (or G3B) can be useful to some degree, in some measure, as something of a Singapore dollar correlate.
I’m OK with the idea of a two fund portfolio as long as you’re at least 7 years away from retirement in Singapore. However, between the Supplementary Retirement Scheme and CPF Investment Scheme (OA), both of which are not the sort of stuff you’d focus on early in a career (I think CPF MA and SA top ups for tax relief, and OA to SA transfers, are more attractive as long as you’re allowed to do them), you may find there’s really nothing better available for those particular SRS/CPFIS dollars than ES3 or G3B.
