Official Shiny Things thread Episode V, The Empire Strikes Back

[BBCWatcher]

I currently hold about 400k of A35 with scb. Is it most economical to transfer it to fsmone to buy/sell given the fixed commission? I actually email nikko am to see if it's possible to do a switch directly but I'm not hopeful

Maybe. It’s really just a cost avoidance question.

 

[CrashWire]

I currently hold about 400k of A35 with scb. Is it most economical to transfer it to fsmone to buy/sell given the fixed commission? I actually email nikko am to see if it's possible to do a switch directly but I'm not hopeful

Isn't this an ETF? Just do a position transfer with SCB. SC will charge $10 per counter to transfer out.

 

[highsulphur]

Isn't this an ETF? Just do a position transfer with SCB. SC will charge $10 per counter to transfer out.

Yes but ultimately I want to sell it and buy something else

 

[Hopeful33]

You can set a recurring deposit of sgd or usd into your ibkr account and a recurring investment at ibkr for iwda or vwra.

How about sc online trading? Possible to set recurring as well?

 

[highsulphur]

How about sc online trading? Possible to set recurring as well?

Not sure but can't imagine to be cheaper than ibkr or fsmone. I could be wrong

 

[CrashWire]

Not sure but can't imagine to be cheaper than ibkr or fsmone. I could be wrong

IBKR confirm cheapest to sell. Should be able to just transfer there from SCB also (same $10 fee).

 

[hin999]

Yes but ultimately I want to sell it and buy something else

If u sell all your A35 holdings then buy a new counter eg MBH, how much will SCB charge roughly for the transaction cost??

 

[highsulphur]

If u sell all your A35 holdings then buy a new counter eg MBH, how much will SCB charge roughly for the transaction cost??

SCB fees is 0.18% plus sgx fees of 0.04%. Fsmone is $3.80 plus 0.04% sgx fees. A $400k sale will incur a transaction cost of $960 (with gst) with scb and $179 with FSMOne. That's how much the difference is

 

[yiron]

For someone doing long term DCA on MSCI World, are there any notable cons of switching from IWDA (TER 0.2%) to Amundi Index MSCI World A12S (C) SGD (TER 0.1%) on POEMS which charges 0% fee? I can only think of the longer settlement period for Unit Trust, but not sure if I overlooked anything.

Edit: Apparently Amundi Index MSCI World A12S (C) SGD suffers the full 30% US dividends withholding tax, compared to 15% for IWDA. Works out to about 0.13% in tax leakage (assuming 70% in US and 1.27% US dividend yield) which more than offsets the 0.1% difference in TER.

 

[hin999]

Staying in a hdb now, thinking whether to purchase a new launch ec condo of the same size (5 room) as we are going to exceed the ceiling requirement soon(16k). EC will likely increase monthly mortgage payment by 3x, from about 2k plus monthly to 6-7K, which also means less money to invest in the portfolio recommended here which i have been doing for about 10 years, may have to liquidate some holdings also to fund the initial downpayment of the EC. Full employment wise let's just say I intend to work for another 10 to 15 years before scaling back.The hdb loan is half paid for now.
Currently split on the decision, should I stay the course (ie hdb + invest the rest in ETF) or go for the EC on my route to FIRE?? Is purchasing the EC as an additional asset class going to accelerate the time to FIRE? Welcome comments from the expert here!!haha

 

[BBCWatcher]

Edit: Apparently Amundi Index MSCI World A12S (C) SGD suffers the full 30% US dividends withholding tax, compared to 15% for IWDA. Works out to about 0.13% in tax leakage (assuming 70% in US and 1.27% US dividend yield) which more than offsets the 0.1% difference in TER.

Yes, although if you’re looking for a way to invest SRS or CPF OA dollars in a global stock index fund, Amundi via POEMS is probably the best overall choice at present.

Staying in a hdb now, thinking whether to purchase a new launch ec condo of the same size (5 room) as we are going to exceed the ceiling requirement soon(16k). EC will likely increase monthly mortgage payment by 3x, from about 2k plus monthly to 6-7K, which also means less money to invest in the portfolio recommended here which i have been doing for about 10 years, may have to liquidate some holdings also to fund the initial downpayment of the EC. Full employment wise let's just say I intend to work for another 10 to 15 years before scaling back.The hdb loan is half paid for now.
Currently split on the decision, should I stay the course (ie hdb + invest the rest in ETF) or go for the EC on my route to FIRE?? Is purchasing the EC as an additional asset class going to accelerate the time to FIRE? Welcome comments from the expert here!!haha

Unless you’re ”decoupled” you have to sell your current HDB flat, correct? You didn’t mention potential rental income from your current flat, so I assume so. There’s also a new MOP.

Mostly you’d just be consuming more housing, for at least 5 years anyway. Higher consumption means less saving. Less saving means delayed “FIRE,” other things being equal. Sometimes other things are not equal, that the power of a larger mortgage payment helps significantly increase household savings. Also, would you keep the EC flat (which really would be just spending more on one’s own housing), or will this be a decoupled spouse’s flipping exercise after the MOP?

 

[Slavor]

Hi everyone, hope all is well. Despite the topsy turvy market that has been on us since the new US administration, I think I am doing OK, but would like some thoughts on the following:

I've been diligently DCAing into IWDA/ES3 at the 70/30 ratio for a while now, but I was thinking if I should ease off on IWDA and shift my DCAing into VWRA instead. While I do think US dominance is here to stay, I grow increasingly uncomfortable that the US stock performance (which contributes to just under 70% of IWDA, compared to 60% for VWRA) is subject to the whims of an erratic US president.

What are your thoughts on this?

In summary: So my thoughts are that my 70% international component should be a combination of IWDA/VWRA (leave IWDA in place while buying VWRA from now on), while my 30% remains ES3.

 

[highsulphur]

Hi everyone, hope all is well. Despite the topsy turvy market that has been on us since the new US administration, I think I am doing OK, but would like some thoughts on the following:

I've been diligently DCAing into IWDA/ES3 at the 70/30 ratio for a while now, but I was thinking if I should ease off on IWDA and shift my DCAing into VWRA instead. While I do think US dominance is here to stay, I grow increasingly uncomfortable that the US stock performance (which contributes to just under 70% of IWDA, compared to 60% for VWRA) is subject to the whims of an erratic US president.

What are your thoughts on this?

In summary: So my thoughts are that my 70% international component should be a combination of IWDA/VWRA (leave IWDA in place while buying VWRA from now on), while my 30% remains ES3.

Sounds reasonable to me

For me I been buying iwda before switching to isac and finally to vwra now

 

[RuiQi_91]

Hello, this thread has been incredibly useful for a beginner investor like me looking for something simple so thank you all. Today, I have a different question to ask.

I am 34 and not looking to start a family. I stay with my parents whom I have a very good relationship with. I was thus wondering if it is a good idea to get e.g. a 3 room resale when I hit 35 to rent out after the MOP?

 

[crystalnox]

Hello, this thread has been incredibly useful for a beginner investor like me looking for something simple so thank you all. Today, I have a different question to ask.

I am 34 and not looking to start a family. I stay with my parents whom I have a very good relationship with. I was thus wondering if it is a good idea to get e.g. a 3 room resale when I hit 35 to rent out after the MOP?

Considering you're getting a market price resale instead of a subsidized BTO, are you sure you would be able to make a profit after all costs, especially since you would still need to let the flat age another 5 years after?

 

[BBCWatcher]

I am 34 and not looking to start a family.

OK, but that’s not quite the same thing as dating.

I stay with my parents whom I have a very good relationship with. I was thus wondering if it is a good idea to get e.g. a 3 room resale when I hit 35 to rent out after the MOP?

If you truly don’t mind living with your parents, and vice versa, then a BTO flat seems like a better option. True, you’d have to wait a bit longer to get one. But you’d also get a full 99 year leasehold at a lower price. Which also means a lower down payment and the ability to save and invest that much more (and earlier) in other ways. However, the BTO flat might be farther away from your parents’ home. Maybe that distance matters more (if it matters) during the MOP.

 

[longfart]

Sounds reasonable to me

For me I been buying iwda before switching to isac and finally to vwra now

I understand that ISAC and VWRA are slightly different, with the former at a lower expense ratio and the latter with more companies included. Is there any specific reason you're making the switch?

 

[highsulphur]

I understand that ISAC and VWRA are slightly different, with the former at a lower expense ratio and the latter with more companies included. Is there any specific reason you're making the switch?

No particular reason other than that I have bought a fair bit of isac and wanted to diversify

 

[DevilPlate]

Hello, this thread has been incredibly useful for a beginner investor like me looking for something simple so thank you all. Today, I have a different question to ask.

I am 34 and not looking to start a family. I stay with my parents whom I have a very good relationship with. I was thus wondering if it is a good idea to get e.g. a 3 room resale when I hit 35 to rent out after the MOP?

no point getting a 3rm resale flat….neither here nor there.

Either apply a 2rm BTO or buy 4/5rm resale flat
If u decide to get a 4/5rm flat, parents can rent out their current flat and all move into yr flat.
No need to wait for MOP

 

[ericvincenttoo]

SCB fees is 0.18% plus sgx fees of 0.04%. Fsmone is $3.80 plus 0.04% sgx fees. A $400k sale will incur a transaction cost of $960 (with gst) with scb and $179 with FSMOne. That's how much the difference

Did you manage to do the transfer smoothly between FSMOne and SCB? I'm also thinking doing something similar, but in reverse. Buy $200k of MBH at FSMOne, then transfer to SCB, rather than buying MBH directly from SCB.