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Old 19-01-2020, 02:02 PM   #1696
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Hi BBCW i understand u mentioned that GE is the best for class A plan. Could u kjndly elaborate the reason? Coz i noted that Aia is the only insurer that covers congential diseases since day 1.

Btw is it worth to change from GE private to Aia Private if my health is still clean sheet?

Thanks
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Old 19-01-2020, 02:07 PM   #1697
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This is a good question.

I have been thinking to protect my kid for unforeseen complicated illness which Can complement the IP so that she can enjoy more comfort or use it on non standard drugs.

So im thinking to buy a combination of term and life plan.

Btw does it make sense to rely solely on group insurance like SAF aviva ?

Thanks

That depends. What newborn-related risks are you trying to defend against?
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Old 19-01-2020, 02:55 PM   #1698
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Hi BBCW i understand u mentioned that GE is the best for class A plan. Could u kjndly elaborate the reason? Coz i noted that Aia is the only insurer that covers congential diseases since day 1.
No, I've characterized Great Eastern as currently offering the best "as charged" public hospital B1 ward plan for citizens.

In the recent past I've suggested that Great Eastern, Prudential, and Raffles Shield are all quite competitive in the "as charged" public hospital A ward segment of the market, each with their pros and cons but all closely bunched. AIA has very recently improved its plan in this segment, and it's now rather good. It doesn't compare well to the others in terms of the post hospitalization coverage window, but the annual limit, private hospital proration factor, and congenital abnormalities T&Cs do compare quite well.

Bear in mind there's still a 15 day minimum age for a newborn to sign up for an Integrated Shield plan, and that's still 15 days of potential preexisting condition exclusions, including congenital abnormality exclusions.

Btw is it worth to change from GE private to Aia Private if my health is still clean sheet?
I don't think it's worth accepting a preexisting condition reset unless there's a major difference. So no, I wouldn't.

I have been thinking to protect my kid for unforeseen complicated illness which Can complement the IP so that she can enjoy more comfort or use it on non standard drugs.

So im thinking to buy a combination of term and life plan.
Which one(s)?

Btw does it make sense to rely solely on group insurance like SAF aviva ?
There's no Integrated Shield plan available through Aviva's MINDEF/SAF group policies so far as I'm aware, and I think there's a reasonable argument that an "as charged" public hospital B1 ward Integrated Shield plan such as Great Eastern's (if you're a citizen) is an insurance necessity. But otherwise, maybe, probably. The group plan offers a fine term life insurance policy (for those who need life insurance), and there's a DII rider available, too.
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Old 19-01-2020, 03:05 PM   #1699
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what do you think will be the impact of Pied-ŕ-Terre tax in singapore if adopted? why are these taxes not implemented on a wider scale worldwide?
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Old 19-01-2020, 03:31 PM   #1700
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what do you think will be the impact of Pied-ŕ-Terre tax in singapore if adopted?
It is adopted. Singapore already has a similar tax called the Additional Buyer's Stamp Duty (ABSD). In fact, supporters of this type of tax in New York cite Singapore as something of a model, or at least as a point of comparison.

I think there's room to tweak Singapore's real estate taxes, and I'm sure the government will tweak the ABSD. (It already has.) For example, it might be a good idea to jack up property taxes more broadly on property that is vacant for more than 6 months. (There's already a tax structure in Singapore that discourages property developers from "squatting" for too long, but there may be merit to expanding that basic idea.)

why are these taxes not implemented on a wider scale worldwide?
There are several places that have taxes of this sort, such as Paris (France), Vancouver, Shanghai, the United Kingdom, parts of Australia, Florida, and Italy. These taxes tend to be politically popular, they raise a pretty good amount of revenue, they're broadly progressive, and they may help keep housing more affordable (although that depends a great deal on the precise tax design).
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Old 20-01-2020, 12:26 AM   #1701
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BBC, I’ve been trying to learn all the intricacies of the foreign tax credit in the US tax code. One particular topic I’ve been diving into this weekend is the “limit” on the foreign tax credit.

Here is what I understand so far.

The limit is the US tax owed that is attributable to foreign income. To calculate it, take your US tax on 1040 times the % of foreign income out of your total income. The limit seems to serve several purposes. It prevents the FTC from becoming a refundable credit (hence the carryover) and it also ensures that you use up the credit when the opportunity arises - it seems the FTC takes priority over other credits, so even if you don’t use it, it gets absorbed... just as if you did use it. If your US tax attributed to foreign income is more than the foreign tax paid, this becomes an excess carryover, reducing any FTC carryover(s) in the process. This is because when your US taxes exceed your foreign taxes, conceptually you are expected to pay the difference (at least within the FTC framework), even if there may be other means to reduce or eliminate them.

Does this make sense so far? I have not found much good information online or from the IRS that explains it in simple terms. The logic and intentions behind it seem lost in the complex myriad of mechanics and inner workings.
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Old 20-01-2020, 07:43 AM   #1702
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It looks like you’ve explained the U.S. tax code’s Foreign Tax Credit pretty well. Another important aspect is the division of income into broad categories, so there are really a few “lanes” of FTCs. Here are a few other points to mention:

1. Only foreign income taxes legally owed, sans penalties and interest, are creditable. GST, VAT, stamp duties, compulsory social insurance taxes, wealth, gift, duties, property, and many other taxes are disallowed here. (I’ve heard of some U.S. persons complaining about the Net Investment Income Tax in reverse, that some foreign tax codes are disallowing NIIT credits, treating them as compulsory medical insurance premiums since the revenue is advertised as dedicated to Medicare. And that they wish the NIIT were just folded into the ordinary income tax rates.)

2. I believe there’s an alternative deduction path, but I’ve never taken that path.

3. I’m not entirely sure whether it’s obligatory to spend down accumulated FTCs, or at least not always. For example, there’s no obligation I’m aware of to carry an excess FTC back to the prior tax year and file an amended return, which is allowed. However, I cannot think of any good reason why you’d want to delay taking FTCs since you don’t earn interest on them. [I think the FEIE is different, though. I believe that if you take the FEIE it must be across all excludable income, not just the part(s) you’d like to exclude.]

4. There are limitations on bouncing between taking and not taking the Foreign Earned Income Exclusion, even if you might prefer taking only FTCs in a particular year then try to flip back to taking the FEIE in a subsequent year.

5. You may get a better result applying a tax treaty provision if one exists, but as far as I know you’re not required to.

6. Some of the tax preparation software providers don’t handle IRS Form 1116 (FTCs) at all, and the ones that do don’t necessarily handle it particularly well.

7. You’re allowed to apply an excess FTC to the prior tax year and/or to the next 10 tax years. (It used to be 2 and 5.)

Last edited by BBCWatcher; 20-01-2020 at 07:47 AM..
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Old 20-01-2020, 04:55 PM   #1703
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For #3 it seems like you must take all prior carryovers (whether favorable or unfavorable) into consideration, because 1116 includes that and it instructs you to attach your computations. For that attachment, I’ve not found any template or sample online, and the IRS instructions are not totally clear on what details are needed.

After reading and re-reading it several times, it looks like those who don’t have any spouse sharing complications, the attachment simply needs 4 columns: tax year, limit, creditable foreign tax paid and the resulting excess limit or excess FTC.

It is pretty clear that the creditable foreign tax paid has to be adjusted for the portion of foreign income that was excluded on form 2555. I’m assuming any other credits/deductions taken on 1040 are already considered in the limit.
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Old 20-01-2020, 05:07 PM   #1704
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Is hospital income policy a must have? Or good to have?
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Old 20-01-2020, 05:51 PM   #1705
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Is hospital income policy a must have? Or good to have?
Neither, really. You should have paid medical leave and emergency reserve funds to handle such an event, and Disability Income Insurance if the inability to work is prolonged or permanent. It's that much easier to have more emergency reserve funds and better DII coverage when you're not spending precious premium dollars on questionable (or worse) insurance products.

Remember what genuine insurance needs are: to help mitigate the impact of true calamities and catastrophes that you cannot reasonably handle on your own, and when a monetary payout would help. "Hospital income" policies do not fit that profile.

However, if/when you buy even a public restructured hospital Integrated Shield plan with rider, you'll often see there's a daily cash "reward" if you stay in a lower hospital ward than the policy is designed to handle. You shouldn't buy an Integrated Shield plan and rider that's above what you actually need (unless you've at least covered all your genuine needs first), but if you happen to have that option "by accident" and want to take advantage of it during a particular hospital stay, feel free.
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Old 22-01-2020, 10:52 AM   #1706
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Hi BBC,

I have a question on buying foreign stocks that are listed on multiple exchanges.

ie. Ericsson

Using something like IB, it seems like the company is listed on Nasdaq, Mexi, IBIS2 and SFB and likely also having multiple classes of shares (ADR, A and B).

In a case like this, how would you determine the best one to buy? Guessing they are all ultimately the same company, but are there differences in withholding taxes, dividend policies etc?

Thanks in advance.
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Old 22-01-2020, 11:52 AM   #1707
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Most people shouldn't buy or trade individual stocks.

That said, if you're going to buy individual stocks, you need to do your research, and that includes picking the best trading vehicle for your particular situation. Usually, at least for a major/significant company such as Ericsson, the ADRs will be quite attractive or at least no less attractive. If you're a non-U.S. person, there are no U.S. taxes associated with ADRs. ADRs listed on the two major U.S. exchanges typically have good or excellent trading volumes, narrow bid-ask spreads, and low or zero broker commissions. But that's only a "rule of thumb," not a universal truth. Go investigate.
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Old 22-01-2020, 10:29 PM   #1708
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He deserves his own thread!

Thanks for our BBW and Shiny Things for making this sub-forum a useful place for both noobs and experts to learn.
woo hoo !!!!!!
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Old 23-01-2020, 06:42 AM   #1709
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Hi BBC,

First and foremost would liked to thank your generous sharing.

I have a few question and hope you could share your views.

Now that we are experiencing a slow down. Do you foresee any major recession in the way? No one knows for sure when but what is your guess?

Also, what are some safe investments at this point of time that we could look at? Stocks are not doing well. Property might crash. What are other alternatives? With Ammo of 500k cash and 1 hdb (first purchase) worth 500k fully paid. 😅 mid 30s

Thank you in advance.

Last edited by slothbal; 23-01-2020 at 07:23 AM..
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Old 23-01-2020, 06:49 AM   #1710
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Hi BBC,

First and foremost would liked to thank your generous sharing.

I have a few question and hope you could share your views.

Now that we are experiencing a slow down. Do you foresee any major recession in the way? No one knows for sure when but what is your guess?

Also, what are some safe investments at this point of time that we could look at? Stocks are not doing well. Property might crash. What are other alternatives? With Ammo of 500k cash and 1 hdb worth 500k fully paid. 😅

Thank you in advance.
Stocks are doing amazingly well. Just not in singapore
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