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Old 30-01-2020, 09:04 PM   #1741
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Future yes... but do you count them as bond equivalents in your present asset allocation model today (i.e. allowing for a higher stock % due to these considerations)?

The reason I ask is because experts do not generally recommend this.

Jack Bogle was in the minority in his view that Social Security should be considered as a bond equivalent, as well as recommending the more aggressive 120 minus your age guideline.
I tend to agree with the late Jack Bogle that high confidence retirement income streams such as U.S. Social Security ought to be counted as "bond-like." I'm not a huge fan of "constant minus age" portfolio allocations, though. I prefer a trapezoid, if that makes sense.

Michael Kitces opined that in theory you could put Social Security on your balance sheet, but he doesn’t recommend it, since ordinary people typically wouldn’t have the stomach for the higher volatility resulting from the higher stock allocation.
But the portfolio allocation percentages can be adjusted. It seems like an argument about algebra.

I prefer adding no more complexity than necessary. It seems easier just to count everything and then set whatever allocation percentages seem age and risk appropriate on that basis, and as a "trapezoid" (constant allocation percentages held steady until X years before retirement) since that seems easier, too. Other approaches are possible, but "count everything, and hold XX% in stocks -- and check back again when you're Y years away from retirement" is operationally as simple as it gets, right?
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Old 30-01-2020, 09:50 PM   #1742
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Thank u very much

There are some other threads on that. FSMOne appears to be generally pretty competitive for these purposes, at the moment.
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Old 31-01-2020, 04:22 PM   #1743
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DBS's "My Account": No Monthly Fee

I haven't seen anybody else mention DBS's "My Account," and I think it's worth a mention.

For those of you looking for a zero minimum balance bank account in Singapore, DBS is now offering "My Account." As long as you opt for e-statements, there's no monthly fee and no minimum balance requirement.

You can open this account online as long as you're some sort of resident of Singapore: a Singaporean citizen, a Singapore PR, or a pass or permit holder (PEP, EP, LTVP, LTVP+, DP, S Pass, Student Pass, Work Permit, etc.) And, at the moment, there's a cash "Ang Bao" promotion if you place at least $1,000 of fresh funds for 6 months, but you can open this account with $1 if you want.

"My Account" supports Singapore dollars but also some other currencies if you wish. (I don't generally recommend holding foreign currencies in banks in Singapore. Please note that non-Singapore dollar currencies are not SDIC protected.) You can get any or all of the DBS and POSB debit/ATM cards with this account, and it has all the usual DBS/POSB services such as access to Singapore Savings Bonds and other Singapore Government Securities. It's not a checking account, so you don't get a paper checkbook, but paper checks are pretty rapidly falling out of favor these days.

This account earns only a very little bit of interest, currently 0.05% per annum for the first $100,000 up to a maximum of 0.25% p.a. on higher balances. You can "upgrade" it to a DBS Multiplier Account and keep the same account number, but the DBS Multiplier Account has a $3,000 minimum balance to avoid a monthly fee.

For some strange reason(s) DBS doesn't seem to cross-list "My Account" on their POSB Web site, and they still offer the POSB Everyday Savings Account with its $500 minimum balance to avoid a monthly fee.

Anyway, kudos to DBS for doing this. This account should be appealing to the currently "unbanked" (and "marginally banked") in Singapore, and to soon-to-depart residents of Singapore who'd like to maintain a simple (but full function) bank account in Singapore to handle residual financial needs, such as receiving CPF payouts. It looks like a great fit for tweens, teens, NSmen, and university students, too.

There are some other bank accounts in Singapore that also do not have any "fall below" fees. Last I checked, CIMB Singapore, ICBC Singapore, and BNI Singapore offer such accounts. Also, DBS will face some new competition as so-called "digital banks" surface and expand in Singapore. The competition is welcome, and it's best to get out in front of it.
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Last edited by BBCWatcher; 31-01-2020 at 04:33 PM..
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Old 31-01-2020, 04:40 PM   #1744
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Just to add to this,
IF you open the DBS multiplier account completely online
AND IF this is your first account with DBS (there's the catch),
THEN normally there's no minimum average daily balance forever
(according to the Eligibility & Fee section on the dbs website)

(I am supposedly in that case myself but I did not test it to check whether it is true. And as far as I know, there's no way to see whether it is true without trying...)
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Old 31-01-2020, 04:42 PM   #1745
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It's January 31: Last Call for January CPF Actions

As a reminder, today is January 31, 2020. This is your last day to take certain actions that qualify for CPF interest as early as possible in the new calendar year, such as (examples):

1. MediSave Account top ups, which must fit within both the CPF Annual Limit and the Basic Healthcare Sum. These top ups qualify for tax relief if you're otherwise eligible, and there's no separate tax relief limit for MediSave top ups.

2. Special Account top ups, available to those under age 55 who have not reached the Full Retirement Sum. The first $7,000 qualifies for tax relief if you're otherwise eligible.

3. Retirement Account top ups, available to those age 55 and older who have not reached the current Enhanced Retirement Sum (per the principal only). If you're below the Full Retirement Sum then you may qualify for tax relief on up to the first $7,000.

4. Ordinary Account to Special Account transfers, available to those under age 55 who have not reached the Full Retirement Sum. There is no additional tax relief for these transfers.

Top ups made and credited today, via PayNow QR (the only channel that should, hopefully, credit immediately), will start earning interest from February 1, 2020. OA to SA transfers completed today will start earning the higher SA interest retroactively to January 1, 2020.
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Old 31-01-2020, 04:43 PM   #1746
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Just to add to this,
IF you open the DBS multiplier account completely online
AND IF this is your first account with DBS (there's the catch),
THEN normally there's no minimum average daily balance forever
(according to the Eligibility & Fee section on the dbs website)

(I am supposedly in that case myself but I did not test it to check whether it is true. And as far as I know, there's no way to see whether it is true without trying...)
That is true -- and a very good point. Thanks for the reminder. It can be any DBS or POSB account, but the DBS Multiplier Account is a good choice in the scenario you describe.

I should also point out that there's still apparently a "back door" method to get a zero minimum balance OCBC account. It works like this:

1. Apply for an OCBC Plus! Credit Card, and get approved. It has to be that specific credit card, and the Plus! Debit Card doesn't work.

2. Make sure you get the paired OCBC Plus! Savings Account with your new card.

3. Use the credit card if you like -- it's pretty good at FairPrice -- but cancel it before an annual fee comes due.

4. Keep the OCBC Plus! Savings Account as long as you wish, although make sure you do something, anything, every 11 months to avoid the 12 month inactive account limit. That could be transferring one penny of interest to some other account, for example.

There's no ATM/debit card and no checkbook with this OCBC account, but otherwise it's a simple OCBC savings account with no minimum balance requirement.

Last edited by BBCWatcher; 31-01-2020 at 04:48 PM..
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Old 31-01-2020, 07:09 PM   #1747
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Will you really know when you are X years away from retirement? For me, it’s really hard to say. I could retire 4 years or 20 years from now, or maybe (hopefully) semi-retire somewhere in between.

I think that is why the age based ratios make sense to me, I just won’t know when to ratchet down otherwise. To some extent, I do like the idea of ratcheting back up years later in retirement, after the sequence of return risk has ebbed.

I tend to agree with the late Jack Bogle that high confidence retirement income streams such as U.S. Social Security ought to be counted as "bond-like." I'm not a huge fan of "constant minus age" portfolio allocations, though. I prefer a trapezoid, if that makes sense.


But the portfolio allocation percentages can be adjusted. It seems like an argument about algebra.

I prefer adding no more complexity than necessary. It seems easier just to count everything and then set whatever allocation percentages seem age and risk appropriate on that basis, and as a "trapezoid" (constant allocation percentages held steady until X years before retirement) since that seems easier, too. Other approaches are possible, but "count everything, and hold XX% in stocks -- and check back again when you're Y years away from retirement" is operationally as simple as it gets, right?
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Old 31-01-2020, 07:52 PM   #1748
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Will you really know when you are X years away from retirement?
It's OK for these purposes to pick a conventional/traditional retirement age, such as age 65, and then adjust if/as you get some more visibility as the years pass. I think the "age minus" formulas are actually less helpful in terms of retirement age variability because they have a built-in, inherent presumption of a retirement age, even if it's not overt.
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Old 01-02-2020, 10:11 PM   #1749
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Bbcw, what do you think about this article, especially the recommendation for younger people to top up their SRS instead of CPF SA due to longer investment horizon? Does that make sense to you?

https://endowus.com/insights/cpf-sa-...mpaign=content
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Old 01-02-2020, 11:29 PM   #1750
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I was just reading that nonresident aliens are eligible for $4,050 annual personal exemption on US tax (nonresident return must be filed to claim this). Does this mean $4,050 worth of the 30% withholding on dividends can be claimed back?
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Old 02-02-2020, 07:44 AM   #1751
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Nevermind. I found this — For tax years beginning after December 31, 2017, nonresident aliens cannot claim a personal exemption deduction for themselves, their spouses, or their dependents.

I was just reading that nonresident aliens are eligible for $4,050 annual personal exemption on US tax (nonresident return must be filed to claim this). Does this mean $4,050 worth of the 30% withholding on dividends can be claimed back?
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Old 02-02-2020, 08:04 AM   #1752
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Bbcw, what do you think about this article, especially the recommendation for younger people to top up their SRS instead of CPF SA due to longer investment horizon? Does that make sense to you?
Not exactly, no. What’s missing is that CPF is bond-like and stocks are stocks. The hypothetical high income earner should have no problem finding room within her/his annual savings for CPF top up-sized “bonds” earning 4+% interest and with tax relief. AND to do plenty of long-term stock investing.

Also, I’d prioritize MediSave top ups since MA dollars can be useful at any age.

Also, once MA and SA hit their respective limits, interesting things happen with OA: the MA portion of regular contributions spills over into OA. That opens up the CPF Investment Scheme (OA) which can be more tax advantageous than SRS.

Also, if you have such spectacular “bonds” you can have the rest of your portfolio positioned more aggressively.
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Old 02-02-2020, 08:52 AM   #1753
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That's an interesting perspective to look at, even though I don't think SA/MA is truly bond like since you cannot rebalance with it.

Thanks!!

Also, once MA and SA hit their respective limits, interesting things happen with OA: the MA portion of regular contributions spills over into OA. That opens up the CPF Investment Scheme (OA) which can be more tax advantageous than SRS.

Also, if you have such spectacular “bonds” you can have the rest of your portfolio positioned more aggressively.
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Old 02-02-2020, 10:12 AM   #1754
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That's an interesting perspective to look at, even though I don't think SA/MA is truly bond like since you cannot rebalance with it.
They’re bond-like, but they have liquidity limits. Rebalancing is fairly important but I don’t think it’s important enough that you’d give up 4+% interest plus tax relief on the bond/bond-like portion of your long-term portfolio. Plus you’re still likely going to have rebalancing opportunities starting roughly mid-career since MA and SA have contribution limits, even if they represent the whole bond/bond-like portion initially.

However, I agree with the basic logic which is why I think MA and SA top ups are less attractive for children, with some rare exceptions.
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Old 02-02-2020, 12:45 PM   #1755
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S$60k on IWDA (S$800 monthly for DCA via SCB. May stop once the 60k is fully invested)
S$40k on ES3 (S$500 monthly for DCA via RSP with FSMone. May stop once the 40k is fully invested )
Why stop? The maturation of an endowment plan isn’t a good reason to stop. Stopping would mean your $1,300/month savings flow crashes to zero. The endowment plan proceeds are simply savings that get reallocated. They shouldn’t be “double counted” as additional savings.

The cash allocation seems a little high to me. That’s equivalent to $9,166 per month for 12 months, not counting your Ordinary Account for mortgage payments.
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