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tangent314 12-07-2018 05:42 PM

Quote:

Originally Posted by BBCWatcher (Post 115427834)
Does QL2 and/or QL3 offer some convenience? I guess so, but you've still got to go to a (local) broker to buy them. It doesn't seem like it'd be any more difficult to buy some CORP (the iShares global investment grade corporate bond fund listed/traded in London), as a notable example. Granted, you have one more key to hit, but CORP is easier to remember. ;)


Setting up the buy isn't a problem, I can do it for this person. Teaching this non-savvy person to regular convert and transfer the distributions from USD to SGD on his own is quite a bit trickier.

In any case I can't see CORP as being suitable for an SG person retiring in SG, with the distribution yield at ~2.6%. As you have mentioned, SGS (30 years?) seems to be the better option for the amount, although it might be a while before a 30-year SGS becomes available for auction again. QL2 (~4%) and QL3 (~6%) at least have distribution yields that look interesting if someone is looking into something significantly higher than SGS...

As we've lamented many times before, it would be ideal if there was a SG Corporate Bond Fund that SG domiciled, SGD denominated, holding SGD bonds. But we don't, so we will have to choose between various less ideal options.

BBCWatcher 12-07-2018 06:08 PM

Quote:

Originally Posted by Falcondiaz (Post 115445330)
However, I still don't get how the maths work out, given that this bond asset class is there to support the portfolio in more turbulent times and perhaps even a pot to withdraw cash from to rebalance the portfolio. Could you elaborate further and perhaps share an example?

I'm not sure I understand the question.

A35 is a respectable bond fund, and I kind of like it. However, I think you can accomplish the same investment goals that A35 supports using Singapore Savings Bonds and, perhaps, other Singapore Government Securities (SGSes) purchased directly from the government -- and at lower cost. If you want to use a little bit of A35 as a "rounding" fund, above SSB/SGS allocations for rebalancing purposes, that'd work.

I think ST and I agree that you shouldn't be too fanatical about rebalancing. It's not any sort of emergency if your stocks are 80.3% of your portfolio when you'd like them to be 80%. ;)

EagleToThesSky 13-07-2018 07:31 PM

Quote:

Originally Posted by BBCWatcher (Post 115209632)
Vanguard's "Target" series of mutual funds are available in the United States and appropriate for U.S. persons. They are index funds designed for "fire and forget" saving, since they follow a pre-determined program based on the target date. For example, if you buy (and keep buying) Vanguard Target 2035, it stays invested in index funds of 80% stocks and 20% bonds, then starting in 2028 (7 years until the target) it gradually, automatically adjusts the ratio so that it's 30% stocks and 70% bonds in 2035. From then on you use it for regular monthly withdrawals (ideally 4% or less) for retirement.

So it's all automatic, all pre-programmed. You just plow money in every month for decades, hopefully, then switch to a gradual drawdown (4% or less per year) in retirement.

Unfortunately they don't seem to be available outside the U.S., but the programs they follow are still interesting and useful references.


I don't like QL3 since it's a junk (non-investment grade) bond fund and Asia-focused, and that combination doesn't make much sense to me, particularly the former.

I think for a retiree in Singapore interested in bonds I'd mix SSBs (and potentially other SGSes, either directly or via A35), CPF (including CPF LIFE income), and (with some care) the London-listed ETF with the symbol CORP. CORP is a global investment grade corporate bond index fund, so it's higher quality with bonds denominated in a broader range of the world's currencies. And I think CORP has better trading volume/narrower bid-ask spreads than QL3 likely does. (Please check that.) And I'd probably have ~70% in bonds and bond-likes with ~30% in stocks during a long retirement drawdown phase. CORP (or QL3 for that matter) would only be a relatively small slice of the bond holdings.

Key assumptions here include retirement in Singapore and non-U.S. personhood.

I understand that investment in US bonds is not subject to WHT. Is there any good US bonds you would recommend?

yyhwin 13-07-2018 07:41 PM

https://i.imgur.com/rZrmk6J.jpg

Hi BBC I intend to get this 400 k with CI plan from aviva to protect my mortgage loans, any comment on this plan from aviva, it is the cheapest available on that website.

yyhwin 13-07-2018 07:41 PM

I am 34 next birthday.

BBCWatcher 13-07-2018 08:32 PM

Quote:

Originally Posted by EagleToThesSky (Post 115465744)
Is there any good US bonds you would recommend?

U.S. Treasuries are wonderful if you want the ultimate in U.S. dollar safety, and the TIPS are interesting for certain uses. What are your goals?

Quote:

Originally Posted by yyhwin
Hi BBC I intend to get this 400 k with CI plan from aviva to protect my mortgage loans, any comment on this plan from aviva, it is the cheapest available on that website.

I'm not a fan of "CI." I think there's a "big three" of insurance needs for most people: DII, a basic Integrated Shield public hospital B1 plan backstopped with a decent or better Medisave balance, and (for those with needful dependents) term life insurance. Beyond that, you're usually dabbling in insurance nice-to-haves, luxuries, frivolities, and/or absurdities.

yyhwin 13-07-2018 10:17 PM

That means cut CI to further decrease the premium?

Quote:

Originally Posted by BBCWatcher (Post 115466778)
U.S. Treasuries are wonderful if you want the ultimate in U.S. dollar safety, and the TIPS are interesting for certain uses. What are your goals?


I'm not a fan of "CI." I think there's a "big three" of insurance needs for most people: DII, a basic Integrated Shield public hospital B1 plan backstopped with a decent or better Medisave balance, and (for those with needful dependents) term life insurance. Beyond that, you're usually dabbling in insurance nice-to-haves, luxuries, frivolities, and/or absurdities.


maple96 14-07-2018 06:10 PM

Quote:

Originally Posted by BBCWatcher (Post 115466778)

I'm not a fan of "CI." I think there's a "big three" of insurance needs for most people: DII, a basic Integrated Shield public hospital B1 plan backstopped with a decent or better Medisave balance, and (for those with needful dependents) term life insurance. Beyond that, you're usually dabbling in insurance nice-to-haves, luxuries, frivolities, and/or absurdities.

Luckily my insurance portfolio is still within your opinion of must haves, not nice to have luxuries!

I dun have DII as I do not need it at this stage of my life, but do have something similar to careshield life. I do have isp B1 with full 100% rider which I plan to terminate when I get older. Only bought it after I became self employed, before that was relying on company insurance. Been hospitalised twice which should have "recovered" what I paid as premiums, so no worries to continue.

Dun have term insurance but have whole life (death, tpd, ci) which I no longer need but will continue and treat like rsp giving me "passive income" more than 4% "reinvested" for better long term returns.

So nothing in the luxuries categories.

w4rdsg 16-07-2018 10:56 AM

Hi BBBCW, question on that most exciting of topics, bond funds!

Years ago I bought LQDE for some USD corp bonds. I think I chose it over CORP because it’s 4x the size and has a higher yield.

You’ve mentioned CORP as your preferred Corp bond fund in the past. Is it just for the global diversification? Looking at CORPs holdings it seems to be dominated by Japan govt treasuries and US multinationals. I’m not super excited by the JP treasuries.

I guess I am biased to stick with LQDE even though it is down a bit more than CORP this year, but I’d be interested to know if you had any other reasons to prefer CORP?

Thanks

BBCWatcher 16-07-2018 04:14 PM

LQDE assumes more U.S. dollar currency-specific risk v. CORP, that's all. I don't think that's necessarily a problem if your time horizon is long enough, and of course if you're retiring within the U.S. dollar zone....

lyndonmaxewell 16-07-2018 08:42 PM

How do you like the new Raffles Shield?

https://www.rafflesmedicalgroup.com/rafflesshield

BBCWatcher 17-07-2018 07:56 AM

The Raffles Shield plans are only average, with two important exceptions:

1. The high deductible plan option could be interesting to certain individuals and companies. For example, a small business might sign its workers (esp. foreign workers) up for Raffles Shield Private with the high deductible option, then self-insure some or all of the remainder. Smaller businesses might not get great group insurance rates, so this is another possibility for them. (On edit: I see that Raffles itself is positioning their high deductible plans as well suited to those with group insurance -- and with the ability to turn off the high deductible in the future, without a full policy reset. So if you're covered under a group medical plan through work, you might want to give their high deductible option some consideration. But see below.)

2. The Raffles Shield A with Raffles Hospital plan is unique in the Integrated Shield market, and it’s intriguing. It’s a pretty good (above average) public hospital A ward Integrated Shield plan that adds coverage in Raffles Hospital, not in other private medical facilities. And the premium is somewhere in between a pure public and a pure private plan. So, if you’re leaning at least a little toward the luxury side of medical care, it might be a reasonable choice.

There are optional riders. Only the Key Rider is worth considering, in my view. Raffles is missing a “Key Rider HD” (Key Rider High Deductible) which caps the out-of-pocket costs for covered services on the high deductible plans.

On edit: Coverage is available starting as early as August 1, 2018.

helloworld321 17-07-2018 09:58 AM

Any thought on PayPal. Itís going to release itís esrning next week.

w4rdsg 17-07-2018 10:33 AM

Quote:

Originally Posted by BBCWatcher (Post 115513805)
LQDE assumes more U.S. dollar currency-specific risk v. CORP, that's all. I don't think that's necessarily a problem if your time horizon is long enough, and of course if you're retiring within the U.S. dollar zone....

Thanks. Retirement probably still 20 years away and not at all sure where that will be, so seems as good a choice as any...

BBCWatcher 17-07-2018 11:00 AM

Quote:

Originally Posted by helloworld321 (Post 115524975)
Any thought on PayPal.

I'm not a fan as an occasional customer, and I would prefer even fewer interactions with PayPal. With one possible exception: they offer a rebate credit card to U.S. residents that's mildly interesting.

I avoid speculating on individual stocks.


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