www.hardwarezone.com.sg


www.hardwarezone.com.sg (/)
-   Money Mind (https://forums.hardwarezone.com.sg/money-mind-210/)
-   -   *Official* BBCWatcher club (https://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-bbcwatcher-club-5855578.html)

peipei1 20-07-2018 12:58 PM

Hey BBC! What are your thoughts of using something TVIX to hedge against the ETF Indexes? The time for recession is closer and closer. :o

It feels like easy money now the price only 37 but it can go as high as tens of thousands in a market crash! Got such thing or not? Still i see that even for some small tariffs war news, it swing up to the 50s and 60s. Who iare the winners and losers for this product?

mmchaisi 21-07-2018 07:54 AM

NX16100F reopened SGS bond with 2.125% coupon. Any idea what the effective rate of return is going to be? I believe it’s 7 years to maturity.

BBCWatcher 21-07-2018 08:27 AM

Quote:

Originally Posted by mmchaisi (Post 115599039)
NX16100F reopened SGS bond with 2.125% coupon. Any idea what the effective rate of return is going to be? I believe itís 7 years to maturity.

It should be ~2.25% yield, meaning that the reopened bond should sell for something less than face value. To figure out the likely yield, just look at the daily statistics and interpolate between the 5 and 10 year maturities. Take one last look before the auction closing deadline at your bank. (The deadline at your bank is substantially BEFORE the deadline at MAS.)

Noncompetitive bids (the only kind you should make, I strongly advise) tend to get filled at slightly higher than the market data suggest, from what Iíve observed. So ~2.3% is possible. All assuming market interest rates donít change much between now and the auction.

BBCWatcher 21-07-2018 08:35 AM

Quote:

Originally Posted by peipei1 (Post 115584958)
What are your thoughts of using something TVIX to hedge against the ETF Indexes? The time for recession is closer and closer. :o

If youíre trying to time the market in certain ways ó which is short-term speculation rather than long-term investing ó then usually the options and futures markets will be useful tools. However, there are some convenient, prepackaged tickers that are listed and traded like individual stocks. So you can make some ďstandardĒ speculative bets that way.

I still think the options and futures markets are better if you want to do that sort of thing, but not everyone has access to those markets.

Iím just not into speculation, though. Itís not for me. I cannot predict the next Trump Tweet, and Iím not going to try.

belgarathc 21-07-2018 05:40 PM

Hi BBCWatcher,

I am trying to optimise CPF contribution for maximum tax relief. I already performed 7,000 contribution to my own SA account and 7,000 contribution to my parents' RA account for 14,000 tax relief. I have not reached FRS yet. Currently below 40 years old.

I have both employment and trade income.

Let's say 2018 employment income is SGD 7,000 each month for 12 months, SGD 7,000 13th month bonus, SGD 7,000 performance bonus.

Let's say 2018 trade income is SGD 30,000.

I have made voluntary contribution of SGD 2,500 to medisave account under self-employment at start of this year to hit the new medisave cap of SGD 54,500.

CPF annual limit is SGD 37,740 for 2018.

Is the amount I can still perform voluntary contribution = 37,740 - 0.37 * ( 6,000 * 12 + 7,000 + 7,000) - 2500?

This is SGD 3,420.

Thanks!

BBCWatcher 21-07-2018 06:27 PM

Quote:

Originally Posted by belgarathc (Post 115607316)
Is the amount I can still perform voluntary contribution = 37,740 - 0.37 * ( 6,000 * 12 + 7,000 + 7,000) - 2500?
This is SGD 3,420.

Your math looks exactly correct to me. What you can do, for example, is to top up Medisave immediately after thereís a withdrawal, such as a withdrawal for your 2018 base Integrated Shield premium payment. That additional Medisave top up will also be eligible for tax relief.

Well played.

To simplify matters for you and for anyone else who earns $6,000 or more per month from employment in Singapore, just remember that you wonít have any room below the CPF Annual Limit unless your bonus income from employment totals less than $30K. Since your expected bonus income totals $14K, you have room below the Annual Limit. And that room is 37% of $16,000, which is $5,920. Youíve already consumed $2,500 of that, so you get to that same $3,420 figure remaining. Just another way to get to that number, if you like.

belgarathc 21-07-2018 08:24 PM

Quote:

Originally Posted by BBCWatcher (Post 115608059)
Your math looks exactly correct to me. What you can do, for example, is to top up Medisave immediately after thereís a withdrawal, such as a withdrawal for your 2018 base Integrated Shield premium payment. That additional Medisave top up will also be eligible for tax relief.

Well played.

To simplify matters for you and for anyone else who earns $6,000 or more per month from employment in Singapore, just remember that you wonít have any room below the CPF Annual Limit unless your bonus income from employment totals less than $30K. Since your expected bonus income totals $14K, you have room below the Annual Limit. And that room is 37% of $16,000, which is $5,920. Youíve already consumed $2,500 of that, so you get to that same $3,420 figure remaining. Just another way to get to that number, if you like.

Thanks BBCWatcher. :)

MrHighlander 22-07-2018 05:45 PM

Hi BBCW,

I have some queries about CPF OA to SA transfer and CPA SA transfer.

For CPF OA to SA transfer, I understand that the amount transferred (say 50K) will attract the 4% interest in the month of transfer. And the transfer from OA to SA does not make any difference at all to the amount one can withdraw from CPF at the age of 55.

For cash top up to SA though, when will the cash top up (up to $7000 per calendar year) be computed at the 4% interest? Is it in the month of top up itself or the subsequent month? Also, I understand that the cash top up can never be withdrawn at age 55 and will instead be counted towards the FRS but won't be computed in any way as part of the BRS.

Does the above accord with your understanding?

In addition, I think that the best way to play the full withdrawal at the age of 55 (if I choose to) is to do SA cash top up and transfer from OA to SA, so that FRS can be reached faster. I doubt that my SA cash top up can ever hit the FRS on its own since I am 35 already, so I am effectively aiming to use the SA cash top up to form as much as possible the FRS sum (and reduce taxes along the way). Do you agree?

Thank you.

Newmaxi 22-07-2018 08:47 PM

Hi BBCwatcher

I am new to SGS t bill. How do I see what I rate of return for July 19 T bill? TIA

BBCWatcher 22-07-2018 10:10 PM

Quote:

Originally Posted by MrHighlander (Post 115622852)
For cash top up to SA though, when will the cash top up (up to $7000 per calendar year) be computed at the 4% interest? Is it in the month of top up itself or the subsequent month?

The subsequent month. Consequently itís best to make cash top-ups toward the end of the calendar month. Allow enough time for CPF to credit the top-up within that month, so donít cut it too close.

Quote:

Also, I understand that the cash top up can never be withdrawn at age 55 and will instead be counted towards the FRS but won't be computed in any way as part of the BRS.
Thatís correct. That distinction only matters if youíre aiming for CPF LIFE participation at the Basic Retirement Sum. You shouldnít be, in my view.

Quote:

In addition, I think that the best way to play the full withdrawal at the age of 55 (if I choose to) is to do SA cash top up and transfer from OA to SA, so that FRS can be reached faster. I doubt that my SA cash top up can ever hit the FRS on its own since I am 35 already, so I am effectively aiming to use the SA cash top up to form as much as possible the FRS sum (and reduce taxes along the way). Do you agree?
If you can combine techniques (partial or full OA to SA transfers, and SA top-ups for tax relief), thatís great. The 4+% compound interest is attractive and works well as a bond-like part of your savings. Donít forget your spouse, of course (if applicable).

BBCWatcher 22-07-2018 10:14 PM

Quote:

Originally Posted by Newmaxi (Post 115625848)
How do I see what I rate of return for July 19 T bill?

I donít think itís been issued yet, so you donít. Thatís what the auction will decide. However, you can look at statistics on outstanding SGSes here. And you can safely conclude that the upcoming t-bill will yield about 1.7% if you place a noncompetitive bid (the only kind of bid individual investors should be doing, I strongly recommend).

MrHighlander 22-07-2018 10:32 PM

Quote:

Originally Posted by MrHighlander (Post 115622852)
Hi BBCW,

I have some queries about CPF OA to SA transfer and CPA SA transfer.

For CPF OA to SA transfer, I understand that the amount transferred (say 50K) will attract the 4% interest in the month of transfer. And the transfer from OA to SA does not make any difference at all to the amount one can withdraw from CPF at the age of 55.

Hi BBCW, does this part accord with your understanding ? TQ

BBCWatcher 22-07-2018 10:36 PM

Quote:

Originally Posted by MrHighlander (Post 115627621)
Hi BBCW, does this part accord with your understanding ? TQ

Yes. I didnít comment because there was no question mark in the paragraph you wrote about OA to SA transfers, and what you wrote is correct.

MrHighlander 22-07-2018 10:43 PM

Quote:

Originally Posted by BBCWatcher (Post 115627211)
The subsequent month. Consequently it’s best to make cash top-ups toward the end of the calendar month. Allow enough time for CPF to credit the top-up within that month, so don’t cut it too close.


That’s correct. That distinction only matters if you’re aiming for CPF LIFE participation at the Basic Retirement Sum. You shouldn’t be, in my view.


If you can combine techniques (partial or full OA to SA transfers, and SA top-ups for tax relief), that’s great. The 4+% compound interest is attractive and works well as a bond-like part of your savings. Don’t forget your spouse, of course (if applicable).

Thank you BBCW. Just to clarify a bit more, SA cash top ups will form the *first* amounts of one’s FRS up to as much as possible, and then the rest will be from employer/employee contributions? Is that correct ? Using an example, so if my OA is 150K and SA 200K (out of the SA 200k is 40K cash top up) - based on the currrent FRS of 171K, one can withdraw anything above 171K (I.e. 179K at age 55) ? The SA cash top up will definitely from the FRS sum (i.e freeing up the *non* top up monies to be withdrawn)?

In addition, what do you think of SRS? I am thinking of opening SRS to buy ES3 through Vickers to earn on tax relief. I know there is a 5% penalty on early withdrawal but the tax relief sounds great. And if am unemployed for whatever reason for a period of time later on I can withdraw those funds (full tax I know at that time but may easily slot into much lower tax brackets since I am unemployed). Any views ?

MrHighlander 22-07-2018 11:06 PM

Thank you BBCW

Quote:

Originally Posted by BBCWatcher (Post 115627691)
Yes. I didn’t comment because there was no question mark in the paragraph you wrote about OA to SA transfers, and what you wrote is correct.



All times are GMT +8. The time now is 02:09 AM.

Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2019, vBulletin Solutions, Inc.
Copyright © SPH Magazines Pte Ltd. All rights reserved.