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Old 25-07-2020, 04:32 PM   #2551
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1. I have 50000 oa. 30000 sa. 20000 ma
2. Monthly expenses is Low should be around 300 plus. My monthly salary is 3500 before cpf.
3. Yes itís that plan.
4. I will try to calculate I need a financial calculator?
5. Actually my dca of sti etf is not doing well maybe cause of COVID hope it recover soon so I am thinking of using other methods to save
1. Plug in your numbers into doody's CPF calculator:
https://forums.hardwarezone.com.sg/m...r-5589081.html and adjust for current FRS/BHS.
See if the numbers with your monthly contributions make sense for the price of 2 room BTO at age 38. You should work the sums to see if you can reach FRS for your age.
2. 300?? You are staying with your parents? We need the full picture of the expenses because when you semi retire, you need to fund most of the family 'subsidized' expenses yourself.
3. Excel or Google Sheets. Financial calculator also Ok.
4. DIY is always cheaper than agent/advisor based investment.
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Old 25-07-2020, 07:46 PM   #2552
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I have around 50k that I am investing in sti etf. Have put it 10k to singlife and 20k to dasheasyearn. I have enough emergency funds and I have like 50k of savings that I want to put into somewhere which can grow.. I am 28 and don’t plan of getting married or have kids so I can retire earlier. My goal is to get a 2 room bto by 38 and semi retire by then. A agent introduced me to a premium policy ntuc vivoweath solitaire for 40k and the unique thing is said that I can take bank loan of 100k to leverage since the bank loan interest is Low right now. I will have a good return And payout if I surreender at 55. Is that a good idea.
No, I don't think so. You would assume the risk of rising interest rates, and that's a pretty hefty amount of risk.

If not what do you advice for my reminding 50k savings?
I should point out that you presently don't have any global diversification in your investments, and I think it's prudent to have some such diversification. The popular choice is a low cost global stock index fund. Beyond the lump sum you have ready to deploy, what's your expected monthly savings flow rate?

And what insurance do you recommend someone with no dependents? I only have great eastern hospital term plan that all.
Disability Income Insurance (DII).

Stated objective:
Semi retirement at 38. Own a 2 room BTO.
Fact finding:
1. How's the CPF OA/SA/MA balances?
2. What's the monthly/annual expenses?
3. Is the Great Eastern Hosp. plan a HS/IntegratedShield plan? I thought the product name is 'Great Supremehealth'?
4. You intend to leverage by borrowing to purchase a WLP? My suggestion: Don't! Until you know how to calculate IRR and make sense of the numbers yourself and that you are not taking on too much risk by borrowing even though it is for a policy.
The major issue is that you're really pretty screwed if interest rates rise, especially early on. It's ugly to exit in that sort of scenario. In recent past examinations and discussions of these arrangements the general view is that it's not a good deal.

1. I have 50000 oa. 30000 sa. 20000 ma
OK, so let's suppose your 2 room BTO costs $150,000 all-in (2020 dollars), with $130,000 for the unit and $20,000 for other expenses (let's suppose). If you're eligible for a HDB loan at that time then you'll need 10% down, or $13,000, which can come from your Ordinary Account. If you're going to take a (tiny) bank loan -- assuming that's possible -- then you can use 20% ($26,000) from your Ordinary Account and will need another $6,500 (5%) in cash. To repeat, these are 2020 dollars. There will likely be a little inflation between now and 2028 to 2030. (If the "Bank of Mom and Dad" is involved, you can adjust these figures.)

Anyway, I'm sketching out those figures to illustrate that you may or may not want to drag $50,000+ in your Ordinary Account. "It depends." I think you can get a minimum $100,000 bank mortgage (i.e. a BTO purchased for at least $133,334), but it's pretty rare. If you're quite sure you're going to be eligible for a HDB loan when the time comes, then I think you just concern yourself with having the 10% down payment (which can be all OA if you wish) when the time comes, plus enough cash for the various incidentals such as outfitting, and you're all set. It's at least a little more complicated if you don't think you'll be eligible for a HDB loan. You do have OA to SA transfers available, and upgrading from 2.5% to 4.0% interest isn't a bad thing, as long as you maintain adequate liquidity.

2. Monthly expenses is Low should be around 300 plus. My monthly salary is 3500 before cpf.
So you're saving ~$2,500/month currently (after income tax and CPF)?

5. Actually my dca of sti etf is not doing well maybe cause of COVID hope it recover soon so I am thinking of using other methods to save
But that's good, actually. You really want your stock buys to be as inexpensive as possible now. That part is not a bad thing as long as you're dollar cost averaging and have a long time horizon. At age 28 you probably do, even if you are trying to semi-retire at 38.

2. 300?? You are staying with your parents? We need the full picture of the expenses because when you semi retire, you need to fund most of the family 'subsidized' expenses yourself.
However, if subsidized living works for you, and if it's reasonable to expect it'll continue for the next ~10 years, that's certainly OK financially.

Last edited by BBCWatcher; 25-07-2020 at 07:48 PM..
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Old 26-07-2020, 01:09 PM   #2553
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What will happen to ibkr white labels that accept Singapore residents and citizens when ibkr itself moving them to ib-sg?
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Old 26-07-2020, 01:24 PM   #2554
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Hi BBCWatcher

Appreciate your advice on insurance for myself

- F, employed, ANB 34 (singaporean). Married no kids

My insurance:
- Integrated Shield Plan, paying about $58/month via medisave. Fully covered for private hospital. Is it worth it to downgrade for co-pay? Issue is this plan will be very expensive when i hit 40 y.o.
- Late stage CI plan (150k, mutipay 3 times) $96/month.
- GE plan covered by CPF $48 p.a

I realised i am lacking death benefit, early CI coverage, as well as DII.

I am thinking of getting additional:
- Term plan with coverage of $300k
- Early CI plan $50k multipay
- DII plan $3.5k

Appreciate your kind advise, please
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Old 27-07-2020, 07:45 AM   #2555
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What will happen to ibkr white labels that accept Singapore residents and citizens when ibkr itself moving them to ib-sg?
I donít know. Maybe nothing.

Appreciate your advice on insurance for myself
- F, employed, ANB 34 (singaporean). Married no kids
My insurance:
- Integrated Shield Plan, paying about $58/month via medisave. Fully covered for private hospital. Is it worth it to downgrade for co-pay? Issue is this plan will be very expensive when i hit 40 y.o.
I think the least expensive rider is fine, sure. Itíll still cap out of pocket costs (cash and/or MediSave payable) for covered services at S$3,000 per policy year.

- Late stage CI plan (150k, mutipay 3 times) $96/month.
- GE plan covered by CPF $48 p.a
I realised i am lacking death benefit, early CI coverage, as well as DII.
By ďGE plan,Ē do you mean the Dependantsí Protection Scheme? I assume so based on that premium figure. That is a death benefit ó itís term life insurance, with TPD insurance, to age 60.

I am thinking of getting additional:
- Term plan with coverage of $300k
- Early CI plan $50k multipay
- DII plan $3.5k
Appreciate your kind advise, please
Well, as far as life insurance, do you have a dependent who is presently underinsured? Thatís someone who is genuinely dependent on your income, who would be seriously impaired in terms of supporting his/her not-overly-lavish lifestyle if you were to die tomorrow, after factoring in your existing life insurance payout (DPS), your share of Home Protection Scheme coverage (if applicable), and residual assets (including CPF savings that you have nominated).

DII is really important, but evidently youíve read my thoughts about that. If S$3,500 is less than 75% of your current monthly income from work, would it be enough income to age 65? Bear in mind itís S$3,500 in 2020 dollars through the year 2050 (about +30 years).

I donít think Early CI is particularly important.
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Old 27-07-2020, 11:19 AM   #2556
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I think the least expensive rider is fine, sure. Itíll still cap out of pocket costs (cash and/or MediSave payable) for covered services at S$3,000 per policy year.


By ďGE plan,Ē do you mean the Dependantsí Protection Scheme? I assume so based on that premium figure. That is a death benefit ó itís term life insurance, with TPD insurance, to age 60.


Well, as far as life insurance, do you have a dependent who is presently underinsured? Thatís someone who is genuinely dependent on your income, who would be seriously impaired in terms of supporting his/her not-overly-lavish lifestyle if you were to die tomorrow, after factoring in your existing life insurance payout (DPS), your share of Home Protection Scheme coverage (if applicable), and residual assets (including CPF savings that you have nominated).

DII is really important, but evidently youíve read my thoughts about that. If S$3,500 is less than 75% of your current monthly income from work, would it be enough income to age 65? Bear in mind itís S$3,500 in 2020 dollars through the year 2050 (about +30 years).

I donít think Early CI is particularly important.

Noted on the ISP suggestion. Yes, you're right on the DPS under GE.

I'm trying to understand the reason of early CI not particularly important: is it mainly because treatment/day surgeries/ specified outpatient treatment are covered in ISP?

I do not have a dependent, but considering to have kids in future. My husband is a foreigner, employed, waiting for PR. His company provide insurance for him (i dont know what's the coverage). Definitely applying ISP when his PR approved. Right now, im considering term plan + CI and DII for him.
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Old 27-07-2020, 11:57 AM   #2557
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I'm trying to understand the reason of early CI not particularly important: is it mainly because treatment/day surgeries/ specified outpatient treatment are covered in ISP?
Yes, and if the illness or ailment -- even an illness or ailment that ECI doesn't cover -- disrupts your ability to work and earn an income for longer than 60 to 180 days (depending on the waiting period you select -- I'd pick the longest), DII has you covered.

Remember, ECI coverage isn't free. (Far from it.) You've got to part with cold, hard cash to pay for it -- cash you could use for any calamity or catastrophe when cash would help.

I do not have a dependent, but considering to have kids in future. My husband is a foreigner, employed, waiting for PR. His company provide insurance for him (i dont know what's the coverage). Definitely applying ISP when his PR approved. Right now, im considering term plan + CI and DII for him.
Company-provided insurance is often inadequate, so he ought to dig into that a bit. If he's living in Singapore he can buy Integrated Shield coverage now if he wishes. Some of the public hospital A ward plans are available to foreigners, such as Prudential's PRUShield Plus for example. All of the private hospital Integrated Shield plans are as well, but usually the public hospital plan makes more sense, to fill gaps in employer-provided coverage (if there are some). DII is important for him, yes. I don't consider CI, ECI, or PA to be insurance necessities, generally.

Neither one of you need to buy more/any life insurance until the "genuine underinsured dependent" threshold is about to be crossed. A child on the way might very well cross that threshold, sure. Merely having a spouse may or may not, and you do have some life insurance coverage already.
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Old 27-07-2020, 01:46 PM   #2558
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Yes, and if the illness or ailment -- even an illness or ailment that ECI doesn't cover -- disrupts your ability to work and earn an income for longer than 60 to 180 days (depending on the waiting period you select -- I'd pick the longest), DII has you covered.

Remember, ECI coverage isn't free. (Far from it.) You've got to part with cold, hard cash to pay for it -- cash you could use for any calamity or catastrophe when cash would help.

Company-provided insurance is often inadequate, so he ought to dig into that a bit. If he's living in Singapore he can buy Integrated Shield coverage now if he wishes. Some of the public hospital A ward plans are available to foreigners, such as Prudential's PRUShield Plus for example. All of the private hospital Integrated Shield plans are as well, but usually the public hospital plan makes more sense, to fill gaps in employer-provided coverage (if there are some). DII is important for him, yes. I don't consider CI, ECI, or PA to be insurance necessities, generally.

Neither one of you need to buy more/any life insurance until the "genuine underinsured dependent" threshold is about to be crossed. A child on the way might very well cross that threshold, sure. Merely having a spouse may or may not, and you do have some life insurance coverage already.

Thank you for your advise. I guess agent do what they have to do, which is to sell.
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Old 27-07-2020, 02:01 PM   #2559
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BBCW, what are some of the best books (any genre) youíve read that you would recommend for reading? Also, what are some websites / publications / newsletters that you read on a regular basis?
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Old 27-07-2020, 04:05 PM   #2560
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BBCW, what are some of the best books (any genre) youíve read that you would recommend for reading?
I don't have any particular book recommendations. Probably any book you enjoy reading is fine. Among financial books I suspect practically anything Jack Bogle wrote is worth reading, as long as you don't take the U.S. context (such as a specific portfolio allocation recommendation) too literally if you're trying to apply it to a Singaporean context.

Also, what are some websites / publications / newsletters that you read on a regular basis?
I cast a wide net. Yahoo! Finance is surprisingly decent as a financial news aggregator and a place to look up quotes. (Not that I look up quotes very much.) The iShares U.K. Web site covers the bulk of the interesting Irish domiciled/London listed funds, so it's useful for a quick lookup pending a more comprehensive search. These are funds I don't personally touch, but a few are useful for non-U.S. persons.

Oddly enough I visit shopping sites fairly often, when there's something that needs to be purchased. Saving one dollar, prudently anyway (not impacting required quality), works equally as well as earning one dollar. In Singapore that means (in no particular order) Lazada, Qoo10, Shopee, Amazon (in more than one country), Carousell, Gumtree, Craigslist, eBay, Aliexpress....there are many.

Last edited by BBCWatcher; 27-09-2020 at 08:48 AM..
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Old 27-07-2020, 05:02 PM   #2561
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Oddly enough I visit shopping sites fairly often, when there's something that needs to be purchased. Saving one dollar, prudently anyway (not impacting required quality), works equally as well as earning one dollar. In Singapore that means (in no particular order) Lazada, Qoo10, Shopee, Amazon (in more than one country), Carousel, Gumtree, Craigslist, eBay, Aliexpress....there are many.
I don't think he was looking for online shopping recommendations.

Anyway I can recommend https://thefinance.sg/ for local financial blogs aggregation.
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Old 27-07-2020, 05:19 PM   #2562
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I don't think he was looking for online shopping recommendations.
I answered the question asked.
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Old 28-07-2020, 09:18 AM   #2563
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BBCWatcher, what do you think of insurance savings accounts like Singlife and Dash Easyearn to stash away emergency savings? Traditional bank account interest rates are plummeting.
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Old 28-07-2020, 11:47 AM   #2564
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BBCWatcher, what do you think of insurance savings accounts like Singlife and Dash Easyearn to stash away emergency savings? Traditional bank account interest rates are plummeting.
Singlife's 2.5% interest rate (on the first S$10,000) was a good deal, and is an even better deal now that most of the banks have reduced their savings accounts interest rates recently.

But much like the banks, Singlife has the right to change the interest rate at any time. Goodness knows when they'll do so, so make use of the 2.5% interest rate now while you still can.
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Old 28-07-2020, 01:38 PM   #2565
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BBCWatcher, what do you think of insurance savings accounts like Singlife and Dash Easyearn to stash away emergency savings? Traditional bank account interest rates are plummeting.
Etiqa reserves the right to delay withdrawals by up to 6 months with their ELASTIQ and Singtel Dash offers, so unfortunately for that reason alone they're disqualified as emergency savings vehicles. Singlife currently works well in that role.
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