*Official* BBCWatcher club

_adtn_

Junior Member
Joined
Nov 3, 2020
Messages
5
Reaction score
0
Hi BBCW / all, I'm a local who plans to retire in Singapore
What is your opinion on allocating SRS in robos like Dimensional Core/World rather than ES3 / G3B?
 

BBCWatcher

Arch-Supremacy Member
Joined
Jun 15, 2010
Messages
20,132
Reaction score
3,023
Hi BBCW / all, I'm a local who plans to retire in Singapore
What is your opinion on allocating SRS in robos like Dimensional Core/World rather than ES3 / G3B?
I'm generally not fond of the "robos." I don't think they add enough value. Just let the total end-to-end expenses guide you as a first cut. If doing something sensible via a particular "robo" makes sense in terms of costs, OK, fair enough.
 

_adtn_

Junior Member
Joined
Nov 3, 2020
Messages
5
Reaction score
0
I'm generally not fond of the "robos." I don't think they add enough value. Just let the total end-to-end expenses guide you as a first cut. If doing something sensible via a particular "robo" makes sense in terms of costs, OK, fair enough.
Thanks!
With limited options on SRS, I felt that holding global index fund is probably better than something like ES3 despite the total fee, though past performance does not predict the future
 

BBCWatcher

Arch-Supremacy Member
Joined
Jun 15, 2010
Messages
20,132
Reaction score
3,023
Perhaps, but the "robos" aren't the only way(s) to invest SRS dollars in global stock index funds. Just compare costs and see who's offering the best overall deal.
 

BBCWatcher

Arch-Supremacy Member
Joined
Jun 15, 2010
Messages
20,132
Reaction score
3,023
Russia's stock market has officially crashed (more than 20% decline) even in comparison to index levels a week ago. And that's in Russian ruble terms. You now need more than 80 rubles to buy one U.S. dollar. We haven't seen that sort of exchange rate in years, and then only once before (early 2016).

Anyone have a guess why?🤔
 

BBCWatcher

Arch-Supremacy Member
Joined
Jun 15, 2010
Messages
20,132
Reaction score
3,023
The U.S. S&P 500 index is into correction territory now (a decline of more than 10% from its prior peak), in U.S. dollar terms. For those of you U.S. market timers who like to make such bets, there you go, there's a substantial discount now.

No, I don't recommend trying to time the markets. But IF you're going to try, buying low and selling high is better than the opposite.
 

BBCWatcher

Arch-Supremacy Member
Joined
Jun 15, 2010
Messages
20,132
Reaction score
3,023
Today (February 23, 2022) is the last day to place an order for this month's Singapore Savings Bond. This month's SSB is a pretty good one in my view. If you need a safe place to park Singapore dollar cash (and really need to be parking cash) then it's a good choice.
 

purpleberry

Supremacy Member
Joined
Nov 23, 2008
Messages
5,845
Reaction score
164
The U.S. S&P 500 index is into correction territory now (a decline of more than 10% from its prior peak), in U.S. dollar terms. For those of you U.S. market timers who like to make such bets, there you go, there's a substantial discount now.

No, I don't recommend trying to time the markets. But IF you're going to try, buying low and selling high is better than the opposite.
Going down still. Probably good to stock up on VWRA a bit for now?
 

BBCWatcher

Arch-Supremacy Member
Joined
Jun 15, 2010
Messages
20,132
Reaction score
3,023
Per current news reports Russia is fully invading the sovereign, independent nation of Ukraine. Based on Russian government statements it seems the plan is to topple the democratically elected government and install a puppet regime — the sort of regime Ukrainians have repeatedly rejected.

What does this mean in investment terms? Generally not much. The sanctions against Russia will be brutal. Anything/everything Russian is now toxic, but Russia was never a big factor if you were/are at least decently globally diversified. In the near-term energy prices will increase. (I'd lock in an electricity rate right now if I were you, and assuming the price isn't too awful today. Almost all of Singapore's electricity is gas fired, and global gas prices are spiking right now I'm sure. My ~20 cents/KWh contract with ~20 months to go is looking brilliant right now.) There's some flight to safe assets which tend to be U.S. dollars and close substitutes such as U.S. Treasuries, so congratulations to you speculators (gamblers) who punted on those.

A few sectors in stock markets stand to gain in the near-term. Notable examples: energy, defense, cyber security. Stock markets will fall a bit (already have), so the dollar cost averaging folks are doing fine. I'm always happy to enjoy a discount when I'm buying, and Putin is most probably retiring before I am.

This is some terrible evil, but it will be reversed somehow, someday. I wish Ukraine and her people all the best, including freedom, independence, and democracy.
 

boringLife-

Supremacy Member
Joined
Aug 17, 2010
Messages
9,286
Reaction score
578
DCA folks not doing that well either eh. I am consistently buying at a lower price, and had my entire 2021 PNL wiped out already.
 

BBCWatcher

Arch-Supremacy Member
Joined
Jun 15, 2010
Messages
20,132
Reaction score
3,023
DCA folks not doing that well either eh. I am consistently buying at a lower price, and had my entire 2021 PNL wiped out already.
No, you're (probably) doing well! That might be an actual problem if you're trying to buy bread today. You're not. This is long-term stuff (I hope you realize).
 

BBCWatcher

Arch-Supremacy Member
Joined
Jun 15, 2010
Messages
20,132
Reaction score
3,023
Not surprisingly, the Russian ruble just hit a record low against the U.S. dollar. Russia has closed their financial markets now since they'd just collapse anyway.

Vehicles that are doing well at this instant (notable examples): U.S. dollars, U.S. Treasuries, Japanese yen, Japanese government bonds, and certain commodities such as nickel, wheat, oil, gas, and gold. Those are the commodities that Russia exported in some quantity.

If you're wondering what I'm doing, the answer is nothing different except that I'm looking for effective, high quality charities that can help Ukraine and her people. Suggestions welcome.
 

boringLife-

Supremacy Member
Joined
Aug 17, 2010
Messages
9,286
Reaction score
578
No, you're (probably) doing well! That might be an actual problem if you're trying to buy bread today. You're not. This is long-term stuff (I hope you realize).
Maybe! But gainz are in the unknown future but pain is now. And also what if ISAC closed at $60 or $50 30 years later? You can't DCA a loser into a winner
 

BBCWatcher

Arch-Supremacy Member
Joined
Jun 15, 2010
Messages
20,132
Reaction score
3,023
Maybe! But gainz are in the unknown future but pain is now.
What pain? The pain of lower prices for stuff you're buying?
And also what if ISAC closed at $60 or $50 30 years later? You can't DCA a loser into a winner
Actually you can, or at least if something moves sidewise you can. Go on, try the math. Assume something bounces around in price but generally moves sideways. What you'll find is that dollar cost averaging can eke out a positive return even in such circumstances. Assume for example the price is either $50 or $60 per share each month, 50%-50% (flip a coin), and for the next 30 years. Then see what happens when you DCA into that sort of asset -- $6,000 per month, let's assume. When the price is $60 you'll buy 100 shares, and when the price is $50 you'll buy 120 shares. So what do you end up with after 30 years (360 months)?

180 months * 100 shares = 18,000 shares
180 months * 120 shares = 21,600 shares
Total shares = 39,600
Total capital outlay = $2,160,000
Total value of your holdings at $55/share (midpoint price) = $2,178,000

Not a whole lot of positive return in this example, but that's what happens! If the volatility increases, but still with generally sideways movement, then the return you eke out with DCA increases. Of course with upward movement over 30 years the returns increase, too.
 

CrashWire

Supremacy Member
Joined
Nov 28, 2000
Messages
5,169
Reaction score
399
Per current news reports Russia is fully invading the sovereign, independent nation of Ukraine. Based on Russian government statements it seems the plan is to topple the democratically elected government and install a puppet regime — the sort of regime Ukrainians have repeatedly rejected.

This is mainly for those who might have a lump sum lying around somewhere to invest. Any thoughts on timing the market based on this article?

https://www.reuters.com/markets/asi...ory-says-about-geopolitics-market-2022-02-18/
If you're wondering what I'm doing, the answer is nothing different except that I'm looking for effective, high quality charities that can help Ukraine and her people. Suggestions welcome.
I'm not a fan of helping any military or political cause, but I found a Google Doc that has been making the rounds:

https://docs.google.com/document/d/1agAW4CQEdi5cDCSa8l8C5ez6Yflz5zaVIzMEgehqwq0

You may wish to do your own due diligence before donating.
 

mecafe

Junior Member
Joined
Dec 9, 2017
Messages
82
Reaction score
1
BBC

I have an IBKR international account which is subjected to withholding for dividends and not required to file income tax for capital gain.

Last year I bought a mall REIT - MAC and was given a quarterly distribution. A 30% withholding was applied every quarter on the entire distribution which is expected. However, January this year MAC announced the tax treatment for the dividend distribution last year year. The distribution is treated as such -- Taxable Ordinary Dividends (30% withhold), Total Capital Gain Distribution (0% withhold) and Nondividend Distribution (0% withhold). Due to the classification of the distribution, i received a refund for the 2nd and 3rd component.

The question i have is that do i need to file a tax return to IRS for those distribution that weren't subjected to withholding? It seems like IBKR would have taken care of this by doing all the withholding upfront and maybe it did.

Thanks.
 

BBCWatcher

Arch-Supremacy Member
Joined
Jun 15, 2010
Messages
20,132
Reaction score
3,023
I'm not a fan of helping any military or political cause, but I found a Google Doc that has been making the rounds:
https://docs.google.com/document/d/1agAW4CQEdi5cDCSa8l8C5ez6Yflz5zaVIzMEgehqwq0
You may wish to do your own due diligence before donating.
I'm a fan of humanitarian causes, and there are urgent human relief needs in and around Ukraine. Thanks for the info; I'll check it out.
I have an IBKR international account which is subjected to withholding for dividends and not required to file income tax for capital gain.

Last year I bought a mall REIT - MAC and was given a quarterly distribution. A 30% withholding was applied every quarter on the entire distribution which is expected. However, January this year MAC announced the tax treatment for the dividend distribution last year year. The distribution is treated as such -- Taxable Ordinary Dividends (30% withhold), Total Capital Gain Distribution (0% withhold) and Nondividend Distribution (0% withhold). Due to the classification of the distribution, i received a refund for the 2nd and 3rd component.

The question i have is that do i need to file a tax return to IRS for those distribution that weren't subjected to withholding? It seems like IBKR would have taken care of this by doing all the withholding upfront and maybe it did.
I assume you're a non-U.S. person. If you see any underpayment of tax then yes, you need to fix that promptly with the relevant tax agency. Getting the tax right is your responsibility as the account holder, even if/when the broker makes a mistake. But it's not clear to me from your narrative that you underpaid tax.
 

mecafe

Junior Member
Joined
Dec 9, 2017
Messages
82
Reaction score
1
Thanks BBC. Yes i am a non-US person with active w-8Ben on the accounts. In fact both my Firstrade and IBKR refunded the money that was withheld from 2nd and 3nd portion of the distribution so i don't think the both brokers made the same mistake. I just thought you are aware of REIT's tax implication of distribution/Div for non-US person. This is the first time i bought REIT so hence the question.
 
Important Forum Advisory Note
This forum is moderated by volunteer moderators who will react only to members' feedback on posts. Moderators are not employees or representatives of HWZ. Forum members and moderators are responsible for their own posts.

Please refer to our Community Guidelines and Standards, Terms of Service and Member T&Cs for more information.
Top