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ELKYme 23-10-2018 02:10 PM

The percentage of how much (A)savings we make as opposed to how much (B)spending we do of our monthly income will determine how early or late we retire:

It’s about having good habits early in life:

https://youtu.be/vE_H6wZewNs

Quote:

Originally Posted by viventa (Post 117189266)
Curious, any thoughts about the recommendations in this piece?

Commentary: You can still retire at 40, even with a longer life expectancy

Of course, past performance is no guarantee of future results, especially in the context of Singapore's stock market. I'm also aware of what BBCW and/or ST would have to say about the author "overselling" REITs. But nonetheless, a few recommendations piqued my interest.

Specifically, the article states:

Further, it stated:

These seem to skew more towards active portfolio management than the passive investment strategies which you and ST are in favour of. But given that a portion of our portfolios will still include STI ETFs, is the recommendation of buying the 15 highest yielding divident stocks a sound one? It doesn't seem to take that much more effort compared to the current passive investment strategy that most of us would adopt, and the additional returns are certainly enticing.


boolCano 24-10-2018 12:40 AM

Quote:

Originally Posted by XiaoXiaMi96 (Post 117189968)
Thanks BBC, I'm actually in similar position as whucarezz. Going Schwab would mean switching to SGD, withdraw, fund Schwab, go USD again, so not feasible. Will take a look at BIL, not sure if it'll work like laddering 4-weeks t-bills.

Just directly wire USD from IBKR to Schwab US custodial account

martin 25-10-2018 08:04 AM

Hi BBCW, regarding the NY07100X which has now reopened. I have been searching for info on its application deadline but all i could find is that the auction date is 29 Oct? Is this the deadline? Yet i seem to have read that application for sgs bonds is always only wed to fri, office hours?

Another query, since it is also available in the secondary market, how do we compare whether to buy from secondary market or bid from this reopened mini auction? Is it a given to do the latter? And always do non-competitive bid? Thanks much.

BBCWatcher 25-10-2018 09:52 AM

Quote:

Originally Posted by martin (Post 117223227)
Hi BBCW, regarding the NY07100X which has now reopened. I have been searching for info on its application deadline but all i could find is that the auction date is 29 Oct? Is this the deadline?

No. Since the auction is on a Monday, the application deadline should be before 9:00 p.m. on the previous Friday (tomorrow as I write this). Just log onto Internet banking at DBS/POSB, UOB, or OCBC and it should tell you.

Quote:

Another query, since it is also available in the secondary market, how do we compare whether to buy from secondary market or bid from this reopened mini auction? Is it a given to do the latter?
Absolutely. The bond auction is immensely more efficient, and there’s no transaction fee.

Quote:

And always do non-competitive bid?
Yes, I always recommend that you leave the competitive bidding to the professional bond traders and institutional investors who sometimes know what they’re doing. Non-competitive means you’ll get whatever the best price is at auction, and you’re most likely going to get a full allocation. This is a bond reopen, so you will have to pony up 115% of the face value in order to support your non-competitive bid. But you’ll get back any overage automatically when the auction is completed.

martin 25-10-2018 10:00 AM

Great. Thanks. Been looking out for this since you last alerted me. Btw, anything similar in the horizon so i could reserve some funds for that later if there is. Only managed to get $6k from the temasek bond so this is now the next best for me. Ssb already exhausted my quota earlier but now redeeming some to buy the better issues lately.

BBCWatcher 25-10-2018 10:34 AM

Quote:

Originally Posted by martin (Post 117225186)
Btw, anything similar in the horizon so i could reserve some funds for that later if there is.

This (October, 2018) is also a t-bill month (12 month government bond). But after these October auctions, and the monthly SSBs, there’s nothing else I see on the Singapore retail bond horizon for 2018.

martin 25-10-2018 10:38 AM

Quote:

Originally Posted by BBCWatcher (Post 117225746)
This (October, 2018) is also a t-bill month (12 month government bond). But after these October auctions, and the monthly SSBs, there’s nothing else I see on the Singapore retail bond horizon for 2018.

Appreciate it.

salmonella 26-10-2018 08:30 AM

Quote:

Originally Posted by martin (Post 117225186)
Great. Thanks. Been looking out for this since you last alerted me. Btw, anything similar in the horizon so i could reserve some funds for that later if there is. Only managed to get $6k from the temasek bond so this is now the next best for me. Ssb already exhausted my quota earlier but now redeeming some to buy the better issues lately.

Not sure how this works... This NY07100X is currently yielding something like 2.1-2.2%, so is the reissue likely to be similar? Is this yield attractive?

Also, I have some of the very first issue of the ssb. how do we calculate whether it makes sense to redeem ssb and buy new issue? (And this is made complicated since we can redeem with certainty, but no certainty whether we can buy the same quantity again)

mcwings 26-10-2018 09:26 AM

Hi BBCW,

Are Singaporeans exempted from US dividend tax laws?

salmonella 26-10-2018 11:35 AM

Quote:

Originally Posted by mcwings (Post 117243166)
Hi BBCW,

Are Singaporeans exempted from US dividend tax laws?

There are no tax treaties between US and Singapore exempting Singapore tax residents from the standard 30% dividend withholding tax that is applied for non-treaty foreign persons.

See http://taxsummaries.pwc.com/ID/Unite...hholding-taxes for a bit more info.

viventa 27-10-2018 02:40 PM

Quote:

Originally Posted by ELKYme (Post 117190175)
The percentage of how much (A)savings we make as opposed to how much (B)spending we do of our monthly income will determine how early or late we retire:

It’s about having good habits early in life:

https://youtu.be/vE_H6wZewNs

I was wondering more about the suggested ways to increase returns, not so much on spending/saving habits.

martin 29-10-2018 07:09 PM

I put in a non competitive bid of 20k for NY07100X. Successfully alloted. It says cut-off yield is 2.2%. Is this it? This would be slightly lower than the 5 year average yield (2.22%) of the nov issue of ssb. Ssb has the major advantage to redeeem anytime to buy subsequent issues if the rates continue to rise which seems to be the case.

ELKYme 29-10-2018 09:13 PM

Hi Bro,
Higher returns always comes with higher risk. Most low risk investments such as bonds are normally <3% (except CPF OA).

Nobody here will have any suggestions for risk-free high returns.

To have a better chance of a higher return and try to mitigate the additional risk, many here are splitting % of their investments between ETFs & bonds (bond % higher as retirement draws nearer to minimise risk further).

The point I’m trying to make in my initial post is that many of us are fixated with “rate of return” when we should actually be more focused on “savings rate”...unless you already have a seriously big pile to invest.
https://financialpanther.com/dont-wo...-savings-rate/

Quote:

Originally Posted by viventa (Post 117265466)
I was wondering more about the suggested ways to increase returns, not so much on spending/saving habits.


BBCWatcher 30-10-2018 05:32 AM

Quote:

Originally Posted by martin (Post 117302128)
It says cut-off yield is 2.2%. Is this it?

Yes, that's correct.

quoppy 31-10-2018 03:42 PM

Hey there BBCW, I've learnt a lot from reading your posts, and I'd appreciate your financial advice on working in the US as a single mid-thirties Singapore citizen. I will be starting work in a few months in Seattle.

My employer offers both a pre-tax 401k and after-tax Roth 401k (but no after-tax contributions), with a matching contribution of up to 2%. I can contribute a maximum of $19,000 for 2019 to either or both accounts. For now, I plan to retire in Singapore. How should the contributions be allocated?

For health plans, 1 option is a high-deductible plan ($1,500) with a health savings account to which my employer will contribute $500. Given the tax savings, is this a good idea? The other plans are: a high-deductible ($1,000) with a health reimbursement account funded by the employer, and a low-deductible ($300) with no employer contributions.

For long-term investing, should I open an IRA? My annual salary will be above the Roth IRA limit, so I might have to use a backdoor Roth IRA if that's better than a traditional IRA. Or am I better off just paying the additional tax and directly buy IWDA+EIMI through IB, which I am currently doing in Singapore?


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