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MrHighlander 10-02-2019 08:59 PM

Hello, I have some ringgit with Maybank in Malaysia. Am looking to transfer the ringgit into Singapore (ok for it to be either in ringgit, or in SGD when it hits Singapore).

Any idea on what’s the cheapest way to do this ? I am ok with doing lump sum transfer, or small transfers each day. Most important is lowest transfer cost and ok forex rate.

BBCWatcher 18-02-2019 10:46 AM

As reported previously, I have the happy problem of cash piling up, so starting from December, 2018, I bumped my monthly flow into investments (with no change to investment allocations) by about 8% to a new, higher flow rate. Fortunately, I’ve never had to skip a month or to reduce the flow rate, which is just how I like it/planned it. Whenever I make a change like this I expect it to be sustainable, and it has been. If cash continues to pile up, I’ll raise this monthly flow rate again.

Last week I also took a quick look at insurance coverage. The new rule compliant Integrated Shield riders arrive in Singapore no later than April 1, 2019, and the carriers have unveiled them. So now is a good time to take stock of Integrated Shield coverage. I’m not a big fan of the riders, especially the “zero dollar” riders which are thankfully going away. When I took a look at the new riders...surprise! There’s a slightly less expensive rider with a deductible that’s offered before April 1, 2019, that’s a better fit. OK then, so be it, that’ll be the rider for the next couple years. It’s still too generous (wouldn’t mind having a higher deductible), but so it goes.

What seems to have happened among most of the carriers is that the new rider rule has not only knocked out the “zero dollar” riders (as it was supposed to do), but it also knocked out the riders with deductibles that were not quite rule compliant. In a perfect world I’d prefer a rule compliant rider that is less generous (has a non-zero, higher deductible) than what the rule allows — and with associated premium savings, of course. I don’t need an insurer to cover 95% of a $100 medical bill or even any percent — that’s silly, and I don’t want to pay for coverage like that. But the rule allows that, and for the most part the carriers are offering exactly what the rule allows. ‘Tis frustrating. I really wish the new rule set a minimum deductible (in MediSave-equipped Singapore, after all) of, say, $1,000 — at least that. I’m beginning to wonder if the regulators got this one wrong and if they’ll need to come back sooner rather than later to require a minimum deductible.

Finally, retail electricity supplier choice is coming to Singapore in waves. I’ve already decided to buy carbon neutral electricity, but that’s as far as I’ve gotten in my analysis. There’s no requirement to make a decision on any particular deadline — or to make a decision at all.

Small bore stuff, really. Steady, steady — boring is good.

revhappy 18-02-2019 10:59 AM

Quote:

Originally Posted by MrHighlander (Post 119113606)
Hello, I have some ringgit with Maybank in Malaysia. Am looking to transfer the ringgit into Singapore (ok for it to be either in ringgit, or in SGD when it hits Singapore).

Any idea on what’s the cheapest way to do this ? I am ok with doing lump sum transfer, or small transfers each day. Most important is lowest transfer cost and ok forex rate.

Ringgit is not a fully convertible currency, so it cannot be landed as Ringgit outside of Malaysia. It will have to be converted on the Malaysian side or you have to bring it as currency notes across the causeway.

EagleToThesSky 18-02-2019 03:32 PM

Ray Dalio portfolio and income insurance
 
Hi BBC, ST,

<I am posting here because I know ST comes here pretty frequently as well and I want to avoid duplicate post>

I recently read the book "Money Master the Game" by Tony Robbins. I think the most important takeaways for me are below:

- Firstly, Ray Dalio's portfolio: It is described in the book to be able to do well in all economic situations, with avg annual return ~10% and with very few years in loss and when in loss, the loss is at most 3%. What do you think about this portfolio? Is it wise to replicate it as an individual investor, as there are index funds for all the elements in the portfolio? Or in general, is it wise to replicate the portfolio of investing gurus, like Warren Buffet?

The portfolio consists of:
- stocks - 30% (local and international)
- Long-term bond - 40%
- Medium-term bond - 15%
- Gold - 7.5%
- Commodities - 7.5%

- Secondly, the author mentioned income insurance, where you are completely protected from losing money and can share maybe 80% of gains when stock market goes up. This sounds awesome, as the compounding effects will be fabulous, given you do not lose money when stock money goes down (50% down needs 100% up to break even). Do you think this will yield higher returns than investing in stock market (It seems to me so)? Is there a similar product in Singapore? If no, anyway singaporean investors can buy this kind of products from US? Any tax obligations?

Thank you!

FlamingVortex 18-02-2019 03:33 PM

HAHAHAHAHAAHAHAHa

Listopad 18-02-2019 03:50 PM

https://www.ishares.com/us/products/...ed-stock-etf#/

how do we interpret the "After tax pre liq. (%)" and "After tax post.liq (%)".

where do we see the actual return % in this instrument?

revhappy 18-02-2019 03:54 PM

Quote:

Originally Posted by EagleToThesSky (Post 119252917)
Hi BBC, ST,

<I am posting here because I know ST comes here pretty frequently as well and I want to avoid duplicate post>

I recently read the book "Money Master the Game" by Tony Robbins. I think the most important takeaways for me are below:

- Firstly, Ray Dalio's portfolio: It is described in the book to be able to do well in all economic situations, with avg annual return ~10% and with very few years in loss and when in loss, the loss is at most 3%. What do you think about this portfolio? Is it wise to replicate it as an individual investor, as there are index funds for all the elements in the portfolio? Or in general, is it wise to replicate the portfolio of investing gurus, like Warren Buffet?

The portfolio consists of:
- stocks - 30% (local and international)
- Long-term bond - 40%
- Medium-term bond - 15%
- Gold - 7.5%
- Commodities - 7.5%

- Secondly, the author mentioned income insurance, where you are completely protected from losing money and can share maybe 80% of gains when stock market goes up. This sounds awesome, as the compounding effects will be fabulous, given you do not lose money when stock money goes down (50% down needs 100% up to break even). Do you think this will yield higher returns than investing in stock market (It seems to me so)? Is there a similar product in Singapore? If no, anyway singaporean investors can buy this kind of products from US? Any tax obligations?

Thank you!

Why doesn't vanguard or BlackRock create a 'Ray Dalio' ETF? I think it will be very popular among billionaires wanting to protect their wealth.

BBCWatcher 18-02-2019 05:07 PM

Quote:

Originally Posted by Listopad (Post 119253269)
https://www.ishares.com/us/products/...ed-stock-etf#/
how do we interpret the "After tax pre liq. (%)" and "After tax post.liq (%)".
where do we see the actual return % in this instrument?

You click on the little circled "i" symbol, and it tells you exactly what those lines represent.

By the way, that fund is U.S. domiciled and probably not an appropriate fund for non-U.S. persons. It may not be good for U.S. persons either. ;)

Quote:

Originally Posted by EagleToThesSky (Post 119252917)
- Firstly, Ray Dalio's portfolio: It is described in the book to be able to do well in all economic situations, with avg annual return ~10% and with very few years in loss and when in loss, the loss is at most 3%. What do you think about this portfolio? Is it wise to replicate it as an individual investor, as there are index funds for all the elements in the portfolio? Or in general, is it wise to replicate the portfolio of investing gurus, like Warren Buffet?

The portfolio consists of:
- stocks - 30% (local and international)
- Long-term bond - 40%
- Medium-term bond - 15%
- Gold - 7.5%
- Commodities - 7.5%

This is actually the Tony Robbins simplified Dalio portfolio. Dalio doesn't actually do this.

Backtested over a certain period (a long bull run for bonds), the Robbins portfolio looks pretty good. But it's vulnerable to rising interest rates (falling bond prices). The gold and commodities are supposed to mitigate rising interest rate scenarios, but they haven't. And, as mentioned, this isn't exactly what Dalio does, even if you want to mind meld with Dalio (if that were even possible).

Quote:

- Secondly, the author mentioned income insurance, where you are completely protected from losing money and can share maybe 80% of gains when stock market goes up. This sounds awesome, as the compounding effects will be fabulous, given you do not lose money when stock money goes down (50% down needs 100% up to break even). Do you think this will yield higher returns than investing in stock market (It seems to me so)? Is there a similar product in Singapore? If no, anyway singaporean investors can buy this kind of products from US? Any tax obligations?
If I understand your point correctly, CPF LIFE in its maximally longevity insurance-oriented configuration serves well in that role. It provides a base level of lifestyle defense (if configured properly) for the outermost years of a long-term retirement plan, and therefore you can prudently invest somewhat more aggressively during and even a little past your accumulation years.

blue_line 18-02-2019 05:54 PM

Quote:

Originally Posted by BBCWatcher (Post 119247695)
Finally, retail electricity supplier choice is coming to Singapore in waves. I’ve already decided to buy carbon neutral electricity, but that’s as far as I’ve gotten in my analysis. There’s no requirement to make a decision on any particular deadline — or to make a decision at all.

Small bore stuff, really. Steady, steady — boring is good.

Any reason for choosing the carbon neutral electricity?

BBCWatcher 18-02-2019 06:20 PM

Quote:

Originally Posted by blue_line (Post 119255915)
Any reason for choosing the carbon neutral electricity?

Because our planet needs all this help and more, and I care about the future.

blue_line 18-02-2019 06:29 PM

Hi guys, my employer has has a retirement scheme where a monthly amount is deposited into this retirement/retention fund on top of my salary.

The fund comprise two options as shown below:
1. 70% Global Equities, 20% Global Bonds, 5% Quasi-government Bonds, 5% Cash (TER 0.85%)
2. 40% Global Equities, 30% Global Bonds, 20% Quasi-government Bonds, 10% Cash (TER 0.70%)

I am currently on option 2. If I were to stay in this job till retirement (20 more years), I think option 1 would be the more sensible choice.

However, I am not sure if I will be staying in this job for that long. The amount that I can withdraw from the fund if I were to leave the job will increase yearly from 5% of the sum currently (year 1) to 100% of the sum in year 15. Do you think I should still switch to option 1?

BBCWatcher 18-02-2019 08:17 PM

Quote:

Originally Posted by blue_line (Post 119256606)
However, I am not sure if I will be staying in this job for that long.

I'm a little unclear about the rules. Could you elaborate, especially concerning vesting rules?

As far as which portfolio, that'll really depend on how far away your drawdown will be (for retirement typically). How far away is that?

blue_line 18-02-2019 08:22 PM

Quote:

Originally Posted by BBCWatcher (Post 119258366)
I'm a little unclear about the rules. Could you elaborate, especially concerning vesting rules?

As far as which portfolio, that'll really depend on how far away your drawdown will be (for retirement typically). How far away is that?

So my employer will contribute to this retirement account while I get to choose which option to go for depending on my risk appetite.

Vesting rules as shown:
5% vesting now.
100% vesting, 15 years from now.

I plan to retire 20 years from now.

EagleToThesSky 19-02-2019 10:31 AM

Quote:

Originally Posted by BBCWatcher (Post 119254851)

This is actually the Tony Robbins simplified Dalio portfolio. Dalio doesn't actually do this.

Backtested over a certain period (a long bull run for bonds), the Robbins portfolio looks pretty good. But it's vulnerable to rising interest rates (falling bond prices). The gold and commodities are supposed to mitigate rising interest rate scenarios, but they haven't. And, as mentioned, this isn't exactly what Dalio does, even if you want to mind meld with Dalio (if that were even possible).

That makes sense. It IS the simplified portfolio and I do think the stock portion is too low. I guess I will continue with the "110-age" allocation then.


Quote:

If I understand your point correctly, CPF LIFE in its maximally longevity insurance-oriented configuration serves well in that role. It provides a base level of lifestyle defense (if configured properly) for the outermost years of a long-term retirement plan, and therefore you can prudently invest somewhat more aggressively during and even a little past your accumulation years.
Agreed that CPF LIFE is a great instrument for retirement. However, you cannot contribute as much as you want and you do not have the flexibility to take money out. 4% guaranteed return is definitely not bad. However, for the majority of my investment, I do expect a higher return over long term 20-30 years. I think the question here is that on top of CPF, is there any product similar to the income insurance mentioned in the book for SG investors? It does sound like a good idea for me. Thank you!

BBCWatcher 19-02-2019 11:08 AM

Quote:

Originally Posted by blue_line (Post 119258443)
So my employer will contribute to this retirement account while I get to choose which option to go for depending on my risk appetite.

OK, so you don’t have to pony up any dollars. All you choose is how the employer invests those dollars. This pot of money includes what is effectively a signing bonus (5%) plus a retention bonus at the 15 year mark (the other 95%).

Assuming I understand the deal correctly, I’d pick the more aggressively invested portfolio. You have a long time horizon here, and you may never see most of the money anyway, so that’d be the right bet, I’d say.

If you’re actually going to retire 5 years after full vesting then probably at that point you’d withdraw the funds and reinvest them in a slightly more conservative (and hopefully lower cost) way, with progressively more conservatism as you continue to get closer to drawdown age. If this is early retirement then you might aim (by drawdown age) for something like a 40-60 or 35-65 equities-bond split. The “rule of thumb” that Vanguard uses is 30-70 for normal retirement age, but some people argue that it’s OK to be a little more aggressive if you’re an early retiree since more of your savings is going to continue to run along longer.

For planning purposes I think you should ignore the 95% until it’s actually vested, if it’s actually vested. You have absolutely no idea whether you and your employer will part ways, so until that money is actually in your personal accounts, I would discount it. The 5% you can give some weight to, although if I understand the deal you don’t actually get to yank the 5% out until fully vested or you part ways amicably (and from a solvent employer), correct?

I’m not a big fan of “early retirement,” at least not knife edge-style. I’m a much bigger fan of finding something you enjoy doing. If somebody will pay you to have fun, that’s the best deal of all.

Quote:

Originally Posted by EagleToThesSky (Post 119266109)
Agreed that CPF LIFE is a great instrument for retirement. However, you cannot contribute as much as you want and you do not have the flexibility to take money out. 4% guaranteed return is definitely not bad. However, for the majority of my investment, I do expect a higher return over long term 20-30 years. I think the question here is that on top of CPF, is there any product similar to the income insurance mentioned in the book for SG investors?

What does the author mean by “income insurance” in this context? Is he/she pointing to a specific U.S. financial product? I have a guess — a couple guesses, actually — but I don’t want to guess.


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