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Old 23-03-2019, 05:24 PM   #1096
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And the reason for 20-15-65 as you mentioned in previous post is because at this age, growth/appreciation of capital is better than dividend correct?
I'm not fussy. Long-term total returns net of all costs are what matter here. Capital appreciation happens to be more tax efficient (i.e. cost efficient) than dividend distributions.

I can tolerate slight overweighting of SGX listed stocks while you're in the bulk of your accumulation years.

Likewise, by the time I am 65, it shifts to me becoming more dividend dependent rather than risk taking on growth
It's more about having more conservative holdings since your time horizon is shorter, and you're dependent on accumulated wealth to support a particular retirement lifestyle. Dividends versus capital gains really don't matter as such.

BBC, I been heavily vested in iwda only at around usd 150k but would think it's high time to start put in EIMI. Any thoughts on the allocation or any other alternative. I could put in 50k she and Im around 35 this year.
As a "rule of thumb" EIMI works pretty well in about a 1 to 10 ratio with IWDA. So in your case you'd have about US$15K in EIMI.

Wow how do u open these accounts?
Fidelity (U.S.) and Vanguard (U.S.) are really best suited for U.S. persons, so the short answer is you probably don't. Schwab is available to non-U.S. persons who are resident in Singapore, but I don't think it's too interesting too often for such people.
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Old 24-03-2019, 11:59 AM   #1097
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Hi BBC,

Have you ever bought small amounts of ETFs into particular sectors that you have a hunch or feel like speculating on?

VIX
Renewables
Tech
Medical Cannibis

Does not have to be in that list in particular but yea you get the drift

Last edited by lingalong; 24-03-2019 at 12:04 PM..
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Old 24-03-2019, 01:01 PM   #1098
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Hey BBC, after last Friday laosai, my Iwda returns are down to 3% from Ibkr screen, worrying if i should reduce holdings while i can and return later, my buffer is so thin as i have about Sgd50K already lock into Iwda, my budget is 100K spread over 5 years, add other holdings, i should have Sgd140K in Ibkr in ideal scenario. If i have to average down with the free 50K, feels like i am skating on thin ice to see my portfolio returns positively in 5 years, should the recession crash occurs shortly!

The latest financial reports are sounding disastrous, inevitable the market will get spooked to sell, remember last year, 400 drops will follow by another 400 drop and even another 400! Investing is looking ominous just as we are starting out, just not fated to earn passive income.

Reduce portfolio in cash or hedge with Uvxy...

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Old 24-03-2019, 01:07 PM   #1099
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Hey BBC, after last Friday laosai, my Iwda returns are down to 3% from Ibkr screen, worrying if i should reduce holdings while i can and return later, my buffer is so thin as i have about Sgd50K already lock into Iwda, my budget is 100K spread over 5 years, add other holdings, i should have Sgd140K in Ibkr in ideal scenario. If i have to average down with the free 50K, feels like i am skating on thin ice to see my portfolio returns positively in 5 years, should the recession crash occurs shortly!

The latest financial reports are sounding disastrous, inevitable the market will get spooked to sell, remember last year, 400 drops will follow by another 400 drop and even another 400! Investing is looking ominous just as we are starting out, just not fated to earn passive income.

Reduce portfolio in cash or hedge with Uvxy...
Wait for the US earnings recession to play out. This will happen by Jul/Aug 2019, we should break the Dec 2018 low. Then go all in around SPY 220 levels.

The fed is going to look like deer in front of headlights, very soon. Wage growth will shoot up with all tax cuts and budget deficits free money printing that the US has done. Earnings will fall and the Fed will not be able to cut rates to support the markets, as their mandate is inflation, wages and employment.

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Old 24-03-2019, 01:20 PM   #1100
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Any historical benchmark returns during earnings recession? We are not talking about a great recession, how high are current market valuation? I checked Iwda reports a p/e of 17%, so an earnings recession will increase it to 25% on rough guess? US companies have gave very conservative forecasts, hopefully they can beat those!

In 2016 there was the same fear, Iwda went down up and down again, so this year we should see another down leg shortly!
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Old 24-03-2019, 02:28 PM   #1101
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I'm not fussy. Long-term total returns net of all costs are what matter here. Capital appreciation happens to be more tax efficient (i.e. cost efficient) than dividend distributions.

I can tolerate slight overweighting of SGX listed stocks while you're in the bulk of your accumulation years.


It's more about having more conservative holdings since your time horizon is shorter, and you're dependent on accumulated wealth to support a particular retirement lifestyle. Dividends versus capital gains really don't matter as such.


As a "rule of thumb" EIMI works pretty well in about a 1 to 10 ratio with IWDA. So in your case you'd have about US$15K in EIMI.


Fidelity (U.S.) and Vanguard (U.S.) are really best suited for U.S. persons, so the short answer is you probably don't. Schwab is available to non-U.S. persons who are resident in Singapore, but I don't think it's too interesting too often for such people.
Thanks BBC, beside EIMI, anything else would u consider? Like say commodities or property related tracking etf? Thanks
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Old 24-03-2019, 04:52 PM   #1102
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Dad have excess savings in my CPF account and have met FRS. Can he transfer part of his OA to that of his spouse as to offset the housing amount withdrawn(Voluntary Refund) from my mum's account?
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Old 24-03-2019, 08:58 PM   #1103
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Have you ever bought small amounts of ETFs into particular sectors that you have a hunch or feel like speculating on?
Only to a very minor degree. And it’s pointless, really.

Dad have excess savings in my CPF account and have met FRS. Can he transfer part of his OA to that of his spouse as to offset the housing amount withdrawn(Voluntary Refund) from my mum's account?
I assume you mean your father has “excess” dollars in his CPF account.

No. Housing-related refunds are strictly on a cash basis. That cash could be from an age 55+ CPF withdrawal, but such withdrawals pull from the Special Account first, by design.

Thanks BBC, beside EIMI, anything else would u consider? Like say commodities or property related tracking etf?
As per lingalong’s question, I wouldn’t bother.
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Old 24-03-2019, 09:35 PM   #1104
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Only to a very minor degree. And it’s pointless, really.


I assume you mean your father has “excess” dollars in his CPF account.

No. Housing-related refunds are strictly on a cash basis. That cash could be from an age 55+ CPF withdrawal, but such withdrawals pull from the Special Account first, by design.


As per lingalong’s question, I wouldn’t bother.
I've been trying to find VWRD and LCWD and IWDA on Fundsupermart, but to no avail.

Closest was coming across other ETFs by vanguard that were either world ex-USA or ex-Japan. Any reason for this or am I looking at the wrong thing
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Old 24-03-2019, 09:39 PM   #1105
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I've been trying to find VWRD and LCWD and IWDA on Fundsupermart, but to no avail.
Those funds are listed/traded on the London Stock Exchange. Fundsupermart isn’t as super as that.
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Old 24-03-2019, 09:58 PM   #1106
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Those funds are listed/traded on the London Stock Exchange. Fundsupermart isn’t as super as that.
Thats unfortunate. I guess the next best alternative would be to buy the normal US-domiciled ones like URTH (iShares MSCI World ETF)
ACWI (IShares MSCI ACWI ETF)
VT (Vanguard Total World Stock Index Fund Etf Shares), yes?
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Last edited by lingalong; 24-03-2019 at 10:05 PM..
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Old 24-03-2019, 11:47 PM   #1107
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Thats unfortunate. I guess the next best alternative would be to buy the normal US-domiciled ones like URTH (iShares MSCI World ETF)
ACWI (IShares MSCI ACWI ETF)
VT (Vanguard Total World Stock Index Fund Etf Shares), yes?
Is there any reason why you're sticking to FSM? Plenty of other competitive brokers out there which will give you access to LSE.
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Old 25-03-2019, 07:39 AM   #1108
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Thats unfortunate. I guess the next best alternative would be to buy the normal US-domiciled ones....
No, as crystalnox suggests the next best alternative is to find the right broker for these purposes.
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Old 25-03-2019, 08:11 AM   #1109
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Is there any reason why you're sticking to FSM? Plenty of other competitive brokers out there which will give you access to LSE.
Was planning on using it to help someone builld up SGX ETF

The other consideration was IBKR but am not sure whether I will hit the min 10USD/month coms
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Old 25-03-2019, 08:27 AM   #1110
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The other consideration was IBKR but am not sure whether I will hit the min 10USD/month coms
Almost surely you won’t since you need rather hefty monthly buys to hit that figure, but why is that a problem? There’s no obligation to trade such that ordinary commissions total to US$10 or more. It’s a minimum monthly commission (for total account values of US$2,000 to US$99,999.99, age 26 or older, starting 3 months after account opening), that’s all. If that minimum is still the lowest cost on offer, great, carry on.
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