What’s “small amount” in this case?
A couple of hundred dollars.
What’s “small amount” in this case?
OK, let's suppose that's S$300/month, equal to S$3,600/year. One possible approach for a long-term investor (who is not a U.S. person) would be this combination:A couple of hundred dollars.
BBCWatcher said:... U.S. tax returns
Extremely.Hopefully the proposed residency based taxation and same county exemption laws will be passed someday, but it seems doubtful.
OK, let's suppose that's S$300/month, equal to S$3,600/year. One possible approach for a long-term investor (who is not a U.S. person) would be this combination:
1. POSB Invest-Saver: S$100/month into G3B (=S$1,200/year).
2. S$1,900/year (or S$950 every 6 months) invested in IWDA or VWRA via Standard Chartered. [Or, if IBKR Lite becomes available in Singapore in the future, switch to S$950 every 6 months into IWDA or VWRA via IBKR Lite.]
3. S$500/year into a Singapore Savings Bond or into MBH via OCBC's Blue Chip Investment Plan (BCIP). BCIP is a monthly program, so you'll need to issue two instructions to OCBC per year according to their deadlines: one "resume investment" instruction, then another "suspend investment" instruction.
The input allocations according to this combination would thus be:
Singapore Dollar Denominated Bonds: ~13.9%
SGX Listed Stocks: ~33.3%
Globally Listed Stocks: ~52.8%
And that'd be a decent split for a long-term investor planning to retire in Singapore. I wouldn't even worry about rebalancing for the first 5 years or so. Thereafter, and as your monthly savings flow increases, you can rebalance once per year.
BBCWatcher said:... effective tax rate of 23%...
That's Singapore's top marginal income tax rate.That is still higher than Singapore’s top tax rate of 22%.
No it doesn't. Not in the U.S. context anyway, which has status-based taxation, an expatriation tax, etc. Emmanuel Saez and Gabriel Zucman debunk that myth quite convincingly, and the OpEd (please go read it) summarizes some of their debunking. One compelling point they make is that the U.S. actually had 60+ percent total net effective tax rates on the very wealthiest households for decades. Other countries still do. (Denmark, Norway, and Sweden are lovely places to live!)Eventually a “soak the rich” policy just leads to an exodus of wealth.
celtosaxon said:I really, really don’t think you’re making strong arguments
In some ways, but keep in mind there were no immigration controls to speak of until the 1920s. Also, global jet travel has well over 50 years of history.Today we live in a far more globalized world.
Got any data on that? Regardless, the economists presenting these new data have an excellent answer: a corporate minimum tax. It’s already happening, with Europe leading the way at the moment.Corporate inversions and renunciations are at an all time high....
What are you saving for, and how far away is that goal?I have 800 - 1000 SGD per month to spare for investment. Could you kindly provide some insights to invest in stocks or bonds/ both?
A35 invests in Singapore Government Securities, and MBH invests in high quality Singapore dollar denominated corporate and agency bonds.Wanted to ask are there big differences between A35 and MBH?
And whats the reason for suggesting MBH over A35?
That's fine.Plan to rebalance once or at most twice a year....
Why is there a higher sales charge? Do you mean in absolute dollars (but the same percentage)? That shouldn't dissuade you. The cost percentages are what really matter.Should I just dump the whole sum in for G3B and MBH, and incur the much higher sale charges, or just follow the flow of time to get the money in?
And where do you plan to retire?I'm saving for retirement and looking for a stable investment if possible.
30 this year and intend to save for a long period. maybe 25 - 30 years.
What would be your recommendations?
Not OP but what when one doesn't know where to retire. My wife and I are from different countries with different rights to abode (non overlapping), we are currently settled for the foreseeable future in sg (no time limit for now).And where do you plan to retire?
Hi
I'm saving for retirement and looking for a stable investment if possible.
30 this year and intend to save for a long period. maybe 25 - 30 years.
What would be your recommendations? Thanks.
You could certainly go with the "standard three fund package" of a Singapore dollar bond index fund (MBH), a Straits Times stock index fund (ES3 or G3B), and a global stock index fund (IWDA, VWRA, or LCWD). I tend to prefer a 20%-80% split between bonds and stocks (when you're more than 7 to 10 years away from retirement), so in this case MBH would be about 20%. Then I like to keep the STI fund at 20% or less, so let's pick 20% there. Then 60% in global stocks. But that's my preferred split in these circumstances (non-U.S. person, planning to retire in Singapore).I'm saving for retirement and that will be another 30-35 years (currently 28 y.o). SG citizen and most likely retire in SG.
That's a pretty good combo. You could consider adding some CRPA (multi-currency investment grade corporate bond index fund) into the mix if you wish.Not OP but what when one doesn't know where to retire. My wife and I are from different countries with different rights to abode (non overlapping), we are currently settled for the foreseeable future in sg (no time limit for now).
Don't really plan for now to live and/or retire in any of our respective home countries. Where we'll be in 10, 20, 30 years is a big question mark.
So for now I am mostly following the approach to invest in worldwide ETFs (IWDA for starter) with SSBs from last year as emergency fund and starting bond component.
Any other tip for someone who doesn't know where retirement will be?