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Old 23-08-2019, 09:23 PM   #1396
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What happens after i have reached the allocation target
40 40 20?

Do i still have to invest 1000 per month or it will depend on which asset i am short of and top up? If that is the case then it will not always be 1000 per month? How will the 1000 per month work when i reach 40 40 20?

No, but I’m slow in responding to private messages anyway — and don’t encourage them.


I prefer SSBs over A35, but it’s not a strong preference.


G3B and A35 flow through POSB Invest Saver at $400/month each, so that’s viable. That leave $200/month for IWDA. You’d batch that up into something like a pair of $1,200 purchases of IWDA via Standard Chartered (one every six months), and that’ll work.

If you get bonuses or windfalls just use those to rebalance, but you don’t have to be maniacal about it.
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Old 23-08-2019, 09:29 PM   #1397
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What amount are you planning to invest per month thereafter?
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Old 24-08-2019, 01:57 AM   #1398
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Same at $1000

What amount are you planning to invest per month thereafter?
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Old 24-08-2019, 07:08 AM   #1399
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So what’s wrong with my suggestion then? Are you concerned about rebalancing? No problem: use bonuses, windfalls, and distributed dividends/coupons to rebalance. But be reasonable about it. Once a year is fine.
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Old 24-08-2019, 08:40 AM   #1400
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Sorry there is error in my allocation

It should be 40 g3b
40 iwda
20 a35

So monthly 400 for g3b, 200 for a35 and save 400 monthly for iwda to do lump sum

So what’s wrong with my suggestion then? Are you concerned about rebalancing? No problem: use bonuses, windfalls, and distributed dividends/coupons to rebalance. But be reasonable about it. Once a year is fine.
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Old 24-08-2019, 04:44 PM   #1401
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So monthly 400 for g3b, 200 for a35 and save 400 monthly for iwda to do lump sum
Sure, that’ll work. At $400/month for IWDA you’d probably batch up and buy $1,600 worth, three times per year. That’d imply Standard Chartered as your broker.
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Old 24-08-2019, 06:58 PM   #1402
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Yes i am concerned of the following 2 points:

1. Since i am using posb rsp, i cant really adjust the monthly investment to top up the short fall. The rsp is recurring so it will be hard. Can only do rebalancing like 1-2 times a year.

2. For rebalancing, do i follow shinys book to buy and sell according to the target percentage follow shinys book or only top up - which means not selling anything and will have to invest more instead to bring the target to 40 40 20?

How can i better approach this

So what’s wrong with my suggestion then? Are you concerned about rebalancing? No problem: use bonuses, windfalls, and distributed dividends/coupons to rebalance. But be reasonable about it. Once a year is fine.
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Old 24-08-2019, 07:00 PM   #1403
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Yes i am concerned of the following 2 points:

1. Since i am using posb rsp, i cant really adjust the monthly investment to top up the short fall. The rsp is recurring so it will be hard. Can only do rebalancing like 1-2 times a year.

2. For rebalancing, do i follow shinys book to buy and sell according to the target percentage follow shinys book or only top up - which means not selling anything and will have to invest more instead to bring the target to 40 40 20?

How can i better approach this
I thought you can just cancel the rsp and just setup a new one according to the amount you like
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Old 24-08-2019, 07:18 PM   #1404
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You can cancel but you want to do it regularly?

Keep on cancel and buy doesnt seem to be efficient because i am not doing rebalancing yet. It will only mess up the target percentages

Waiting for BBC's advice how to see this through moving forward

I thought you can just cancel the rsp and just setup a new one according to the amount you like

Last edited by flowerpalms; 24-08-2019 at 07:24 PM..
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Old 24-08-2019, 08:05 PM   #1405
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You can cancel but you want to do it regularly?

Keep on cancel and buy doesnt seem to be efficient because i am not doing rebalancing yet. It will only mess up the target percentages

Waiting for BBC's advice how to see this through moving forward
Don’t really understand what do you mean by messing up the target percentages. And i don’t see why you can’t do it regularly if you are so fixated on the percentages, afterall it is just as regular as once per month
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Old 24-08-2019, 10:24 PM   #1406
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How can i better approach this
Again, just use bonuses, windfalls, and dividend distributions (G3B and A35 are distributing) as the first sources for rebalancing. Yes, that may mean you temporarily adjust POSB Invest Saver percentages, but you can do that. Once per year, “close enough,” is absolutely fine.
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Old 25-08-2019, 11:01 AM   #1407
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When do you think is a good start for my IWDA of $1600?

Next month or Jan 2020? My first POSB deductions start in Sept though

Again, just use bonuses, windfalls, and dividend distributions (G3B and A35 are distributing) as the first sources for rebalancing. Yes, that may mean you temporarily adjust POSB Invest Saver percentages, but you can do that. Once per year, “close enough,” is absolutely fine.
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Old 25-08-2019, 07:46 PM   #1408
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When do you think is a good start for my IWDA of $1600?
As soon as you're able to afford it. If that's now, great.
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Old 26-08-2019, 07:49 AM   #1409
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I can afford, but am i in the right direction if i can invest 4 months lump sum for iwda now? The starting allocation is not correct as it wont be 40 40 20 already

Going by 400 g3b 200 a35 1600 iwda the percentage for iwda will be 75%!! That is why i am concerned if i should lump sum iwda now or wait 4 months in December. Since for scb to save the fees i cant do it monthly?


As soon as you're able to afford it. If that's now, great.

Last edited by flowerpalms; 26-08-2019 at 07:52 AM..
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Old 26-08-2019, 10:16 AM   #1410
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I can afford, but am i in the right direction if i can invest 4 months lump sum for iwda now? The starting allocation is not correct as it wont be 40 40 20 already
Yes, and if you wait 4 months you also won't have your desired target portfolio allocations, because your global stocks percentage will be 0% for the next 4 months.

You're suffering from paralysis by analysis right now. Look, you're not going to retire on S$1,600 of total wealth decades from now. It's absolutely not a problem to be either (or both) slightly or temporarily outside your target portfolio allocation. Get going now, then, a year from now, rebalance, and don't bend yourself into a pretzel to do it. If your portfolio is 2.2 percentage points "too bond heavy" on a random Tuesday, it's really not a problem. "Gentle nudges" to steer the percentages back toward your target, once or twice a year, is more than sufficient.
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