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Old 26-08-2019, 10:57 AM   #1411
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Noted. I would also like to update you that i have signed for the GE supremehealth B plus and Classic B plan + the Pay assure (DII) plan. Agent tried to push for Accident plan, life plan, critical illness plan which i politely refused.

I have already submitted my termination of mylifechoice with Aviva and waiting for them to send me the surrender value. Then now i wait for my GE plans to be enforced. Pro rated payment of aviva myshield plan 2 + rider will also be refunded to me.

For the DII, i signed for my pay is $400/year and max 180 years.
So after enforce for GE i will be paying $400 for DII and $35 for classic B total 435/year

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.

Last edited by flowerpalms; 26-08-2019 at 11:27 AM..
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Old 26-08-2019, 06:20 PM   #1412
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Hi BBCWatcher,

Should the purchase of IWDA, MBH and G3B be timed around the ex dividend date? Wondering if that would make a significant difference in the price for eg cheaper unit price after dividend has been dished out? 🤔
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Old 26-08-2019, 11:17 PM   #1413
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Should the purchase of IWDA, MBH and G3B be timed around the ex dividend date? Wondering if that would make a significant difference in the price for eg cheaper unit price after dividend has been dished out? 🤔
No. Just buy according to your program schedule, and don't worry about trying to time the ex-dividend dates. If given a choice, just pick some random number from 1 to about 25 and buy on that day of the month.
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Old 29-08-2019, 08:54 AM   #1414
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Bloomberg reports that the U.S. Treasury is thinking again about issuing 50 and/or 100 year bonds. The idea last seriously surfaced in 2009, amidst the Global Financial Crisis, but was shelved. However, as the yield on the 30 year U.S. Treasury bond has fallen well below 2.0%, the idea is back on the table as a way for the U.S. federal government to lock in a comparatively low cost of financing and to provide some additional, slightly higher yielding debt instruments to pension funds and others.
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Old 29-08-2019, 09:25 PM   #1415
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Sometimes I really worry

Should we panic plough into real assets? Looks like paper money is being cheapened

Bloomberg reports that the U.S. Treasury is thinking again about issuing 50 and/or 100 year bonds. The idea last seriously surfaced in 2009, amidst the Global Financial Crisis, but was shelved. However, as the yield on the 30 year U.S. Treasury bond has fallen well below 2.0%, the idea is back on the table as a way for the U.S. federal government to lock in a comparatively low cost of financing and to provide some additional, slightly higher yielding debt instruments to pension funds and others.
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Old 29-08-2019, 09:31 PM   #1416
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Sometimes I really worry
Should we panic plough into real assets? Looks like paper money is being cheapened
What's the logic here? How would the possible introduction of half century and/or century U.S. Treasuries cheapen paper money? It seems like rather the opposite.
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Old 29-08-2019, 09:36 PM   #1417
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Isn’t it part of this falling US interest rates talk that we are seeing recently. If interest rates continue to be so low(which is itself a QE), wouldn’t the value of money go down ?

What's the logic here? How would the possible introduction of half century and/or century U.S. Treasuries cheapen paper money? It seems like rather the opposite.
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Old 30-08-2019, 07:24 AM   #1418
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Isnít it part of this falling US interest rates talk that we are seeing recently. If interest rates continue to be so low(which is itself a QE), wouldnít the value of money go down ?


U.S. dollars are extremely useful because they can be exchanged for real goods and services at any time in practically any place. Low interest rates are highly correlated with low inflation, which means the purchasing power of U.S. dollars remains potent for longer.

I think youíve got this all backwards.
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Old 30-08-2019, 11:04 AM   #1419
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Hi there, good Friday morning!

Does anyone know if you have maxed out your MA to the prevailing BHS amount, does your interest earned, which will be in excess of the prevailing BHS amount (before the revised BHS amount applies on 1 Jan the following year):

1) Flow into your SA?
2) Or stays in the MA?

Thanks in advance - reason for asking is that I am 4 years away from hitting BHS, after factoring a more aggressive 5% p.a. inflation of the current $57,200 BHS and not taking into account any inflows as a result of variable bonuses (hence probability of reaching BHS is earlier rather than later). I am also already at the annual CPF limit, am currently ~31.
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Old 30-08-2019, 12:04 PM   #1420
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Assuming you are below 55, excess MA flows into SA if your SA is below FRS, otherwise it flows into OA.
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Old 30-08-2019, 12:11 PM   #1421
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I had a discussion with Shiny on the stock-bond portfolio construct a few days ago. My question was whether the bond part still make sense in a negative yield scenario. Shiny's answer is that it is the best we have, even if bond is negative yielding. Shiny also implied that the market will eventually correct itself.

BBCW - Beside Shiny, you are one of the most knowledgeable financial experts here. Can I have your take too?
Could you also share, in layman language, how the capital market has come to this - Negative yield bond, negative interest rate bank account, banks paying customers to take out loans?
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Old 30-08-2019, 02:41 PM   #1422
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My question was whether the bond part still make sense in a negative yield scenario. Shiny's answer is that it is the best we have, even if bond is negative yielding. Shiny also implied that the market will eventually correct itself.

BBCW - Beside Shiny, you are one of the most knowledgeable financial experts here. Can I have your take too?
Could you also share, in layman language, how the capital market has come to this - Negative yield bond, negative interest rate bank account, banks paying customers to take out loans?
Well, let's not get too carried away here. Except for a very few places, we aren't seeing zero or negative interest rates. And even in those very few places I don't think there's a zero or negative interest rate corporate bond, even among top investment grade issuers.

In a falling interest rate environment it's wonderful to have a long bond position. Bond yields down = bond prices up. Also, if bond prices are up, you'll be automatically buying fewer of them if you're dollar cost averaging.
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Old 30-08-2019, 02:45 PM   #1423
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BBCWatcher:

Update you that my supremehealth b plus and ge pay assure plans are enforced.

2nd is that i have bought 300 shares of es3 for a start. Next month will be iwda
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Old 30-08-2019, 03:31 PM   #1424
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Well, let's not get too carried away here. Except for a very few places, we aren't seeing zero or negative interest rates. And even in those very few places I don't think there's a zero or negative interest rate corporate bond, even among top investment grade issuers.
Negative interest rates are already in the EU and Japan. Shouldn't we plan for it now or should we wait until it arrive here?

In a falling interest rate environment it's wonderful to have a long bond position. Bond yields down = bond prices up. Also, if bond prices are up, you'll be automatically buying fewer of them if you're dollar cost averaging.
It's wonderful if you are already invested. If you are starting, I'm not sure it's a good idea. There are many newbies reading this forum. I am concerned they will go head in without knowing the consequence.


Regardless, I thank Shiny and you for your contribution to this forum. Many including me have benefited from the many selfless advice.
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Old 30-08-2019, 04:26 PM   #1425
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Well, let's not get too carried away here. Except for a very few places, we aren't seeing zero or negative interest rates. And even in those very few places I don't think there's a zero or negative interest rate corporate bond, even among top investment grade issuers.
https://www.bloomberg.com/news/artic...ding-bond-ever

The two year notes were negative yield for Siemens
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