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Maeda_Toshiie

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Hello.
Not sure if this question has been asked before but...

When it comes to setting up portfolio allocations, I know it is usually stocks X% and bonds Y%.
In this case, does the bonds portion also include cash-on-hand (e.g. savings account, emergency fund)?
If not, then does anyone actually include a 3rd portion in the allocation (stocks X%, bonds Y%, cash Z%)? If so, anyone has any guidelines on it that I can study on?

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Emergency fund is separate from the portfolio. Do NOT mix.

The portfolio will only contain equities, fixed income securities, and any cash you intend to invest. If you can get an cash account that pays >2% interest rate for SGD, you can count that as part of your bond component. HOWEVER, the sum inside that you count as your bond component must NOT be anything other than investible cash. Otherwise, the investible cash in your portfolio is a bit of a drag on returns and should be a small percentage in the first place.
 

swordsly

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Emergency fund is separate from the portfolio. Do NOT mix.

The portfolio will only contain equities, fixed income securities, and any cash you intend to invest. If you can get an cash account that pays >2% interest rate for SGD, you can count that as part of your bond component. HOWEVER, the sum inside that you count as your bond component must NOT be anything other than investible cash. Otherwise, the investible cash in your portfolio is a bit of a drag on returns and should be a small percentage in the first place.

Ok. Understood. Thanks!
 

wealth_farmer

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whats the optimal SGD to put in SCB IWDA at anyone time to maximise usage of fixed transaction.forex costs?

That depends on the individual's target brokerage expense ratio. I try to keep mine at or under 1% of invested amount. What's yours? Once you know your own acceptable cost benchmark, you will know what's your optimal SGD amount.

any good expense tracking app you guys used?

seedly app?

I used android phone :D

iXpenseit, Wally, Toshl are all viable. It's really not about the app though, it's having the determination and discipline to make expense entry second nature that's the key.
 

jacky817

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China's imminent rise to power?

Hi Shiny,

With China's one belt one road initiative, all that crazy infrastructure growth, the fact that Chinese tend to save more (giving china banks more cash), their billion dollar investments in green energy, and Xi's presidency-for-life, should I consider investing/tilting towards China? Oh and the enormous Tencent and Alibaba which seems to be heavily affected by government.

It seems that according to the Fama-french 3 factor model, geography is not a factor that affects expected return. But still, I keep thinking that "THIS IS DIFFERENT". It's a global shift in power!

And don't get me started on how downhill America seems to be heading haha. Of course, there is Google, Facebook, Apple, Amazon holding the fort, but I'm beginning to get more and more worried about my vanguard ETFs invested in the US market. Is this fear justified?

Cheers!
 
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xyziop

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Emergency fund is separate from the portfolio. Do NOT mix.

The portfolio will only contain equities, fixed income securities, and any cash you intend to invest. If you can get an cash account that pays >2% interest rate for SGD, you can count that as part of your bond component. HOWEVER, the sum inside that you count as your bond component must NOT be anything other than investible cash. Otherwise, the investible cash in your portfolio is a bit of a drag on returns and should be a small percentage in the first place.

Thoughts about this article? https://www.betterment.com/resources/safety-net-funds-why-traditional-advice-is-wrong/

It states that one should jack up his emergency fund by 30% and then invest it into a 40/60 stocks bonds mix.
 

hwzadmin

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Dear members, please take note that this thread is now closed due to its huge size. A new thread has been automatically generated for your continued discussion here
 
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