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*Official* Shiny Things club - Part 2

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Old 27-04-2018, 04:31 PM   #151
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I want to dump a lump sum (about 25-30k) into the recommended allocations according to my age (i.e. IWDA, ES3/G3B, A35), then start my monthly allocation of about $800.
Hi, I'm new to investing as well and my question is similar to Falcondiaz's ...

I have a rather large sum of spare cash (6 figures) and I'm thinking of investing in STI ETF (~S$1k pm via OCBC BCIP) and VWRD/IWDA (~US$1k per month via IB).
Should I put in a lump sum first then DCA, or just DCA?
Is IB good for US$1k pm investment consider the monthly charges?

Thanks. I am still reading the ST and IB threads here ... very informative
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Old 27-04-2018, 05:24 PM   #152
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Hi, I'm new to investing as well and my question is similar to Falcondiaz's ...

I have a rather large sum of spare cash (6 figures) and I'm thinking of investing in STI ETF (~S$1k pm via OCBC BCIP) and VWRD/IWDA (~US$1k per month via IB).
Should I put in a lump sum first then DCA, or just DCA?
Is IB good for US$1k pm investment consider the monthly charges?

Thanks. I am still reading the ST and IB threads here ... very informative
Split and spread the lump-sum appropriately, like divide by 6 and invest every month. By the end of 6 months you are done and then start DCA. If you don't need this money for next 10, 20,30 years then it really doesn't matter how you split it and over what period you invest it, but the earlier the better. For your portfolio size IB is best for international. For local see which is the cheapest.

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Old 27-04-2018, 06:39 PM   #153
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A35 prices been dropping , may i know if this something normal or what? thanks!
It is normal. When rates increase there is an adjustment and bond prices fall and when rates fall, bond prices rise. But you get paid out dividend every year and as long as the price doesnt fall more than the the dividend paid out, you are still good.

From this link, the yeild has improved substantially compared to 10 years ago, so at this point the bond prices are good value compared to 10 years ago.

https://www.dividends.sg/view/A35

So just keep collecting the dividends, that is what bonds are for.
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Old 27-04-2018, 11:54 PM   #154
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I'm near to retirement....should i put my spare cash into Reits to earn regular dividends to satisfy part of my daily expenses needs? I hear Reits pay higher dividends than SSBs / A35 ? Thanks for advice!
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Old 28-04-2018, 12:32 AM   #155
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Noob question abt buying stock, I am half way through reading the shiny thing book.

Assuming I spend $300 to buy ES3 one month, does it mean it is only a one time payment and I own the ETF forever unless I sell?
Yep.

You spend $300 on shares of ES3, you get (about) 80 shares of ES3, and those are yours forever.

A35 prices been dropping , may i know if this something normal or what? thanks!
Revhappy's got it; this is totally normal. Bonds go up and down in price as well (though they tend to go up and down a lot less than stocks—they're more stable). As the price of a bond (or a bond ETF) goes down, the interest rate goes up; so what you lose on the price, you tend to make back on the yield.

Hi, I'm new to investing as well and my question is similar to Falcondiaz's ...

I have a rather large sum of spare cash (6 figures) and I'm thinking of investing in STI ETF (~S$1k pm via OCBC BCIP) and VWRD/IWDA (~US$1k per month via IB).
Should I put in a lump sum first then DCA, or just DCA?
Is IB good for US$1k pm investment consider the monthly charges?

Thanks. I am still reading the ST and IB threads here ... very informative
As was suggested upthread, you obviously wouldn't want to dribble your lump sum in at $1k a month; it'd be ten years or more before you were fully invested, and in the meantime all that cash is just sitting in your account doing nothing.

A good compromise is to split it into a few parts - four to six, for a lump sum that size - and invest one part each month until you're fully invested. Then you can go to your $1k-a-month regular investment.

If you do this, it has benefits whether the market goes up or down. If you start investing your lump sum and the market goes up, then at least you've bought some, and you've participated in the move up; if you start investing and it goes down, then you can buy more at a lower price.
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Old 28-04-2018, 01:15 AM   #156
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Thanks Shiny & Revhappy,
because the price drop from 1.172 (end Dec 2017) to current 1.115 which it about 4.8% drop and the yield definitely not in that figure, so trying to understand why?

Revhappy's got it; this is totally normal. Bonds go up and down in price as well (though they tend to go up and down a lot less than stocks—they're more stable). As the price of a bond (or a bond ETF) goes down, the interest rate goes up; so what you lose on the price, you tend to make back on the yield.
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Old 28-04-2018, 01:47 AM   #157
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For those who are investing a small amount in IWDA every month (~500 usd), would you recommend saving the amount for a few months and then investing a lump sum? Say, once every quarter? Otherwise, the 2% fees (min $10) sounds very high for SCB

Mmm… I don’t think piling it all into IWDA is a great idea. If you have a lump sum from redeeming your G3B, you’ll want to put some of it into A35 (you can buy it through Stanchart or another broker as well as through POSB Invest-Saver), otherwise you’re going to be super tilted toward equities.

As people have mentioned above, they’re different things. IWDA owns global developed-market stocks; EIMI owns emerging-market stocks. You don’t need to worry about owning EM stocks until your portfolio gets bigger—six figures is my usual threshold for this stuff—because they’ll only be a small amount of your portfolio, and you don’t want to run up transaction fees buying tiny 3-5% clips of these stocks.
Thanks ST for the advice. Since my portfolio is small at the moment, I will invest in A35 via DCA because the 20% allocation will be quite easily met in a few months. Helps with a 3% cashback from POSB too

Thanks for the clarification re. EIMI. Will go with IWDA for now, till my portfolio is bigger. I'm just unsure if I should wait for a 'good' time to put the lump sum into IWDA. My monthly investment for IWDA isn't too large, so to save on fees I think I'll only be able to buy IWDA every quarter or bi-annually.

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Old 28-04-2018, 07:33 AM   #158
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I'm near to retirement....should i put my spare cash into Reits to earn regular dividends to satisfy part of my daily expenses needs? I hear Reits pay higher dividends than SSBs / A35 ? Thanks for advice!
REITs also have variability in share price, and they have greater risk than government bonds and bond funds. REIT dividends are not anywhere near government guaranteed.

So it depends what you want and what the rest of your portfolio looks like, really. But if you want government guaranteed interest (or coupons) and a government guaranteed principal, then Singapore Savings Bonds (and Singapore Government Securities purchased at initial issue and held to maturity) fit that profile.
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Old 28-04-2018, 01:00 PM   #159
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Hi, I have a hypothetical question on order types.
It will really help in my understanding ...

Suppose stock X have a bid-ask of 1.0 and 1.2, and I want to buy at 1.1 preferably. But in the unfortunate event of upwards spiralling price, I want to buy between 1.3 and 1.4, not any higher.

So I should
1) Make a LMT buy order of X at 1.1
2) Make another STP LMT buy order of X at 1.3 (stop price) and 1.4 (limit price)?
3) Combine 1) and 2) with One-Cancels-the-Other?

Is there any simpler way of doing the above, with 1 buy order perhaps?

Not sure if it makes sense lol sorry ... thanks!
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Old 28-04-2018, 01:18 PM   #160
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Thanks Shiny & Revhappy,
because the price drop from 1.172 (end Dec 2017) to current 1.115 which it about 4.8% drop and the yield definitely not in that figure, so trying to understand why?
Bond prices have a tendency to move in the opposite direction of interest rates.
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Old 28-04-2018, 01:53 PM   #161
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It's almost may now, but A35 price is still lower than what I bought at last may
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Old 28-04-2018, 02:14 PM   #162
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Thanks Shiny & Revhappy,
because the price drop from 1.172 (end Dec 2017) to current 1.115 which it about 4.8% drop and the yield definitely not in that figure, so trying to understand why?
The lesson learnt is to stick your money in a safe bank account for a guaranteed 3%.
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Old 28-04-2018, 02:30 PM   #163
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It's almost may now, but A35 price is still lower than what I bought at last may
eh... ultimately this is made up of bonds and the returns that bonds make is mainly off coupons, not capital gains...

Hope no one is expecting a significant long term ETF price increase for any bond ETF, (at least those that distribute all coupons out). That is just expecting the impossible
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Old 28-04-2018, 03:20 PM   #164
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Suppose stock X have a bid-ask of 1.0 and 1.2, and I want to buy at 1.1 preferably. But in the unfortunate event of upwards spiralling price, I want to buy between 1.3 and 1.4, not any higher.

So I should
1) Make a LMT buy order of X at 1.1
2) Make another STP LMT buy order of X at 1.3 (stop price) and 1.4 (limit price)?
3) Combine 1) and 2) with One-Cancels-the-Other?
Sigh ... doesn't seem to work ... I applied the above to EIMI on IB TWS Demo. The buy got through immediately at the ask price lol ...
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Old 28-04-2018, 03:35 PM   #165
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Hi, I have a hypothetical question on order types.
It will really help in my understanding ...

Suppose stock X have a bid-ask of 1.0 and 1.2, and I want to buy at 1.1 preferably. But in the unfortunate event of upwards spiralling price, I want to buy between 1.3 and 1.4, not any higher.

So I should
1) Make a LMT buy order of X at 1.1
2) Make another STP LMT buy order of X at 1.3 (stop price) and 1.4 (limit price)?
3) Combine 1) and 2) with One-Cancels-the-Other?

Is there any simpler way of doing the above, with 1 buy order perhaps?

Not sure if it makes sense lol sorry ... thanks!
Try keeping it simple dude. It's investing. Not trading
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