*Official* Shiny Things club - Part 2

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dumbriyani

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Hi everyone. Quick qns since IWDA reinvests dividends there is no 15% withholding tax to speak of right ?
 

revhappy

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Shiny, I have a question: When you take a position on CME globex FX future, the margin that gets locked up, does IB pay interest on that cash margin or no? I am guessing no, but I just want to be sure.


Yes, they do.

Thanks, that is interesting! So instead of doing a spot fx conversion, a future is better, because you earn extra yield on the cash margin, I didnt know this.
 
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311290

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Hi ST/BBC

Understand that if investment % > home loan % should use for investment.

However thailand home loan rate is around 5-7% from 3rd year onwards.

i should be paying more during the first 3years, than the monthly amount so i will paying the principal if there's no penalty.

Another option will be refinancing after the 3rd year, however i will be back to square 1. where most of the money is to pay for interest?

For the below funds if company is doing a contribution of 3% monthly and have a fix period if break policy how much % of company contribution gf able to get back & unable to sell partial shares.
Example 2.5years - 25% of company contribution

Worth it to be having risk in overseas exposure as paying the front load fee (1.5%) & THB / USD currency risk.

4. Treasury Money Fund (50%) + Bond Fund (40%) + SET 50 Fund (10%)
5. Treasury Money Fund (40%) + Bond Fund (40%) + SET 50 Fund (10%) + Jumbo 25 Fund (10%)
6. Treasury Money Fund (40%) + Bond Fund (30%) + SET 50 Fund (20%) + Jumbo 25 Fund (10%)
7. Bond Fund (60%) + SET 50 Fund (20%) + Global Quality Growth (5%) + Property Income Plus Fund (15%)
8. Bond Fund (50%) + SET 50 Fund (25%) + Global Quality Growth (10%) + Property Income Plus Fund (15%)
9. Bond Fund (30%) + SET 50 Fund (40%) + Global Quality Growth (15%) + Property Income Plus Fund (15%)
 

raidorz

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Yes, that's correct, through and including age 25. On your 26th birthday, the minimum monthly commission goes up (if it applies).

Nonono. The month you turn 25 is the last month you'll enjoy USD3 activity fee. :s22:
 

BBCWatcher

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Nonono. The month you turn 25 is the last month you'll enjoy USD3 activity fee. :s22:
No, not according to the rules IB publishes. If you experience anything different than IB's own published rules -- and nobody in this forum age 25 has reported such a discrepancy, but if -- then you're certainly welcome to raise a complaint with customer service and get the US$7/month overage refunded and corrected until your 26th birthday.

IB isn't the only company to offer special terms until one's 26th birthday. That's also an important demarcation age for health insurance purposes in the United States. So IB's choice here is not really accidental or arbitrary.
 

meltbread

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Hi guys.

Just need some guidance here.

I understand IWDA reinvests your dividends.

So if the point of investing in ETFs is to reap the dividends to one day be comfortable to retire, then why invest in IWDA?

Tried wrapping my head around it but it seems like buying a stock and hoping it turns good when you sell?
 

raidorz

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No, not according to the rules IB publishes. If you experience anything different than IB's own published rules -- and nobody in this forum age 25 has reported such a discrepancy, but if -- then you're certainly welcome to raise a complaint with customer service and get the US$7/month overage refunded and corrected until your 26th birthday.

IB isn't the only company to offer special terms until one's 26th birthday. That's also an important demarcation age for health insurance purposes in the United States. So IB's choice here is not really accidental or arbitrary.

Hmm. I've confirmed with customer service over their messenger though, that they only cover till you're 25.
 

JuniorLion

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Hi guys.

Just need some guidance here.

I understand IWDA reinvests your dividends.

So if the point of investing in ETFs is to reap the dividends to one day be comfortable to retire, then why invest in IWDA?

Tried wrapping my head around it but it seems like buying a stock and hoping it turns good when you sell?

The point is to de-accumulate when you're retiring, i.e. sell away your shares gradually.
 

dullthings

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Hi ST, thanks for the book. Just bought a copy of the 2019 edition.... and it is really simple to read and also insightful.

May I ask if you have an opinion about local Roboadvisors (AutoWealth and Stashaway) and their portfolio and fees? And would you have any opinion on platforms such as FSMOne?

I can’t seem to find much discussions on local Roboadvisors in this thread... thanks!
 

Shiny Things

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Understand that if investment % > home loan % should use for investment.

Well the first thing I’d say here is that “investment %” is sort of unknowable, but carry on.

However thailand home loan rate is around 5-7% from 3rd year onwards.

i should be paying more during the first 3years, than the monthly amount so i will paying the principal if there's no penalty.

Another option will be refinancing after the 3rd year, however i will be back to square 1. where most of the money is to pay for interest?

That’s... not a question.

For the below funds if company is doing a contribution of 3% monthly and have a fix period if break policy how much % of company contribution gf able to get back & unable to sell partial shares.
Example 2.5years - 25% of company contribution

Worth it to be having risk in overseas exposure as paying the front load fee (1.5%) & THB / USD currency risk.

I’m sorry, this is very confusing. What’s your question?

I understand IWDA reinvests your dividends.

So if the point of investing in ETFs is to reap the dividends to one day be comfortable to retire,

That’s where you’ve gone wrong; you’re forgetting about capital gains. You can make money equally well by pocketing (and diligently reinvesting) the dividends, or by selling shares that have gone up in price. IWDA basically turns dividends into capital gains for you.

For high-yield bond etfs...anyone has recommendations?

Yeah, I recommend you don’t bother.

High-yield spreads (in the USD HY corporate space, at least) are too tight at the moment to compensate for the risk of owning the bonds. The situation’s not as bad as it was before Q4 2018, when spreads ripped wider and there were points where it was actually worth buying the things, but it’s not particularly great form a risk-reward perspective.

I don’t look at Asian HY corporates (because that’s full of Chinese property developers at the moment and those names are all circling the plug hole), or Asian local-currency sovereign bonds (if you like currency risk...!).

And anyway, a reasonable allocation to HY bonds in the average portfolio is well under 5%. If your portfolio’s less than six figures it won’t be worth the transaction fees.

Hi ST, thanks for the book. Just bought a copy of the 2019 edition.... and it is really simple to read and also insightful.

May I ask if you have an opinion about local Roboadvisors (AutoWealth and Stashaway) and their portfolio and fees? And would you have any opinion on platforms such as FSMOne?

Thanks for the kind words!

And the current state of play in Singaporean robo-advisors is... “could do better”. I’d love if there was a robo-advisor that charged reasonable fees (0.5% pa or less would be great), used sensible ETFs instead of insisting on US listings)... my offer to consult for any entrepreneur (or bank, for that matter... c’mon DBSV, OCBC Sec, UOBKH, MBKE, POEMS!) who wants to launch this is still open.

Hi everyone. Quick qns since IWDA reinvests dividends there is no 15% withholding tax to speak of right ?

Yes, there is; the fund pays the tax. Honestly, guys, if it were that easy to dodge DWT, wouldn’t you think every fund would reinvest its dividends?

Thanks, that is interesting! So instead of doing a spot fx conversion, a future is better, because you earn extra yield on the cash margin, I didnt know this.

Um, sort of, but the market is a step ahead of you there.

If you do a spot FX trade, you’ll earn interest on the resulting cash balance in the currency that you buy. If you do an FX futures trade, you’ll earn interest on the cash balance in the original currency, but you’ll also pay offsetting “interest”, in the form of the premium or discount between the futures price and the spot price, as if you had just done a spot trade anyway.

So really it doesn’t matter too much either way. (In fact, they should be economically identical, otherwise people would arb between the spot and the futures until they were economically identical (give or take the cross-currency basis (aren’t nested parentheses great?)).)

Shiny
Not dipping your toes on crypto derivatives?
https://www.sk3w.co

If I wasn’t working in a crypto-adjacent company already, I would be all over this. New markets development and market structure is extremely my jam (you’ve probably guessed if you read my ramblings about crypto interest-rate market formation).
 

Maeda_Toshiie

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And the current state of play in Singaporean robo-advisors is... “could do better”. I’d love if there was a robo-advisor that charged reasonable fees (0.5% pa or less would be great), used sensible ETFs instead of insisting on US listings)... my offer to consult for any entrepreneur (or bank, for that matter... c’mon DBSV, OCBC Sec, UOBKH, MBKE, POEMS!) who wants to launch this is still open.

There is no incentive for the local finance industry to offer low cost services. There is no demand from local customers (because they either know nothing or think that they are the next Warren Buffett) and everyone wants fat fees. The number of European cars driven by local insurance salesmen and bankers is indicative of it all. Hell, even amateurs are offering classes to teach people how to invest. There is much money to be made in Singapore by offering the "wrong" kind of financial services.
 
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Soya_Bean

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@Shiny Things

How do i read the updates for your book on changes in year 2019?

Bought the book via Amazon back in 2016.
 

BBCWatcher

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Hmm. I've confirmed with customer service over their messenger though, that they only cover till you're 25.
Yes, and the random customer service person you reached happens to be wrong. It happens occasionally. So just proceed according to IB's published information -- you didn't actually have to call -- and if you're charged US$7 extra before your 26th birthday, then contact customer service for a refund. (You won't be, but if....)

This isn't complicated.
 

raidorz

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Yes, and the random customer service person you reached happens to be wrong. It happens occasionally. So just proceed according to IB's published information -- you didn't actually have to call -- and if you're charged US$7 extra before your 26th birthday, then contact customer service for a refund. (You won't be, but if....)

This isn't complicated.

Ok noted on that. Thanks! :)
 
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If I wasn’t working in a crypto-adjacent company already, I would be all over this. New markets development and market structure is extremely my jam (you’ve probably guessed if you read my ramblings about crypto interest-rate market formation).

On your crypto interest rate article,
I think you don't need to keep 2 separate accounts to do that thou I think, some of the crypto exchanges have perp futures(with funding rates and trades close to spot index) and normal expiry futures.
 
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