*Official* Shiny Things club - Part 2

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theokcoral

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Hello all (cross-posted), looks like Singaporeans can't buy TCEHY (cuz OTC). Am I right that Singaporeans can only buy Tencent from the HKEX?
 

salmonella

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Standard chartered 0.2% commission, FSMOne 0.08% commission. Both $10 minimum commission, so no difference until you make big enough purchases.

It would depend on how much you are planning to put in every month, and whether you have priority banking with any banks. Minimum commission is likely going to affect you before the commission %. FSMOne's $10 and 0.08% is likely to be the one to look at. For small amounts, perhaps POSB Invest Saver if it becomes available there.

Guys, do note:

https://secure.fundsupermart.com/fsm/new-to-fsm/pricing-structure said:
A transactional charge of 0.04% as well as the relevant SGX Clearing and Trading fees, including GST are applicable for ETF transactions.

I'd call it an effective 0.12%.
 

5408854088

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“The Reverse Cap Weighted U.S. Large Cap ETF (Ticker: RVRS) provides exposure to the companies in the S&P 500 index. However, while traditional market cap weighted indexes such as the S&P 500 weight companies inside the index by their relative market capitalization, RVRS does the opposite, weighting companies by the inverse of their relative market cap. By investing smallest-to-biggest, the fund is tilting investment exposure to the smaller end of the market cap spectrum within the large cap space.

• Reverse cap weighting tilts large cap exposure to the smaller end of the size spectrum. Studies have shown that while more volatile, smaller stocks can have outsized returns.

• Reverse cap weighting provides a less concentrated distribution of stock weightings, increasing overall diversification.

• Reverse cap weighting results in a weighted average market cap that is both significantly lower than market cap weighted large cap funds, and significantly higher than mid cap funds. Portfolios that allocate to market cap weighted versions of large, mid and small cap now have a tool to gain exposure to a sizeable gap in their holdings.”

https://www.drwealth.com/how-to-beat-sp500/

Any thoughts on this?
 

BBCWatcher

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Any thoughts on this?
It’s a microscopic fund with extremely limited trading volume. For that reason alone I would avoid it. But it’s also tax inappropriate for non-U.S. persons.

There’s another tax inappropriate fund, symbol RSP, that has a lower expense ratio and higher trading volume. That one tracks the S&P500 stocks using an equal weighting methology.
 
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peipei1

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How about schf as arbitrage, schwab world etf ex. US? It has heavier weightings in Japan and UK, predicting a Japanese and Brexit recovery and US to run out of steam in the few years. TER only 0.06%! I feel BlackRock IWDA and EIMI could do with lowered TER
 

orochris

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i currently have a scb account with usd settlement account for iwda. do i need to open a local settlement account if i want to buy local stocks like mph?
 

peipei1

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Is scb online equites only offered in Singapore? I can't find it in other countries. The small size is another worry!
 

BBCWatcher

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How about schf as arbitrage, schwab world etf ex. US?
It’s tax inappropriate for non-U.S. persons who are residents of Singapore. And, while still tax inappropriate, Fidelity’s new FZILX beats it, as long as a mutual fund is acceptable. (Mutual funds are priced daily and not exchange traded.) FZILX and its U.S. stock cousin FZROX are the very first “zero everything” funds: zero management fee. Not 0.06%, but literally 0.00%. The minimum to open a position is US$1, and the minimum increment is US$1. There’s no sales charge, no commission, no platform fee, no custodial fee...NOTHING.

Competition in the U.S. is that intense.
 

revhappy

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Just to tell you how I do it:
1) I invest part of my money in freehold properties (an instrument that is best hedge against money printing and inflation) and collect rental incomes. These are best assets to pass down to children and grand-children and great-grand-children (forever - won't just bust and gone suddenly!)... :s13:

2) I invest the rest of my liquid assets into:
(a) Stocks - Make up of >75% of liquid assets (again as a hedge against inflation).
(b) Cash and Bonds - the rest 25% (and no, I am not 25 years old or 1 years old (if include properties)!). Bonds cannot hedge against inflation and hence when the economic environment is inflationary (like now), these are lousy instruments to have, but they provide some stable income streams to tie over difficult periods during recessions, so I do own it but keep it to a minimum. Cash are just emergency money and that is all.

3) There is just no need to follow the so-called stocks-bonds ratio, as long as your liquid assets are large enough and you have more than enough money to tie over stock recessions.


There are certain things that you should avoid though, like:

A) whole life insurance - These are just too expensive very low yield instruments and sucks up your money that many people feel so much poorer (because you have no control over, got locked up for long time), regardless of how wealthy you are.

B) Life annuities - If you have enough money, you can certainly create perpetual income streams with stock dividends and bond coupons without these kind of expensive instruments that just sucks your money and make you feel poor (as your money got tied up and you lost control of your money).
Do you think you can out-beat all those actuaries working for insurance companies (whom someone here said are the smartest people in the world?!) to get better returns from life annuities than what they already calculated (which is maximum profits for the insurance companies)? =:p
If you have so much money that you can invest "part" of it in freehold propertie"s", then you are all set already. Probably a multimillionaire. You are way above the mere mortals of this forum. You shouldnt be trying to convince anything to anyone here. You should be sipping cocktail in Bahamas instead, why are you not?

If anything, please tell us how you made those multi millions, instead of telling us how to invest, we will figure out the later :)
 

salmonella

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It’s tax inappropriate for non-U.S. persons who are residents of Singapore. And, while still tax inappropriate, Fidelity’s new FZILX beats it, as long as a mutual fund is acceptable. (Mutual funds are priced daily and not exchange traded.) FZILX and its U.S. stock cousin FZROX are the very first “zero everything” funds: zero management fee. Not 0.06%, but literally 0.00%. The minimum to open a position is US$1, and the minimum increment is US$1. There’s no sales charge, no commission, no platform fee, no custodial fee...NOTHING.

Competition in the U.S. is that intense.

Is it correct that "tax inappropriate" means capital gains tax, estate tax and withholding tax:
- assumption, dividends similar to SCHF's 2.46%
- 30% withholding for SG residents (because US domiciled, so all of the distributions are hit, rather than some fraction due to 1st level dividend withholding between the source country and the US?)
- equals 0.738% annual drag in withholding?

Or compared to a hypothetical similar Irish fund, 0.369% more drag from withholding
 

BBCWatcher

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Is it correct that "tax inappropriate" means capital gains tax, estate tax and withholding tax....
U.S. dividend tax of 30% (on top of any non-U.S. tax paid within the fund) and U.S. estate tax. U.S. capital gains tax does not apply to non-U.S. persons.

For a hypothetical, comparably constructed, Irish-domiciled fund holding non-U.S. stocks, both tax rates would be zero, although the fund would still pay any non-U.S. taxes.
 
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Listopad

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Maybe. Earlier-than-traditional retirement is tricky in some ways. There are really only two ways to assure a bequest:

1. Establish an assured, escalating, joint/survivor life annuity that supports at least your desired minimum acceptable lifestyle, then enjoy (i.e. give, while you’re still alive!) the rest to your children and grandchildren (and/or other loved ones). This approach is vastly preferable, in my view. Earlier gifts, with joint enjoyment, are much, much better than having everyone wait around until you’re dead to celebrate with a shower of cash (maybe). As it happens, those children and grandchildren have longer time horizons than you do, so perhaps you gift them in-kind shares.

2. Establish a whole life insurance policy that pays a guaranteed bequest to heirs, above the payout that goes to a surviving spouse/partner. This is the “traditional” approach, but I prefer and recommend option #1.

If you cannot afford #1, then most probably you cannot afford to retire yet.
I am not with you on the insurance part, low returns , locked in for exchange of just added ‘assurance’ ...,
 

Calpha K

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Hi guys, when buying ETFs/stocks, how can you know if it charges that 30% Withholding tax? Does the stock explicitly states that there it will charge 30%, because I dont see it anywhere?

Or do we have to just assume, as long as it pays dividends and is not domiciled in Ireland, or Singapore, we will get charged?
 

revhappy

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Hi guys, when buying ETFs/stocks, how can you know if it charges that 30% Withholding tax? Does the stock explicitly states that there it will charge 30%, because I dont see it anywhere?

Or do we have to just assume, as long as it pays dividends and is not domiciled in Ireland, or Singapore, we will get charged?
Stock doesn't charge the 30% dividend distribution tax. It is the broker who is supposed to withhold the tax, before paying out the dividend. This is US DWT, btw. Irish and Singapore are different, there is no DWT.

Sent from Xiaomi REDMI NOTE 4 using GAGT
 

BBCWatcher

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I am not with you on the insurance part, low returns , locked in for exchange of just added ‘assurance’ ...,
If you want to assure a bequest — or, better yet, gifts now — then some form of insurance is the only way. How much is that assurance worth? And it’s not assurance in quotation marks. Below SDIC limits, at least, it’s assurance, no quotation marks.

The best way, by far, to assure that your loved ones receive substantial wealth from you is to give substantial wealth to them now. The earlier they can enjoy (and invest, if they wish) that wealth, the better. So what’s stopping you? Why make them wait even 5 minutes longer than they have to? What’s holding you back?
 

Listopad

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If you want to assure a bequest — or, better yet, gifts now — then some form of insurance is the only way. How much is that assurance worth? And it’s not assurance in quotation marks. Below SDIC limits, at least, it’s assurance, no quotation marks.

The best way, by far, to assure that your loved ones receive substantial wealth from you is to give substantial wealth to them now. The earlier they can enjoy (and invest, if they wish) that wealth, the better. So what’s stopping you? Why make them wait even 5 minutes longer than they have to? What’s holding you back?
Which escalating life annuity plans would you recommend?
 

BBCWatcher

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Which escalating life annuity plans would you recommend?
In Singapore, CPF LIFE is top of the heap, but after that sometimes, for tax reasons, it’s wise to use SRS funds to buy a single premium life annuity from NTUC or Manulife (the two carriers that sell fully SRS qualified life annuities).

Outside Singapore, I’ve seen some cases (usually with high net worth individuals/couples) where a “charitable remainder trust” makes sense. The idea is that you donate some portion of your wealth to a tax qualified charity, and the charity structures that wealth to provide you (and often a joint survivor, such as your spouse) with an assured income for life, escalating if you wish. You then give most of the rest of your wealth to your children, grandchildren, and/or other heirs. And everybody wins, including the charity.
 

viventa

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The 0.82% sales charge for the RSP is a promo rate which has been ongoing but it seems like it has already ended. It was originally introduced in tandem with the RSP paylah cash back promo.

It should have been 0.82% since last year...I just login to DBS online and try to change the amount and the rate is now 1%....

It looks like 0.82% disappeared, in which case Maybank-KE’s Monthly Investment Plan does look rather better because ES3 is avaliable there.

I just received the confirmation letter from DBS on my investment in G3B dated 15 August 2018. The gross sales charge is, indeed, still 0.82%. It looks like Makav31i was correct; the 1% rate is inaccurate/outdated.

Further, given the whole host of extra costs that come with Maybank-KE MIP, it seems that POSB Invest-Saver may be the better option after all...
 

Maeda_Toshiie

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In Singapore, CPF LIFE is top of the heap, but after that sometimes, for tax reasons, it’s wise to use SRS funds to buy a single premium life annuity from NTUC or Manulife (the two carriers that sell fully SRS qualified life annuities).

Outside Singapore, I’ve seen some cases (usually with high net worth individuals/couples) where a “charitable remainder trust” makes sense. The idea is that you donate some portion of your wealth to a tax qualified charity, and the charity structures that wealth to provide you (and often a joint survivor, such as your spouse) with an assured income for life, escalating if you wish. You then give most of the rest of your wealth to your children, grandchildren, and/or other heirs. And everybody wins, including the charity.

Before death to skip out on estate duties.
 
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