Advice Needed: ILP or Regular Saving Plan

[lzr1984]

Also interest to start saving by invest...

opening a account but for the CAR test, everything is no to me.. how to open sia???

 

[lzr1984]

help to bump up mopiko_boy questions as I also interested to know...

newbie here too also wish to follow this plan~~

 

[Shiny Things]

1) You mentioned transferring $300-$350 across monthly to buy the ETF. So does that mean I need to have an existing savings/current acct with stanchart first in order to perform online trading? (I currently only have a online banking acct with them because of my manhattan credit card, no savings acct)

I don't think so. It probably doesn't hurt, but I don't think you need one.

2) Can we apply to open a stanchart trading account via online or need to go physically to stanchart branch?

Dunno.

3) Do we need a CDP account too? Is the stanchart trading account equivalent to a CDP account?

Yes it is, and no you don't.

4) I understand that ETF investors have to pass a CAR test. Is this tested at the point of open a trading account? Or prior to that? If fail the test, gotta wait how long to take a retest?

Nope. The two STI ETFs and the ABF bond fund have both been reclassified as EIPs, so you don't need to pass the test to buy them.

5) You mentioned 7% a year growth. Is that the norm for Nikko STI ETFs?

No. The thing is that stocks are volatile - they can go down as well as up. Your average is 5-7% per year, but the range can be anywhere from -40% to +30% or so.

6) What is the possibility of a ETF getting delisted from SGX? What happens then? Do we lose all the capital we have put in?

The probability is minimal - it'd be the equivalent of a mutual fund being closed, and when that happens you get your money back at whatever the closing price is. Nothing to worry about.

 

[winner7]

yes well said!

buy term for insurance and investing yourself ~

It depends. Do you know that ILP whole life exist? Covers you till 99?

Normal term plan covers you till 65,75 and so on.

The next thing is whether the person is an investor. Do you have time to monitor your investment?

And lastly, Had you consider what would happen to your money, if touch wood anything happens to you while you are investing.

Every product have its pros and cons and thus choose the one that suits you best.

My opinion is that buy term invest the rest works for some. but not to all.
I would rather say,buy protection. Invest the rest.

 

[Delsamor]

I noticed that for OCBC's Blue Chip Investment Plan (BCIP), the fee is 0.30% + $5 transaction fee. In this case, should I apply for this or there are other cheaper alternatives?

 

[bigmice]

I noticed that for OCBC's Blue Chip Investment Plan (BCIP), the fee is 0.30% + $5 transaction fee. In this case, should I apply for this or there are other cheaper alternatives?

you can compare with POSB similar plan.

 

[makav31i]

I noticed that for OCBC's Blue Chip Investment Plan (BCIP), the fee is 0.30% + $5 transaction fee. In this case, should I apply for this or there are other cheaper alternatives?

It is supposed to be the higher of 0.3% or minimum $5...if you were to invest $100 monthly the fee is $5 as it is higher than 0.3% or $0.30..

However, OCBC is currently waiving the minimum $5 fee and instead will only charge 0.3% till June 2014...So for now till June 2014, if you invest $100, the fee is $0.30...So the monthly investment less the fee is $99.70...

 

[chopra]

Normal term plan covers you till 65,75 and so on.

The next thing is whether the person is an investor. Do you have time to monitor your investment?

And lastly, Had you consider what would happen to your money, if touch wood anything happens to you while you are investing.

Every product have its pros and cons and thus choose the one that suits you best.

.

there are term with more than 75. enough said.

you think park money with insurance agent don't need monitor? no free lunch bro. be ready to get sucked by the hefty cost.

 

[blurblur123]

there are term with more than 75. enough said.

you think park money with insurance agent don't need monitor? no free lunch bro. be ready to get sucked by the hefty cost.

other than pruterm vantage, is there other terms that can cover more than 75?

 

[Aerial86]

other than pruterm vantage, is there other terms that can cover more than 75?

Tokio Marine's Enhanced Term Assurance.. Option to go up till age 99..

 

[naro]

My opinion is that buy term invest the rest works for some. but not to all.
I would rather say,buy protection. Invest the rest.

i agree with this! And buy protection early when you're still young and healthy and when premiums are lower.

 

[inging]

aviva - there's a promotion now 25% off premium valid for 1 million and above
tm
axa and ntuc - i know they cover up to age 70. not sure what age you are looking at

 

[Delsamor]

you can compare with POSB similar plan.

It is supposed to be the higher of 0.3% or minimum $5...if you were to invest $100 monthly the fee is $5 as it is higher than 0.3% or $0.30..

However, OCBC is currently waiving the minimum $5 fee and instead will only charge 0.3% till June 2014...So for now till June 2014, if you invest $100, the fee is $0.30...So the monthly investment less the fee is $99.70...

Thank you both very much for the inputs. Most probably i will apply for OCBC's

 

[mopiko_boy]

For STI ETF,

1) Is Standard Chartered's custodian account considered safe as compared to other banks which links to your own CDP account? The main drawback is when stanchart uplorry, which is very very low possibility right?

2) Let's say if I have capital to buy 1 lot SPDR, is it more recommended to buy -
a) 1 lot (1000 shares) of SPDR STI ETF every 5 months (that's abt $600+ monthly), or
b) 2 lots (200 shares) of Nikko AM STI ETF very month (that's also abt $600+ monthly)
I read that SPDR is better than Nikko if you have the capital to buy 1 lot at a go. But does dollar cost averaging work for SPDR in this case where the shares are bought only once every 5 mths as compared to the monthly Nikko?

 

[Shiny Things]

For STI ETF,

1) Is Standard Chartered's custodian account considered safe as compared to other banks which links to your own CDP account? The main drawback is when stanchart uplorry, which is very very low possibility right?

Stanchart is not going to uplorry, whatever that is but it sounds painful. Here's the thing, though: even if they do, you've still got the shares! Stanchart is only holding the shares for you - you're still the actual owner of the shares.

The idea of someone else having custody of your shares freaks a lot of people out in Singapore, but that's the way it's done in every other country in the world. CDP (and their - let's be honest here - awful and archaic systems, why should it take me a week to open a frickin' custody account? And why the hell did I have to fill in a paper form to change my email address? Is that still a thing? Tell me it's not still a thing) is an aberration.

The thing is, you're still the owner of the shares; SCB's just holding them for you. And if SCB blows up, you're still the owner of the shares, and they'll end up getting transferred to you.

2) Let's say if I have capital to buy 1 lot SPDR, is it more recommended to buy -
a) 1 lot (1000 shares) of SPDR STI ETF every 5 months (that's abt $600+ monthly), or
b) 2 lots (200 shares) of Nikko AM STI ETF very month (that's also abt $600+ monthly)

Buy two lots a month of the Nikko ETF. That way you'll get the satisfaction of doing something every month, and you'll also be deploying your cash faster.

 

[lzr1984]

The two STI ETFs and the ABF bond fund have both been reclassified as EIPs[/URL], so you don't need to pass the test to buy them.



.

Went to SC, that guy attend to me said tick all no for the CAR, they don't allow me to open trading account...


Still need to invest 6 times... wah lau no money to buy those 1 lot, how to start out trading...
100 share dun allow me buy... ask me go buy 1000 share to meet the requirement... haiz..
any idea those open the account pass the CAR?

 

[xonix]

Which is the recommended bank for lowest fees currently ?
I won't be investing more than 300 per mth.

 

[Keverus]

I noticed that for OCBC's Blue Chip Investment Plan (BCIP), the fee is 0.30% + $5 transaction fee. In this case, should I apply for this or there are other cheaper alternatives?

depends on how much u putting in mthly.

if less than $500, posb cheaper

 

[S1rius]

Bookmarked this.

 

[blurblur123]

Which is the recommended bank for lowest fees currently ?
I won't be investing more than 300 per mth.

go for SCB