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BBCWatcher

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So monthly 400 for g3b, 200 for a35 and save 400 monthly for iwda to do lump sum
Sure, that’ll work. At $400/month for IWDA you’d probably batch up and buy $1,600 worth, three times per year. That’d imply Standard Chartered as your broker.
 

flowerpalms

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Yes i am concerned of the following 2 points:

1. Since i am using posb rsp, i cant really adjust the monthly investment to top up the short fall. The rsp is recurring so it will be hard. Can only do rebalancing like 1-2 times a year.

2. For rebalancing, do i follow shinys book to buy and sell according to the target percentage follow shinys book or only top up - which means not selling anything and will have to invest more instead to bring the target to 40 40 20?

How can i better approach this

So what’s wrong with my suggestion then? Are you concerned about rebalancing? No problem: use bonuses, windfalls, and distributed dividends/coupons to rebalance. But be reasonable about it. Once a year is fine.
 

justwakeup

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Yes i am concerned of the following 2 points:

1. Since i am using posb rsp, i cant really adjust the monthly investment to top up the short fall. The rsp is recurring so it will be hard. Can only do rebalancing like 1-2 times a year.

2. For rebalancing, do i follow shinys book to buy and sell according to the target percentage follow shinys book or only top up - which means not selling anything and will have to invest more instead to bring the target to 40 40 20?

How can i better approach this

I thought you can just cancel the rsp and just setup a new one according to the amount you like
 

flowerpalms

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You can cancel but you want to do it regularly?

Keep on cancel and buy doesnt seem to be efficient because i am not doing rebalancing yet. It will only mess up the target percentages

Waiting for BBC's advice how to see this through moving forward

I thought you can just cancel the rsp and just setup a new one according to the amount you like
 
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justwakeup

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You can cancel but you want to do it regularly?

Keep on cancel and buy doesnt seem to be efficient because i am not doing rebalancing yet. It will only mess up the target percentages

Waiting for BBC's advice how to see this through moving forward

Don’t really understand what do you mean by messing up the target percentages. And i don’t see why you can’t do it regularly if you are so fixated on the percentages, afterall it is just as regular as once per month :s22:
 

BBCWatcher

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How can i better approach this
Again, just use bonuses, windfalls, and dividend distributions (G3B and A35 are distributing) as the first sources for rebalancing. Yes, that may mean you temporarily adjust POSB Invest Saver percentages, but you can do that. Once per year, “close enough,” is absolutely fine.
 

flowerpalms

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When do you think is a good start for my IWDA of $1600?

Next month or Jan 2020? My first POSB deductions start in Sept though

Again, just use bonuses, windfalls, and dividend distributions (G3B and A35 are distributing) as the first sources for rebalancing. Yes, that may mean you temporarily adjust POSB Invest Saver percentages, but you can do that. Once per year, “close enough,” is absolutely fine.
 

flowerpalms

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I can afford, but am i in the right direction if i can invest 4 months lump sum for iwda now? The starting allocation is not correct as it wont be 40 40 20 already

Going by 400 g3b 200 a35 1600 iwda the percentage for iwda will be 75%!! That is why i am concerned if i should lump sum iwda now or wait 4 months in December. Since for scb to save the fees i cant do it monthly?


As soon as you're able to afford it. If that's now, great.
 
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BBCWatcher

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I can afford, but am i in the right direction if i can invest 4 months lump sum for iwda now? The starting allocation is not correct as it wont be 40 40 20 already
Yes, and if you wait 4 months you also won't have your desired target portfolio allocations, because your global stocks percentage will be 0% for the next 4 months.

You're suffering from paralysis by analysis right now. Look, you're not going to retire on S$1,600 of total wealth decades from now. It's absolutely not a problem to be either (or both) slightly or temporarily outside your target portfolio allocation. Get going now, then, a year from now, rebalance, and don't bend yourself into a pretzel to do it. If your portfolio is 2.2 percentage points "too bond heavy" on a random Tuesday, it's really not a problem. "Gentle nudges" to steer the percentages back toward your target, once or twice a year, is more than sufficient.
 

flowerpalms

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Noted. I would also like to update you that i have signed for the GE supremehealth B plus and Classic B plan + the Pay assure (DII) plan. Agent tried to push for Accident plan, life plan, critical illness plan which i politely refused.

I have already submitted my termination of mylifechoice with Aviva and waiting for them to send me the surrender value. Then now i wait for my GE plans to be enforced. Pro rated payment of aviva myshield plan 2 + rider will also be refunded to me.

For the DII, i signed for my pay is $400/year and max 180 years.
So after enforce for GE i will be paying $400 for DII and $35 for classic B total 435/year

Yes, and if you wait 4 months you also won't have your desired target portfolio allocations, because your global stocks percentage will be 0% for the next 4 months.

You're suffering from paralysis by analysis right now. Look, you're not going to retire on S$1,600 of total wealth decades from now. It's absolutely not a problem to be either (or both) slightly or temporarily outside your target portfolio allocation. Get going now, then, a year from now, rebalance, and don't bend yourself into a pretzel to do it. If your portfolio is 2.2 percentage points "too bond heavy" on a random Tuesday, it's really not a problem. "Gentle nudges" to steer the percentages back toward your target, once or twice a year, is more than sufficient.
 
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ChinoGirl

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Hi BBCWatcher,

Should the purchase of IWDA, MBH and G3B be timed around the ex dividend date? Wondering if that would make a significant difference in the price for eg cheaper unit price after dividend has been dished out? 🤔
 

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Should the purchase of IWDA, MBH and G3B be timed around the ex dividend date? Wondering if that would make a significant difference in the price for eg cheaper unit price after dividend has been dished out? 🤔
No. Just buy according to your program schedule, and don't worry about trying to time the ex-dividend dates. If given a choice, just pick some random number from 1 to about 25 and buy on that day of the month.
 

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Bloomberg reports that the U.S. Treasury is thinking again about issuing 50 and/or 100 year bonds. The idea last seriously surfaced in 2009, amidst the Global Financial Crisis, but was shelved. However, as the yield on the 30 year U.S. Treasury bond has fallen well below 2.0%, the idea is back on the table as a way for the U.S. federal government to lock in a comparatively low cost of financing and to provide some additional, slightly higher yielding debt instruments to pension funds and others.
 

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Sometimes I really worry

Should we panic plough into real assets? Looks like paper money is being cheapened

Bloomberg reports that the U.S. Treasury is thinking again about issuing 50 and/or 100 year bonds. The idea last seriously surfaced in 2009, amidst the Global Financial Crisis, but was shelved. However, as the yield on the 30 year U.S. Treasury bond has fallen well below 2.0%, the idea is back on the table as a way for the U.S. federal government to lock in a comparatively low cost of financing and to provide some additional, slightly higher yielding debt instruments to pension funds and others.
 

BBCWatcher

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Sometimes I really worry
Should we panic plough into real assets? Looks like paper money is being cheapened
What's the logic here? How would the possible introduction of half century and/or century U.S. Treasuries cheapen paper money? It seems like rather the opposite.
 

MrHighlander

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Isn’t it part of this falling US interest rates talk that we are seeing recently. If interest rates continue to be so low(which is itself a QE), wouldn’t the value of money go down ?

What's the logic here? How would the possible introduction of half century and/or century U.S. Treasuries cheapen paper money? It seems like rather the opposite.
 

BBCWatcher

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Isn’t it part of this falling US interest rates talk that we are seeing recently. If interest rates continue to be so low(which is itself a QE), wouldn’t the value of money go down ?
:s11:

U.S. dollars are extremely useful because they can be exchanged for real goods and services at any time in practically any place. Low interest rates are highly correlated with low inflation, which means the purchasing power of U.S. dollars remains potent for longer.

I think you’ve got this all backwards.
 

logic5000

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Hi there, good Friday morning!

Does anyone know if you have maxed out your MA to the prevailing BHS amount, does your interest earned, which will be in excess of the prevailing BHS amount (before the revised BHS amount applies on 1 Jan the following year):

1) Flow into your SA?
2) Or stays in the MA?

Thanks in advance - reason for asking is that I am 4 years away from hitting BHS, after factoring a more aggressive 5% p.a. inflation of the current $57,200 BHS and not taking into account any inflows as a result of variable bonuses (hence probability of reaching BHS is earlier rather than later). I am also already at the annual CPF limit, am currently ~31.
 

tangent314

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Assuming you are below 55, excess MA flows into SA if your SA is below FRS, otherwise it flows into OA.
 
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