Hi guys,
Wondering about opinions about investing in SRS - I understand the justification for, and largely agree with the view that topping up CPF SA (or actually MA first?) is superior to topping up SRS and buying something like the STI ETF there, but for purposes of creating a balanced STI-world (e.g. IWDA) portfolio (currently in my mid-late 20s), is the latter option better, and if not, might it be better to neglect the STI ETF entirely?
I'll defer to BBCW on the CPF vs SRS structuring, but at your income level I tend to think the income tax savings aren't really big enough to make it worth the effort of pumping cash into an SRS account. Once you crack the $100k mark, though, it does become worth it, because the marginal tax rates start to tick up a bit.
Hi all, qn on choice of broker.
Some background - young adult, already have 25k exposure in sg stocks, 10k in ssb/abf. Now looking to put 25k in overseas stocks (DCA method, 5k each transaction if i use scb fees)
1) I plan to make dollar-cost-average buys on
iShares Core MSCI World UCITS ETF (IWDA)
iShares Core MSCI Emerging Markets IMI USD (EIMI)
What would be the recommended broker for me?
2a) Any insurance for our shares/equities we purchased through these platforms? Like sdic for sg bank accounts.
2b) Also, is this a valid question? If those brokers dissolve, what will happen to our shares if there's no insurance.
Tia..
We were all newbies once, don't worry! Anyway: short answer for you, like everyone else sub about $100k, is Stanchart.
You probably don't need an allocation to EIMI, though. An "average" allocation would be a very very small amount - like a couple thousand dollars worth, tops - and you'd end up paying transaction fees for an amount that, even if emerging markets completely blow the roof off, won't make an appreciable difference to your net worth. I'd just stick to IWDA for now and save some brokerage fees.
2 and 2a) Stanchart keeps its customers' stocks in a ring-fenced subsidiary company that Stanchart can't touch. So even if an asteroid dropped on top of the Stanchart headquarters, your stocks would still be there.
US brokers (like Interactive Brokers) have an explicit insurance scheme, but even at Singaporean brokers, if you just leave your stocks in an account, it's as safe as cash in the bank.
Thank you for your help! May i noe the reason of choosing IS?
I thought ES3 is better than G3B?
Another issue is IS does not reinvest dividends, unlike sharebuilder - not sure if this is a big problem
1) They're basically the same.
2) Meh. I like reinvesting dividends automatically, but it's not the end of the world if you can't.
Hi all, would like to gather some thoughts about Vanguard Total China Index ETF as an addition to the international exposure part apart from IWDA.
Don't bother.
Overweighting one country means that you're making an explicit bet that that country will outperform the rest of the world—otherwise you'd just leave your money in the whole-of-the-world default allocation.
How do you know that the Chinese stock market will outperform the rest of the world's stock markets? And more importantly: what do you think you know that every other investor in the world doesn't already know?
