*Official* Shiny Things club - Part 2

[revhappy]

QL2/QL3 is unsuitable for you IMO. I would only recommend it for someone retiring in Singapore and have already maxed CPF Life at ERS and have spare cash on top of that that they want to take a higher risk + higher distribution yield than the safer SGD bond fund like MBH.





ST likes 50:50 split between SG:World, BBCW likes 20:80. It's up to you really. The important thing is with $700k to invest, you can easily meet the US$100k threshold for IBKR to avoid minimum monthly commissions.


EIMI should be about 10% of IWDA if you want to follow their market capitalization ratio.





I would definitely consider CPF and savings (that yield ~2% or more) as part of bonds. Yes this will likely inflate your bonds, but you shouldn't worry too much about it, since CPF yields are really good considering their risk profile. It pretty much means you don't really need to buy any bonds outside of CPF, simplifying things. Just worry about IWDA/EIMI and ES3 with your cash.



Rebalancing is not crucial, but if you really want to do that then you will probably have to CPFIS, yes.

At 700k, I think I would split my money between 2 brokers. Just to make sure all my eggs are not in the same basket. Maybe SCB could be a good choice as 2nd broker?

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[revhappy]

One way would be to put all your DCA placements in a spreadsheet and use the XIRR function to calculate.

If it is with one broker, then they should be able to provide a "since inception" performance. IB certainly has.

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[limster]

If it is with one broker, then they should be able to provide a "since inception" performance. IB certainly has.

Does IB calculate each individual counter since inception including dividends? I only know how to generate the time weighted rate of return for the entire portfolio, which includes the spare cash holdings. The spare cash you keep in IBKR could affect the calculation of the returns if you are one of those that like to change a big sum of cash each time and slowly buy....

 

[limster]

Average daily volume is 61.7K and price is HK$8.86. There is USD denominated as well 9169.HK, it's volumes are lower.

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When I look at the fund composition, its 10% tencent, and the top four holdings are tencent, CCB, baidu, alibaba. My preference is to underweight Chinese tech stocks, so I am vested in 3085.HK and 2800.hk

 

[guineapig]

tangent314: Thank you, great points. Seems like I should be focusing on SSB and maxing out CPF. I made a mistake of contributing to SRS previously (instead of topping up CPF up to 7K for tax purposes) first, may use the amount in SRS for A35 instead of ES3. Then I can focus all the remaining cash mainly into shares. I'm currently splitting IWDA:EIMI on 9:1 ratio, but am thinking of 4:1 instead.

revhappy: Thanks for the advice, I've actually filled in a form for SCB priority online but it seems like they don't really bother with getting back to their customers .

 

[limster]

At 700k, I think I would split my money between 2 brokers. Just to make sure all my eggs are not in the same basket. Maybe SCB could be a good choice as 2nd broker?

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Yup, splitting my foreign share purchases between IB, FSMOne and SCB. Even though I have SCB PB, I have become a fan of FSMOne for buying HK shares.

 

[revhappy]

Does IB calculate each individual counter since inception including dividends? I only know how to generate the time weighted rate of return for the entire portfolio, which includes the spare cash holdings. The spare cash you keep in IBKR could affect the calculation of the returns if you are one of those that like to change a big sum of cash each time and slowly buy....

In the portfolio analyst you can click "view by asset class". It will show cash separately. I wish it showed the effects of FX moves, though.

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[LyzeOfKiel]

Hi all, appreciate all the valuable sharings here. I'm 26 this year and am just getting started investing. After reading much of the advice, I intend to start with G3B+A35 (local component) and IWDA+EIMI (foreign component).

For the local component, it seems to make sense to use POSB Invest Saver. However, for the foreign component, I understand that the top two brokerages are SCB and IB, so I did some analysis to compare between them, but need some help to check if my logic is sound.

I intend to invest once every quarter. Annual cost of IB would be USD 120. Annual commission of SCB would be USD 10 X 4 = USD 40 (assume minimum). For SCB to be more expensive than IB, FX cost needs to be > USD 80. Assuming spread of 0.54% one-way, which means 1.08% two-way, USD 80 in FX cost would translate to about USD 7.4k in investment. Which means that so long as I am investing > USD 7.4k annually in foreign exchanges it makes sense to go for IB?

I have excluded brokerages like FSMOne and TD Ameritrade because they do not have access to the LSE to purchase IWDA/EIMI to get around the dividend withholding tax.

However, does it make sense to also consider SAXO Capital Markets? Given that they have this referral bonus of $250 and I can use that to offset their commissions and custodian fee of 0.12% while I build up my portfolio before moving to IB?

Thanks for the help!

Same thinking... I am deciding whether to use Interactive Brokers or Standard Chartered Online Trading...

Whether we use Interactive Brokers or Standard Chartered Online Trading, we are like throwing some monies to the sea

 

[limster]

In the portfolio analyst you can click "view by asset class". It will show cash separately. I wish it showed the effects of FX moves, though.


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thanks. quite complicated... got to figure out the terms uses in this report.

 

[Wishdom]

I'm going to throw in an opinion on fund allocation between sti and vwrd.

As a late 20s investor, I am putting all my monthly contributions into vwrd and none into sti.I don't hold any opinions of any country outperforming another.

The rationale of investing in sti lies only in it being domestically weighted; allowing for a much smoother drawdown during retirement. And that only happens about 40 years later. There is no need to rush into sti at the moment.

Also, the contributions to vwrd will mean that I will attain 100k worth sooner thereby reducing the monthly 10usd commission. The plan is to hit 100k vwrd before I consider investing into sti. Brokerages will be minimised.

This is similar to my take on bonds. Just do away with it until maybe 20 years later. Take on as much risk as you can while you are young. Have some balls of steel.

There will also be no need to consider sc and trouble myself of transferring from sc to ibkr in the future. The larger contribution will make ibkr much more superior. And frankly speaking, anybody going for the long haul will use ibkr eventually. Sc is just a temporary holding account before you build up funds.

I feel like I have a pretty neat idea going on. Feel free to criticise


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[311290]

Hi All,

Just read shiny things ebook.

Hopefully can get some help in starting out, currently 28 this yr. Planning to get marry in 2years.

Trading platform: Standard chart (local), IB (Overseas).

Plan to invest $1k/month.

Currently my portfilo
1. SSB
2. UOB Saver
3. Tokio Marine (3th yr - thinking of breaking bond)

Question:
Is posb saver better for local now due to the promotion?

Saw the advice for other ETF like A35.
Roughly purchase how many different ETF?

Should i sell the ETF etc if i plan to use the funds for marriage? Or keep a seperate saving fund?

Thank you

 

[Maeda_Toshiie]

Hi All,

Just read shiny things ebook.

Hopefully can get some help in starting out, currently 28 this yr. Planning to get marry in 2years.

Trading platform: Standard chart (local), IB (Overseas).

Plan to invest $1k/month.

Currently my portfilo
1. SSB
2. UOB Saver
3. Tokio Marine (3th yr - thinking of breaking bond)

Question:
Is posb saver better for local now due to the promotion?

Saw the advice for other ETF like A35.
Roughly purchase how many different ETF?

Should i sell the ETF etc if i plan to use the funds for marriage? Or keep a seperate saving fund?

Thank you

Stick your marriage funds in a fixed deposit or SSB. Stocks are for retirement decades down the road, not 2 years from now.

 

[havetheveryfun]

I'm going to throw in an opinion on fund allocation between sti and vwrd.

As a late 20s investor, I am putting all my monthly contributions into vwrd and none into sti.I don't hold any opinions of any country outperforming another.

The rationale of investing in sti lies only in it being domestically weighted; allowing for a much smoother drawdown during retirement. And that only happens about 40 years later. There is no need to rush into sti at the moment.

Also, the contributions to vwrd will mean that I will attain 100k worth sooner thereby reducing the monthly 10usd commission. The plan is to hit 100k vwrd before I consider investing into sti. Brokerages will be minimised.

This is similar to my take on bonds. Just do away with it until maybe 20 years later. Take on as much risk as you can while you are young. Have some balls of steel.

There will also be no need to consider sc and trouble myself of transferring from sc to ibkr in the future. The larger contribution will make ibkr much more superior. And frankly speaking, anybody going for the long haul will use ibkr eventually. Sc is just a temporary holding account before you build up funds.

I feel like I have a pretty neat idea going on. Feel free to criticise


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different strokes from different ppl. when your portfolio is doing well, you think that you have balls of steels and no problems holding it for the long term.

It is when the real drawdown comes during a super bear market that will test your balls of steel, and honestly most of us if still under 30s haven't really went through such a period yet.

Having bonds and cash will help you to be able to sleep better during the difficult periods and not touch your portfolio hastily.

 

[311290]

Thanks for the advise.

Was thinking of saving additional for investment, maybe $200/monthly.

Should i put in local or overseas ETF?

As i read about the compound interest.

Thank you

Stick your marriage funds in a fixed deposit or SSB. Stocks are for retirement decades down the road, not 2 years from now.

 

[BBCWatcher]

I don't hold any opinions of any country outperforming another.

I largely agree with this philosophy, although one point I make is that, over a young adult's time horizon for investing, it is reasonable to forecast that certain stock markets will be the ones where the future Amazons choose to raise capital for their global business aspirations -- and other stock markets won't. And you probably don't want to overweight the latter markets during your accumulation phase.

I don't think the SGX is going to be the place where the future Amazons of the world (or even the future Amazons of Singapore) choose to raise capital, unfortunately. If the ASEAN countries were to band together to create a single, common, well regulated stock market -- and with Australia and New Zealand joining the party, ideally ("ASEANZ") -- maybe that would change.

The rationale of investing in sti lies only in it being domestically weighted; allowing for a much smoother drawdown during retirement. And that only happens about 40 years later. There is no need to rush into sti at the moment.

Right, the SGX-listed stocks are more strongly correlated with the Singapore dollar, if that's your future primary retirement spending currency. (Which is not a given. You might fall in love with someone and retire in France, as a random example.) Although please note that the STI is gradually, progressively becoming less correlated with the Singapore dollar as the STI constituents become more regionally and globally diversified. Singtel's business results, for example, depend more on the Australian dollar now.

However, I'm flexible enough on this point that I would allow up to 20% in the STI during one's accumulation years, for those who are reasonably confident they will retire in Singapore. About 7 to 10 years before drawdown you'd start to make some gradual, progressive adjustments to converge on an appropriate portfolio allocation for a couple decades or more of drawdown.

This is similar to my take on bonds. Just do away with it until maybe 20 years later. Take on as much risk as you can while you are young. Have some balls of steel.

If you're working in Singapore as a citizen or Permanent Resident, you aren't going to do away with bonds. You and your employer will be contributing to CPF, and those savings are very bond-like (and Singapore dollar denominated). I also recommend SSBs as the primary place to park some emergency reserve funds (beyond an ordinary bank account balance) if you live in Singapore.

 

[revhappy]

The only hope for SGX is to somehow become an extended offshore centre for India, just like Hong Kong is for China. But there is too much short-sightedness from the Indian side. So I doubt that will happen.

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[BBCWatcher]

The only hope for SGX is to somehow become an extended offshore centre for India, just like Hong Kong is for China. But there is too much short-sightedness from the Indian side.

Why Singapore and the SGX, though? It's hard for me to figure out why the SGX would be the satellite cross-listing market that India would choose. Why not ADRs in New York, for example?

There's also the fact that the SGX and Bursa Malaysia have never been able to get a stable arrangement.

No, I think it's got to be an outright regional merger, with the regional governments coming together in an enduring arrangement to support a common, unified stock market. And to do a few other "EU lite" things at approximately the same time, such as abolish mobile roaming charges across ASEANZ, have common prescription drug safety and effectiveness approvals, allow national ID cards (to a suitable standard) to be used for cross-border travel throughout ASEANZ, common air traffic control and aviation safety regulations, open skies, Erasmus-like arrangements for students, preferred regional postal rates, social insurance accords (such as free emergency medical care for up to 90 days), freer trade, streamlined adoption procedures across the region, streamlined driver license conversion, recognition of ANZ marriages (including same sex marriages) throughout the region, and so forth. (These are possible examples.)

 

[revhappy]

Why Singapore and the SGX, though? It's hard for me to figure out why the SGX would be the satellite cross-listing market that India would choose. Why not ADRs in New York, for example?

There's also the fact that the SGX and Bursa Malaysia have never been able to get a stable arrangement.

No, I think it's got to be an outright regional merger, with the regional governments coming together in an enduring arrangement to support a common, unified stock market. And to do a few other "EU lite" things at approximately the same time, such as abolish mobile roaming charges across ASEANZ, have common prescription drug safety and effectiveness approvals, allow national ID cards (to a suitable standard) to be used for cross-border travel throughout ASEANZ, common air traffic control and aviation safety regulations, open skies, Erasmus-like arrangements for students, preferred regional postal rates, social insurance accords (such as free emergency medical care for up to 90 days), freer trade, streamlined adoption procedures across the region, streamlined driver license conversion, recognition of ANZ marriages (including same sex marriages) throughout the region, and so forth. (These are possible examples.)

There is the timezone advantage and favourable tax environment.

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[Tactical Boots]

Hi everyone, looking for a bit of advice using the POSB ATM to adjust my POSB Invest-Saver monthly amount. I've been told that I could bypass the $100 increment (because I just want to invest $150 not $200 etc) if I use the ATM instead of changing it online through ibanking. I've used two different POSB ATMs so far and can't seem to find the option to adjust that amount. Am I supposed to use the DBS ATM instead? Any help is appreciated! Thank you!

 

[BBCWatcher]

There is the timezone advantage and favourable tax environment.

No, it's the opposite, actually. Tax consequences are practically entirely based on country of residence, not on country of listing (or cross listing). The United States (for example) has lots of tax treaties with many countries around the world, and those tax treaties offer some benefits to residents of those various countries. Singapore has virtually zero tax treaties, and that's a problem for these purposes.

If either of these supposed advantages were actual advantages, the SGX would be swimming in cross-listings and significant trading volumes. It's clearly not.