Official Shiny Things thread—Part III

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BBCWatcher

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Am I reading this correctly, that Temasek returns trash theirs?
Norway is reporting their results in currency basket terms (based on 36 currencies currently), whereas Temasek reports in Singapore dollar terms. They're not directly comparable measures.

Here's how they describe what they've accomplished: "The Norwegian government first transferred capital to the fund in May 1996. By the end of 2019, the fund has received a total of 3,389 billion kroner, while the fund's cumulative return was 5,358 billion kroner.

"The fund has generated an annual return of 6.1 percent between 1 January 1998 and the end of 2019. The net annual return on the fund is 4.2 percent."

If you were choosing between sovereign wealth funds, you'd rather have Norway's. That's simply because it's much bigger both in total amount and per capita. Hats off to them, really.
 

elemention

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IB-SG Account

Hi Shiny Things and everyone else! I have successfully made a transfer of my entire portfolio from IBKR to a new IB-SG account. I will document the steps to be taken here so that those who wants to transfer asap can have easier reference.

Step 1: Submit a ticket inquiry through Account Management requesting for transfer of portfolio. You will need to state which account number you are transferring from (Original Account) to (New IB-SG Account).
Step 2: The client officer will send you back a response through the ticket inquiry where you will be told if your request is being processed and to expect a verification call.
Step 3: A client officer will call you on your phone number to do quite a number of verification tests which involves your answer to your security questions that you personally selected when creating the account.
Step 4: The client officer will then email you a transfer form for you to sign and attach back via the ticket inquiry. In addition, a signed NRIC/Passport is to be scanned and forwarded to them.
Step 5: You will then receive a successful notification if all documents are in order.

In addition, I have asked quite a number of questions from my personal side so I will list down the answers that I got that you might have in mind as well!

Q1: Is it true that there will be a migration of all existing IB accounts over to the new IB-SG account?
Ans1: Yes. There will be a migration of all current IB accounts over to IB-SG accounts, tentative date is by the end of this year but to be confirmed again.

Q2: Can i not migrate over to a new IB-SG account if i prefer to have the SIPC protection instead?
Ans2: No. All existing accounts will eventually be moved over to the IB-SG account. Moving forward, Singaporeans will only be able to create accounts at interactivebrokers.sg

Q3: Is there any third party protection provided for IB-SG accounts?
Ans3: There will not be any 3rd party protection like the SIPC for IB-SG.
Our positions will be held in custodian account "ABN AMRO Singapore Branch"

Q4: How will GST affect the transaction price/commissions?
Ans4: Currently, GST will not be included at all for the purchase of SGD/USD denominated products. As such, the fee will be 0.08% for SGD denominated products. However, this might change moving forward.

I originally didn't want to move my portfolio over to this new IB-SG account since i have already managed to hit US100k mark in my original account. However, I was told that all accounts will be eventually transferred over so I might as well settle it now since I am at it. If you are planning to purchase SGD equities/bonds using IB-SG, then it is definitely a good idea to do the transfer asap!
Anyway I hope that these information will be useful for you all!
 

megdang

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Q2: Can i not migrate over to a new IB-SG account if i prefer to have the SIPC protection instead?
Ans2: No. All existing accounts will eventually be moved over to the IB-SG account. Moving forward, Singaporeans will only be able to create accounts at interactivebrokers.sg

Actually in the point of view of a foreigner who is staying in SG right now (and have no plan or legal rights to retire here), and do not buy SG stocks/bonds, I prefer to keep the account at IB instead of IB-SG.

I registered my IB account as a Singapore resident using my foreign passport. Don't know whether my account also be forced to transfer to IB-SG. I hope not.
 

BBCWatcher

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I registered my IB account as a Singapore resident using my foreign passport. Don't know whether my account also be forced to transfer to IB-SG. I hope not.
It will. Citizenship doesn't matter for these purposes. Residence does.

If you can truthfully represent yourself as a resident of some other country (where you can receive mail, perhaps keep a house, etc.), then you may wish to do so.
 

bobobob

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Hi Shiny Things and everyone else! I have successfully made a transfer of my entire portfolio from IBKR to a new IB-SG account. I will document the steps to be taken here so that those who wants to transfer asap can have easier reference.

Step 1: Submit a ticket inquiry through Account Management requesting for transfer of portfolio. You will need to state which account number you are transferring from (Original Account) to (New IB-SG Account).
Step 2: The client officer will send you back a response through the ticket inquiry where you will be told if your request is being processed and to expect a verification call.
Step 3: A client officer will call you on your phone number to do quite a number of verification tests which involves your answer to your security questions that you personally selected when creating the account.
Step 4: The client officer will then email you a transfer form for you to sign and attach back via the ticket inquiry. In addition, a signed NRIC/Passport is to be scanned and forwarded to them.
Step 5: You will then receive a successful notification if all documents are in order.

In addition, I have asked quite a number of questions from my personal side so I will list down the answers that I got that you might have in mind as well!

Q1: Is it true that there will be a migration of all existing IB accounts over to the new IB-SG account?
Ans1: Yes. There will be a migration of all current IB accounts over to IB-SG accounts, tentative date is by the end of this year but to be confirmed again.

Q2: Can i not migrate over to a new IB-SG account if i prefer to have the SIPC protection instead?
Ans2: No. All existing accounts will eventually be moved over to the IB-SG account. Moving forward, Singaporeans will only be able to create accounts at interactivebrokers.sg

Q3: Is there any third party protection provided for IB-SG accounts?
Ans3: There will not be any 3rd party protection like the SIPC for IB-SG.
Our positions will be held in custodian account "ABN AMRO Singapore Branch"

Q4: How will GST affect the transaction price/commissions?
Ans4: Currently, GST will not be included at all for the purchase of SGD/USD denominated products. As such, the fee will be 0.08% for SGD denominated products. However, this might change moving forward.

I originally didn't want to move my portfolio over to this new IB-SG account since i have already managed to hit US100k mark in my original account. However, I was told that all accounts will be eventually transferred over so I might as well settle it now since I am at it. If you are planning to purchase SGD equities/bonds using IB-SG, then it is definitely a good idea to do the transfer asap!
Anyway I hope that these information will be useful for you all!

Do we need to create a new IB SG account first?
 

shallow

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seems like a very convenient and cheap all in 1 platform is finally here.

I actually like the idea of a ibkr SG acct so i can monitor all my international and local holdings. Anybody got any clear answer as to if purchasing of local stocks are allowed now? (for ikbr sg acc or for converted ibkr sg acc) I may even follow elemention's path to prematurely convert to ibkr if i can buy local right now.
 

mr_beanz

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Hi, anyone knows whether it is possible to use SRS funds to purchase ES3 via IBKR-SG? I am unable to find information on this.
 

chrisloh65

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Beware that even if you can use IBKR SG to buy SG listed stocks, these stocks is under custodian of IBKR (not CDP).
It is obviously much safer to use CDP as custodian for SG stocks than IBKR.

seems like a very convenient and cheap all in 1 platform is finally here.

I actually like the idea of a ibkr SG acct so i can monitor all my international and local holdings. Anybody got any clear answer as to if purchasing of local stocks are allowed now? (for ikbr sg acc or for converted ibkr sg acc) I may even follow elemention's path to prematurely convert to ibkr if i can buy local right now.
 

chrisloh65

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Why not comparable? Temasek obviously will report in SGD terms since it is based in Singapore and SGD is the base currency, and if it earns >16% p.a. since inception in 1974 means it clearly trash Norway Sovereign Wealth fund which has much lower return over same period isn't it?
Or you want to switch starting period to measure return for Temasek because you are not happy that using 1974 let Temasek proved that you have been wrong all along?! :s13:
So you blame Temasek for using 1974 as starting point even though it clearly was founded in 1974 and that is clearly a logical date to start computation of its total overall compounded return? :s8:

Norway is reporting their results in currency basket terms (based on 36 currencies currently), whereas Temasek reports in Singapore dollar terms. They're not directly comparable measures.

Here's how they describe what they've accomplished: "The Norwegian government first transferred capital to the fund in May 1996. By the end of 2019, the fund has received a total of 3,389 billion kroner, while the fund's cumulative return was 5,358 billion kroner.

"The fund has generated an annual return of 6.1 percent between 1 January 1998 and the end of 2019. The net annual return on the fund is 4.2 percent."

If you were choosing between sovereign wealth funds, you'd rather have Norway's. That's simply because it's much bigger both in total amount and per capita. Hats off to them, really.
 

manlymanly

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I asked the same question a few days ago on one of the threads and was told not to ask for too much... 😑 but would like to know. I suspect not, as IB is more like SC, but will be good if it does!

Hi, anyone knows whether it is possible to use SRS funds to purchase ES3 via IBKR-SG? I am unable to find information on this.

Posted from PCWX using iPhone11,8
 

cfleee

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Which broker is cheaper for SG is purely a maths problem. For some investors, philips is cheaper, some IBKR is cheaper, and for some, FSM is even cheaper.

user cclee created a spreadsheet for which broker is cheaper for foreign shares, maybe he can expand the spreadsheet to which broker is cheaper for SG shares, to help those who can't do the maths =:p

That's the thing, it's really different depending on the actual circumstances -- some people for whatever reason just want to buy one big sum and don't plan to continue buying, some already got enough AUM to meet SC Priority, some are on track to IBKR's USD 100k soon, some have trade sizes where FSMOne flat $10 for >Silver clients matters, some care about CDP, some want to diversify across brokers... I actually would expect that just buying SG shares only is thoroughly covered by all those comparison blog posts or whatever though.

Might be more interesting to see when plonking both global and local equity into IBKR SG makes sense, and if it makes sense to throw in A35/MBH into that instead of FSMOne RSP.

I saw in your Rich by Retirement book that the Internal Revenue Service—the US tax authority—imposes very strict rules on US taxpayers who invest in stocks or ETFs that are listed outside the USA. For myself, I am due to relocate to the US in the near future for my employment and I would expect to be working in the US for a number of years once the relocation happens. In that case, would it still make sense for me to buy the London-listed ETFs such as IWDA/VWRA right now? Otherwise, what would be appropriate to buy? For my retirement country, it is not something that I have decided as of yet.

I am not a tax lawyer, etc etc, but the last time I looked at this I concluded that the more kiasu thing would be to liquidate as much of my investments as I can before even stepping foot into the U.S. in the year (because it seems that if you meet the substantial presence test for the calendar year, tax residency start from the first day in the year you were present -- unless you start late enough in the year and don't opt in?) to get rid of stuff that runs afoul of PFIC rules, and to reset cost basis (keeping in mind wash-sale rules if rebuying PFIC-compatible stuff), and maybe also do all the FATCA/CRS tax residency change notifications and see if anyone abruptly requires me to take my custom elsewhere. Super annoying just to figure out what's necessary.

There -- now that I've said something possibly horrifyingly wrong, hopefully someone is typing furiously now to explain exactly how I'm wrong :s13:

(I do recommend checking out Alliant Credit Union after you move! They're fairly nice to deal with.)
 

chrisloh65

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Those brokers that allow your SG listed shares to be passed to CDP for custodian will support buying using SRS. Those that don't usually don't support SRS.

I asked the same question a few days ago on one of the threads and was told not to ask for too much... 😑 but would like to know. I suspect not, as IB is more like SC, but will be good if it does!

Posted from PCWX using iPhone11,8
 

RuiQi_91

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Hello, I am currently investing 40% into IWDA, 40% into G3B and 20% into ABF. Could someone kindly tell me what the average return in percentage will be over a period of e.g. 30 years?

If I estimate the dividends of G3B to be at a conservative 4%, the return of IWDA at 8% and the dividends of ABF at 2% then would the average return over 30 years simply be at an estimate of 0.4*4% + 0.4*8% + 0.2*2% = 5.2% ?

Do correct me if my numbers are wrong as I just googled them. Am I missing anything out in my calculation? How do the numbers change if I reinvest the dividends of G3B and ABF? What would their return be?

G3B Actual Yield 4.64% https://sg.finance.yahoo.com/quote/G3B.SI?p=G3B.SI&.tsrc=fin-srch

IWDA 10 Year Performance 8.5% https://sg.finance.yahoo.com/quote/IWDA.L/performance?p=IWDA.L

ABF Actual Yield 1.99% https://sg.finance.yahoo.com/quote/A35.SI?p=A35.SI&.tsrc=fin-srch

Thank you friends.
 
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wannabelazy

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Hi Shiny,

With our IBKR accounts being moved to IBKR SG, some of us will have to rethink if we are to continue with SCB for our local stocks.

Is there any concern with having all our assets consolidated with just 1 broker?
 

BBCWatcher

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I am not a tax lawyer, etc etc, but the last time I looked at this I concluded that the more kiasu thing would be to liquidate as much of my investments as I can before even stepping foot into the U.S. in the year (because it seems that if you meet the substantial presence test for the calendar year, tax residency start from the first day in the year you were present -- unless you start late enough in the year and don't opt in?) to get rid of stuff that runs afoul of PFIC rules, and to reset cost basis (keeping in mind wash-sale rules if rebuying PFIC-compatible stuff), and maybe also do all the FATCA/CRS tax residency change notifications and see if anyone abruptly requires me to take my custom elsewhere. Super annoying just to figure out what's necessary.
I haven’t researched this question as much as I could, but three points: (1) it’s good to hang onto the assets that are showing capital losses on paper, then possibly sell them after becoming a U.S. person; (2) you usually evidently have a choice in your first calendar year to treat the whole year as U.S. personhood or to separate the year in a “dual status” tax filing. I get the impression the “mass market” tax preparers don’t really like to handle dual status returns and won’t advertise the option since it’s a more complicated filing, but it’s often available; (3) Watch out for possible “wash sales,” which you don’t want.

(I do recommend checking out Alliant Credit Union after you move! They're fairly nice to deal with.)
That’s a good one, and Schwab is another one that offers an excellent ATM card with rebates. I’ll also put in a plug for the American Express Bluebird card, a simple, low or zero cost consumer bank account that works particularly well if you live near a Walmart store (common) which then becomes your free ATM for the very limited cash you need. As soon as you have a U.S. Social Security Number and mailing address you should be able to sign up for a Bluebird card online. (No need to get the Bluebird card at Walmart itself since it costs US$5 there.)

There are some low limit low/zero cost U.S. credit cards typically available to new immigrants, such as Capital One’s Journey (marketed to students but open to all) and the Deserve credit card, which might even be available if you don’t have a SSN assigned yet. Set them up for full balance Autopay, please. You don’t need late fees or black marks on your new credit report.
 
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