Official Shiny Things thread—Part III

[hwckhs]

Anyone knows any good sector ETFs world or USA sectors ?

I’ve seen SPDR but AUM seem dubious.

R we destined to buy direct from USA ?

Sectors of interest
Industrials and financials

I see a few US sectoral ETFs in this list - https://www.ishares.com/uk/individu...s#!type=all&fac=43511&fst=50581&view=keyFacts , but not sure if you would consider them "good".

 

[Crizerack]

What does DII mean? Can't find it online.

Besides coma, would you be able to share a fuller list of reasons why we shouldn't get CI? Appreciate it.

 

[beefjerky]

What does DII mean? Can't find it online.

Besides coma, would you be able to share a fuller list of reasons why we shouldn't get CI? Appreciate it.

dii is disability income insurance. but this only kicks in after 3/6 months depending on your plan.

i think the main reason is that its costly and you are already 'covered'. if you get a CI, your hospitalisation bills are covered, your emergency funds would cover the first 6 months and then DII covers the remaining. however, i would still get a cheap CI like Aviva MINDEF just for the sake of ease of mind. then maybe once you hit 40 can just cancel it since you should have sufficient savings as buffer

 

[Crizerack]

dii is disability income insurance. but this only kicks in after 3/6 months depending on your plan.

i think the main reason is that its costly and you are already 'covered'. if you get a CI, your hospitalisation bills are covered, your emergency funds would cover the first 6 months and then DII covers the remaining. however, i would still get a cheap CI like Aviva MINDEF just for the sake of ease of mind. then maybe once you hit 40 can just cancel it since you should have sufficient savings as buffer

I see. Hmm, but what about the case where your CI is to stay home? That wouldn't be classified under hospitalization bills anymore.

 

[noobmaster89]

dii is disability income insurance. but this only kicks in after 3/6 months depending on your plan.

i think the main reason is that its costly and you are already 'covered'. if you get a CI, your hospitalisation bills are covered, your emergency funds would cover the first 6 months and then DII covers the remaining. however, i would still get a cheap CI like Aviva MINDEF just for the sake of ease of mind. then maybe once you hit 40 can just cancel it since you should have sufficient savings as buffer

I think the purpose of CI is to have a peace of mind in certain situations. Eg if you require money for some experimental treatments, this is not likely covered by shield plans. Hence CI does provide some buffer here. That being said, on a limited budget focus on shield plans and DII first. Then u can allocate the remaining to buying CI plans.

 

[rantasaurus]

Hi ST!

Could you do a layman explanation of the gamma “squeeze” that people have only recently attributed the past few weeks’ market rally to Softbank’s massive purchase of call options on US tech names?

Came across a couple of reports/articles that explain this but wanted to see if you have a clearer explanation.

Thanks!

 

[Crizerack]

I think the purpose of CI is to have a peace of mind in certain situations. Eg if you require money for some experimental treatments, this is not likely covered by shield plans. Hence CI does provide some buffer here. That being said, on a limited budget focus on shield plans and DII first. Then u can allocate the remaining to buying CI plans.

Interesting. I didn't heard of Disability Income Insurance before and didn't heard anyone recommend it.

So I suppose for any illness that does not require one to be warded. DII kicks in? Which means Term life + hospital plan + DII is sufficient?

And does ST reply often?
Cause if no need CI, I'll just cancel it asap.

 

[noobmaster89]

Interesting. I didn't heard of Disability Income Insurance before and didn't heard anyone recommend it.

So I suppose for any illness that does not require one to be warded. DII kicks in? Which means Term life + hospital plan + DII is sufficient?

And does ST reply often?
Cause if no need CI, I'll just cancel it asap.

DII definitions are looser. Usually as long as the doctor certifies you are unable to work (either due to CI or Disability or whatever reason), then it kicks in. Again, the terms and conditions differ slightly for each insurer. Agents don’t usually recommend it as i heard they don’t earn much commission from it.

CI is more restrictive, in the sense it only covers critical illness before you can claim. Personally I would prioritize getting DII first, then any spare budget into a limited pay whole life ECI/CI plan (it actually works out to be cheaper than a term CI plan). And please get hospital insurance first as well

 

[cassowary18]

Interesting. I didn't heard of Disability Income Insurance before and didn't heard anyone recommend it.

So I suppose for any illness that does not require one to be warded. DII kicks in? Which means Term life + hospital plan + DII is sufficient?

And does ST reply often?
Cause if no need CI, I'll just cancel it asap.

ST recommended it in the book. BBCWatcher is also a strong supporter of DII. ST does come in occasionally but he has a day job you know.

 

[toaddd]

Hi shiny. Thanks for all the help you provided to this forum. Let’s say I am 28 now and I have 70000 now and this is for my 2 room bto where I will be purchasing at 35. I have 7 years to grow it. Should I put it in tiq products like e easy v that will get me 2.6 % ? And let’s say I have enough money to pay lump sum at age 35 for my bto. Should I get a loan and pay later or just pay the whole thing up front? Thanks so much

 

[Crizerack]

May I know which page was DII mentioned? I didn't read about it, and just did a quick search and didn't find it. Don't mind pointing me out the page? Thanks!

 

[Crizerack]

Yup, I've bought my hospitalization plan already

Just curious, based on your sharing I suppose you skip CI and purchase DII instead?

I don't think any whole life ECI/CI plans can be cheaper than a term plan. Think you should recheck before buying! Those things burn through your wallet with no real monetary sense. Never buy whole life. I've done my homework on the numbers so I'm pretty clear on this. But if you found something else, do lemme know too

 

[Crizerack]

Hi ST!

I'm at my final stages of homework research by which I am planning to invest my 1st dollar into the ETFs recommended in your book
IWDA, ES3, MBH

I have a few questions though and kinda stuck on them.

1. I read in page 46 that MBKE MIP account will be the best way to invest in IWDA. However, in 2019 they have discontinued the MIP.
Info here > maybank-ke.com.sg/media/3774846/mip-faq.pdf

The book mentioned that after MBKE, the next one would be IBKR.
If I invest SGD800 per month. IBKR charges 0.05% fee per trade, minimum at Euro1.25. Other fees include exchange fees and regulatory fees which adds everything up to a minimum of 20.93 euros.
Info here > interactivebrokers.com/en/index.php?f=1269&nhf=T

It's kinda insane to pay SGD34 just to make an IWDA trade of SGD800.
Fee list here > interactivebrokers.com/en/index.php?f=1590&p=stocks2

Do I still go with IBKR?
Are there better alternatives?
Also, is IWDA LSE purchased in USD or GBP?
Please help!


2. With regards to investing in STI, is it stil a recommended ETF? Looking at its past 5 year performance, it has been stuck at SGD3 without increasing while other ETFs is clearly growing steadily as a portfolio.

Would you still recommend it? If not, which other index/ETFs would you suggest?

Thanks so much! Doing my research until my head hurts so badly. Hope to hear some thoughts from you.

 

[iamnotshawn]

Hi, can I ask if ibkr charges 20 usd monthly if account balance falls below 2kusd ?

Sent from Samsung SM-G988B using GAGT

 

[iamnotshawn]

For those using ibkr account, are you using margin or cash account? I realised that cash account always have a delay in trades.

How do you deal with the delay?

Sent from Samsung SM-G988B using GAGT

 

[noobmaster89]

Yup, I've bought my hospitalization plan already

Just curious, based on your sharing I suppose you skip CI and purchase DII instead?

I don't think any whole life ECI/CI plans can be cheaper than a term plan. Think you should recheck before buying! Those things burn through your wallet with no real monetary sense. Never buy whole life. I've done my homework on the numbers so I'm pretty clear on this. But if you found something else, do lemme know too

Whole life ECI or CI plans are limited pay, pay 10/15/20/25 years and u get covered for life. Term CI plans are not cheap. If u buy a term CI plan up to age 65 it might actually be more expensive when you calculate total premiums paid. Trust me I have done my homework. Suggest you find a good IFA for advice and you will know what I mean.

Personally I get whole life eci plan as a base (limited pay with multiplier up to a certain age). Then top up with a term CI plan. Of course I have hospital insurance and DII as well. Rule of thumb: 10-15% of income to cover 10-15 times of annual salary for death/tpd, 3-5x for CI.

And might I also add: whole life sucks when you are buying it for investment. When you buy whole life , end of plan = end of your life. Surrender value is not a key factor. Of course make sure you are comfortable with the premiums before you commit.

When it comes to investments, I invest in the typical 3 fund portfolio, stocks and bonds. I don’t believe in using insurance to invest (though I might consider retirement annuities with high guaranteed payout in future).

 

[cassowary18]

If I invest SGD800 per month. IBKR charges 0.05% fee per trade, minimum at Euro1.25. Other fees include exchange fees and regulatory fees which adds everything up to a minimum of 20.93 euros.
Info here > interactivebrokers.com/en/index.php?f=1269&nhf=T

It's kinda insane to pay SGD34 just to make an IWDA trade of SGD800.
Fee list here > interactivebrokers.com/en/index.php?f=1590&p=stocks2

You're looking at the wrong stock exchanges - IWDA is listed on LSE, not SWB or IBIS. Here's the external fees for LSE. https://interactivebrokers.com/en/index.php?f=3879&nhf=T

Do I still go with IBKR?
Are there better alternatives?

Yeah IBKR is the best right now IMO, especially if you plan to buy your SG stock on them too (another update to IBKR since ST wrote the book is that IBKR SG is now launched, allowing you to buy both SG and international stocks even if you're Singaporean.)

Also, is IWDA LSE purchased in USD or GBP?
Please help!

USD

 

[Wishdom]

I have close to 100k worth of vwrd now at the age of 28.

At this stage, I feel very comfortable with my financial position and I wish to take on more risk for greater potential returns.

What are some sensible long term options that I can take?

Sent from Ilovennp using GAGT

 

[cassowary18]

I have close to 100k worth of vwrd now at the age of 28.

At this stage, I feel very comfortable with my financial position and I wish to take on more risk for greater potential returns.

What are some sensible long term options that I can take?

Sent from Ilovennp using GAGT

100% in VWRD? Wow that's brave.

 

[Thoreldan]

I have close to 100k worth of vwrd now at the age of 28.

At this stage, I feel very comfortable with my financial position and I wish to take on more risk for greater potential returns.

What are some sensible long term options that I can take?

Sent from Ilovennp using GAGT

Very nice.
Can you share how you're able to accumulate 100k at the age of 28? So other forumers can learn from u.