Official Shiny Things thread—Part III

[flowerpalms]

You can afford 10k monthly also can . But most cant

Is 10k lump sum?

 

[cassowary18]

That is not general consensus, that is based on outdated information that keep regurgitating here by people who follow the book blindly and not check on any new information...

If you are talking about using IB to purchase IWDA, it makes zero sense to use SCB for SGX since DBS Vickers Cash Upfront charges the same fees as SCB and DBS Cash Upfront keep it in your CDP...

If you are talking about monthly investment for ES3 and MBH, other than you spend more than $8,300/month, FSM RSP is cheaper than SCB or DBS Cash Upfront...

Even with IB 0.08% and minimum $2.50 for SGX, it is higher than FSM 0.08% and minimum $1...You need to invest minimum $2,100/month on ES3 or MBH before it is cheaper than buying it with FSM...

Alright alright...

DBS Vickers Cash Upfront charges the regular Vickers commission to sell. This can be an issue when rebalancing.

FSMOne RSP is good. I'm personally using it. But you don't get to choose when you buy; it's always on the same day every month.

Look, when IB comes to Singapore, it'll be the best option. The convenience of having everything in the same place outweighs the additional cost (isn't that what we do with CDP?) Plus, you will have to pay $10 a month anyway, so essentially you're not "paying" any commissions. It also helps you reach the USD 100K AUM a lot faster.

No, it's not sustainable. If market interest rates are lower at least for several months, banks are highly likely to adjust these interest rates downward.

If you want to lock in an interest rate on a cash deposit, then fixed deposits are available up to 36 month terms at least, and Singapore Savings Bonds run for 10 year terms (but can be redeemed earlier if you wish). I don't recommend you sit on vast piles of cash, but you do have some choices. For the moment.

What's good for emergency savings? In the previous thread, someone suggested Elastiq. SSB could be good too.

 

[Thoreldan]

Is 10k lump sum?

if your initial investment is 10k
monthly invest 500
>>> 10k is your lumpsum


if your initial investment is 500k
monthly invest is 10k

>>> 10k is not your lumpsum

 

[crystalnox]

What's good for emergency savings? In the previous thread, someone suggested Elastiq. SSB could be good too.

I'm looking at StashAway Simple for emergency savings too, it's essentially a money market fund.

 

[tesarise]

if your initial investment is 10k
monthly invest 500
>>> 10k is your lumpsum


if your initial investment is 500k
monthly invest is 10k

>>> 10k is not your lumpsum

i think you know what i trying to say

I'm looking at StashAway Simple for emergency savings too, it's essentially a money market fund.

From my point of view, stashaway simple (simplified to SAWS) has the following advantages over SSB:

1. higher "interest rate" compared to new ssb
2. no "penalty" for withdrawal (not talking about the 2 dollars. more on if you withdraw your ssb of a certain month issuance, you will no longer be able to go back in at the same interest rate. SAWS won't have this problem)
3. shorter withdrawal time on average, unless you submit your SSB withdrawal very close to end of month
4. "interest" is automatically compounded unlike SSB interest that goes back to your dividend crediting account and require manual redeployment.

cons of SAWS compared to SSB:
1. "interest rate" can be changed anytime depending on underlying MMF and Stashaway decision.
2. slightly higher risk
3. Stashaway makes it very easy to transfer money from SAWS into another stashaway portfolio. can be very tempting to deploy these emergency funds as "dry powder".

Personally i think it makes more sense to go with SAWS for the time being

 

[makav31i]

With MBKE MIP discontinued, which broker(s) should I use for a collective $1000 monthly investment on ES3, MBH and IWDA?

ES3 and MBH using FSM RSP, IWDA using SCB buying every quarter or so...

 

[makav31i]

Alright alright...

DBS Vickers Cash Upfront charges the regular Vickers commission to sell. This can be an issue when rebalancing.

FSMOne RSP is good. I'm personally using it. But you don't get to choose when you buy; it's always on the same day every month.

Look, when IB comes to Singapore, it'll be the best option. The convenience of having everything in the same place outweighs the additional cost (isn't that what we do with CDP?) Plus, you will have to pay $10 a month anyway, so essentially you're not "paying" any commissions. It also helps you reach the USD 100K AUM a lot faster.

You don't need to sell back using DBS Vickers as the shares are in your CDP account, you can sell on any other brokers that you want...

Isn't the whole purpose of RSP is buying a fixed amount on a specific date and not having to time the market...?This help to remove emotion in your buying process and consistently invest regularly to DCA...

With regards to IB, really need to wait for more details before can decide whether the convenience of using RSP will be outweigh by buying it yourself on IB...If IB lite were to come to Singapore, that would be the most ideal situation...

 

[BBCWatcher]

What's good for emergency savings? In the previous thread, someone suggested Elastiq. SSB could be good too.

ELASTIQ is not too bad, but just be aware there's a S$5,000 minimum balance to avoid a fee. Also, it's a 3 year rate guarantee, and the Singapore Savings Bond interest rate schedule is guaranteed for 10 years. If we're heading into a low interest rate period that's sustained for several years -- possible! -- this month's SSB could be better.

 

[streetfighter]

Sold most of my ETFs in this rebound to lock in profits. Keeping my powder dry because this is likely dead cat bounce?

 

[megdang]

Sold most of my ETFs in this rebound to lock in profits. Keeping my powder dry because this is likely dead cat bounce?

Why do you think it's a rebound but not a rally all the way up

Every scenario can be happened so don't assume.

 

[flowerpalms]

This is investing, not trading.

You dca long term, not panic sell

Sold most of my ETFs in this rebound to lock in profits. Keeping my powder dry because this is likely dead cat bounce?

 

[Han Shot First]

Sold most of my ETFs in this rebound to lock in profits. Keeping my powder dry because this is likely dead cat bounce?

Someone I know sold all his equity ETFs before the February 2020 peak in the US stock markets. So he locked in 10-12% profits if he went back into the stock market last Monday (because he would own more shares of his equity ETFs for the same capital at risk).

 

[BBCWatcher]

Someone I know sold all his equity ETFs before the February 2020 peak in the US stock markets. So he locked in 10-12% profits if he went back into the stock market last Monday (because he would own more shares of his equity ETFs for the same capital at risk).

Nice in theory, but did he?

Also, someone who has been diligently saving and prudently investing every month, without fail, for decades isn't looking at a current paper gain of a mere 10-12%. I know that someone, or at least I think I do.

 

[LoUsyGamER]

Sold most of my ETFs in this rebound to lock in profits. Keeping my powder dry because this is likely dead cat bounce?

Good that you discover what you want. Welcome to the world of trading.

Though you should have a separate portfolio for investment for longer period.

 

[Han Shot First]

Nice in theory, but did he?

Also, someone who has been diligently saving and prudently investing every month, without fail, for decades isn't looking at a current paper gain of a mere 10-12%. I know that someone, or at least I think I do.

He did. Because he told me he sold all his equity ETFs before the peak in the US stock markets happened.

 

[chloventan3]

Hi guys. I'm currently using SCB to buy VWRA on a monthly basis. I'm putting around 1k SGD a month and I'm far from 100k.

Is it recommended to move over to IB even tho i would have to pay a monthly fee? The exchange rate in SCB kinda sucks.. and i believe that IB one is better.

Thank you!

 

[yesimvested]

im not sure if anyone thought about this... even if u are able to hit usd100k in the next 3 years... whats gonna happen when u eventually rebalance ur portfolio to reduce the % of IWDA to 30%? Say if 30% of ur portfolio is lesser than usd100k... wouldnt you be then paying the mthly maintenance forever?

Hi guys. I'm currently using SCB to buy VWRA on a monthly basis. I'm putting around 1k SGD a month and I'm far from 100k.

Is it recommended to move over to IB even tho i would have to pay a monthly fee? The exchange rate in SCB kinda sucks.. and i believe that IB one is better.

Thank you!

 

[Prof. Utonium]

He did. Because he told me he sold all his equity ETFs before the peak in the US stock markets happened.

Hard to predict. So just focus on the long term instead of incurring the extra fees albeit the fees are small as compared to the profits. Its the habit.

Due to the drops I put in another lump sum. Supposedly next month, but brought it forward since IWDA dropped below 60USD.

 

[Okenba]

im not sure if anyone thought about this... even if u are able to hit usd100k in the next 3 years... whats gonna happen when u eventually rebalance ur portfolio to reduce the % of IWDA to 30%? Say if 30% of ur portfolio is lesser than usd100k... wouldnt you be then paying the mthly maintenance forever?

When will this happen? 20 years later? 30 years later? I'd hope SG brokers would have caught up and be competitive in fees by then...

 

[hwckhs]

im not sure if anyone thought about this... even if u are able to hit usd100k in the next 3 years... whats gonna happen when u eventually rebalance ur portfolio to reduce the % of IWDA to 30%? Say if 30% of ur portfolio is lesser than usd100k... wouldnt you be then paying the mthly maintenance forever?

I think this depends on your portfolio size, market conditions (up/down), and when do you stop doing DCA and start drawing down.

If you find that you can no longer meet the $100k requirement consistently, you can always consider moving your IWDA to SCB or another broker. Nonetheless, during your drawing down phase, you need to sell your stocks regularly (reverse-DCA). Who knows, the savings in FX rate may justify the $10 fee. You need to calculate to confirm.

Just monitor closely, and make changes if needed.