Official Shiny Things thread—Part III

[highsulphur]

what would be the recommendation on DCA schedule if one has a lump sum to invest at this moment?

Could you provide a few schedules covering the following sources?
1) cash only
2) cash + cpf OA

How would the warchest amount affect the suggestions you made?

i have IBKR and SCB priority, which allows me to manually DCA via SCB without min comm charges.

having lost a significant amount during the GFC, I sat out of the market for 10 years. And I realized my folly on hindsight, as DCA through the same period would have resulted in a much more profitable outcome.

thanks

I started deploying my reserve since Mar. Plan to split over 10 months till end of 2020. There's no right answer - over 3, 6,9,or 12 months, once every quarter etc. Think through the risks yourself and set a plan according to your risk parameters. As long as the prices are higher in 3 or 5 or 10 years, any of the above plans is better than not executing.

 

[bladez87]

I started deploying my reserve since Mar. Plan to split over 10 months till end of 2020. There's no right answer - over 3, 6,9,or 12 months, once every quarter etc. Think through the risks yourself and set a plan according to your risk parameters. As long as the prices are higher in 3 or 5 or 10 years, any of the above plans is better than not executing.

why 10 months?
at what frequency? weekly?? monthly?

 

[netsit]

Oof, “how do I China?” Is one question that pops up occasionally where there really are no good answers, and search is busted so I can’t find my previous answers. The problem is that the Chinese share market is difficult to invest in directly, so you have to go around.

My question would be, do you want China + HK + Taiwan, or specifically China?

I want Chinese equity exposure, no matter where they are listed in, so China + HK + Taiwan. Thanks for replying!

 

[highsulphur]

why 10 months?
at what frequency? weekly?? monthly?

No reason. Just thought the impact would be last till then. But who knows.

I am doing iwda twice a month but es3 once a month as I'm trying to steer more weighting towards iwda during this deployment (since I had been overly skewed in favour of es3 all along)

 

[swan02]

So wouldn’t TPD kick in ? And wouldn’t tpd solve all the big money issues u have mentioned ? I for one Am against CI, I can’t find a good reason to have unless it’s early stage cancer coverage which then I’ll assume gonna be costly ?

if u r not sick enough to trigger hospital insurance, then I’ll rather join the group who do not pay for overpriced CI products and pay cash as those outpatients cost are likely unnecessary or too cheap to break my bank.

I’ve been constant argument with agents and friends and family and not a single one convinced me.
so am I missing something here, ? Enlighten me pls.

I believe CI rider is needed because there are critical illnesses where you need outpatient treatments and medication and these are not covered by your hospitalization insurance - Don't be misled!

Furthermore, you may become jobless because of inability to perform as normal due to critical illness (thus resulting in being laid off etc) and this will not be covered by DII (disability income insurance) - Don't be misled!

The insurance premiums of CI rider is not high anyway if you take it up when young and is a good insurance to have. At current medical costs, a rough rule of thumb for CI coverage of about $200k is sufficient. No harm getting more but I think $200k is enough for general people if you have a budget to meet.

 

[swan02]

You r just being human and many of us suffer from these buyer or sellers regret. If u r just as me, I once told myself lump sum and open the account many years later. Obviously it didn’t work for me and I’ve been investing since 1997 and made many horrendous mistakes trying at early stages.

What worked for me were DCA 100 percent equity and when it’s substantial will sell stocks to buy real property be it levered or not. I then accumulate again and repeat. It worked wonderfully and now retired since 38 yo.

Opportunities r everywhere, since I’ve missed the recent stock rally, I now then focus on real estate and plan to decouple etc and use my assets in stocks and bonds as unpledged deposit as IMO one should only go into real ppty in SG on levered basis. I believe the govt has removed a lot of the risk premium resulting in lower returns hence leverage made sense.

Property in general has the best risk adjusted return amongst risk assets. It’s a tried and tested strategy that worked for me.

Hi Shiny Things and Bbc watcher, i want to dca or lump sum investment (Sgd 477k) into Iwda but i keep thinking i can time the market cant bear to see losses in unrealiz3d profit or keep thinking yhe market can go lower or im dcaing into usd to buy IWDA should i just accept no one knows when the low or high is and i should go in lump sum or slowly dca knowing in the long term 28-40 years it will be significantly higher

Sent from Samsung SM-N960F using GAGT

 

[chrisloh65]

No, TPD is payable only when you have totally permanent disability (which is very hard to be eligible - and you probably won't live long after having TPD - Which is why I believe Elder-Shield insurance is a waste of money!), while if you have critical illness (probably cancers etc), you can still work and so not liable for TPD.

Furthermore, cancer treatment by private doctors are expensive. When you have cancer, it is important to receive prompt treatment, since cancer Stage 1 is curable. Cancer Stage 2 chance of recovery is 50% (but still has chance).
Having CI payout gives you the money to see private doctors for prompt treatment and even receive newer treatment options and newer expensive medicine that can be more effective (than what is available generally in public hospitals).

However, there is no need to over-insure for CI, that is why I think about $200k and coverage until say 50 years old is enough generally, since you only need it until you are financially independent (which after that age your CI will be very expensive too). However, please factor in medical inflation and you will probably need $300k CI 5 years down the road.

And needless to say, whole-life policy and ILPs are the most expensive insurance that are not worth it! Even Endowment is not worth it.

Better buy cheap term (only needs to cover until you are 50-60 years old only) and invest the rest!
Oh, please don't buy term to 99 years old because not worth it and really no difference from that expensive whole-life!

And I don't see the need for private accident insurance too. So I rather buy CI when young and discard Private accident insurance and Elder-Shield.

Can also buy Disability Insurance when young, but again only need to cover until 50 years old or until you retire.

But obviously, if you are already financially independent, then the only insurance you need is hospitalization insurance - Medishield Life (that is all)!

So wouldn’t TPD kick in ? And wouldn’t tpd solve all the big money issues u have mentioned ? I for one Am against CI, I can’t find a good reason to have unless it’s early stage cancer coverage which then I’ll assume gonna be costly ?

if u r not sick enough to trigger hospital insurance, then I’ll rather join the group who do not pay for overpriced CI products and pay cash as those outpatients cost are likely unnecessary or too cheap to break my bank.

I’ve been constant argument with agents and friends and family and not a single one convinced me.
so am I missing something here, ? Enlighten me pls.

 

[chrisloh65]

Thanks for sharing.
I have similar experience in that I invest in both stocks and properties for diversification.
Properties are great assets to hold for long-term in Singapore, and I only buy freehold properties (which are rare since most properties available in Singapore are 99-years leasehold). Foreigners will never understand, no matter how you tell them and shared with them

Anyway, my experience is that properties' returns over the long-term of 20 years or more (if I leverage) is still much better than stocks. And stocks' return will be even much lower if I am going to DCA blindly (like what we were told here).

You r just being human and many of us suffer from these buyer or sellers regret. If u r just as me, I once told myself lump sum and open the account many years later. Obviously it didn’t work for me and I’ve been investing since 1997 and made many horrendous mistakes trying at early stages.

What worked for me were DCA 100 percent equity and when it’s substantial will sell stocks to buy real property be it levered or not. I then accumulate again and repeat. It worked wonderfully and now retired since 38 yo.

Opportunities r everywhere, since I’ve missed the recent stock rally, I now then focus on real estate and plan to decouple etc and use my assets in stocks and bonds as unpledged deposit as IMO one should only go into real ppty in SG on levered basis. I believe the govt has removed a lot of the risk premium resulting in lower returns hence leverage made sense.

Property in general has the best risk adjusted return amongst risk assets. It’s a tried and tested strategy that worked for me.

 

[swan02]

Yeh property is great even in Australia.

Anyways looking into private for the first time and spoke to a SCB broker. Since I don’t work with assume zero income I asked how much pledged cash 48 months do I fork out for a 75 percent LTV, 2 mil ppty and 1.5 million loan. She tells me only 418k sgd. and just show then I have 1 million on application.

Now I think she calculated incorrectly by not applying 60 percent TDSR and repeated several times tactfully of her mistake but she was adamant nothings wrong to the point she might be thinking I’m stupid.

This is a new purchase. So anyone here can tell me who is right ? Cuz 418k pledged for 1.5mil sounds generous !

Thanks for sharing.
I have similar experience in that I invest in both stocks and properties for diversification.
Properties are great assets to hold for long-term in Singapore, and I only buy freehold properties (which are rare since most properties available in Singapore are 99-years leasehold). Foreigners will never understand, no matter how you tell them and shared with them

Anyway, my experience is that properties' returns over the long-term of 20 years or more (if I leverage) is still much better than stocks. And stocks' return will be even much lower if I am going to DCA blindly (like what we were told here).

 

[chekseng80]

I want Chinese equity exposure, no matter where they are listed in, so China + HK + Taiwan. Thanks for replying!

FSM new etf list has a china etf listed in hk. Good for u coz it has all shared class in it.

 

[Perfect1onist]

Hi, I am brand new to investing but I had read quite a fair bit on etf and intend to buy it. I am looking to buy the CSPX etf. Is it a good time now to buy it?

Should I use Saxo platform to buy CSPX? I am thinking of buying around 3 - 4 times a year doing DCA

 

[chrisloh65]

No one replying you on this?
If you want ETF containing China listed stocks, can try 2822.HK that tracks the China A50 index.
If you want ETF containing H-shares (China-based companies listed on HKSE), can try 2828.HK.

Some people will tell you CNYA.L, but this is not preferred because its trading is very very illiquid and it is traded in US$ and you are exposing yourself to US$ (which is not desirable since you want investment in China, and US is now treating China as enemy and there is likely more and more decoupling - So take side, US vs China!)

I want Chinese equity exposure, no matter where they are listed in, so China + HK + Taiwan. Thanks for replying!

 

[chrisloh65]

You pledge $418k, so income considered = $8708 p.m.
$1.5M loan means monthly loan instalment = $5000 p.m. if you borrow for 30 years?
If so, your broker should be right since your TDSR = (5000/8708) = 57.4%.

And why need to show $1 Million on application (does this include the $418k?) when you already pledged $418k? This is strange to me. Looks like your bankers are being too conservative?

Yeh property is great even in Australia.

Anyways looking into private for the first time and spoke to a SCB broker. Since I don’t work with assume zero income I asked how much pledged cash 48 months do I fork out for a 75 percent LTV, 2 mil ppty and 1.5 million loan. She tells me only 418k sgd. and just show then I have 1 million on application.

Now I think she calculated incorrectly by not applying 60 percent TDSR and repeated several times tactfully of her mistake but she was adamant nothings wrong to the point she might be thinking I’m stupid.

This is a new purchase. So anyone here can tell me who is right ? Cuz 418k pledged for 1.5mil sounds generous !

 

[swan02]

Why didn’t u apply TDSR 60 percent to $8708 since it’s income ? Since when pledged assets are exempted from
TDSR ? no haircut applied.

I’m borrowing 20 years since wife is 45

I think the lender may b offended as she is a senior in her position. She actually clarified and now tells me I need to show 1 mil plus 418k for a total of 1.418m !!! wow where r all the figures coming from ? Any broker wishes to enlighten me ?

You pledge $418k, so income considered = $8708 p.m.
$1.5M loan means monthly loan instalment = $5000 p.m. if you borrow for 30 years?
If so, your broker should be right since your TDSR = (5000/8708) = 57.4%.

And why need to show $1 Million on application (does this include the $418k?) when you already pledged $418k? This is strange to me. Looks like your bankers are being too conservative?

 

[celtosaxon]

No one replying you on this?
If you want ETF containing China listed stocks, can try 2822.HK that tracks the China A50 index.
If you want ETF containing H-shares (China-based companies listed on HKSE), can try 2828.HK.

Some people will tell you CNYA.L, but this is not preferred because its trading is very very illiquid and it is traded in US$ and you are exposing yourself to US$ (which is not desirable since you want investment in China, and US is now treating China as enemy and there is likely more and more decoupling - So take side, US vs China!)

Chris, I feel so.... exposed, I had no idea the listing currency of an ETF could impact the value of the fund.

So you recommend ETF listed in HKD... wait, let me guess, HKD is pegged to the CNY?

 

[cassowary18]

Hi, I am brand new to investing but I had read quite a fair bit on etf and intend to buy it. I am looking to buy the CSPX etf. Is it a good time now to buy it?

Should I use Saxo platform to buy CSPX? I am thinking of buying around 3 - 4 times a year doing DCA

No. Use Standard Chartered. Saxo got custody fees.

 

[cassowary18]

Chris, I feel so.... exposed, I had no idea the listing currency of an ETF could impact the value of the fund.

So you recommend ETF listed in HKD... wait, let me guess, HKD is pegged to the CNY?

Don't be foolish. If your principle is correct, the constituent stocks in the S&P 500 is worth different in VUSD vs VUSA. Think about whether that makes sense.

 

[swan02]

Didn’t BBC and Shiny gone over this a million times ?

If I understand clearly from them, the underlying currency the ETF is in does not matter. To me it’s logical.

I once held the same as Chris. But I have to disagree with him.

The only thing that differentiates prolly be greater liquidity if denominated in USD.

Chris, I feel so.... exposed, I had no idea the listing currency of an ETF could impact the value of the fund.

So you recommend ETF listed in HKD... wait, let me guess, HKD is pegged to the CNY?

 

[celtosaxon]

Didn’t BBC and Shiny gone over this a million times ?

If I understand clearly from them, the underlying currency the ETF is in does not matter. To me it’s logical.

I once held the same as Chris. But I have to disagree with him.

The only thing that differentiates prolly be greater liquidity if denominated in USD.

You are on the right track Swan.

I was being facetious in my reply to Chris. There is absolutely no currency impact whatsoever. It is an undeniable fact that can be proven by taking identical funds denominated in different currencies and comparing their performance over time, then adding back exchange rate changes.

I was also trying to point out the irony of how a HKD denominated fund is equivalent to a USD denominated fund, because HKD is in fact pegged to the USD, not the CNY.

 

[WoShiPro]

Any opinion on new stashaway china tech etf? kweb? It listed in both US and UK. I dun think it's Irish domiciled thou.

Any other etf with exposure to China tech and not the whole market?