Official Shiny Things thread—Part III

[cfleee]

Hi all, apologies if this has been answered before but the search function doesn't throw up anything useful in this thread...

For incoming TT (telegraphic transfer) via USD or SGD, which bank in SG would have the lowest fee?

I seem to recall that some forumers have used UOB before and have only been charged about $10. I have foreign bank accounts too but it seems like they all charge a percentage of amount (ie higher fees)...

Thanks BBCWatcher for your input - was also hoping to find out in your experience which would charge lower FX fees and lower intermediary bank fees (as I presume those which charge low TT transaction fees make it up by giving a worse FX rate or route any non SGD inward transfers via multiple cheaper banks which each charge their own individual fee).

Moreso for eg. USD inward TT to a SGD account than SGD inward TT to SGD...

Is it the sort of incoming transfer that could be sent to a Transferwise Multi-currency account (formerly the Borderless account)? Once you deposit a small amount of money in, they will provide bank account details for you to accept both ACH deposits and wire transfers in USD.

If it's below SGD 5000-equivalent in total you have the option to hold it in the account balance and spend it down using the Transferwise debit card (no fees if you have the currency in account balance, conversion fee otherwise) or use it for ATM cash withdrawals overseas (first SGD 350/month equivalent is free). If it's above that limit, or if it's below but you choose to, you can convert the USD to SGD (0.46% conversion fee) and then withdraw SGD to your local bank account (SGD 1.40 fixed fee).

This way you should have more certainty about the total cost of the transactions + the forex conversion.

 

[SGRevolution]

is bbcwatcher joshua?
the writing style quite similar

 

[swan02]

Based on my experience as my husband’s sole caregiver, when he could no longer perform 3 of the 6 ADLs, he barely survived 10 days. So, he would not have been able to make a claim under any of these severe disability insurances. Similarly, if I was struck with a CI, I would unlikely be able to claim from my Eldershield or its supplements until it’s too late?

To die quickly upon afflicted with a severe disabiity is the aim and blessing. But its not always so and that is the curse and I've seen many. The worse are those having still to live when the mind is still fully intact. There are a whole list of diseases that causes such infliction and r dreadfully scary. A paralysed person with just one arm moving would satisfy the claims I believe ?? and that's a positive scenario. But I'm not an insurer, cuz in theory with mouth and one hand can still do a lot if done with passion.

If you were struck with CI, (and there is early stage CI and late stage), if you were inflicted with late stage, you in theory should die soon anyways. With early CI, you should be expected to survive and your medishield life is adequate and you can go back to your frugal life, hence why do you need CI for in both cases ?? Insurances is not meant to be windfall..........I would assume you are not working correct ? ....if you are, then problem is solved with a DII insurance.

On this basis, I think the best solution would be a standalone TPD and CI for life. However, as you have both pointed out, these plans would be too expensive especially for someone in my position.

As both BBC and I have pointed out, or at least I vehemently oppose CI as it is expensive and against my belief what insurances should be- i.e. to provide a reasonable basic quality of life worth living.

I don't exactly think TPD term is expensive. My wifes in her 40s cover for 250k is approx $450 a year, and that's already with a well known but expensive insurer..Maybe yours will be $700 a year ? ...since you didn't tell us how much assets you have, it is very difficult to judge.

Let say total investable assets including CPF (but excluding medisave) is 500k...that would put me in a dilemma. If just 300k, I would just hope for CSL+CPF+Portfolio+(and not forgetting any TPD cheap insurance u get via CPF-forgot whats it called)

I am already in my 50s, if I were to become a quadriplegic or if I cannot perform 3 of the 6 ADLs, I think I wouldn’t last for many years. Short of suffering in the hands of a likely disgruntled stranger, I think I’d likely lose all desire to live. So, if I were to supplement my Eldershield, I think I will only buy one that pays additional monthly payout but for a limited period rather than for life. I guess, had my husband not died, I would think differently ….

I do agree with you, if you do not have someone who genuinely loves and takes care of you, it is motivational to just pass. If you indeed do, at least I think its your duty to at least reward such a person in your eventual passing. Love can sustain a person for many many years.

I believe I will be auto-enrolled in Careshield Life next year. So, I may consider opting out just to keep my premium payments low.

I tot the advice was to get CSL ? I can't see how eldershield would be better but I could be wrong as I have not scrutinized eldershield for a while but was impressed by CSL and I'll certainly get that next year.

I have a private hospitals plan. I think I will likely be forced to downgrade.

More likely downgrade to the most basic. It is sufficient. Don't think like a rich person who aim to choose their doctors. I was in the health industry for so long, I've seen enough. If you want the best doctors, I suggest you work in a hospital even as basic as a cleaner or porter or delivery just to pass time will put you in good light and provided "premium" care not overtly obvious, but its a known thing.

 

[lowveld]

Is it the sort of incoming transfer that could be sent to a Transferwise Multi-currency account (formerly the Borderless account)? Once you deposit a small amount of money in, they will provide bank account details for you to accept both ACH deposits and wire transfers in USD.

If it's below SGD 5000-equivalent in total you have the option to hold it in the account balance and spend it down using the Transferwise debit card (no fees if you have the currency in account balance, conversion fee otherwise) or use it for ATM cash withdrawals overseas (first SGD 350/month equivalent is free). If it's above that limit, or if it's below but you choose to, you can convert the USD to SGD (0.46% conversion fee) and then withdraw SGD to your local bank account (SGD 1.40 fixed fee).

This way you should have more certainty about the total cost of the transactions + the forex conversion.

Hi thanks for the detailed guide. Could I use this method to receive a wire transfer of euros from a London broker with lower fees compared to a direct wire to DBS mca?

 

[Shiny Things]

is bbcwatcher joshua?
the writing style quite similar

Nah, I’m not BBCW. He knows way more about tax than me, for starters.

 

[Flash_Speed]

Hi Shiny and everyone,

I’m in my mid 20s and getting married in years time. I have saved for marriage and renovation. Thus currently working towards wealth accumulation for retirement at 65.

I have an understanding that etf will not be delist or worthless. Because it’s not a single entity. Also, market tend to average out with all the ups and downs. Thus, It’s where DCA shows it potential.

I’m struggling in splitting my money on getting insurance saving which promise high guarantee return and a track record of around 4%~ non guarantee return. While also invest accordingly to shiny’s guide.

Should I just go all out into investment according to shiny recommendations?

Initially wanted to get an annuity, but Swan mentioned that it’s better to concentrate in CPF Life.

 

[jacky817]

Hi Shiny and everyone,

I’m in my mid 20s and getting married in years time. I have saved for marriage and renovation. Thus currently working towards wealth accumulation for retirement at 65.

I have an understanding that etf will not be delist or worthless. Because it’s not a single entity. Also, market tend to average out with all the ups and downs. Thus, It’s where DCA shows it potential.

I’m struggling in splitting my money on getting insurance saving which promise high guarantee return and a track record of around 4%~ non guarantee return. While also invest accordingly to shiny’s guide.

Should I just go all out into investment according to shiny recommendations?

Initially wanted to get an annuity, but Swan mentioned that it’s better to concentrate in CPF Life.

Can I cfm what's the guaranteed return rate? Generally I think it's a bad idea to be buying savings/investing products from an insurance company. They're basically an unnecessary middle man leeching off your own money and returns. Only buy what insurance policies you need now, invest the rest.

 

[Eternit]

Hi Shiny and everyone,

I*********m in my mid 20s and getting married in years time. I have saved for marriage and renovation. Thus currently working towards wealth accumulation for retirement at 65.

I have an understanding that etf will not be delist or worthless. Because it*********s not a single entity. Also, market tend to average out with all the ups and downs. Thus, It*********s where DCA shows it potential.

I*********m struggling in splitting my money on getting insurance saving which promise high guarantee return and a track record of around 4%~ non guarantee return. While also invest accordingly to shiny*********s guide.

Should I just go all out into investment according to shiny recommendations?

Initially wanted to get an annuity, but Swan mentioned that it*********s better to concentrate in CPF Life.

Guarantee return, yes, maybe 1% to 2% you go ask how much. Track record can don't bother

 

[Flash_Speed]

Can I cfm what's the guaranteed return rate? Generally I think it's a bad idea to be buying savings/investing products from an insurance company. They're basically an unnecessary middle man leeching off your own money and returns. Only buy what insurance policies you need now, invest the rest.

Actually I should rephrase it. The guarantee return is around 1.5x the total premium pay. Eg, pay 10 years, then cash out when I want to. Which is 65.

Yeah. I feel insurance return is really not fantastic. But is etf really foolproof even like 40 years later? I read critic on etf. But I understand that IWDA is mirror the global economy. Unless the world economy is ****, else it won’t go burst. In fact, if IWDA fail, which equity will likely to survive?

Just my tots. I know very little on investment, just typing what I feel. Pardon me if I don’t make sense.

 

[zoneguard]

Actually I should rephrase it. The guarantee return is around 1.5x the total premium pay. Eg, pay 10 years, then cash out when I want to. Which is 65.

Read this and this so that you can evaluate the returns properly.

Yeah. I feel insurance return is really not fantastic. But is etf really foolproof even like 40 years later? I read critic on etf. But I understand that IWDA is mirror the global economy. Unless the world economy is ****, else it won’t go burst. In fact, if IWDA fail, which equity will likely to survive?

Before you invest, have you settled your emergency fund (which is not the same as your marriage/renovation fund) and IntegratedShield plan?

 

[cfleee]

Hi thanks for the detailed guide. Could I use this method to receive a wire transfer of euros from a London broker with lower fees compared to a direct wire to DBS mca?

The restriction is usually on the sending side. If they specifically require that the receiving bank account is in your name, which is a common requirement for brokers to prevent third-party transfers, then Transferwise bank account details won't work.

Are you thinking of Degiro or something like that? I don't think that works directly with Transferwise in either direction. But of course if you have a EUR bank account in your name somewhere, then you can do the withdrawal to that and then start the Transferwise transfer from there.

 

[Flash_Speed]

Thanks for the link.

Yup. I have my E fund of 4months

 

[Flash_Speed]

Before you invest, have you settled your emergency fund (which is not the same as your marriage/renovation fund) and IntegratedShield plan?[/QUOTE]
Thanks for the link.


Thanks for the link

Yup. I have my E fund of 4months

 

[BBCWatcher]

Yup. I have my E fund of 4months

A minimum of 6 months would be better. Please note when you're counting months that your and your HDB co-applicant's (your spouse's usually) CPF Ordinary Account balances count as emergency reserve for purposes of making mortgage payments (at standard, non-accelerated pace).

 

[Flash_Speed]

A minimum of 6 months would be better. Please note when you're counting months that your and your HDB co-applicant's (your spouse's usually) CPF Ordinary Account balances count as emergency reserve for purposes of making mortgage payments (at standard, non-accelerated pace).

Alright. So after that’s settled. Would you advise me to invest purely with whatever surplus I have ?

 

[zoneguard]

Alright. So after that’s settled. Would you advise me to invest purely with whatever surplus I have ?

Since you intend to retire at 65, the foundation of that will be to attain FRS in CPF, have a read so that you can get a lifelong cash flow from CPF LIFE from the age you start the payout, which is 65 now and likely to go upwards. There are 5 methods mentioned in the linked article which you can use to 'invest' your surplus cash.

 

[swan02]

umm.. I'm not sure what you mean about CPF life-but definitely CPF life which is an annuity, the best annuity probably in the world. It was applicable definitely for "Kayeesha", not sure for you in your situation.

You are very young, at this point in time, I'm actually in two worlds in your situation. The markets may currently be very expensive, and going forward might only bring about 5.5 percent unless the market crashes. But then also its mainly TECH that's expensive. If only TECH can just not crash, while allowing the rest to catch up........then if I were in your position, I'll just 100% equity DCA within 6 months.

Being young also brings a while lots of risks too, as also your salary won't be too flashy. However, if I have saved up for down payment HDB (priority), 6 months reserves, value-insurances in place, have excellent saving habits, rock solid rice bowl and marry someone who is as frugal (very dangerous if not)........then seriously, I will just DCA in 6 months, and then fully lump sum whatever cash flow extra you have into a world ETF such as IWDA, or VWRA/VWRD....and NOT look at the darn computer, cnbc, bloomberg, Chris Loh and probably on hindsight, don't learn about asset allocation..........just buy buy buy for the next 20 years.

However, if you have behavioural problems like I do who spend too much time on HWZ, have the tendency to complicate your asset allocation, then I guess follow the algorithm in Shiny's book.

Then you'll be in your 40ss..then you decide, how much you wish assuming its a good market, to take out out of your Equity portfolio and flush your SA and Wife's SA with a good portion such as maybe 30-40 percent.

I can only see lots of merits in topping up SA aggressively if you believe the market is expensive and future returns are low (which is likely). I also believe Singapore performs stealth welfare, ie. your 4-5 percent SA returns are unlikely to be eroded (assuming you believe in CPF and the govt-many don't).

Hi Shiny and everyone,

Initially wanted to get an annuity, but Swan mentioned that it’s better to concentrate in CPF Life.

 

[swan02]

Nah, I’m not BBCW. He knows way more about tax than me, for starters.

BBCW writing style is way different to Shiny's, ..reminds me of the days as an External Auditor, a VP female banker was so fond of correcting and rewriting my work/English, while I was busy auditing her dept !, that till today reminds me of BBCW-same style.

 

[whatdoyousee?]

Hello, I am new to investing late 20s - looking at IWDA vs VWRA? but not really sure which to pick since IWDA has no exposure in China, any advice appreciated!

 

[crystalnox]

Being young also brings a while lots of risks too, as also your salary won't be too flashy. However, if I have saved up for down payment HDB (priority), 6 months reserves, value-insurances in place, have excellent saving habits, rock solid rice bowl and marry someone who is as frugal (very dangerous if not)........then seriously, I will just DCA in 6 months, and then fully lump sum whatever cash flow extra you have into a world ETF such as IWDA, or VWRA/VWRD....and NOT look at the darn computer, cnbc, bloomberg, Chris Loh and probably on hindsight, don't learn about asset allocation..........just buy buy buy for the next 20 years.

Still not sure what he's advocating, hold cash and China stock?