Official Shiny Things thread—Part III

[Johnpierpontmorgan]

Arkk ??
Brk.b??

 

[moolala]

SPY is listed on SGX also, symbol: S27.

The only tax inefficiency for a non-US holder during their lifetime would be the 30% withholding tax on the quarterly dividend payments. The annual dividend yield is currently 1.64%, so you would see 1.15% instead... about a half percent loss. But the TER is only 0.09%, so adding a half percent to that - still better than most unit trusts available here. Note that any increase on the share price (capital gains) realized by a non-US holder are 100% tax free.

If you would like more efficient S&P 500 exposure, CSPX listed on the London Stock Exchange is probably the ETF you want. The TER is only 0.07% and the dividend withholding tax is 15% instead of 30% due to tax treaty, or about a quarter percent annually. Investing in London also avoids potential US estate tax issues for your heirs.

cspx got options?

 

[cassowary18]

cspx got options?

Just buy SPX options instead?

 

[Maeda_Toshiie]

Stonks lol

https://www.youtube.com/watch?v=9EYmDsYRe8M&feature=youtu.be

 

[omnipage]

Clarification question to ST:

Generally you encouraged monthly DCA into STI Index, MBH and IWDA. The dividends may however be used as cash to further reinvest into the STI index,MBH and IWDA.

It is much safer than DCA-ing into a solo company such as DBS/Microsoft because the risk is higher. As i am thinking why not DCA-ing into a single company, but i guess the idea is stupid and risky.

2 questions:
1) Are the 3 options (STi index, IWDA and MBH) still recommended ?
2) Is there a recommended online calculator you normally use to calculate the profits (dividend reinvest) ?

 

[Crizerack]

I have done my calculations on Whole life vs Term plans as well.

Just to check, say for example a 35 year term life vs a whole life (payment for 20 years)
Did you do a compound interest calculation from the 21st year to 35th year?

If you did, you'll find that term life is actually cheaper. But of course if you only calculate for the first 20 years, term life will seem more expensive. Suggest you recalculate again.

 

[swan02]

anyone,

Is XDEW the best s&p 500 equal weighted etf in the LSE ?

 

[pylpoh]

Is it worth to switch from IB to TDA? I have been doing about 1.4k sgd / month on iwda for the past year.

 

[BBCWatcher]

Is it worth to switch from IB to TDA? I have been doing about 1.4k sgd / month on iwda for the past year.

TD Ameritrade doesn’t broker anything except U.S. listed securities, so that’s a no if you want to continue buying IWDA.

 

[mimicoco77]

TDA 0 commission ... for stock..not sure last till when .

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[BBCWatcher]

TDA 0 commission ... for stock..not sure last till when .

Correct, only for U.S. listed/traded stocks and ETFs. Instead, TD Ameritrade sells the order flow as one significant way it makes money. Investopedia explains the practice here.

 

[candy crush]

TDA 0 commission ... for stock..not sure last till when .

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beside TDA

which brokerage is good?

I am still use STD chartered recommended by most

shld I change now?

 

[highsulphur]

Would have executed 70% of my plan to buy es3 and iwda since Mar by this month end.

Es3 is still around the same level as when I started in Mar while iwda is about 30% higher (my gains are less though since I have been averaging up).

Net still lose money compare with pre covid but I managed to reduce my cash holdings to around 15% from 35% pre covid.

 

[kickass22]

Hi,

In your IPS document, where you have specified your objectives and target amount to reach for that objective. What do you put for the following :

Target amount to be reached : Does this include two numbers? One with inflation and one without ? or just one only ? which one?

So for the vesting amount , is it based of the inflation adjust amount or non inflation adjusted?

If you inflation in your returns , what inflation rate do you use for Singapore?

I currently use 2.5% .

Do you use a static inflation rate and return rate? or do you change it based on analysis and identifying that the amount cannot be reached due to high / low inflation or return expectation due to environment.

Appreciate your inputs. thanks!

 

[swan02]

Anyone,

What sort of tax rate is applied to Singaporean’s when investing into etfs such as XMED etf which is domiciled in Luxembourg ?

Thanks

 

[RuiQi_91]

Hello, I have an IBKR account (not an SG account yet) and would like to confirm that IBKR will take the monthly fee of 10 USD from the USD component of my account and not the SGD right? i.e. if I have 10 USD and 10 SGD in my account then IBKR will subtract the 10 USD from my account and not 13.6 SGD.

 

[hwckhs]

Hello, I have an IBKR account (not an SG account yet) and would like to confirm that IBKR will take the monthly fee of 10 USD from the USD component of my account and not the SGD right? i.e. if I have 10 USD and 10 SGD in my account then IBKR will subtract the 10 USD from my account and not 13.6 SGD.

It depends on your base currency settings:

https://www.interactivebrokers.com/en/software/am/am/manageaccount/basecurrency.htm

In addition, charges related to market data and research, inactivity fees, and commissions on Forex trades are also charged in your base currency.

 

[RuiQi_91]

It depends on your base currency settings:

https://www.interactivebrokers.com/en/software/am/am/manageaccount/basecurrency.htm

I did not know that thank you! In that case would it be better to keep it to USD or SGD?

 

[moolala]

TDA 0 commission ... for stock..not sure last till when .

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ah, not forever 0 commission meh?

 

[hwckhs]

I did not know that thank you! In that case would it be better to keep it to USD or SGD?

There are proponents for either USD or SGD as base currency for different reasons. I just use SGD, I think it was auto-selected for me when my IBKR account was created. The base currency is simply a preference.

The only quirk I had observed in the past, with SGD as base currency, is that if your SGD balance is lower than the amount IBKR tries to deduct, IBKR auto converts a small amount of your USD to make up the short fall. There is no commission charged for these auto-conversions. So, this does not bother me.