Official Shiny Things thread—Part III

[converse2010]

You just redeem G3B on POSB IS and use the money to buy other ETFs

Hmm I thought G3B is part of the portfolio?

 

[makav31i]

Hmm I thought G3B is part of the portfolio?

I think he meant you sell the amount you need to rebalance while keeping the remainder...You don't need to do full redemption for POSB IS, can do partial redemption...

 

[cassowary18]

Hmm I thought G3B is part of the portfolio?

I think he meant you sell the amount you need to rebalance while keeping the remainder...You don't need to do full redemption for POSB IS, can do partial redemption...

Yeah of course that's what I meant haha.

 

[Nyan]

Thanks for taking the time to reply. But won’t it be better to buy the index or unit trust to get more than 2.5%? I mean even the dividends alone may outperform the 2.5%.

I know there’s a risk, but would the stock market really be performing lower than what it is today in 2 years time?

No intention in buying a house yet.

Nyan, did you mean 20 years? Because if you really meant 2 years, I agree with Thoreldan.

For perspective, the 2 year Singapore Government Security (NY07100X) is currently yielding about 0.23% if you were to buy it on the secondary market, excluding fees and the bid-ask spread. Your CPF Ordinary Account is yielding 2.5%, or about 227 basis points above the yield on the same government's 2 year debt. You should be thrilled with 2.5%/year on 2 year money in the current environment.

 

[noobmaster89]

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.

Why do you need to calculate compound interest? I think you need to relook your perspective in terms of CI insurance. Just a simple calculation of overall premiums paid will show you that limited WL plans are cheaper. Suggest you get a quote for a 100k CI plan with multiplier to age 85 (limited pay 20 years) and compare it to a term CI plan till age 65.

Of course, if you view WL plans as investment then it’s a different story. Like I said, WL CI plans are never meant to be surrendered. It acts as a small buffer, which I will top up with cheap term plans to boost my coverage where neccessary. I suppose you need to seek advice from an independent and qualified advisor and get some quotations. You’ll know what I mean

 

[RuiQi_91]

Hello, I currently have an IBKR US account with <100k USD and am planning to create an IBKR SG account since it is what's highly recommended now for the purchase of ES3, G3B/A35 and IWDA.

Do I need to manually transfer the holdings from the US account to the SG one or is it done automatically? Can I also merge the account or is it also done automatically? Any other important things that I must take note of?

 

[makav31i]

Yeah of course that's what I meant haha.

That is the only problem with POSB IS, rebalancing only works one way, in which you sell the G3B to purchase more of another stocks as you can only change the amount invested in multiples of $100...

On the other hand, FSM RSP allow you to change your monthly investment amount to the last cent but when you want to sell ES3 to rebalance, you have to pay the minimum commission of $10...

Both got their own pros and cons...

 

[BBCWatcher]

Thanks for taking the time to reply. But won’t it be better to buy the index or unit trust to get more than 2.5%? I mean even the dividends alone may outperform the 2.5%.

I know there’s a risk, but would the stock market really be performing lower than what it is today in 2 years time?

Of course you could lose money on a punt like this within 2 years. You could even lose a lot of money. Right now ES3's share price is down about 20% from its level 2 years ago. Adding dividends but subtracting the hefty costs, and you'd definitely be down, a lot, versus 2.5%/year interest. "Past performance is not indicative of future results," but it certainly could be, or worse, sure.

No intention in buying a house yet.

So a couple questions then:

1. If you're unhappy with 2.5%/year interest, why aren't you transferring at least some OA dollars to SA for 4.0%/year interest?

2. Why have you specified a 2 year time horizon for these dollars?

 

[swan02]

So i know someone who wants to purchase EQQQ 500sgd monthly.

What’s the current fashion in the house as a trading platform for such meagre amount ?

Thanks

 

[cassowary18]

So i know someone who wants to purchase EQQQ 500sgd monthly.

What’s the current fashion in the house as a trading platform for such merger amount ?

Thanks

Monthly? Like not planning to batch up over a few months? IBKR would be the best.

 

[swan02]

Monthly? Like not planning to batch up over a few months? IBKR would be the best.

Even batching will not hinder the monthly maintenance cost incurred which can go as high as 20usd a month

 

[converse2010]

I think he meant you sell the amount you need to rebalance while keeping the remainder...You don't need to do full redemption for POSB IS, can do partial redemption...

Yeah of course that's what I meant haha.

I see.. Thanks! Cause I was thinking POSB IS will force full redemption.

 

[MangoTuna65]

Seeking advice

Hi everyone,

I am just starting off ETF investing and have a few questions.

Background - I am 35yo, married with 2 kids. I have about 200k in SSBs currently in their 2nd year earning ~2.2% this year. This pot of money will serve as my family's emergency funds.

1) I am not looking for dividend income for now at least, so I am planning to delay putting money into STI ETFs and go full steam with S&P500 ETFs. Does this make sense or am I doing something stupid?

2) I made an account with interactive brokers and read on this forum that there is the 'SG' version of IB? Are there differences between a SG and non SG account and how can I tell which account did i create?

3) The S&P500 ETF i am looking at is CSPX. On interactive brokers, it shows as CSSPX ISHARES CORE S&P 500 LSEETF. Is this the correct one? My understanding is that CSPX and CSSPX are just different names on the irish and london exchanges respectively, but they are referring to the same ETF right?

4) I am looking to park money for at least 15 years. My expenditures spreadsheet tells me that I can probably put in ~35k per year barring sudden spikes in spending. Would it matter alot to do DCA and put money in monthly or do a lump sum investment to save time buying shares every month?

5) Dumb question: to actually buy the shares, do I have to purchase them when the LSE market opens? and I should offer the asking price at that time of purchase ... right?

Thank you in advance for answering my questions and any advice is appreciated!!!

 

[razoreigns]

1) I am not looking for dividend income for now at least, so I am planning to delay putting money into STI ETFs and go full steam with S&P500 ETFs. Does this make sense or am I doing something stupid?

It’s ok to me to exclude STI. What about bonds though? You should not confuse your emergency funds with bond allocation. You might also choose to be more globally diversified.

2) I made an account with interactive brokers and read on this forum that there is the 'SG' version of IB? Are there differences between a SG and non SG account and how can I tell which account did i create?

If done very recently, it should be sg

3) The S&P500 ETF i am looking at is CSPX. On interactive brokers, it shows as CSSPX ISHARES CORE S&P 500 LSEETF. Is this the correct one? My understanding is that CSPX and CSSPX are just different names on the irish and london exchanges respectively, but they are referring to the same ETF right?

Cspx is the one.

4) I am looking to park money for at least 15 years. My expenditures spreadsheet tells me that I can probably put in ~35k per year barring sudden spikes in spending. Would it matter alot to do DCA and put money in monthly or do a lump sum investment to save time buying shares every month?

If you don’t have the 35k today, do it monthly. Otherwise, lumpsum today and subsequently monthly dca.

5) Dumb question: to actually buy the shares, do I have to purchase them when the LSE market opens? and I should offer the asking price at that time of purchase ... right?

Yes and yes.

 

[swan02]

After thinking a bit, it appears that Ameritrade is the right account to open ?

hence purchasing QQQ etf instead and accumulate it till close to 100k usd before moving to IB.

Also being aware of tax differential being small given that QQQ smaller TER offsets the tax savings of EQQQ domiciled in Ireland.

And also being aware of the death tax of
USA domiciled funds.

so anyone wishes to rebut AMERITRADE as being the choice for the already mentioned scenario !

So i know someone who wants to purchase EQQQ 500sgd monthly.

What’s the current fashion in the house as a trading platform for such meagre amount ?

Thanks

 

[BBCWatcher]

After thinking a bit, it appears that Ameritrade is the right account to open ?

Currency conversion cost?

And why would you buy QQQ at all? A stock that's listed on the NASDAQ is good but across the street on the NYSE it's bad?

 

[moolala]

Cspx is the one.

Does CSPX track the value of SPY 1 to 1? meaning if SPY is 320, CSPX is 320 for the fair value?

 

[swan02]

Is there a better platform ?

not me buy. Someone else who only wishes to buy tech etf for 500 bucks a month for next 25 years.

and what’s better than QQQ for pure tech exposure ?

ameritrade only does USA domiciled.

Currency conversion cost?

And why would you buy QQQ at all? A stock that's listed on the NASDAQ is good but across the street on the NYSE it's bad?

 

[moolala]

So i know someone who wants to purchase EQQQ 500sgd monthly.

What’s the current fashion in the house as a trading platform for such meagre amount ?

Thanks

whats EQQQ? in GBP?

its a 1x NASDAQ 100 ETF?

 

[swan02]

Yeh in gbp and it’s Ireland domiciled version of the famous QQQ in usa domiciled.

And there is the equal weighted ones and there is also the X3 leveraged ones in Nasdaq.

The idea for these is to get those poor savers to commit to a 20 to 25 year plan on risky products with a small amount to cater or hedge for unforeseen circumstances such as tech taking over jobs, or education, retirement etc...

These fellas while earning 20k monthly refuses to save and bet on risky punts require lots of convincing and hence the small monthly pittance recommendation that perhaps might do wonders. He would rather punt 500 bucks in QQQ monthly then let say a forced saving insurance product.

whats EQQQ? in GBP?

its a 1x NASDAQ 100 ETF?