Dear mafiadysio,
You are subscribed to the thread "*Official* Shiny Things club" by yukari_san3, there have been 67 post(s) to this thread, the last poster was Purplestars.
http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757.html
These following posts were made to the thread:
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110356568.html#post110356568
Posted by: Shiny Things
On: 19-09-2017 12:57 AM
---Quote (Originally by 13luetooth)---
Wow thats very good financial investment that you have.
I kind of worried that it might not be enough or the returns does not reach my expectations that may cause a disruption in my financial goals.
I saw that you have more ETFs other than the above mentioned 3. Can I get advice from you on whether it is required to explore more etf options?
---End Quote---
The thing is, IWDA's already pretty darn diversified - it owns literally every developed-market stock in the world. You might want to look at other ETFs to diversify into other asset classes - global bonds, preferred shares, commodities (ick), but it's not really worth worrying about that until you get to about the $100k mark. Below that mark you're going to be buying a couple thousand dollars' worth at most, which isn't going to make any appreciable impact on your returns; it'll just make you run up transaction costs.
---Quote (Originally by alyssax)---
Have read ST's book as well as half of the posts in this thread (with the other half to follow over the next week). Advice would be much appreciated for a newbie investor who's also looking to own property in the next 3-5 years.
1. My expenses are around 2k a month, so following the 6 month rule, my emergency funds should be in the range of 12-15k. Should I set more cash aside (say 60k now, and 1k every month thereafter) for the down payment of the house (around 200k). My CPF should have 100k in 3 years.
2. Depending on the answer to my first question, I should have around 80-100k in cash to invest now. How should many months should I spread out my investment - 6 months sound sensible based on the forum posts.
3. I would like to invest 3-4k a month thereafter, following the recommended 40/40/20 ratio for my age. I have set up a SCB account. Is it sensible for me to use IB or SCB for the global stocks component. To minimise fees, I will invest in only 1 counter a month.
4. Should I also consider putting in money in SRS account or using CPF funds to invest?
Typing this on my phone, so apologies for the inevitable typos.
---End Quote---
1) Keep your lump of cash for the house downpayment separate from everything else, since you'll need that in a couple of years; that's too short a time period to invest it in anything. Leave it in the bank.
2) If you've got cash left over, over and above the lump you're saving for the house deposit, then yep, 6 months is fine; I'd personally shorten it to three or four months, but either way is fine.
3) Use Interactive. You'll be over the $100k mark pretty quickly at that rate.
4) Reasonable people can disagree on this. If you're earning enough to take advantage of the SRS tax break (above about $80k or $100k/yr), then yeah, buying ES3 in your SRS account is a pretty good idea.
---Quote (Originally by Shouyo)---
Hi all!
Would you guys happen to have any advice for a newbie starting out in a profession that doesn't allow you to invest in STI ETF/most of SGX? It's quite a bummer for me, since I was planning to follow the method proposed by Shiny Things in here :s22:
---End Quote---
Crikey, you can't even buy the STI ETF? That's a bit harsh; hopefully they'll let you own A35 given that it's just SGS and GLC bonds under the hood?
Anyway, check if they'll let you own IWDA and EIMI. As someone suggested, EIMI's not a bad proxy for the Singaporean market.
---Quote (Originally by crystalnox)---
Hi Shiny, I think you've mentioned it maybe in the past before? but do you have a list of people worth following on twitter for little financial tidbits like these?
---End Quote---
Not an official list, but if you check out my followers list on Twitter you might find some gems (and a whole lot of cats; my Twitter right now is about 50/50 financial wonkery and cute cat pictures).
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110357573.html#post110357573
Posted by: InterestingStuff
On: 19-09-2017 07:25 AM
Shiny
What is your opinion on volume indicators like vwap ?
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110362443.html#post110362443
Posted by: alexilaiho
On: 19-09-2017 12:30 PM
if i transfer sgd to usd in scb, and then transfater back usd to sgd, do i lose out? or shd i keep excess usd in the usd account?
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110363087.html#post110363087
Posted by: revhappy
On: 19-09-2017 01:10 PM
---Quote (Originally by alexilaiho)---
if i transfer sgd to usd in scb, and then transfater back usd to sgd, do i lose out? or shd i keep excess usd in the usd account?
---End Quote---
You lose 3% of your principal.
Sent from Xiaomi REDMI NOTE 4 using GAGT (https://play.google.com/store/apps/details?id=com.shiportal.hwzreader&referrer=utm_source%3Dsignature%26utm_medium%3Dforum)
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110363093.html#post110363093
Posted by: limster
On: 19-09-2017 01:10 PM
---Quote (Originally by alexilaiho)---
if i transfer sgd to usd in scb, and then transfater back usd to sgd, do i lose out? or shd i keep excess usd in the usd account?
---End Quote---
thats why USD HY account with us$ debit card is useful, can use the US$ to buy amazon,ebay, fund paypal, etc, and also avoid the high forex premium for regular S$ credit cards. but the account is for PB only.
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110363221.html#post110363221
Posted by: tenmore
On: 19-09-2017 01:17 PM
Hi
I had bought ST new second version book. In PDF format i had 83 pages. But when i compare the one sold in amazon (from the web) it mention the book has about 145 pages.
Am i missing some pages?
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IWDA reinvestment
http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110363863.html#post110363863
Posted by: Calpha K
On: 19-09-2017 01:58 PM
---Quote (Originally by celeron787)---
Can I check how does reinvesting of dividends work for IWDA through SCB? Do we get more shares credited to our account? What if the dividend amount is not enough for a single share, what happens to it?
---End Quote---
---Quote (Originally by revhappy)---
The reinvestment of dividend happens internally in the fund, transparent to you. Theoretically when a stock gives out dividend its price falls. So if the fund gives out dividend its price also falls. But when the dividend is reinvested, its price doesn't fall, because internally the fund buys more of the same stock using the dividend.
---End Quote---
---Quote (Originally by celeron787)---
So this means that the price of IWDA goes up, returns will be capital gains?
---End Quote---
---Quote (Originally by revhappy)---
Yes, compared to an equivalent etf that pays dividends, price of IWDA goes up. Returns will be capital gains.
---End Quote---
Hi all, could someone enlighten me here? So IWDA's auto reinvestment will only lead to capital gains. Since we are trying to DCA and hold for 20-30 years, the share price will definitely fluctuate in those 2,3 decades yes?
Which brings me to the point, wouldnt this be useless then? Since I am not getting more shares, but instead seeing a rise in the share price, paper profit that I will cash out only after 30 years, and which would definitely drop within the 30 years.
Yes, equities tend to go up in the long run, therefore my question, shouldnt I just let the stock run by itself? If I let it reinvest, the share price will just drop anyway, of course it will rise back up, but then whats the point of the "reinvestment" then?
Wouldn't I be better off with a "distributing" type of dividend instead? Where I can receive cold hard cash instead? and not just paper profit?
Looking forward to learning more from you guys! Thank you!
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110364798.html#post110364798
Posted by: alexilaiho
On: 19-09-2017 03:05 PM
---Quote (Originally by revhappy)---
You lose 3% of your principal.
Sent from Xiaomi REDMI NOTE 4 using GAGT (https://play.google.com/store/apps/details?id=com.shiportal.hwzreader&referrer=utm_source%3Dsignature%26utm_medium%3Dforum)
---End Quote---
u saying sgd to usd in and out for iwda will incur avg 3% loss from forex?
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110364827.html#post110364827
Posted by: alexilaiho
On: 19-09-2017 03:07 PM
---Quote (Originally by Calpha K)---
Hi all, could someone enlighten me here? So IWDA's auto reinvestment will only lead to capital gains. Since we are trying to DCA and hold for 20-30 years, the share price will definitely fluctuate in those 2,3 decades yes?
Which brings me to the point, wouldnt this be useless then? Since I am not getting more shares, but instead seeing a rise in the share price, paper profit that I will cash out only after 30 years, and which would definitely drop within the 30 years.
Yes, equities tend to go up in the long run, therefore my question, shouldnt I just let the stock run by itself? If I let it reinvest, the share price will just drop anyway, of course it will rise back up, but then whats the point of the "reinvestment" then?
Wouldn't I be better off with a "distributing" type of dividend instead? Where I can receive cold hard cash instead? and not just paper profit?
Looking forward to learning more from you guys! Thank you!
---End Quote---
Don't understand what you mean by dropping, the IWDA funds buys more shares for its fund, so you do get more shares Not of IWDA but of the coys in IWDA. If you want cash from your investing then just invest less and that is your cash
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110365229.html#post110365229
Posted by: salmonella
On: 19-09-2017 03:34 PM
---Quote (Originally by tenmore)---
Hi
I had bought ST new second version book. In PDF format i had 83 pages. But when i compare the one sold in amazon (from the web) it mention the book has about 145 pages.
Am i missing some pages?
---End Quote---
No. The PDF page and word size are different. The Kindle eBook count of 145 pages is only an "estimated length is calculated using the number of page turns on a Kindle, using settings to closely represent a physical book."
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110366535.html#post110366535
Posted by: Ap3s
On: 19-09-2017 05:03 PM
I'm just curious if most of you really plow all your salary into this retirement strategy after deducting for your expenses and setting aside your emergency savings. Or do you have a magic number for monthly allocation, ie: 10% savings, 40% expenses, 50% investment?
And in addition to this retirement strategy, if i'm interested to allocate some ammo (5%?) for speculation purpose (high risk high reward), what investment instrument would you all recommend?
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110366708.html#post110366708
Posted by: revhappy
On: 19-09-2017 05:16 PM
---Quote (Originally by alexilaiho)---
u saying sgd to usd in and out for iwda will incur avg 3% loss from forex?
---End Quote---
Yes.
Sent from Xiaomi REDMI NOTE 4 using GAGT (https://play.google.com/store/apps/details?id=com.shiportal.hwzreader&referrer=utm_source%3Dsignature%26utm_medium%3Dforum)
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110367194.html#post110367194
Posted by: alexilaiho
On: 19-09-2017 05:48 PM
---Quote (Originally by revhappy)---
Yes.
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---End Quote---
in that case, im better off with sti etf and local stuff..
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110368062.html#post110368062
Posted by: SnakeRabbit
On: 19-09-2017 06:47 PM
a close friend of mine was asking me about investment. i suggested to him to DIY investment the "shiny thing" way, but he says he is just bad at stuff like this and was hoping to just buy and forget, like a regular savings plan.
So i suggested robo advisor and POSB invest savers.
Even thou the rates are kinda high compared to the one in US, im pretty sure they are here to stay and sort of replace those saving plans which charge alot more.
After look thru them, Stashaway & Smartly ETF selection seems like its very USA heavy?
Compared to Autowealth, seems more diverse and global.
So what do u guys think? personally i think ill ask my friend to go with autowealth, but i just want to hear more opinion.
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110368844.html#post110368844
Posted by: DeadshotX
On: 19-09-2017 07:36 PM
Where can I get the Ebooks now?
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110372926.html#post110372926
Posted by: beefjerky
On: 19-09-2017 11:47 PM
Hi guys I was thinking of such an asset allocation, could you give some advice? The fraction indicates the amount that I am currently vested, the remaining amount is in cash ready to be utilised (basically I just nibble a little every few months). The plan is that if a crash happens I'll pull 17k out from the bonds to top up iwda / china index
China etf hd8 5/12.5k
Malaysia etf lg6 2.5/7.5k
Iwda 2.5/20k
Sti etf 32.5k
XLE energy select sector (wanted to get commodity index but read about the negative aspects of it) 0/5k
Abf index 0/7k
Ssb 2.44% 10k
Retail Bond 0/2k
Retail perp sec 1k
Cold storage
Noble 5.5k
Mmp 1.8k
Oh and also is it advisable to be putting anything into cpf oa / sa etc for now? Will probably need to bto in 5-8 years
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110372973.html#post110372973
Posted by: alyssax
On: 19-09-2017 11:50 PM
---Quote (Originally by Shiny Things)---
1) Keep your lump of cash for the house downpayment separate from everything else, since you'll need that in a couple of years; that's too short a time period to invest it in anything. Leave it in the bank.
4) Reasonable people can disagree on this. If you're earning enough to take advantage of the SRS tax break (above about $80k or $100k/yr), then yeah, buying ES3 in your SRS account is a pretty good idea.
---End Quote---
I would *like* to buy a house in 3-5 years, but can probably forgo this if necessary. Will factor this accordingly and set aside a lump sum.
Re: SRS, I will look into putting 5-10k into a SRS account once I am a bit closer to buying my house!
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110373383.html#post110373383
Posted by: Shiny Things
On: 20-09-2017 12:28 AM
---Quote (Originally by beefjerky)---
Hi guys I was thinking of such an asset allocation, could you give some advice? The fraction indicates the amount that I am currently vested, the remaining amount is in cash ready to be utilised (basically I just nibble a little every few months). The plan is that if a crash happens I'll pull 17k out from the bonds to top up iwda / china index
China etf hd8 5/12.5k
Malaysia etf lg6 2.5/7.5k
Iwda 2.5/20k
Sti etf 32.5k
XLE energy select sector (wanted to get commodity index but read about the negative aspects of it) 0/5k
Abf index 0/7k
Ssb 2.44% 10k
Retail Bond 0/2k
Retail perp sec 1k
Cold storage
Noble 5.5k
Mmp 1.8k
Oh and also is it advisable to be putting anything into cpf oa / sa etc for now? Will probably need to bto in 5-8 years
---End Quote---
I think you've got way too much stuff floating around.
Let's start with the Noble and MMP: is that MMP Resources you're talking about? If it is, then those are both trash; get rid of them and invest in something that's not a penny stock you bought on a hot tip from someone.
Your allocations to "retail bond" and "retail perpetuals" are too small; they're not going to make any appreciable difference to your returns, and frankly both of those spaces are stuffed with rubbish that doesn't give you an adequate return for the credit risk you're taking. Ditch them both.
If you insist on having those China and Malaysia ETFs, I won't try to talk you out of it (Malaysia might actually be kind of interesting from a valuation perspective, though I haven't looked at it lately). What's your rationale for the energy-sector ETF, though?
---Quote (Originally by DeadshotX)---
Where can I get the Ebooks now?
---End Quote---
Amazon or Gumroad.
---Quote (Originally by SnakeRabbit)---
a close friend of mine was asking me about investment. i
Even thou the rates are kinda high compared to the one in US, im pretty sure they are here to stay and sort of replace those saving plans which charge alot more.
After look thru them, Stashaway & Smartly ETF selection seems like its very USA heavy?
Compared to Autowealth, seems more diverse and global.
So what do u guys think? personally i think ill ask my friend to go with autowealth, but i just want to hear more opinion.
---End Quote---
Autowealth is still using US-listed ETFs, so they're lining their investors up for an unnecessary withholding tax hit. How are all these robo-advisors falling into the simplest trap of the lot?
I don't think any of them are up to scratch at the moment.
---Quote (Originally by Ap3s)---
I'm just curious if most of you really plow all your salary into this retirement strategy after deducting for your expenses and setting aside your emergency savings. Or do you have a magic number for monthly allocation, ie: 10% savings, 40% expenses, 50% investment?
---End Quote---
As long as my emergency fund is full up, I plow it all in. What else am I going to do, just leave it in the bank?
---Quote---
And in addition to this retirement strategy, if i'm interested to allocate some ammo (5%?) for speculation purpose (high risk high reward), what investment instrument would you all recommend?
---End Quote---
You're asking people to talk their book here; are you sure you want to do that?
---Quote (Originally by alexilaiho)---
u saying sgd to usd in and out for iwda will incur avg 3% loss from forex?
---End Quote---
Er, no. I think it's more like 1.5% for the round trip. It's certainly not cheap, but that's the cost of doing business; you have to pay the FX spread if you want to buy overseas stocks.
---Quote (Originally by Calpha K)---
Hi all, could someone enlighten me here? So IWDA's auto reinvestment will only lead to capital gains. Since we are trying to DCA and hold for 20-30 years, the share price will definitely fluctuate in those 2,3 decades yes?
Which brings me to the point, wouldnt this be useless then? Since I am not getting more shares, but instead seeing a rise in the share price, paper profit that I will cash out only after 30 years, and which would definitely drop within the 30 years.
Yes, equities tend to go up in the long run, therefore my question, shouldnt I just let the stock run by itself? If I let it reinvest, the share price will just drop anyway, of course it will rise back up, but then whats the point of the "reinvestment" then?
Wouldn't I be better off with a "distributing" type of dividend instead? Where I can receive cold hard cash instead? and not just paper profit?
---End Quote---
The point of ETFs that reinvest their dividends is that the price goes up faster than if the dividends were distributed.
Think about it this way. Let's say you've got an ETF that pays 2% per year dividends. If those dividends get reinvested, then no matter what happens - whether the price goes up or down or sideways - the reinvesting ETF will go up 2% per year more than an equivalent "distributing" ETF.
And that 2% per year compounds, as well, because you're getting dividends-on-dividends. If you take the divs out and spend it, you lose the compounding benefit.
---Quote (Originally by InterestingStuff)---
Shiny
What is your opinion on volume indicators like vwap ?
---End Quote---
Uh, not sure what you mean here; VWAP is just "what's the average volume-weighted price that trades have gone through at today?". It's not a magic number.
If you're asking "will watching the VWAP help me make MAD CASHOLA", then, no, it will not.
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110374620.html#post110374620
Posted by: kevinkoh1992
On: 20-09-2017 07:19 AM
---Quote (Originally by Shiny Things)---
I think you've got way too much stuff floating around.
Let's start with the Noble and MMP: is that MMP Resources you're talking about? If it is, then those are both trash; get rid of them and invest in something that's not a penny stock you bought on a hot tip from someone.
Your allocations to "retail bond" and "retail perpetuals" are too small; they're not going to make any appreciable difference to your returns, and frankly both of those spaces are stuffed with rubbish that doesn't give you an adequate return for the credit risk you're taking. Ditch them both.
If you insist on having those China and Malaysia ETFs, I won't try to talk you out of it (Malaysia might actually be kind of interesting from a valuation perspective, though I haven't looked at it lately). What's your rationale for the energy-sector ETF, though?
Amazon or Gumroad.
Autowealth is still using US-listed ETFs, so they're lining their investors up for an unnecessary withholding tax hit. How are all these robo-advisors falling into the simplest trap of the lot?
I don't think any of them are up to scratch at the moment.
As long as my emergency fund is full up, I plow it all in. What else am I going to do, just leave it in the bank?
You're asking people to talk their book here; are you sure you want to do that?
Er, no. I think it's more like 1.5% for the round trip. It's certainly not cheap, but that's the cost of doing business; you have to pay the FX spread if you want to buy overseas stocks.
The point of ETFs that reinvest their dividends is that the price goes up faster than if the dividends were distributed.
Think about it this way. Let's say you've got an ETF that pays 2% per year dividends. If those dividends get reinvested, then no matter what happens - whether the price goes up or down or sideways - the reinvesting ETF will go up 2% per year more than an equivalent "distributing" ETF.
And that 2% per year compounds, as well, because you're getting dividends-on-dividends. If you take the divs out and spend it, you lose the compounding benefit.
Uh, not sure what you mean here; VWAP is just "what's the average volume-weighted price that trades have gone through at today?". It's not a magic number.
If you're asking "will watching the VWAP help me make MAD CASHOLA", then, no, it will not.
---End Quote---
Hi ST,
Correct me if I am wrong, but using the DCA strategy, we would end up buying lesser amount of the etf if the prices increase over time. As such, the DCA strategy would theoretically earn more from a etf that distributes dividends as the larger sum of money ( DCA base + dividends) as compared to an etf that reinvests the dividends (DCA base would buy lesser units at a higher price). Does this not imply that we would earn lesser from it. Unless the cost and effort of manually reinvesting the distributed dividends outweighs the benefits.
Sent from Google PIXEL using GAGT (https://play.google.com/store/apps/details?id=com.shiportal.hwzreader&referrer=utm_source%3Dsignature%26utm_medium%3Dforum)
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110374843.html#post110374843
Posted by: beefjerky
On: 20-09-2017 07:48 AM
---Quote (Originally by Shiny Things)---
I think you've got way too much stuff floating around.
Let's start with the Noble and MMP: is that MMP Resources you're talking about? If it is, then those are both trash; get rid of them and invest in something that's not a penny stock you bought on a hot tip from someone.
Your allocations to "retail bond" and "retail perpetuals" are too small; they're not going to make any appreciable difference to your returns, and frankly both of those spaces are stuffed with rubbish that doesn't give you an adequate return for the credit risk you're taking. Ditch them both.
If you insist on having those China and Malaysia ETFs, I won't try to talk you out of it (Malaysia might actually be kind of interesting from a valuation perspective, though I haven't looked at it lately). What's your rationale for the energy-sector ETF, though?
---End Quote---
I was actually sort of following the straits time invest series together with your method. So in it they generally had overseas etfs (40% consisting of europe, us, china) (overall by adding china and malaysia I also increased the weightage of banks and industrials & utilities) and large caps in sgx (with reits and blue chips) as well as well as a commodity index (A0W) (therefore I considered XLE / XLB / GUNR)
I understand from your perspective that we should invest in our own country as well as somewhere we might consider migrating in the future and I feel malaysia is quite close to heart and thats the rationale for investment.
for noble and mmp wise, they have crashed from a huge high but i think you are right, I should just get rid of mmp and write it off as a loss.
would you recommend me removing the perp sec & retail bond and simply adding it to ABF bond? Or should I consider an overseas bond?
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110376767.html#post110376767
Posted by: alexilaiho
On: 20-09-2017 09:55 AM
---Quote (Originally by kevinkoh1992)---
Hi ST,
Correct me if I am wrong, but using the DCA strategy, we would end up buying lesser amount of the etf if the prices increase over time. As such, the DCA strategy would theoretically earn more from a etf that distributes dividends as the larger sum of money ( DCA base + dividends) as compared to an etf that reinvests the dividends (DCA base would buy lesser units at a higher price). Does this not imply that we would earn lesser from it. Unless the cost and effort of manually reinvesting the distributed dividends outweighs the benefits.
Sent from Google PIXEL using GAGT (https://play.google.com/store/apps/details?id=com.shiportal.hwzreader&referrer=utm_source%3Dsignature%26utm_medium%3Dforum)
---End Quote---
u have to take into account a fund which reinvests dividends rises faster than a dividend dist fund. and if price increases your stock u currently own increases as well!
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110377150.html#post110377150
Posted by: oAkEn86
On: 20-09-2017 10:16 AM
---Quote (Originally by Shiny Things)---
I think you've got way too much stuff floating around.
Let's start with the Noble and MMP: is that MMP Resources you're talking about? If it is, then those are both trash; get rid of them and invest in something that's not a penny stock you bought on a hot tip from someone.
Your allocations to "retail bond" and "retail perpetuals" are too small; they're not going to make any appreciable difference to your returns, and frankly both of those spaces are stuffed with rubbish that doesn't give you an adequate return for the credit risk you're taking. Ditch them both.
If you insist on having those China and Malaysia ETFs, I won't try to talk you out of it (Malaysia might actually be kind of interesting from a valuation perspective, though I haven't looked at it lately). What's your rationale for the energy-sector ETF, though?
Amazon or Gumroad.
Autowealth is still using US-listed ETFs, so they're lining their investors up for an unnecessary withholding tax hit. How are all these robo-advisors falling into the simplest trap of the lot?
I don't think any of them are up to scratch at the moment.
As long as my emergency fund is full up, I plow it all in. What else am I going to do, just leave it in the bank?
You're asking people to talk their book here; are you sure you want to do that?
Er, no. I think it's more like 1.5% for the round trip. It's certainly not cheap, but that's the cost of doing business; you have to pay the FX spread if you want to buy overseas stocks.
The point of ETFs that reinvest their dividends is that the price goes up faster than if the dividends were distributed.
Think about it this way. Let's say you've got an ETF that pays 2% per year dividends. If those dividends get reinvested, then no matter what happens - whether the price goes up or down or sideways - the reinvesting ETF will go up 2% per year more than an equivalent "distributing" ETF.
And that 2% per year compounds, as well, because you're getting dividends-on-dividends. If you take the divs out and spend it, you lose the compounding benefit.
Uh, not sure what you mean here; VWAP is just "what's the average volume-weighted price that trades have gone through at today?". It's not a magic number.
If you're asking "will watching the VWAP help me make MAD CASHOLA", then, no, it will not.
---End Quote---
Does the accumulating nature of iwda also mean that it is even more important to do a 1 time lump sum investing asap instead of dca over 3 or 4 months if I have a huge amount that I want to put in iwda?
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Posted by: salmonella
On: 20-09-2017 11:18 AM
---Quote (Originally by oAkEn86)---
Does the accumulating nature of iwda also mean that it is even more important to do a 1 time lump sum investing asap instead of dca over 3 or 4 months if I have a huge amount that I want to put in iwda?
---End Quote---
I doubt that the fund manager reinvests dividends immediately as soon as one of IWDA's 1684 holdings distributes a dividend - that would mean that it would be reinvesting practically every day.
Instead, ETFs have a concept of a creation unit (http://www.investopedia.com/terms/c/creationunit.asp), which is usually between 25k to 600k shares (up to $30.6m at current prices). I guess they would trigger the reinvestment process when the amount reaches the $ value of one creation unit. But the $146.8m in dividend income that IWDA had in 2016 might only fund the creation process a few times a year.
Anyway, your underlying question is whether to go all in like an emotionless investing robot, or to DCA over 3-4 months right? The story of Bob, the world's worst market timer, (http://awealthofcommonsense.com/2014/02/worlds-worst-market-timer/) might be interesting. But even with this story, I would probably still DCA over a number of months.
P.S. pls try to quote the relevant portions instead of the whole shebang.
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Posted by: alexilaiho
On: 20-09-2017 01:06 PM
ST - so IWDA even with SCB bad spreads is still worth it for Diversification + tapping international markets? For Long term the 1.5% is bearable?
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Posted by: w4rdsg
On: 20-09-2017 01:55 PM
---Quote (Originally by alexilaiho)---
ST - so IWDA even with SCB bad spreads is still worth it for Diversification + tapping international markets? For Long term the 1.5% is bearable?
---End Quote---
The alternative is to limit yourself to the tiny local SG market. Any local crisis or mediocre underperformance could be seriously damaging to your investments.
It's a one off cost of doing business. Grin and bear it.
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Posted by: alexilaiho
On: 20-09-2017 02:09 PM
---Quote (Originally by w4rdsg)---
The alternative is to limit yourself to the tiny local SG market. Any local crisis or mediocre underperformance could be seriously damaging to your investments.
It's a one off cost of doing business. Grin and bear it.
---End Quote---
yeah... no other cheaper alternatives to diversify into global equities..
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Posted by: revhappy
On: 20-09-2017 02:14 PM
---Quote (Originally by alexilaiho)---
yeah... no other cheaper alternatives to diversify into global equities..
---End Quote---
Interactive brokers.
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Posted by: alexilaiho
On: 20-09-2017 02:32 PM
---Quote (Originally by revhappy)---
Interactive brokers.
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---End Quote---
based on allocation and current stage of life, can only afford dca 2 x 4000 sgd for next year, so not worth it, only 10k in scb iwda/eimi now.
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Posted by: wealth_farmer
On: 20-09-2017 06:07 PM
Most definitely. If you're truly holding long-term, and let's just assume the usual ballpark returns of 8% compounded annual returns over that "long-term", you should still come out ahead.
The alternative, which is simply to invest locally, is untenable and frankly quite irresponsible to you and your financial dependents' needs.
Bear in mind trading costs can and will probably change. And you can always leverage Salmonella's post on how to effect position transfer from SCB to IBKR in the future to reduce costs when drawing down your position.
---Quote (Originally by alexilaiho)---
ST - so IWDA even with SCB bad spreads is still worth it for Diversification + tapping international markets? For Long term the 1.5% is bearable?
---End Quote---
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Posted by: wealth_farmer
On: 20-09-2017 06:12 PM
I think you should simplify and then simplify some more. Good investing is boring. And it's uncomplicated. Check out the Bogleheads forum. A solid three-fund portfolio should return enough on a risk-adjusted basis as compared to your endless picking and opinions. More effort doesn't usually equal more returns when it comes to investing, contrary to all the programming we've received since young from our education that results are commensurate with efforts.
Trading/speculation is a different (but still legitimate) story, though I'm not qualified to comment.
---Quote (Originally by beefjerky)---
I was actually sort of following the straits time invest series together with your method. So in it they generally had overseas etfs (40% consisting of europe, us, china) (overall by adding china and malaysia I also increased the weightage of banks and industrials & utilities) and large caps in sgx (with reits and blue chips) as well as well as a commodity index (A0W) (therefore I considered XLE / XLB / GUNR)
I understand from your perspective that we should invest in our own country as well as somewhere we might consider migrating in the future and I feel malaysia is quite close to heart and thats the rationale for investment.
for noble and mmp wise, they have crashed from a huge high but i think you are right, I should just get rid of mmp and write it off as a loss.
would you recommend me removing the perp sec & retail bond and simply adding it to ABF bond? Or should I consider an overseas bond?
---End Quote---
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Posted by: Hippocrates
On: 20-09-2017 06:36 PM
I've started to invest periodically in IWDA via InteractiveBrokers. As my first three-month waiver of US$10 account fee is coming to an end, may I know if the monthly cycle for the account fee is starting from the account opening date or the first day of the month? Thanks!
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Posted by: revhappy
On: 20-09-2017 07:42 PM
---Quote (Originally by Hippocrates)---
I've started to invest periodically in IWDA via InteractiveBrokers. As my first three-month waiver of US$10 account fee is coming to an end, may I know if the monthly cycle for the account fee is starting from the account opening date or the first day of the month? Thanks!
---End Quote---
You get the waiver for 3 full calendar months.
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Posted by: Hippocrates
On: 20-09-2017 08:13 PM
---Quote (Originally by revhappy)---
You get the waiver for 3 full calendar months.
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---End Quote---
Yes, but after that IB will charge a minimum of $10 account/brokerage fee each month. My question is whether that starts from the account opening date (for example 15th each month) or starts from 1st of the month regardless of when the account is opened? Thanks.
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Posted by: revhappy
On: 20-09-2017 09:51 PM
---Quote (Originally by Hippocrates)---
Yes, but after that IB will charge a minimum of $10 account/brokerage fee each month. My question is whether that starts from the account opening date (for example 15th each month) or starts from 1st of the month regardless of when the account is opened? Thanks.
---End Quote---
I am not sure, since I just opened my account too, but I would imagine the cycle should be calendar month wise and not depending on when you opened your account, that works only for credit cards.
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Posted by: Shiny Things
On: 21-09-2017 04:55 AM
---Quote (Originally by beefjerky)---
I understand from your perspective that we should invest in our own country as well as somewhere we might consider migrating in the future and I feel malaysia is quite close to heart and thats the rationale for investment.
---End Quote---
I'd be a bit careful about "close to my heart". Investing with your heart—just because you like somewhere—is a recipe for making lousy investments and sticking with them long after they've turned bad. If you genuinely think there's a good chance you'll retire there, then that's different.
---Quote---
for noble and mmp wise, they have crashed from a huge high but i think you are right, I should just get rid of mmp and write it off as a loss.
---End Quote---
I think you should get rid of both of them. It'll be cathartic; you'll get the busted-ass companies out of your portfolio; you won't be reminded of them every time you open your brokerage account; and you'll feel a lot better without them.
Noble, specifically, is pretty busted. They didn't respond adequately to concerns about their accounting, and now they can't get access to liquidity any more (and borrowing is the lifeblood of a commodities trading business); they're having to sell their most profitable businesses just to stave off bankruptcy. Even if they don't go down the tubes, they're never going to be as big or as profitable as they used to be. Book a loss on that one and move on.
---Quote---
would you recommend me removing the perp sec & retail bond and simply adding it to ABF bond?
---End Quote---
Yep.
---Quote (Originally by kevinkoh1992)---
Hi ST,
Correct me if I am wrong, but using the DCA strategy, we would end up buying lesser amount of the etf if the prices increase over time.
---End Quote---
Think about it in dollar terms, instead of number of shares, and you'll see you're buying the same amount, whether it's a distributing or reinvesting ETF.
If you use a distributing ETF, you're buying more shares, but at a lower price. If the ETF reinvests for you, you're effectively buying fewer shares at a higher price - but you're getting the same dollar value for your dividends.
---Quote (Originally by oAkEn86)---
Does the accumulating nature of iwda also mean that it is even more important to do a 1 time lump sum investing asap instead of dca over 3 or 4 months if I have a huge amount that I want to put in iwda?
---End Quote---
Mmm - technically yes, but it really doesn't make that much of a difference. The reason to spread a lump sum investment over a few months is to reduce any buyers' remorse you might feel if you drop a huge lump of cash in and the market subsequently goes down.
---Quote (Originally by salmonella)---
I doubt that the fund manager reinvests dividends immediately as soon as one of IWDA's 1684 holdings distributes a dividend - that would mean that it would be reinvesting practically every day.
---End Quote---
Nope, they do! Part of an index-fund portfolio manager's job is to handle inflows of new money—whether those come from a portfolio company paying a dividend, or from new investments—and figure out how much of each stock to buy to keep their portfolio tracking the index as closely as possible. And this happens every single day, because there's inflows and outflows every single day.
---Quote (Originally by alexilaiho)---
ST - so IWDA even with SCB bad spreads is still worth it for Diversification + tapping international markets? For Long term the 1.5% is bearable?
---End Quote---
Yep. The 0.75% FX spread is a one-time thing. Less would always be better, but compared to the diversification benefits from 20 or 30 years of IWDA investment, it's pretty small.
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Posted by: beefjerky
On: 21-09-2017 09:02 AM
---Quote (Originally by Shiny Things)---
I'd be a bit careful about "close to my heart". Investing with your heart—just because you like somewhere—is a recipe for making lousy investments and sticking with them long after they've turned bad. If you genuinely think there's a good chance you'll retire there, then that's different.
I think you should get rid of both of them. It'll be cathartic; you'll get the busted-ass companies out of your portfolio; you won't be reminded of them every time you open your brokerage account; and you'll feel a lot better without them.
Noble, specifically, is pretty busted. They didn't respond adequately to concerns about their accounting, and now they can't get access to liquidity any more (and borrowing is the lifeblood of a commodities trading business); they're having to sell their most profitable businesses just to stave off bankruptcy. Even if they don't go down the tubes, they're never going to be as big or as profitable as they used to be. Book a loss on that one and move on.
---End Quote---
Thanks for the advice. Will follow through. Have already sold both of them yesterday.
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Posted by: alexilaiho
On: 21-09-2017 10:32 AM
can i check if change cash to USD, deposit in bank = better fx rates ?
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Posted by: revhappy
On: 21-09-2017 10:35 AM
---Quote (Originally by alexilaiho)---
can i check if change cash to USD, deposit in bank = better fx rates ?
---End Quote---
In the past this was free. But now I believe most banks charge a fee above 1% to deposit and withdraw.
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Posted by: beefjerky
On: 21-09-2017 11:30 AM
For a35 if I do a lump sum investment of 9k now does it mean Im paying a premium of 18% since the price is 1.18 now? Or is this a wrong understanding
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Posted by: revhappy
On: 21-09-2017 11:38 AM
---Quote (Originally by beefjerky)---
For a35 if I do a lump sum investment of 9k now does it mean Im paying a premium of 18% since the price is 1.18 now? Or is this a wrong understanding
---End Quote---
You must never look at the absolute price of an ETF or unit trust, because it makes no sense it is just a relative number calculated using the total assets dividend by the number of units. You must look at the price on a relative basis, that is, see what the price was 1,2,5 years back v/s now. But even that is not so material for a bond fund, because what matters is what is the interest rate now and where it will go in the future.
In Singapore monetary policy is not controlled using interest rate but instead exchange rate is used. If SGD strengthens then sibor goes down and bond fund goes up usually and vice versa.
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Posted by: salmonella
On: 21-09-2017 02:00 PM
---Quote (Originally by beefjerky)---
For a35 if I do a lump sum investment of 9k now does it mean Im paying a premium of 18% since the price is 1.18 now? Or is this a wrong understanding
---End Quote---
Look at the net asset value - the value per share of the assets held by the fund. http://www.nikkoam.com.sg/etf/abf - at this time of writing, the nav is 1.1623.
If you pay 1.18, it is a 1.5% premium, but I don't understand why that would be... Is that the closing price of yesterday?
According to sgx.com, the bid/ask price are currently 1.163 and 1.164. That looks a lot more reasonable to me.
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Posted by: wealth_farmer
On: 21-09-2017 05:22 PM
---Quote (Originally by beefjerky)---
For a35 if I do a lump sum investment of 9k now does it mean Im paying a premium of 18% since the price is 1.18 now? Or is this a wrong understanding
---End Quote---
I think I understand where your question is coming from, but please correct me if I'm wrong. You're taking the bond pricing concept and applying it to this bond ETF. So, you think that the face value of this ETF is SGD 1.00 (just like how the face value of a bond is 100), and because it is trading at 1.18, it is at a 18% premium, or if it is trading at 1.164, it is trading at a 16.4% premium? Is that the case? If so, then yeah, your understanding is not correct.
Instead you should look at the NAV of the ETF as salmonella has highlighted below:
---Quote (Originally by salmonella)---
Look at the net asset value - the value per share of the assets held by the fund. http://www.nikkoam.com.sg/etf/abf - at this time of writing, the nav is 1.1623.
---End Quote---
Hope this clarifies!
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Posted by: ExtremeWays
On: 21-09-2017 08:07 PM
What's the downside of Shiny Thing strategy?
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Posted by: wealth_farmer
On: 21-09-2017 09:07 PM
---Quote (Originally by ExtremeWays)---
What's the downside of Shiny Thing strategy?
---End Quote---
1.) It's a pretty boring way of investing. (If you want excitement, go to the casino.)
2.) You don't get the ego boost of picking your winners and bragging about it to your friends.
3.) In fact, your friends may laugh at you and say, "Why are you settling for average? Dream big, my friend!" (But the majority of so-called professional fund managers fail to consistently beat the index, what more for the average Beng on the street?)
4.) This method requires you to buy what you lack in your allocation, or rebalance your stocks from the outperforming ones to the under performers. This means that if there is a strong trend, you would continually be loading up on the "losers" and not picking up more units of the "winning" side that could drive your portfolio value higher. This is, of course, said with a very strong hindsight bias because at that point in time, you can't really predict where the market is going. (Also, there is a tendency for returns to mean-revert, so this isn't too serious although I can imagine your conviction could be sorely tested from time to time.)
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Posted by: DeadshotX
On: 21-09-2017 09:42 PM
Very well said
---Quote (Originally by wealth_farmer)---
1.) It's a pretty boring way of investing. (If you want excitement, go to the casino.)
2.) You don't get the ego boost of picking your winners and bragging about it to your friends.
3.) In fact, your friends may laugh at you and say, "Why are you settling for average? Dream big, my friend!" (But the majority of so-called professional fund managers fail to consistently beat the index, what more for the average Beng on the street?)
4.) This method requires you to buy what you lack in your allocation, or rebalance your stocks from the outperforming ones to the under performers. This means that if there is a strong trend, you would continually be loading up on the "losers" and not picking up more units of the "winning" side that could drive your portfolio value higher. This is, of course, said with a very strong hindsight bias because at that point in time, you can't really predict where the market is going. (Also, there is a tendency for returns to mean-revert, so this isn't too serious although I can imagine your conviction could be sorely tested from time to time.)
---End Quote---
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Purchasing ABF at NAV
http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110407144.html#post110407144
Posted by: Morning Sunshine
On: 21-09-2017 10:35 PM
Hi Shiny,
I have tried contacting POEMS and DBS Vickers brokers about purchasing the ABF ETF directly from the fund manager, Nikko, at the NAV instead of the open market. However, they were clueless.
I also called Nikko but they told me to go through the stockbroker. So, I have come to a dead end.
Please elaborate as to how we could purchase at NAV.
Thanks!
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Posted by: revhappy
On: 21-09-2017 10:54 PM
---Quote (Originally by Morning Sunshine)---
Hi Shiny,
I have tried contacting POEMS and DBS Vickers brokers about purchasing the ABF ETF directly from the fund manager, Nikko, at the NAV instead of the open market. However, they were clueless.
I also called Nikko but they told me to go through the stockbroker. So, I have come to a dead end.
Please elaborate as to how we could purchase at NAV.
Thanks!
---End Quote---
I think you should call Nikko directly. I don't think Poems or DBS will be eager to provide you the info since they lose business.
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Posted by: completenovice
On: 21-09-2017 11:04 PM
Am frustrated at having to leave my money idle in the bank because the timing of my dollar cost averaging plan does not coincide with the banks 30/60/90 day windows on term deposits.
Is there a financial instrument available on interactivebrokers where I can deposit money and earn interest like a term deposit but for a specified number of days eg 13 days, 23 days, whatever I desire?
Thanks in advance!
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Posted by: revhappy
On: 22-09-2017 12:54 AM
---Quote (Originally by completenovice)---
Am frustrated at having to leave my money idle in the bank because the timing of my dollar cost averaging plan does not coincide with the banks 30/60/90 day windows on term deposits.
Is there a financial instrument available on interactivebrokers where I can deposit money and earn interest like a term deposit but for a specified number of days eg 13 days, 23 days, whatever I desire?
Thanks in advance!
---End Quote---
I think your best bet is high interest accounts like ocbc360, bank of China bonus saver etc.
Are you going to buy overseas stocks? Then exchange rate is bigger factor than the measly interest you get on SGD denominated deposits. So you may want to convert your SGD to USD and lock in the good rates available now.
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Posted by: Shiny Things
On: 22-09-2017 01:28 AM
---Quote (Originally by Morning Sunshine)---
Hi Shiny,
I have tried contacting POEMS and DBS Vickers brokers about purchasing the ABF ETF directly from the fund manager, Nikko, at the NAV instead of the open market. However, they were clueless.
I also called Nikko but they told me to go through the stockbroker. So, I have come to a dead end.
Please elaborate as to how we could purchase at NAV.
Thanks!
---End Quote---
Nikko is right; you need to do this through your brokers. DBSV and Phillip are both "participating dealers" in the ABF bond ETF, so they'll be able to do this for you; you just need to find the right person.
Go back to them and ask how to do a "subscription for cash". If they say they don't know what that is, tell them to talk to their manager; don't take "no" for an answer. Both of those firms will have someone who knows how to do it.
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110409241.html#post110409241
Posted by: Shiny Things
On: 22-09-2017 01:49 AM
---Quote (Originally by ExtremeWays)---
What's the downside of Shiny Thing strategy?
---End Quote---
As people pointed out upthread, the big downside is that it's not very exciting. You're not going to be regaling people at parties with the stories of how you made a solid 5% or 10% this year. You're not going to have any war stories about how one of your stocks doubled in a week. But equally, you won't have any horror stories about getting stuck in a suspended penny stock that reopened 90% lower or blowing up your account on a silly FX trade.
Another downside - one that I don't have a good answer for yet - is that you have to restrain the natural urge to panic-sell when things are going down. A big benefit of the diversification is that your drawdowns will be smaller than then would be if you were 100% in stocks, but that doesn't mean there'll be no losses; so it's important that you hold your nerve when markets dip. And that's not something that you can mechanically enforce, short of locking yourself out of your brokerage account.
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110409312.html#post110409312
Posted by: Shiny Things
On: 22-09-2017 02:14 AM
---Quote (Originally by completenovice)---
Am frustrated at having to leave my money idle in the bank because the timing of my dollar cost averaging plan does not coincide with the banks 30/60/90 day windows on term deposits.
Is there a financial instrument available on interactivebrokers where I can deposit money and earn interest like a term deposit but for a specified number of days eg 13 days, 23 days, whatever I desire?
Thanks in advance!
---End Quote---
Mmm... not really, but sort of.
If you have SGD, there isn't. If you have USD, you can buy US treasury bills to the maturity date you want (give or take a few days; bills mature every week), though be careful; the brokerage on those (it's 0.02% with a $5 minimum) might be more than you'll earn in interest.
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110410181.html#post110410181
Posted by: ExtremeWays
On: 22-09-2017 07:51 AM
---Quote (Originally by Shiny Things)---
As people pointed out upthread, the big downside is that it's not very exciting. You're not going to be regaling people at parties with the stories of how you made a solid 5% or 10% this year. You're not going to have any war stories about how one of your stocks doubled in a week. But equally, you won't have any horror stories about getting stuck in a suspended penny stock that reopened 90% lower or blowing up your account on a silly FX trade.
Another downside - one that I don't have a good answer for yet - is that you have to restrain the natural urge to panic-sell when things are going down. A big benefit of the diversification is that your drawdowns will be smaller than then would be if you were 100% in stocks, but that doesn't mean there'll be no losses; so it's important that you hold your nerve when markets dip. And that's not something that you can mechanically enforce, short of locking yourself out of your brokerage account.
---End Quote---
When I mean downside, I mean losing money. Not whether it's boring or not. Seems like the strategy has faith in stocks and bonds. Any reason why?
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110410731.html#post110410731
Posted by: highsulphur
On: 22-09-2017 08:28 AM
---Quote (Originally by revhappy)---
I think you should call Nikko directly. I don't think Poems or DBS will be eager to provide you the info since they lose business.
Sent from Xiaomi REDMI NOTE 4 using GAGT (https://play.google.com/store/apps/details?id=com.shiportal.hwzreader&referrer=utm_source%3Dsignature%26utm_medium%3Dforum)
---End Quote---
I wonder if anyone has successfully bought directly from nikko?
I have a redemption of some bonds coming up and I would like to buy a35 with the proceeds
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110410949.html#post110410949
Posted by: salmonella
On: 22-09-2017 08:45 AM
---Quote (Originally by Morning Sunshine)---
Hi Shiny,
I have tried contacting POEMS and DBS Vickers brokers about purchasing the ABF ETF directly from the fund manager, Nikko, at the NAV instead of the open market. However, they were clueless.
I also called Nikko but they told me to go through the stockbroker. So, I have come to a dead end.
Please elaborate as to how we could purchase at NAV.
Thanks!
---End Quote---
Morning Sunshine,
The prospectus (http://www.nikkoam.com.sg/files/documents/funds/prospectus/prospectus_abf2.pdf) does mention that you can do cash subscription or cash redemption with at least 50k units on Cash Dealing Days.
I suppose that by paying cash, you avoid the few cents spread between NAV and ask on the secondary market. But fees (see para 21) could include:
- Duties and Charges
- Transaction Fee
- Dealer Commission, which may be charged at phone trading fees since a person needs to manually do something?
Let us know what you find out from your brokers, 'k?
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110419167.html#post110419167
Posted by: Fizzical
On: 22-09-2017 04:06 PM
Anyone knows if there is any effect with the Quantitative Tightening that is on-going?
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110419638.html#post110419638
Posted by: revhappy
On: 22-09-2017 04:29 PM
---Quote (Originally by Fizzical)---
Anyone knows if there is any effect with the Quantitative Tightening that is on-going?
---End Quote---
There are all kinds of experts out there from always bearish to always bullish to people who keeping jumping between bullish and bearish as the tide changes. I watch Bloomberg TV everyday in the evening after reaching home since last few years now and I can say that nobody has any clue what they are talking about and hardly anyone gets anything right, yet they are all 'experts'
It is largely sentiment driven and lots of dependencies on what other big economies and central banks are doing. Just to remind you in early 2016, when China started slowing and their authorities made some flip flop crazy decisions the whole world markets started tanking. Now again China has started blowing its debt bubble, nobody knows how it is going to end. Your best bet is to be prepared for all eventualities.
Sent from Xiaomi REDMI NOTE 4 using GAGT (https://play.google.com/store/apps/details?id=com.shiportal.hwzreader&referrer=utm_source%3Dsignature%26utm_medium%3Dforum)
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110427597.html#post110427597
Posted by: Shiny Things
On: 23-09-2017 01:02 AM
---Quote (Originally by ExtremeWays)---
When I mean downside, I mean losing money. Not whether it's boring or not. Seems like the strategy has faith in stocks and bonds. Any reason why?
---End Quote---
Oh yeah absolutely; any investment comes with a degree of risk. The idea is that it tries to make the inevitable drawdowns less painful, so that you can hold on through them and take advantage of stocks being "on sale".
Owning a mix of stocks and bonds reduces your risk of losing money, and reduces the size of drawdowns when they happen.
Dollar-cost averaging lets you take advantage of drawdowns, by buying more stock when the price is low, and less when the price is high.
Changing your allocation as you get older—moving from stocks to bonds—makes your portfolio less likely to lose money just when you need it.
None of these is a magic bullet. Investors who absolutely can't afford to lose money should be 100% in short-term government bonds. But most investors can afford to take some risk, because they can hold on and ride out the ups and downs of stock and bond markets.
---Quote (Originally by Fizzical)---
Anyone knows if there is any effect with the Quantitative Tightening that is on-going?
---End Quote---
If you're talking about the US Fed reducing the size of its balance sheet by letting its bond holdings mature instead of rolling them over, then... I don't think this will make much difference to the markets. Bonds have definitely backed off a bit in price terms, but it's not total chaos; it was pretty well signalled; and they're scaling out of their position very slowly, so it's not going to be wildly disruptive when the Fed removes its buying interest from the markets.
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110428456.html#post110428456
Posted by: beefjerky
On: 23-09-2017 06:18 AM
When we talk about yearly portfolio allocation should we take into account crashes / brexit etc? Like if let's say the stock market drops 10% tmr should I start moving my bonds to stocks or wait for my yearly rebalancing to carry out any portfolio allocation?
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110439589.html#post110439589
Posted by: peipei1
On: 23-09-2017 10:16 PM
hey shiny, whats your thoughts of SGS bonds? They seem more complicated than to SSB bonds because they are marketable. But the yearly rates more higher, good for 1-2 years parking excess funds?
This one i see the latest YTM is 1.34%, any catch? =:p
http://www.sgs.gov.sg/~/media/SGS/SGS%20Announcements%20pdf/Bonds%20PDF/2017/N514100H%20Reopened.pdf
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Posted by: beefjerky
On: 23-09-2017 11:20 PM
---Quote (Originally by peipei1)---
hey shiny, whats your thoughts of SGS bonds? They seem more complicated than to SSB bonds because they are marketable. But the yearly rates more higher, good for 1-2 years parking excess funds?
This one i see the latest YTM is 1.34%, any catch? =:p
http://www.sgs.gov.sg/~/media/SGS/SGS%20Announcements%20pdf/Bonds%20PDF/2017/N514100H%20Reopened.pdf
---End Quote---
Usually have to bid at a premium and very low liquidity, u can go see the current sgs Bond buy at 93/94 sell at 107
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110441029.html#post110441029
Posted by: Morning Sunshine
On: 23-09-2017 11:36 PM
Thank you for all your prompt responses on the purchasing of the ABF ETF at NAV. The info provided has been very helpful.
Well, I did manage to talk to a broker who tried to help by getting some answers from his 'Central Buyers Team" (they talk to the Nikko guys). He said they'd get back to me regarding the charges and commissions. But he did say that the charges and fees might take away any difference I would make from purchasing directly.
I shall update here when I get news.
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110444639.html#post110444639
Posted by: highsulphur
On: 24-09-2017 08:14 AM
---Quote (Originally by Morning Sunshine)---
Thank you for all your prompt responses on the purchasing of the ABF ETF at NAV. The info provided has been very helpful.
Well, I did manage to talk to a broker who tried to help by getting some answers from his 'Central Buyers Team" (they talk to the Nikko guys). He said they'd get back to me regarding the charges and commissions. But he did say that the charges and fees might take away any difference I would make from purchasing directly.
I shall update here when I get news.
---End Quote---
to be honest, the bid/offer for a35 is tight enough already. unless one is transacting an amount large enough, should just stick to using the online tracking platforms of brokers
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110446612.html#post110446612
Posted by: Greydustbin
On: 24-09-2017 11:27 AM
quick question about the stan chart trading account: for VWRD, when dividends are paid - does the sum of money get converted to SGD before we receive it? or do we get USD straight into our USD trading account
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110447069.html#post110447069
Posted by: w4rdsg
On: 24-09-2017 11:58 AM
---Quote (Originally by Greydustbin)---
quick question about the stan chart trading account: for VWRD, when dividends are paid - does the sum of money get converted to SGD before we receive it? or do we get USD straight into our USD trading account
---End Quote---
You receive USD into your settlement account. I generally leave it there for my next purchase.
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-post110447803.html#post110447803
Posted by: Greydustbin
On: 24-09-2017 12:47 PM
---Quote (Originally by w4rdsg)---
You receive USD into your settlement account. I generally leave it there for my next purchase.
---End Quote---
thanks for the info :)
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http://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-shiny-things-club-4866757-505.html#post110450599
Posted by: Purplestars
On: 24-09-2017 04:23 PM
---Quote (Originally by highsulphur)---
to be honest, the bid/offer for a35 is tight enough already. unless one is transacting an amount large enough, should just stick to using the online tracking platforms of brokers
---End Quote---
0.2% commission is a real bitch though. That can add up to be several hundred dollars
All the best,
www.hardwarezone.com.sg
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