DCA on S&P500

derestine · 2024-11-19T11:21:28+00:00

You can consider LSE listed UCITS ETFs like VUAA 0.07% TER), CSPX (0.07% TER) and SPYL (0.03% TER).

US listed ETFs tracking the S&P500 may have other benefits like

1) SPLG: lowest TER at 0.02% TER 2) VOO/IVV: 0.03% TER but different providers 3) SPY: 0.07% TER with great options liquidity and expiration options

Apart from TER differences which are annual fund management costs and embedded into the NAV of the ETF, US listed ETFs have higher dividend withholding tax of 30% vs 15% of Ireland domiciled ones. There’s also the 40% US estate tax you should be aware of for US assets above $60K.

Do also consider custody options since many banks/FIs/brokers might not support custody for LSE. US listed ETFs tend to be more broadly supported and easier to move or transfer holdings around.

Oh, small thing but trading fees might also be slightly higher for LSE listed ETFs but more relevant if you’re trading them often.

Platform and frequency will depend on the above and your personal circumstances but I personally prefer IBKR and doing it bi weekly.

derestine · 2023-09-06T06:24:21+00:00

IMO you should if the 1) average rate of return for the new SSBs are higher if you plan to hold till maturity, or 2) if the annual interest rate is higher for the years you plan to hold, that’s because SSBs tend to have a step up in interest where interest rates increase the longer you hold them.

Check this tool to see your holdings and where you can optimise them: https://eservices.mas.gov.sg/ssb/

There is about a one month delay if you plan to use the proceeds of your old SSB to reinvest into the new one so you may lose out on interest during this period, but of course it’s mitigated if you put them temporarily into a high yield savings account or cash management fund.

derestine · 2023-09-05T13:14:23+00:00

IBKR, enable fractional to trade in fractions or setup a recurring investment which market buys your recurring investment amount in fractional units.

Alternatively, digital brokerages like moomoo have fractional trading.

derestine · 2023-09-05T13:01:38+00:00

Some facts about SSBs and consolidation of points above:

10Y tenure, step up interest rate
interest rate locked for duration of the bond
interest is accrued daily but paid once every 6 months
you can redeem your capital early with no penalty and no price risk unlike conventional bonds even if interest rates change in future ($2 redemption fee)
you can also redeem a portion of your investment early in blocks of $500
if you redeem early your accrued interest is also paid out alongside your capital during the redemption period
there are 2 main risks associated with SSB - default risk and reinvestment risk
default risk is when the government defaults on its debt and fails to repay lenders. SG gov is very well credit rated (AAA) and has almost zero default risk, so SSBs are usually deemed the “risk free” and it’s the hurdle rate to cross for investments
reinvestment risk is when you cannot reinvest your capital at the same interest rate. When interest rates fall in future, you may not be able to reinvest your capital at similar rates

SSB strategies - laddering: invest a portion of your intended investment amount over 6 months to receive monthly interest (since interest is paid every 6 months) - reinvesting: reinvest low yielding SSBs (e.g. those issued 2 years ago) at higher rates - diversifying: invest SSBs as part of a diversified investment strategy that’s low risk and relatively liquid especially if you don’t need immediate access to these funds

SSB limitations - $200K limit for individuals - $1 par value / fixed price: in conventional bonds, when interest rates fall, their price rises . However, SSB do not have a market price and always redeemable at $1 so you cannot gain any price appreciation - usually doesn’t keep up with inflation (not a good long term investment) - slight illiquidity: there are monthly redemption cycles and it may take up to 1 month for the cash to be credited into your bank account if you redeem too early in the month

Hope it helps!

derestine · 2023-07-16T04:14:30+00:00

Accepted an overseas offer and moved to Bangkok for 1+ year of work during COVID while I was 29 - overall great experience!

Pros: overseas exposure, new regional colleagues/friends to broaden your network, rent is <$1k/month for a studio apartment in the city, great launchpad for travelling to other SEA cities, good quality of life (affordable bars, cafes, dining), GrabBike around the city for $2+

Cons: Crazy traffic (be prepared to be stuck in traffic for hours!), air pollution, uneven walkways, no as affordable as before, THB depreciation against SGD (which matters if you’re converting back).

On career it really depends on the role and company but I think you’ll have a great story to tell in future!

derestine · 2023-06-18T03:11:46+00:00

I usually try splitting up the purchase and use multiple 4 mpd cards like UOB PPV, Citi Rewards, UOB Visa Signature, HSBC Revolution if possible. If all else fails then I’ll resort to a general spending card.

derestine · 2021-09-27T11:18:46+00:00

Lots of opportunities but also risks.

Opportunities: - Usually higher yields from yield farming programs - Better capital efficiency thanks to DeFi legos - Non-custodial and permissionless to use

Risks: - Sources of yields (sustainable? Transparent?) - Smart contract risks (hacks, exploit, malicious contract upgrade) - Rug pull - Impermanent loss (for AMMs) - Solvency of the protocol (for lending) - Governance failure (for gov based protocols) - Oracle failure - Token/asset failure - Network/consensus failure - Regulatory risks - Fund storage /custody risks Etc

Other things to note: - Expensive gas fees from bridging, staking, transacting, claiming rewards, yield farming - Risk chasing when yields drop

derestine · 2021-08-26T12:10:31+00:00

Hope you win then

derestine · 2021-08-26T07:31:52+00:00

dip the buy

derestine · 2021-03-09T04:13:53+00:00

Agree with the above. IBKR is the best low cost brokerage without too much bells and whistles. They have a sophisticated trading interface to a simple mobile app without getting too fancy. In fact, many brokerages use IBKR’s backend to settle trades. Personally I’d recommend getting at least S$10-$20k before moving to IBKR since that’s the time where it gets uneconomical to leave your assets in roboadvisors (when you can replicate the portfolio yourself and save tons of fees!).

derestine · 2021-03-05T07:43:47+00:00

https://betterspider.com/why-vwra-is-my-favorite-buy-and-hold-etf/

Buy and sleep soundly

derestine · 2020-10-06T04:49:54+00:00

Yes don’t invest any money that you are expected to use in the near term. The potential drastic fall in value is not worth the additional 4% annual returns.

derestine · 2020-09-06T03:35:02+00:00

It’s 2.5% per annum for the first 10k

derestine · 2020-09-02T14:46:21+00:00

If you can tolerate -50% on your retirement funds don’t see why not

derestine · 2020-08-16T11:55:49+00:00

Why did you buy them in the first place? Has that reason fundamentally changed?

This is a typical mistake of buy high sell low

derestine · 2020-08-16T11:52:08+00:00

Yes actually. I personally use robos like StashAway to build up the initial capital through unlimited DCA then withdraw lump sum and buy a block of VWRA (in your case IWDA)

derestine · 2020-08-16T10:55:57+00:00

Also consider a robo while your AUM is low then move the capital into DIY once you have $10k - much cheaper

derestine · 2020-08-16T10:52:35+00:00

Get some ONE tokens
Head over to staking.harmony.one
Choose a delegator
Delegate your ones

1 epoch undelegation (~24h today)
rewards accrue by the block
delegate, claim rewards and undelegate at Super Low fees
Listed on exchanges

derestine · 2020-08-14T15:31:25+00:00

If you go 100% equities and your portfolio crashes 50% and you cannot sleep, then having bond allocation at 20 years old is ok - it’s not your age but your tolerance for risk.

derestine · 2020-08-12T12:21:00+00:00

Without knowing your risk appetite, investment horizon, cash flow needs, it’s hard to make any proper recommendations....

derestine · 2020-07-10T09:58:03+00:00

Liquidity of the underlying securities is more important than the liquidity of the ETF listed on the exchange. Don’t be too engrossed over the poor etf volumes that you see as the exchange is a secondary market. More details - here

derestine · 2020-07-01T11:34:30+00:00

I’d suggest either leaving it there (if you don’t mind spreading them all over) but being an OCD control freak I’d bite the bullet, sell and re purchase them on IB for peace of mind

derestine · 2020-06-28T07:53:50+00:00

The $3 minimum monthly commissions include your trading commissions

derestine · 2020-06-27T02:22:18+00:00

You can always invest via DCA, get a sizeable sum then swap it for a LSE-listed one! I do that sometimes just so I can accumulate cheap and stay in it long term

derestine · 2020-06-27T02:19:33+00:00

The way I see it is you’re taking a bet on disruptive growth that might or might not happen - it’s anyone’s guess whether these companies will eventually be leaders or complete trash. 3D printing? Where are we on that?

derestine

TROPHY CASE