Author: Investment Moats

Some Thoughts on DBS’s ETF digiPortfolio

Both Straits Times and Business Times ran the update that DBS will be launching their Exchange Traded Funds (ETF) portfolio for the investors. And it got me thinking about a few things. Firstly, the product. A Human-Robot Managed ETF Portfolio There will be 2 portfolios that are launched: The Asia Portfolio: Gives you Singapore listed ETF exposure to countries in Singapore, China and India The Global Portfolio: Offers UK-listed ETFs You can invest with a minimum sum of $1,000. The investor will be charged an AUM fee of 0.75% per year. You can look at this as the company...

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Singapore Savings Bonds SSB October 2019 Issue Yields 1.75% for 10 Year and 1.64% for 1 Year

Here is a higher yielding, safe way to save your money that you have no idea when you will need to use it, or your emergency fund. The October 2019’s SSB bonds yield an interest rate of 1.75%/yr for the next 10 years. You can apply through ATM or Internet Banking via the three banks (UOB,OCBC, DBS) However, if you only hold the SSB bonds for 1 year, with 2 semi-annual payments, your interest rate is 1.64%/yr. $10,000 will grow to $11,758 in 10 years. This bond is backed by the Singapore Government and its available to Singaporeans. A single...

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How to Get Rich (Realistically) and Stay Wealthy

The majority of the rich who got really wealthy took calculated risks. They also had the foresight to see things that a lot of us would not be able to see. Rich people surround themselves with people more competent then them in areas they are not good at. Most of the time, the wealthy was also able to execute their plans very well. You will also find them having the ability listen to others when it is time to listen. But be steadfast when they needed to. I got very little of these traits. And maybe that is why...

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The Differences between Singapore and United States Office Lease Agreements

The tenant leases for commercial properties in China, Hong Kong and Singapore are rather unique in that they are shorter. There are no rental escalation. Typically, the tenure is less than 5 years. In Singapore and Hong Kong, the commercial offices and shopping centers have 3 to 5 year leases. When real estate investment trusts (REITs) that owned foreign commercial properties came over to Singapore, their leases looked pretty unique to the Singapore investors. The investors welcome the longer leases, which also usually comes with annual rental escalations. If there were no annual rental escalations, there are typically mid...

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NTUC Capital Plus (CSN2) 3 Year 2.3% Return Endowment Policy

This is a quick public service announcement. NTUC are issuing another tranche of these very popular high return for short duration insurance savings plan. Typically, from what I understand, these plans do not net the commission based advisers much commission. Usually, these are very attractive to those who are not easily swayed. As they get you on this plan, they have your contact. The real selling happens after the end of the tenure of these insurance savings plans. But if you are a very well inform and savvy reader of Investment Moats, this might be for you. The Capital...

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How we can Tackle Financial Insecurities

A sub-conscious fear and confusion about some things related to money. That is the thing I can clearly defined as I hear people talk about their concerns. Or when my colleagues shared with me what their clients tell them or what they managed to detect. I have less of this problem currently. I think fear used to plague me more. I didn’t think it was a lot but it was sub-conscious. That is why financial prudent folks decide to rank wealth building rather high in their list of priorities. We either try hard to alleviate our fear or something...

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REPS Holding’s Resale Endowments: What You Need to Know

Resale endowment policy is not something new. However, in the realm of wealth building, it may be less talked about. And therefore, a lot of investors may not be aware about it. The concept from what Endowments have died down. In their place, there are some brokers who started dealing with Endowments that can be traded in Singapore. One of them is REPS Holdings. In this article, I will do a deep dive on the resale insurance endowment business. The value proposition to you as a potential investor. The risks involved as well. How are Insurance Endowments “Traded” or...

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Shangri-la Asia’s Presentation shows the Impact of Hong Kong Protest and China Slowdown

How do we know whether these political and government policies have an impact on the businesses you invest in? Perhaps a review of a slew of companies will tell you something. That is lots of work. But if you want your money to be safe, you got to do it. If this is not for you, there are always index funds. Shangri-la Asia Limited (Stock code: 69) is a hotel operator listed in the Hong Kong Stock exchange. It is owned by Robert Kuok, His Daughter is the executive chair person. Yesterday, Shangri-la Asia released its interim results. It’s...

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Interactive Brokers setting Up Singapore Offices

There are a bunch of investors who are always searching for a cost effective broker platform. Through these platform they wish to handle the majority of their transactions. I think cost is one aspect but there are other considerations Think in terms of whether the broker will continue to be in business If you have a problem with the platform, or your trade, are they responsive The variety of products they allow you to trade How easy will it be for you to transfer your money in to start and transfer the money out How intuitive is the interface...

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The National Day Rally 2019 Notes (Unfiltered Version)

This used to be a hobby. If you feel like writing then you write. If you feel strongly enough, you write. It hit me especially hard when I was about to watch Dr Stone. “Kyith, could you provide a summary of the National Day Rally for the advisers?” Guess this is life now. So since I already read it, why not provide it here. The version that I wrote internally is more for a different base. This one is more…. Let me give a summary that is closer to the readers. They are ranked in terms of importance. No...

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Singaporeans may achieve Financial Independence. Retire Early not So Much. What the Data Shows.

The department of Singapore statistics published the Household Expenditure Survey 2017/18. The department published the results every 5 years. And so we have the figures to compare against the expenditure figures published in 2012/13. That is the data 5 years ago. There is too much data, and we would probably not be able to finish in one seating. As a researcher of financial independence, I was curious whether the data do show that Singaporean’s will find it challenging to reach their financial independence goal. How to Judge whether You can easily reach Financial Independence? In most cases, if you...

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Journal-ling the reaction when Dow Fell 800 Points

This is a follow up to the last post I did when the volatility of the markets picked up. Not to cause panic but I want to see how different ETF for different asset classes do. 800 points do look like a lot and for a market like this you realize there are not a lot of 3% moves. The 20 year US Treasury Bond ETF always look good in times like this. Very uncorrelated and moving up 2%. Gold Holdings ETFThe Gold Miner Stocks Gold miner stocks is quite insulated. Since they are equities, you do not know...

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Do We Hoard Too Much Money?

What are we saving for? Are we saving for food and expenses? Or are we saving for lifestyle. I was reading this very thought provoking post by Early Retirement SG. Well, he is currently not in Singapore, following his wife to work. So now he is living in Paris. If you follow his posts, you will realize that whatever skill set you picked up on Freegan living, can be applied in Paris as well. So now he has taken food that will probably last for 3 to 4 days. Early Retirement SG reflected on how our insecurity with food...

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Definitive Guide to Dividend Withholding Tax in Stock & Passive Investing

As an investor, you will invest in a stock, a business, a partnership that is based overseas. These stocks, business or partnership are incorporated or domiciled in another country. These stocks, business or partnership may declare dividends, interests or capital payments to you as a shareholder in Singapore. Once the dividends, interest or capital payments exit a specific country there is a withholding tax on these income, dividends, interest and capital payments. There is no running away from withholding tax. I sort of validate this when I have the privilege to meet the subject matter experts that are recommending...

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Innovative Wealth Strategies to Redistribute Nation’s Wealth

Bloomberg has a good article a few months ago on re-thinking wealth. They highlight 3 suggestions that may be explored to re-distribute wealth in a fair manner. These articles may end up behind a paywall so I want to share this over here at Investment Moats. I will add my interpretation as well. Two of them are rather interesting to me. More because of the way they were suggested because one involves retirement withdrawal. The other feels like a conversation on financial independence. So here are the suggestions. Baby Bonds The gap between a median white family and median...

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