Putting retirement savings in equities pays off in long run

[ginfreely]

Is this the vanguard index fund you talking about? You bought this? Using which broker? Can auto buy monthly? Thanks

Vanguard 500 Index Fund (MUTF:VFINX)

I have been googling on how to buy vanguard index fund unit trust direct from USA. Seems that we can't buy as non USA resident? Need social security number to open account with vanguard. No one knows how to do this?

https://personal.vanguard.com/us/in...Account=T&PageLocation=TrustedAcctLogon&new=T

 

[frenchbriefs]

REITs are a good way to invest in property as most of their assets are in property. It is rare to find property tank 20-50% in a year, but it does happen to REITs or any other counter in the stock market when the market is very pessimistic.

I bought into industrial and hospital REITs are I found them more stable as compared to shopping malls. I notice that there is a huge increase in number of malls but it is not matched by a corresponding increase in population in Singapore. If we want more shopping malls, we need more sinkies and foreigners who can spend.

I am satisfied with these two REITs. So, not investing in other REITs for now. Croesus REITs looks promising. I have confidence in Japan despite its aging population. The countryside is aging and dying, but metropolitan Japan is still young and vibrant. Young people usually make a beeline for the big city.

maybe one day i will ask my reit to open a hospital on the fifth floor of the shopping mall.

 

[garlic]

Good to know that, thanks! Looks like cannot buy etf monthly then. Just Google, seem that those vanguard etf shared by winniepeg do have unit trust option. Anyone know how to buy or have bought vanguard unit trust before?

I buy ETFs from OCBC brokerage. Basically, any brokerages can buy, just sign up with them like you normally would as per buying SG shares, but indicate that you would like to trade on NYSE and NASDAQ, they will have u sign a declaration that you are not living in US, not a citizen and have no tax liability nor interest in US. Then you are good to go...

 

[ginfreely]

I buy ETFs from OCBC brokerage. Basically, any brokerages can buy, just sign up with them like you normally would as per buying SG shares, but indicate that you would like to trade on NYSE and NASDAQ, they will have u sign a declaration that you are not living in US, not a citizen and have no tax liability nor interest in US. Then you are good to go...

How about USA unit trust? Can you buy the same way since cannot buy etf for small amount monthly will incur too much fees as you advised? Thanks.

 

[frenchbriefs]

ETF is no good for recurring purchases especially as brokerages charge per transaction, for example you buy $100, and get charged $25 for each purchase, per fund per month. If you buy 5 etfs, then u really are just making brokerages rich. Buying ETFs really is more suited for lump sum purchases. Just my 2c.

the thing is what brokerage doesnt charge a fee or commision for buying or selling anything?be it stocks,futures,options or etfs or whatever?most singapore brokerage have ridiculously expensive commisions and fees so its better to open a account with one of the US stock brokers.and who invests $100 per month?u will never escape the cycle of poverty.at the very least $100 or $200 per week......if can $500 a week or more the best.

 

[krafty]

the thing is what brokerage doesnt charge a fee or commision for buying or selling anything?be it stocks,futures,options or etfs or whatever?most singapore brokerage have ridiculously expensive commisions and fees so its better to open a account with one of the US stock brokers.and who invests $100 per month?u will never escape the cycle of poverty.at the very least $100 or $200 per week......if can $500 a week or more the best.

bro frenchkiss, which US broker you using?

 

[winnipegjets]

I have been googling on how to buy vanguard index fund unit trust direct from USA. Seems that we can't buy as non USA resident? Need social security number to open account with vanguard. No one knows how to do this?

https://personal.vanguard.com/us/in...Account=T&PageLocation=TrustedAcctLogon&new=T

Buy etf lah ...not mutual funds. ETF ...you buy like stocks. Sign up with a US discount broker ..then buy the etf.

 

[garlic]

Signing up with local brokerages have many advantages that will almost always outweigh the savings of commission. Firstly, you have local helpline to call to ask for technical questions, the time difference between a US help line will almost always mean you gotta wait till late into the night to ask for help. Secondly, if using overseas online brokers, you gotta wire funds overseas which mean incur wire charges, have to open an overseas bank account which often has high minimum limit to open and maintain. Trading with local brokerages means no wire transfers as all can settle instantaneously with EPS and in SGD. The cheapest brokerage i have encounter so far is Stanchart which charges 0 comm for trading of shares, OCBC charges a flat fee but have excellent call center support anytime of the day, with a dedicated broker's direct line to call. Buying from local brokerage means all equities are SGX-custodialed, which give peace of mind. I have no idea about whether overseas brokers allow SGX as custodial. I only top-up my funds twice a year and hold some utilities and telco shares, therefore i pay very little comm since its a flat-fee model.

Believe me, the immediate concern is more on deciding which shares and funds to buy rather than worry about the charges. Meanwhile, take a look at the local brokerages promo.

http://forums.fuckwarezone.com.sg/s...ions;-rewards;-additional-offers-4944484.html

 

[johnny333]

Buy etf lah ...not mutual funds. ETF ...you buy like stocks. Sign up with a US discount broker ..then buy the etf.

In the past I would have recommended Etrade a US discount broker but they are giving up clients with a Spore address.
I suspect it is because MAS(Monetary Authority of Spore) is making it expensive for them to do to business in Spore:(

There are currently two US brokers with operations in Spore ThinkorSwim & OptionExpress.

 

[JohnTan]

Is now a good time to start buying vanguard index fund?

If it is an ETF, better to buy more during downturns like what we saw in early 2016. Invest in it periodically or use some form of dollar cost averaging.

 

[johnny333]

How about USA unit trust? Can you buy the same way since cannot buy etf for small amount monthly will incur too much fees as you advised? Thanks.

People are moving away from unit trusts & investing in things like ETFs. Disadvantages of unit trusts:

1) Annual Management cost.
2) If the funds in a unit trust get dividends, the person who invests in a unit trust is not entitled to any of the dividends
3) When you sell a unit trust, you don't know the exact price because of the delay

It is also more difficult for a foreigner to invest in US Unit trusts because of the tax implications. It is simpler just to avoid unit trusts. I am invested in plenty of loss making unit trusts through my CPF:(

 

[winnipegjets]

I will have to buy every few months and not monthly like my ILP now then. Which broker you using?

Interactive Broker

 

[ginfreely]

Oh I just wanted to do this to replace my ILP and that's about $100 per month investment after deducting insurance charges.

"Set aside Retirement Fund – Contribute a small percentage of your paycheque that you feel is reasonable. You can start with 5% contribution monthly then add 1% bi-yearly. If you earn a salary of RM2,000, the 5% is only RM100 a month, that works out to about RM3 a day which is very reasonable. While the amount may seem small, the magic is in the compounding process when your savings or investments help you earn interests over time. "

https://www.google.com/url?sa=t&sou...6YeU-3hmINpbWCEBQ&sig2=1_e16qdNmTvQ6eNVES8IjQ

 

[ginfreely]

$100 per month invested over 20 years at 7% annual return can get about $50000. But don't buy ILP, proven return very poor at about 1% p.a for my policy over more than two decades.

 

[ginfreely]

People are moving away from unit trusts & investing in things like ETFs. Disadvantages of unit trusts:

1) Annual Management cost.
2) If the funds in a unit trust get dividends, the person who invests in a unit trust is not entitled to any of the dividends
3) When you sell a unit trust, you don't know the exact price because of the delay

It is also more difficult for a foreigner to invest in US Unit trusts because of the tax implications. It is simpler just to avoid unit trusts. I am invested in plenty of loss making unit trusts through my CPF:(

I think Spore unit trusts all very lousy. I invested before using my CPF special account and the return only 4 to 5% after a few years, so I terminated and put back the money to special account. I also have one loss making unit trust bought during the technology boom thru CPF OA. That's why thought of buying direct from USA.