If S&P500 drop by 90%, Bursa will drop by 99%. So do SGX

This post has been edited by Singh_Kalan: Jun 27 2017, 04:16 PM

May i know anyone opened account in Charles Schwab Int

1. Can Malaysian open an account
2. What are pros and cons of Charles Shwab Int

TQ

For IB, can we use FAST transfer to transfer to them?

Yup, FAST transfer to Citibank SG account.

Anybody can recommend me a platform that charges lesser brokerage fees to trade us etf/shares?

Thanks!

u can try etrade

Hi,

between Singapore-based roboadvisories and US-based ETFs, what advantages does one have over the other?

This post has been edited by simplylegendary: Aug 27 2017, 12:01 PM

Robo advisor help you to buy, sell allocate the etf basically auto mode. You don't need to do amything other than give them money + pay them small % of fees a year
US based ETF, is you yourself manually decide which one you want to buy, how many % you want, when to sell.

If you are a programmer, you can create your own algorithm to automate the process of buying and selling those ETF without paying any fees except electricity bill. That's your very own DIY robo advisor. Robo advisor is just fancy name for program which help you to decide what to buy, how much to hold, when to sell, how much to sell. Nothing more

This post has been edited by Ramjade: Aug 27 2017, 12:24 PM

Like to learn more on ETF before I jump in. Reading a book ETF For Dummies. Interesting and informative book. Eg
* value vs growth ETF
* USA vs foreign ETF (most people will go for USA ETF but the author sees better and growing returns for overseas ETF).
* etc

I know the best way to learn is actually try it with my wallet. But before that, I would like to get my basic foundation in place first.

Appreciate your recommendation on the best book you have read on ETF.

Many thanks.

"Robo advisor" aka fancy word for some lines of code that help you pick ETFs.

What about the returns, has the robots proven that they do a better job? small % of fees is ~0.8% for a small player, not super small imho. I've read the site you recommended [1] on another thread. The conclusion is that SA or AW are better. Most likely I will go with AW because the fees are the most competitive until 100k SGD, if you are a big roller > 250k USD then SA's fees come down.


[1]https://kpo-and-czm.blogspot.co.id/2017/08/effects-of-fees-on-return-stashaway-smartly-autowealth.html

This post has been edited by simplylegendary: Aug 27 2017, 04:34 PM

Hi Rjb, appreciate if you can explain if the W8BEN also excludes one from the 30% withholding tax? Heck, is CGT actually the withholding tax that people are talking about?

Many thanks

Now you are catching on.

Better returns in terms of what? Beat the market? No. ETF investing means you are getting market performance/average performance. You won't be able to outperform the market. But you won't underperform the market either.

You will underperform slightly (due to all the fees).

While waiting for his reply,

WBEN8 won't exclude you from the dividend 30% tax. Why? Malaysia does not have tax treaty with the US to let you claim back the tax. However, Ireland have 15% tax treaty with the US. That's why if you read the first page of this thread + turtle investor page, both said invest in Ireland domicile ETF which invest in the US so your dividend tax is only 15% instead of 30%.

You cannot escape the 30% dividend tax if you invest in the US. The only way around is find a country with tax treaty with the US and invest via that country.

CGT means if the price increase, you sell it off for profit, that's where CGT comes into play. CGT is only for US citizen. Hence the WBEN8 is telling the IRAS that you are not US citizen. So the CGT doesn't apply on you.

rjb123, correct me if I am wrong.

This post has been edited by Ramjade: Aug 27 2017, 05:07 PM

Yea, you are right. Actually I was thinking either

1. Pick my own ETF (Vanguard All World, iShares Precious Metal, or something popular)
2. Use Autowealth for to "automatic" ETF picking

So my definition of "beating" is who beats who in the two choices


Thanks, cannot run away from 30%.

Not sure if US Tax payer no (ITIN) can be useful, I remember a decade ago when I took a US project I managed to escape the 30% after getting ITIN.

Who say cannot run away? Buy those irish ETF which invest in US. 15% tax.

You only sacrifice liquidity a little vs going with 100% pure US. Liquidity is nothing if you are buy and hold person.

how much u say save on the 15% different?
how much is ur capital 1billion?

When you are going with ETF, you are trying to minimize cost and get market return. Paying extra for tax means increasing your cost whch means less money inside your pocket.

Why should you pay US govt extra 15%?
- Too rich?
- Feeling generous?
- US is your grandfather?
- Are you using any US social stuff?

That 15% you pay to the US govt can be channelled back into the ETF further increasing the amount of your dividend by extra 15%. Overtime, compounding will work it's magic.

If I invest in ETF, sorry. I won't pay them extra. The extra I keep.

how much u saved so far? 1 billion?

For every USD100k you invest, assuming dividend is 3%, you are entitle to USD3000.

30% tax = USD2100
15% tax = USD2552

If USD450 savings is nothing to you, be my guest and donate it to the US govt. US govt says thank you.

Thanks Ramjade,

If the Irish are doing it like dat, does it mean other jurisdiction also doing it? or Irish-based U.S. etf is the best one, or the only one?

Of course. Eg. Malaysian can invest in Canada but their WTH is 25%. Because Canada have tax treaty with us, we actually pay 15% (although I have no idea how to go about it. I am doing my homework on this).

That's why investors are taking advantage of of tax treaty to reduce their tax. This is particularly true for those foreigners who follow Boglehead forum

Depend on how you look at it.
- Trader = no brainer to choose US based ETF
- Dividend investor/boglehead investor = choose ETF which need to pay less tax.

This post has been edited by Ramjade: Aug 27 2017, 11:40 PM