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 [DIY] S&P 500 Index w/ 0.07% Annual Fee, Buy the best companies in the world

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LlinusLove Fangay P
post Mar 18 2021, 04:24 PM

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Hi guys, newbie here, plan to invest ETFs passively , just apply for TSG account, waiting for approval. had gone through this thread, good information given guys, thanks a lot. just a few question to ask through, hope someone can let me know

1) As for now, the best approach to fund your brokerage effectively is still Malaysia Bank - transferwise/instarem/bigpay - SGD Bank - deposit into TSG right ? same as well with withdrawal by going through it reversely right ?

2) The reason of going for SXR8 is because of lesser, 15% only withholding tax. How do I find any other ETF that has similarity advantage of this ? i had went to justetf website to try seach for it but not sure how to filter it.

3) saw on another thread, say that

On US ETFs you'll get Withholding tax deducted from Dividends at a rate of 30% - although half of this can be claimed back as long as you submit a 1040NR form by April 15 the following tax year.

is it true ? cause from what I understood I though this 30% tax sure cannot escape one if Invest in Us domicile ETFs. anyone here had done this and had claim back the half of the dividend , can share to me your experience ?

Thanks for the help guys. Really appreciate it!
LlinusLove Fangay P
post Mar 18 2021, 04:30 PM

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Also, May I know , why the magic deposit amount to TSG is RM7k ? what is the calculation/rational behind to show that deposit this amount will be most cost effective?

the only info that I know deposit from SGD account to TSG , the fee is gonna be 2usd right... so why RM7k though ?

sorry if this sound like a noob question. Hope someone can clarify for me. Thanks.
LlinusLove Fangay P
post Mar 18 2021, 05:43 PM

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QUOTE(Ramjade @ Mar 18 2021, 05:11 PM)
1. MY bank -> transferwise/instarem/bigpay/sunwaymoney -> Cimb SG -> Interactive broker (IBKR)-> Convert into USD/GBP via IBKR
Withdrawal will be Sell on IBKR -> Convert into SGD via IBKR -> CIMB SG -> Cimb Malaysia
You don't deal with TSG anymore apart from first initial opening account. After that it is IBKR all the way.

For me I never bring my money back. I treat it as a one way ticket. If you keep transferring the money back and forth between Malaysia and IBKR, your forex cost will keep adding up. Keep your cost low at all times!!

2. Google the ETF you want that track any particular index you want say S&P 500 Ireland domiciled, Nasdaq Ireland domiciled, Dividend growth Ireland domiciled, etc
Alternatively, JustETF -> ETF screener -> Equity and select which one you want) -> Fund Domiciled -> Ireland/Luxemborg (but Ireland is the most popular one) -> ETF listing -> London

3. You cannot claim as Malaysia does not have any tax treat with US.
You can invest using say RM1k but the cost is very high as shown below.
USD2/conversion + GBP1.50/EUR1.75 -> commission you pay to buy and sell ETF. You want to try keep the expense under 0.5%
(8.22+RM8.60/RM8.59 = RM16.82/RM16.81)
RM16.82 or RM16.81/7k x 100% = 0.24%

RM16.82 or RM16.81/1k x 100% = 1.682%!!!

Keep your cost low!!!
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Thanks for the quick answer bro ! really appreciate it ! ya I wouldn't touch those invested money at least for a few years . Just want to know the withdrawal procedure in advance.

Thanks for the clarification !
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