We talk a fair bit about a rather passive approach to index investing in a USA context and Singapore context with the Infinity Global, STI ETF and the POSB Invest saver.
Writing a rather comprehensive guide that brings you through how to get started and a blueprint portfolio allocation is difficult. You have to think with much parameters and there is seldom a one size fits all solution.
The Turtle Trader have written a useful article that shows you how to form a 3 ETF portfolio with the Standard Chartered Online trading platform. You can read it here> Establishing Bogleheads 3 Fund Portfolio in Singapore
Don’t worry. It won’t cost you an arm and leg. This guy looks genuinely wants to help provide the resources to help the average folks built wealth in a sensible way. Its provided free on his site.
A note of the difficulty is that, his recommendation for the global ETF is to use VWRD the US dollar version of Vanguard’s FTSE All World ETF listed on the London Stock Exchange. There is an inheritance tax in UK where currently if the investor held assets greater than 300k pounds, and the investor passed away, the assets may be subjected to 40% inheritance tax.
This is the difficulty when it comes to selecting an ideal ETF to simplify wealth building. The alternative is to take on more cost with the Infinity Global Fund or to form a global allocation with Vanguard ETF based in Canada, where there currently do not have these death taxes.
If you would like to forgo an allocation that captures the world, there are Vanguard ETFs in Hong Kong that tackles the Asia Ex Japan region, where there are no death taxes and dividend withholding taxes.
Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.
Readers also follow Kyith to learn how to plan well for Financial Security and Financial Independence.
Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Fee-only Wealth Advisory firm Providend.
You can view Kyith's current portfolio here, which uses his Free Google Stock Portfolio Tracker.
His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.
You can read more about Kyith here.
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JW
Wednesday 10th of December 2014
I current hold SPY (S&P500) and VGK (Developed Europe) listed on the NYSE. I know there is a WHT applicable to dividends, but am unsure regarding capital gains & inheritance tax. Any idea?
Kyith
Wednesday 10th of December 2014
Hi , I suppose you are a Singapore based investor , there is a 50% estate tax for amounts in excess of 60k. No capital gains tax, and the 30% withholding tax on us domiciled stocks
The Turtle Investor
Wednesday 10th of December 2014
Hi Kyith,
A pleasant surprise to see this post today! I myself have learnt quite a bit from your writings, so I guess its time to say a massive "thanks" to you! I do hope a global index ETF lists on the Hong Kong Exchange in the near future.
Kyith
Wednesday 10th of December 2014
Nah I think you did a lot of the fact finding yourself so you got to give more props to yourself. This is also so they most folks know of people with more vested interest doing this so that they can contact u to discuss. And yes I hope vanguard see a role on global etf in hong Kong. Maybe we should write into them
momo
Tuesday 9th of December 2014
So you noticed turtle too lol. Agreed that Vanguard HK has some alternative options too (i believe eventually theyll have more global offerings), but the problem is not the product but the platform to trade HKEx! Probably have to choose a platform with low fx loss and pay the $2 per counter per month custodian fee.
JW
Wednesday 10th of December 2014
Hey momo,
I have holdings on the NYSE and even HKEx with Standard Chartered Brokerage. I don't get charged a S$2 custodian fee.
You might want to switch your broker.
Kyith
Wednesday 10th of December 2014
hi momo, the forex lost is a pain. i am not sure if interactive broker is cost efficient in this regard.