Monday, 12 March 2018

Regular Share buying plan

Given that my IBKR portfolio has grown rapidly and is becoming a sizeable part of my entire investment portfolio, I felt that it would be good to diversify by using another broker for some of my foreign shareholdings.

Since Standard Chartered's US$:S$ exchange rate is now very good, I have started to use SCB to purchase CPXJ (iShares Developed Asia ex-Jpn ETF) and LQDE (US$ Investment Grade Corporate Bond ETF). To build up my SCB holding, I will buy them once every month.

Monthly Plan
SCB Foreign ETFs
S$1,000   CPXJ
S$1,000   LQDE

Interactive Brokers Foreign Stocks
S$800       ADR-1  (Telecoms  BT, VOD, or TEF)
S$800       ADR-2  (Commodities /Utilities/ Pharma  BLT, NGG, or GSK)

SCB Local Stocks
S$800         REIT-1 
S$800         REIT-2 or STI Component Stock
S$800         STI Component Stock   (Singtel or Sembcorp)

Total: S$6,000 a month regular share buying plan + continue to top-up warchest + discretionary buying of selected shares on dips. 

Quarterly Regular Purchases
If I did not do any discretionary buying on dips over the last 3 months, I will use the accumulated cash to purchase an ETF
S$2000          UK ETF: VUKE (buy using IBKR) or Emerging Markets: VDEM/EIMI (buy using SCB)

Annual Target for regular share buying is therefore
6,000 x 12 (monthly purhcase) + 2,000 x 4 (quarterly purchase)  = $80,000 a year. Dividend income covers basic expenses and a little more, allowing most of earned income to be deployed towards investment with remainder added to warchest for future crash.

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