Hi all, I've just started work (in July this year), and my goal is to have a sufficient retirement 'stash in 10+ years :)
I'm all for buying Vanguard ETFs, but as I'm from Singapore, I can't seem to find any specifics on how to invest in it from the blog (so far). I'm wondering if using Interactive Brokers as a platform is a good idea? They seem to have the lowest commission charges for online brokerages (beating local bank commissions) that will allow me to buy U.S. stocks and ETFs. Singapore also does not tax capital gains, and exchange rate risk is minimal (from what I know of local government monetary policy)
I'm hoping to put in SGD 2,850 (about USD 2,000) monthly (after payday), or SGD 34,200 (about USD 24,000) annually, with expenses of about SGD 14,300 (about USD 10,150) annually. Inflation here averages to about 2-3% annually.
My savings (and expenditure) are expected to scale this way (roughly):
- First year: Savings - USD 24,000 / Expenditure - USD 10,150
- Second year: Savings - USD 24,000 / Expenditure - USD 10,150
- Third year: Savings - USD 27,400 / Expenditure - USD 11,850
- Fourth year: Savings - USD 32,400 / Expenditure - USD 11,850
- Fifth year onwards: Savings - USD 37,000 / Expenditure - USD 12,000
These are of course VERY rough numbers, which hover at a roughly 70% savings rate throughout, so that's 8.5 years of working (if I'm disciplined).
For IB commissions, I understand it's minimum USD 1 per order, maximum 0.5% of trade value. If I pay less than USD 10 in trade commissions a month, I have to pay the difference, too (so a minimum USD 10 commission fee a month).
Based on this, is it a good idea to start buying Vanguard ETFs via Interactive Brokers? Or is there a better way? Or is there something horribly wrong I've gotten wrong / am missing out on? Any and all feedback appreciated!!!
*From a clean-shaven, wet-behind-the-ears, less-than-badass Mustachian ;)
P.S. - No student loans either; very lucky to have gotten a scholarship :)