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tan liping

04 Aug 2024

Retirement

When to coast FIRE

Coming to 40 ftwm this year with 3 young kids. What is a good amount to coast FIRE and for purchase of US ETF, which is the best platform to buy?

Discussion (10)

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Karen

05 Jan 2025

Sharing Referrals at https://t.me/SgRefs

It really depends on the sum of amount you are putting it. IBKR has one of the lowest fees for huge sum investment. If you are testing out waters first, can try Moomoo, Webull or other low cost brokers

For US stocks and ETF, interactive broker has the cheapest non-promotional fees.

Robin

06 Aug 2024

Administrator at SG

Good to back test and ease yourself into such methods of deploying your money.

If not, you might not be able to take it behaviorally and the plan might just backfire.

I'm not sure what you mean by "coast FIRE". However, assuming you're maxxing-out your SRS and CPF, S$2 million is a good number to aim for (in today's dollars) in addition to those two. Don't forget that US dividends attract 30% WHT. Although a lot of people think they're going to kill it with trading in reality most don't. If I were you I'd focus at least 75% of your investment on dollar cost averaging into index fund ETFs (preferably Vanguard or one of the others with low management expense ratios). Buy all means stock-pick and trade with the other 25% (it'll be fun and you might beat the market). As for which platform to use, there are plenty of choices (e.g. MooMoo and Tiger Brokers etc), but if your account is big enough then I highly recommend Interactive Brokers.

Assuming you've got about S$100K already and you want to retire at 55, you'll need to average about 9.25% per annum compounded over 15 years and consistently invest about S$3,500 per month. It sounds tough but it's doable if you're willing to cut down on the "nice to haves", and don't blow your AWS and bonuses. Having 3 kids is going to make it harder, but I wish you the best of luck.

Which platform to buy is depend on how frequently you trade....

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