This is a follow-up post to my earlier post on AutoWealth : My AutoWealth Experience : The Best Robo-Advisor For Index Investors?
The interest and response to my earlier review on AutoWealth robo-advisor far exceeded my expectations, which was why I’ve decided to add on a little bit of information to what I’ve shared earlier.
SAXO View-Only Client
As explained in my previous post, ETFs in my portfolio are kept and held in my own SAXO account as part of my account opening with AutoWealth. AutoWealth simply executes the trades for me. Because it is pretty much a standalone SAXO brokerage account, I get all the features native to SAXO independent of AutoWealth.
For basic users, they probably only log in to their AutoWealth account to see the aggregated information (transactions) available for them.
For advance users who are interested in the nitty gritty details and whether the front-end UI is showing what’s going on my their own SAXO accounts, tadah!
Some features included with it –
- Deposits and forex rates (see next section)
- Account activity logs – oooh it tracks when I logged in
- Performance reports – if you like charts etc
- And many more!
Exchange Rate (USD/SGD)
This was something that I have been wanting to post. Someone asked in my previous blog post so I went to dig it out. This is the screen capture from my SAXO account.
So far, I have funded my AutoWealth thrice – the initial and two subsequent quarterly one.
I don’t really have a good way of comparing (let me know if you have a good method), but here goes. For research purpose only!
[AutoWealth] 19-Oct-2017 / 13:27:37 – USD @ 0.733451
[XE.com] (close rate) 0.73706
[AutoWealth] 02-Jan-2018 / 09:28:39 – USD @ 0.750836
[XE.com] (close rate) 0.74764
[AutoWealth] 02-Apr-2018 / 08:40:59 – USD @ 0.761753
[XE.com] (08:30:00 rate) 0.76349
As far as I’m concerned, this is pretty competitive rates and far better than what I was getting with StanChart for example. Also, I do believe that AutoWealth allows you to perform direct USD deposits – please check with them if you’re interested.
Dividend Withholding Tax In Action
DWT isn’t unique to AutoWealth (or robo-advisors). It affects everyone. Long ago, I wrote a post on Dividend Withholding Tax and if you’re interested, check it out. It remains one of the most-viewed and most-commented post on my blog.
Read it and (hopefully) you’ll easily understand why your dividends are being deducted. I used to buy Vanguard VWRD in place of US domiciled ETFs for my BogleHeads Porfolio to sidestep this issue, but I’ve come to accept that perhaps this is an unavoidable aspect of no-frills index investing.
So You Are Thinking Of Investing In AutoWealth Too ..
My view remains the same as what I have written six months ago. I like what I’m seeing with AutoWealth. It’s ticking all the right boxes in my head and I foresee it being a really strong contender for my money – to match market returns and not actually trying to beat it. In fact, my opinion of it has improved. AutoWealth may not have a flashy user interface or a cool mobile app, but they are doing well at what needs to be done.
Yes, I do believe they are currently the best robo-advisor for index investors in Singapore. As always – capital is always at risk when invested and you are making a decision of your own free will to start investing with AutoWealth. Robo advisors are NOT immune to market crashes and cannot be expected to be as such.
StashAway – Useful Read
Financial Horse wrote two nice posts (here and here) on StashAway which I felt was worth sharing. If you’re serious about investing in StashAway or have already done so, these are information that you should have been aware of already. If not, please pop over to his site and read them 😉
In summary, he listed four points on why he didn’t like StashAway and I included my views here :
- Outsized allocation to US bonds
Agreed, and that’s because of their proprietary algorithm. We get to see what they buy but can’t change it.
- Opaque reoptimisation technique (Economic Regime-based Asset Allocation™)
Agreed, same as (1) above.
- 30% withholding tax
In the grand scheme of things, I have no issue with this. If you’re interested, StashAway has clarified this previously and AW has similarly done so before.
- Fees are also on the high side
When US robo advisors like Betterment or Wealthfront initially launch, their fees were much higher as well. With greater AUM, costs would logically be lowered.
My funds continue to be injected into StashAway on a monthly basis, and I like what they are trying to do.
- I currently have funds deposited with StashAway as part of my evaluation of robo-advisors in Singapore. I’m currently in my 11th month with StashAway, and each of my referral to StashAway gets me + you SGD 10,000 managed for free for 6 months.
- I currently have funds deposited with AutoWealth as part of my evaluation of robo-advisors in Singapore. I’m currently in my 7th month with AutoWealth, and each of my referral to AutoWealth gets me + you SGD 20 credit. Instead of using my referral code, please first try to find a friend or family member to start investing together and both of you get the $20 credit. If you really can’t find anyone and need a referral code, then you can click here. Note that the promo only runs until 30-Apr-2018.
Other .. Stuff ?
I haven’t been posting as much recently, mainly because a lot of what I’m doing on the investments front are being auto-piloted by robo-advisors or regular investment plans etc.
You know the Google Maps app? You can zoom out and see much more? The frog may be contented in the bottom of the well, for now. One day, it may leave the well to find a whole new world awaiting. What’s outside of the well? A valley at the foot of the hill? A hill at the bottom of a mountain? A mountain in the middle of a continent?
This macro perspective is especially interesting for me as I begin to explore certain aspects outside of personal finance and learn more about the systems we live in.
Take interest for example. If the bank give me a business loan of $1000 at 10% interest rate per year, I would need to return to the bank $1100, correct? If there is a finite supply of money in the system.. I never did wonder where the extra 10% is going to come from.
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