What Happens If You Are Almost 100% Vested? - Part 3

To update all readers, the plan has already been carried out.

I continued to have friends, whom advised me against carrying out the plan, as well as some others whom have carried out their own leverage plan.

Just to emphasize I will not be going ahead with margin or leverage lending. I prefer to borrow a fixed sum with a discipline way of repayment. This will allow me to plan better.

Basically I did a fund transfer with Standard Chartered Promotion of 1% of processing fee for 6 months without any other cost.

And this is the plan of repayment:

1. I have "X" amount for investment.
2. I will place "X" into Singapore Saving Bonds.
3. I will borrow through Fund Transfer 1 for the amount of "X+Y" for 6 months.
4. The portion "Y" will be repaid via monthly injection of cash amount "A" over 6 months.
5. In the event the market recovers in 6 months, I will take out "X" from Singapore Saving Bonds and repaid the outstanding amount of Fund Transfer 1. The amount of Fund Transfer 1 should remains with either "X" amount or lesser.
6. In the event the market did not recover in 6 months, I will borrow the amount "Z" through another bank's Fund Transfer for another 6 months and use it to repaid the outstanding amount in the Fund Transfer 1.

The advantage of the plan is: 
(1) I have the ability to invest more at this moment and 
(2) to own the shares that I invest in currently, and 
(3) this investment will have a longer time to recover back, and
(4) I can continue to roll this debt forward at a lower amount as I repaid it consistently, and
(5) the interest earned from the Singapore Saving Bond can offset the processing fee over time. 

However, the risks of this plan is that: 
(1) you must be continually be employed during this period, and
(2) any non-payment will result in being charge 24% of late interest on the outstanding (I think so), and
(3) rolling over of debt will result in higher total processing fee, and
(4) I must be able to select the correct company.

Next up, I may talk about some strategy or go into each company that I am currently vested in.

Crazy Plan. Crazy Thoughts. Crazy Portfolio.

These information were shared with members of my Fundamental Scorecard Telegram group. If you are interested, feel free to join us. 

We talk about everything under the sun about investing with a focus on US, HK (slightly lesser) and SG companies.


  1. Better than leveraging on margin account. It is like buying from Court by installment.

    1. Hi Createwealth8888,

      I am taking too little risk in the above example. I will put up an update soon.


  2. Hi TUB,

    Given that you are "100% invested", did the recent market rout erased your gains/efforts from past few years (probably since 2016?
    I mean that may be the case for most investors, including myself.

    Just a random curious thought.

    1. Hi Frowns88,

      I did not calculate it this way. But its possible.



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