When we categories equity type in our Pie Chart, we basically shape it the way we view them and it could be bias. Due to that, it could influence us negatively if we are not careful. So the last article about the pie chart link here and right below.
This view tells us probably we have a good balance of what we want to see. With reducing bond. Increasing Growth. And Reits mainly for dividends and some growth.
Below is a new view of the investments which include CPF and Gov Securities. As blogged earlier, the plan is to have them as part of Bond contributors.
We also want to make sure to benefit from stocks that keeps our STI index kicking. Namely, Banks. As we can see from below, banks allocation is not that great despite the risk of digital banking. This is probably something that we should keep in mind to build-up when there is dip opportunity to be portfolio balance.
Gov Security is reserve to hold for home loan emergency needs. If we take this view, there is opportunity cost we have to pay for due to low yield. If we try to invest in SSB today, is not a good place for experience investor as the interest is quite low. As current amount is sufficient, we won't see absolute increase in here in the future.
This segment is purposeful but it will also be in the back of our mind to find a way to optimize it if risk can be managed. It is also untapped potential when loan get smaller over time or the portfolio gets bigger which lower the risk of this portion that could tap as opportunity fund in major crisis.
As for CPF, the current rule support higher SA allocation till 55 for people in specific age group. So likely will max the annual allocation allowed to be contributed for the next few years. 4% interests provide baseline low risk returns.
CHN-Growth is investment in Chinese stocks. The small segment helps this time from the market crash and have better understanding of their stocks. However it also present room if the condition is right to invest in China Market. Regulatory issue aside.
What next ? Maybe should include investment property.
Finally, to make life easier is important we Maximize our money to Work but it has to be Risk adjusted. Key takeaway, how we categories our chart matters.
Cory
2021-0822
Telegram CoryLogics Invest Chat
No Coin, No Porn, No Penny
Articles in this Blog is personal take and educational purposes only. Reader should seek their own professional help when making financial decision and be responsible for their decision.
No comments:
Post a Comment