Just tally up on the most exciting figure of the year for me as this theoretically encompass year family expenses, incomes, pensions, parental support, investments, etc. To cut it short, the year score is below.
Net Worth 7.3% up YoY (ATH) which is kind of relief after seeing a reduction for first time in Year 2022 since I started tracking.
Net Worth YoY
The final data includes the CPF interests just credited. There is some ambiguity on the Net Property value estimation and more conservative approach is used based on URA transactions on similar asset and do a $50 PSF haircut from it.
After subtraction from equity returns, there is still sizeable saving for the year which could mean we have manage to control our expenses largely. I am not completely sure yet how this is done and this will be on another article to dive into as there are other factors coming into play such as bonuses, higher fixed returns and better rental income support that I can think of currently.
Net Worth Tracker
Year 2023 is full of macro risk situations in many fronts. So in my opinion is still the most hatred recovery for the market despite high rate and recession fear looming right after Covid. Is also in this situation that I am able to inject investment into Reits and Banks to achieve record dividend as my dollar is stretched with much higher dividend yield counters for basically the same business due to rate impacts. Sometimes I wonder why markets are so myopic to allow that to happen since high rate is not going to last very long. Why price the stock much lower due to higher cost of funding which is temporarily in nature? Maybe a lot of people is on leverage ?
Not only that, this market behavior allow my emergency funds to achieve high yields from FD, MMF, SSB and T-Bills too. The last few weeks of the year saw the Fed dot plot to Pivot which reflected in strong recovery of Reit stocks. In the tracker chart, Non-Productive Assets ( NPA ) are mainly FD, MMF and Cash. The sudden increase is due to salary, bonus, stock options and some build up of warchest of the Reits from recent run-up.
There is no change in the property valuation but in net increases due to monthly paydown of the loan. This is seen in the Property stack of the chart. No wonder people says property is a way of force saving. In net, equity investment has came down slightly to be diverted into T-bills and SSB. Some Warchest towards the end of the year. However the total investment stream stack remains flat.
What do you think about Year 2024 be like for the market ? My hope is that it will continues to be great. All factors seem to point in that direction. Feeling wise, I do not have incline towards any direction yet. Meantime I try to hit higher in Net Worth for this vital years as I am no longer young and risk of it's growth, is that I am near the end side of my working lifespan.
Happy New Year Friend !
Cory Diary
2023-01-06
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Disclaimer: The articles presented in this blog reflect personal opinions and are intended for informational and sharing purposes only. Not responsible of errors. Readers are advised to seek professional guidance when making financial decisions and should take full responsibility for their choices.
