Cory Diary : Cash Flow 2025-08

Have been cleaning up labels of the blog but I thought Cash Flow topic itself worth a label itself. The post gives a view on how well we managed our assets. A critical step that could help our financials.

A saving of 100k of 0.2% interest is only $200 if left idle whereas in fixed deposits of 3% is $3,000. That's 15 times return difference relatively in annual perspective.

Left is Asset, Right is Cash Flow resulted from it

Unless one go into private business which can be high risk, or property return in capital nature is significant which enlarge the asset base, the yield from our asset basically depends a lot from Equity which theoretically is a business as minority shareholders. The risk is much lesser. In dividend investing perspective, the cash flow from Equity out-size all the others asset class.

Another class of thought is to invest in equity for capital appreciation gains. In this line of thought, the cash flow if needed will have to come from sales of stock itself which probably needs to follow some draw down rules. US Market provides such sizeable gains in perspective but we run the risk of inheritance tax or market swing. Is also not truly a return of investment that can provide constant stream of income of invested capital into a business. Whether is sustainable or not from a business of reducing stake can affects one returns in the future due to uneven return from individual performance on a stock.

Since our plan for investment in US market is smaller for growth and not dividend, there won't be sales for cash flow. Instead when there is capital gain, it put some pressure on entire equity portfolio yield returns at this stage of the game. From the chart, the Equity portfolio still show remarkable outsize cash flow supports. If we are successful in growing our US portfolio, this may loop-side the chart on the asset base enlarged on the left, and negatively show lower proportion of Cash Flow from the Right Chart. Nevertheless, is a good thing to have definitely.

The Charts intent remains unchanged in the sense we still want to keep a look out for poor investment choices or risk management. In this update, I think we have reduced the saving account sufficiently into working capital and some buffers. Fixed Deposits are still sizeable which seems to hold their ground ok as necessary allocation for the time being.

SSB and T-Bills do not change much in absolute amount as net worth shrink or grow at this stage of retirement phase as we have already allocated what's need to be. There is no need to expand, or maybe even reduce if needed on T-bill side as one property loan get smaller over time. The net property segment provided needed diversification and income stability but any additional in this segment could reduce our future cash flow further.

Since yet 65, the CPF segment is a simulated figure. Will have to put some more thought around this segment of retirement support and adjust the numbers accordingly. To obscure the figure, insurance within this segment will also be looked into on future plan.

Cory Diary

2025-0823

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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.