Cory Diary : Financial Updates

Salary

To most people, the largest impact will be Salary Income. Well, at least for my generation. :) Within the organization we have been asked to prepare a small list for possible retrenchment if there is insufficient attrition. This is not like we are doing bad. The company is doing quite well but I guess the top management always like to see constant lifting of performance bar, talent flows, cost structure etc. It does cross my mind whether should I ask for voluntary however money is always not enough even though financially I am quite ahead on average. 

I am now in the mode to work as long as possible as I am on my comfort pace. The idea of constant cash injection into my saving account, occasional Bonus and then Stock rewards in-additional to other benefits can be quite "addictive" rather than the fear which I think always lies right at the bottom which will surface occasionally when I feel not enough money to invest. To put in easier context to understand, every month of work remuneration equals to a paid holiday vacation for the family. That's how hard to let go.

In-addition to that, able to contribute actively in the workforce and seeing products you are part of is always fulfilling other than being in constant InTouch with the industry and people. Often as well the satisfaction of able to lead and guide members of my team and colleagues will feel rewarding as it does need certainly level of seniority skillset often lacking in the company. I have seen people who work on projects for many quarters when the scope is not really practical or required. This is a sign of lacking experience people who can close them in minutes. So much effort spend on useless projects. Maybe there are too many Project Managers just to keep everyone busy and paid.

Asset Allocation

It has been some time that I have not been Tallying up my asset. I feel the need to do this to move forward as there are competing areas we need to review, balance and invest. Cash, salary, dividends, trades, loans, credit, local/oversea, current/non-current are all the moving parts. How much buffers or spare cash after emergency, housing etc. There are many saving and investment accounts to check. Basically it boils down to Cashflow and Return. To move I need to have a good view on past and current for the future. This is how I derive my Total Net Worth too. Asset wise reach ATH due to gain in company stocks else I think is a flat quarter. Kind of lucky.

There need to be comparison when I talk about adjustments. Here's the previous post. ( link )

Investment Accounts

There's a decrease in investment account as I invested more. Cash is up too. So Probably I could re-balance them. Fixed deposits are now mainly in oversea accounts as I plan to eliminate most of FD locally. Emergency cash is now saving cash. Similarly, Bond will be on downtrend except for SSB which is under Gov securities.

CPF

CPF has expanded due to top ups. And this hope to be annual affair before Age 55. I plan to try out SA investing just to have a good ideal on the Shielding Process. Overall, CPF is a portion of retirement plan and my expectation is Stock will really be the key after I retired.

Expenses

There is a few big ticket items. One is I feel Rei needs a boost in immunity and decided to provide her a RSV. 1K cost in nanny for each girls. A coway air purifier. Coming expenses will be new set of clothing for Xin as she has reached 2 year old. Tax Payment. Have been contemplating to move to a larger apartment but currently at back burner. This could change anytime.

Tesla

I did a quick glance through the recent correction in US Market and most of the spike has been worn off and is back to the manageable slope of growth path. Having step into US market proper, there are opportunities that I could setup more funding on them. One of my favorite is Tesla. Right now the invest amount is minimal but I could expanded my investment exponentially if opportunity arise. Market can still come down as valuation wise is still quite rich across the board.

Tesla is already a profitable company in 2020. However, the profit looks emerging which means trying to use PE to rate them will give you a very high value which looks very expensive but misleading. Price has swing down from 800s to 500s and back up to near 700s. The swing is wild which I never expects that being new to this market.

For Tesla current PE ratio is 1083. Astronomical number. However the earning could doubled quickly from 0.64 to 1.28 and the PE could come crashing down to 500s. I am not saying it will be this for sure but for a high growth company which is just profitable, the potential is there. The EV Car is real and selling well and limited by it's production capacity. Is a calculated bet as they are a prime mover of the industry just like Apple on Mobile Phone. You know they are doing well when there aren't need for Sales People. The signs are all there of a successful company on a path of prosperity.

I am quite excited with US stocks even though they are still a small portion of my overall equities.

Reits

Singapore Reit market has been shaken by recent yield spike despite the overall yield is still very low in the grand scheme of thing. So I am quite confident to continue to add. The Reit yield is now quite attractive for example Ascendas and MINT both hit more than 5%. I did a timing trades selling significant portion of my Ascendas when the price peaks to a point I sold too much and need to buy back some just in case I am wrong. That's a good move this Q1 and has been in buying back mode since. That's a few coway saved.

Later batches do takes time to build up as purchases are spaced out in case the retraction drawn out is long. I do not want to be a in situation that my precious fund dry up too early which will be bad for the mean values and missing out a much better yield returns. This also helps to maintain sufficient War Chest which are pooled together not to get depleted before any major crash.

Trading Accounts

Finally, to make thing slightly complex I have a few trading accounts. Trading cost is now a growing concern for me as this point of time. I have been using DBS Treasure for a large portion of my trades now. The transfer of fund is also make easy being connected to the saving accounts. However for US trades I am still going through Poems - Cash Management. We will explore later as we grow over there.

Dividend

Dividend wise for Q1 is a little slow. In summary. Take this with quarterly and half yearly in context for different stocks. Theoretical max is now $57k annual as each time there is market draw down I will start buying bigger which helps to boost my dividend. I hope to be able to achieve $60k mid term.

Syfe

Starting to explore Syfe and probably a few more similar products if any out there for diversification. This is more for legacy planning on how my family can continue to invest in a more assisted way. And will likely to do some try out as this will be easier for wife to manage instead of stock pickings. I have never been keen on Unit Trusts as to me is a black box that can be easily manipulated or affected by a few individuals. I could be totally wrong on this perception but I will still be ok. Robo Advisor platform maybe a new dimension of investment which seems much better, harder to be manipulated and we have more controls. Anyway i could be wrong but is first step in learning.

Cory

2021-0316

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.

Cory Diary : Portfolio Updates

Recent adventure in US market is not good as tech starts to correct. Even though I was prepared that this could happen with mitigation strategy, the cost is still quite painful and feel timing ( fate ) could be better. With US treasury yield continues to rise, both bond and equity broadly are coming down the same time while mainly banks stocks move up. Stock and bond prices usually move in opposite directions. What will Fed do this time ? Nothing so far unless it spreads to destabilize the value market I feel. Tech stocks are in bubble territory so any correction to them is very welcome to Fed probably. 

My portfolio is now segmented into Bonds, SG Core, SG Reits and US Stocks. At this moment is lagging behind recovering STI index by a few percentage points as market moves to value while within Quality Reits get hammered. On dividend plan, the portfolio target annual dividend max of 55k is completed. ( Slightly higher than year 2020 in sustainable basis). I also build up a warchest of about 9% of invested portfolio value for quick deployment if needed. 

So with above in context, what's my take now ?

Bonds ( Orange )

With the recent maturity of CMT 3.08% bond, I am now left with 3 bonds. As previously mentioned, my plan is to have CPF be the "bond holding" of my portfolio and therefore this bond segment will be phased out and not be tracked in portfolio as CPF size will be expected to be large enough to skew the tracking of risk, yield or returns. However if I am to invest my CPF cash later, then they may return into the portfolio to be tracked. This transition phase could release more cash as I am limited on how much I could top-up my cash into CPF annually.

Reits ( Green )

Expanded to 9 Reits. Almost added Frasers Logistic and MLT but decided not as is still too expensive despite recent correction on quality reits. This is based mainly on yield/risk. I have a theory that the recent Reits volatility is due to flight of funds from strong reits who are competing with increasing bond yield. So at appropriate time maybe good time to scope this class of reits.

Elite, Cromwell and Aims Apac are considered higher risk in this Reit segment so their allocations are lower with higher yield. IReit however is allocated higher because I have AK backing. hahaha. This class of higher risk reits can do wonders to your dpu but occasionally "bad news" will strike them. Is important that we diversify to more of them and to filtered out similar or even riskier ones. So far exclusion list ESR, Sasseur Reit, First Reit, LMIR, Hospitality. Do note this article is not a thumb down on them but their uncomplement to my invested list. haha

Core ( Blue )

Sold OCBC recently to lock in profit as I feel there is enough DBS allocation to ride through the market. This also mean is much harder for me to sell DBS now considering it has been a strong balancer of losses in other segments this time round. I like SGX and Netlink a lot but there is limit of allocation which I do not want to over-expose to. One interesting stock is Sheng Siong which I am buying back at higher cost but at much smaller amount.

Recent adventure in US stocks ( Pink )

If we could remember I laid out a plan to invest in US stocks at a time when the market is quite high and was careful to make sure this is mitigated. I planned a 5 steps allocation approach to increase my allocated investment. The first step was implemented, and together with previous US shares not tracked earlier, constituted about 4.5% of my investment portfolio now. 

And then the US market starts to tank, and the whole process stopped at step 1 which is less than 5% of investment portfolio. If the 5 steps are done, I would have reached 25% allocated investment. Bad timing ..... on my diversification plan but it could be worst. I would hold them and see how far the correction goes. Being used to dividend investing, such volatile movement is something i need to learn. Some school fees need to be paid. Is a very good learning experience with skin in the game.

Chances are I will invest more into US market in the future. PLTR, Nvida, Appian, Amazon, FB are interesting list in-addition to existing.

Cheers

Cory

2021-0306

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.

Cory Diary : Life getting to Normacy

2/17 is Special. The Day we carried Younger Rei to Nanny Place. She is almost a year old now and we feel comfortable she is ready to survive out there. Taking care of baby Rei the first year has been an Arduous journey as she was pre-matured and need much more special care. This make me realised that we have been fortunate on our first and never fully walked away with a "Credited Parent Badge journey" till now.

Interestingly, when we first has Xin, I thought bringing her up is not easy. Schedule is really full. The only truly rest time I have is like a midnight 5 min walk to a local 7-11 to take a sip of coffee while browsing through the internet. Rei up my time management capability that feels like "Tripled". So Xin is really a walk in the park actually. This further reminds me again that we should never take things for granted as it can be a lot worst. ( "Trembling laughter" )

Rei is slow in learning to crawl so Doctor recommended that she goes for some therapy to let her catch up physically. Each time I am there, there is sense of guilts to remind us that we did not provide equal amount of playtime for her that a Good Nanny plays. And this can further be attest when just a few days under a Trained Nanny care, Rei shows significant improvements in her phys.

As for Physical Therapy, not often seen and hidden from social visibility, there is group of children of various disability undergoing therapy as well who needs much more help than we are. And here I am feeling fortunate and uncomfortable to take some time away of the trainer the unsung heroes, and high praise for those parents who never give up on their child. Some of their journey is really tough and will need a lot of helps from Relatives, Friends and the Society.

With Nanny helps, now we all have more time for ourselves and another monthly budget cost of  $1,000. But I can tell you, every cent is well spend. One of best investment even for working Stay-at-Home parents. 

Humbled.

Cory

2021-0220

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.

 

Cory Diary : Investment Strategy

Today topic is a little broad as it covers overlapping action, strategy and performance of myself due to my personal circumstances. So I thought a new header is needed that best summaries the scope. When I first embarked to learn more about CPF never do I know it can become one of my segment to replace my bond investment. There is always misgiving because the governance is by our Government, that we can't trust them. 

This is best summaries by Tan Choong Hwee, a Guru in CPF on below viewpoint.  And I wanted to take pain to emphasis the non-partisan perspective that we need to look at when come to our financial well being. And I wanted to share this such that everyone has an opinion that we can listen and need not necessarily agreed such that we all grow as a better person.

CPF

"Look at this in another angle. Do we realize that we are trusting someone/something where we park our money?

- Deposit in bank:   we are trusting the bank to do its job well of keeping our money safe and paying us interests.

- Invest in stocks/bonds/unit trusts/ETFs/crypto:   we are trusting the counter party in handling our investment and paying us when we liquidate our investment.

- Invest in insurance policy:   again we are trusting the people involved (insurance agents, financial advisors) and the insurance company who offered the policy.

- Invest in property:   we are trusting the agents/lawyers to do a proper job and the transactions are genuine (not fraud).

- Keep in Milo tin:   we are trusting that nobody steals it nor losing it to termites and fire.

Do you think we ever have full control of our money? Trust is paramount in the whole monetary system.

And who do you trust more? Government, companies or individuals?"

Here's my Asset allocation.

Past months I have actioned quite an amount of steps to ensure baseline plan is done for my CPF which I have neglected for long time. Here's the page link. On another perspective, CPF in total is less than 10% of my asset today. So there is also mitigation in-place if I am wrong like any investment plan. I hope to do another 4 years of VC3AC to the max limits allowed. And in my case due to continue employment and investment, the percentage may not grow in term of asset.

Equity

Equity has come down slightly to my surprise as I started Growth Journey in US market. In my personal opinion, the market is really elevated and quite high risk to buy now. My early article on 5 steps strategy is to allow me to have a toe in there while I took profits on some local shares increasing my investment cash account by about 2 points. Saving account by 1.5 point.  My concern is that if the US market is to crash, SGX will do no better and I can utilize Warchest to benefit from it hopefully.

Performance

The first month of Year 2021 is interesting. At one point STI is well ahead before it pars down by early Feb. Market continues to be listless even after Trump as Market seems not really excited with Biden as everyone has hoped for despite democrats holding all the cards now.

In term of currency exposure, I now have more Euro, US and Pounds denominated stocks. This is more due to local reit asset yield is low for those strong Reits. To bang the buck harder, reits with oversea asset looks more attractive. However I have to make sure the amount of each allocated is not significant enough to cause me worries.

Core sectors such as DBS, Vicom, SGX, OCBC and Netlink BNB Tr are holding up well. Growth segment wise is still relatively small and currently has a slight positive in net. I hope the market allows me to grow some more before the omega happens if it does. The growth gives the portfolio edge in worldwide diversification and more long term growth.

With that my portfolio now consist mainly of Core, Reits, Growth and Transition-in-process from Company Bonds to CPF.

Cory

2021-0206

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.

Cory Diary : Growth Stocks

One thing I learned from 2020 is that we are who we are. They are people who can invest just 6 stocks with solid returns. There are ones who only need to do 1 with 500% returns. Everyone situation is different and so are capability. If we are to blindly follow the setup of others we will always be chasing the "dragon" in the cloud and capture nothing.

After years mainly in Dividend Investing, the magnificent rise in growth stocks tell me there could be opportunity that I can learned from it. Some of this growth tocks have widely diversified market and moat. So is not exactly just Growth. A good example is Microsoft where their applications are widely available to PC users. They are basic productivity tools we can't do without.

Microsoft from Wiki

Products

List of software : Windows, Office, Servers, Skype, Visual Studio, Dynamics, Xbox, Surface Mobile

Services

Azure, Bing, LinkedIn, Yammer, MSDNa Office 3652, OneDrive, Outlook.com, GitHub, TechNet, Pay, Microsoft Store, Windows Update, Xbox Game Pass, Xbox Live

Investments

https://en.wikipedia.org/wiki/List_of_investments_by_Microsoft_Corporation

Microsoft Assets are stellar long term. https://www.macrotrends.net/stocks/charts/MSFT/microsoft/total-assets.

Microsoft just reported good result. I am not sure at current level is worth a buy. However long term they will be around. They aren't Tesla in term of growth but certainly a step up to me before Tesla. 

Investment Strategy

Current USD is relatively weak. Which mean a good opportunity for currency conversion to invest new. However Tech Stock price is quite elevated and we could see correction upon entering the market.  

My strategy will be get some first, say 20% of the amount I planned for this counter. If the stock moves much further up and the climb is not spike, I can average up another 20% and so forth. If the stock goes down, I will wait for sufficient time before averaging down another 20%. In that way I started something and build up the position accordingly. So is a 5 stepping methodology and we can varies as we deem fit.

Make sense ?

Cory

2021-0129

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.

Cory Diary : CPF - My First VC3AC

As remembered, after completed all my Voluntary Housing Refund (VHF), the money goes into CPF OA. ( VHF is to return all the money loan from my CPF OA account to buy housing ) .

To get higher interests, I have it moved to CPF SA which has Max limit of 186K (FRS). This is through CPF OA to SA Transfer. There is still a little room for more and as earlier blogged, after selling my Singtel discounted shares, the money also go to CPF OA. I have it moved to max out to current CPF FRS allowed.

Then after, to increase my SA further allowed other than through Salary Income, I will need to proceed with Voluntary Contribution to my 3 Accounts (VC3AC). There is no tax benefits for this step. The key benefit is to get access to CPF SA 4% Interests. The ratio distributed to my CPF accounts are as follows.

Now at age 51, I am in golden age group where my top up matters if I want to focus on CPF SA. The max limits allowed is $37740 including Mandatory Contribution (MC) from income such as salary. With SA allocation as above chart at 31.08% of every dollar top-up. I can do this for 5 years till age 55.

And I did my first VC3AC as follow.

The ratio is as expected. And this can be seen when we login to the CPF website from above chart. So my CPF SA will now be 186K + 1473.19 = 187473.19.

One thing to note is that if CPF MA hits BHS limit, the excess of it will flow in CPF OA per my understanding. "Once CPF members reach age 65, their BHS will be fixed for the rest of their lives. The prevailing BHS is $63,000, and will be adjusted yearly. "

Final note if we exceed annual limit of $37740 due to VC3AC, it will be refunded without interests. So if we are still getting MC for rest of the year, you will exceed if Top-Up already maxed.

Cheers,

Cory

2021-0127

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.

Cory Diary : Trading Records 2021-0122

A little motivated with my new Notebook and keeps looking to squeeze out time to play with in-between chores. One of my favorite app is Chrome Browser and for some reason my tradingview chart aren't showing the numeric values. After figuring out for some time decided to re-install the Chrome browser and without full screen extension. Looks like problem resolved. Phew. Now I will continue my trade reports.

CICT reported their number. Looks like it doesn't meet market expectation and there is some shading. I have some stakes in the stock for long term so kind of amuse with the market sentiment since they are still in rebate mode. It has rebound quite an amount recent weeks since adding some more shares at low below $2 last year. When I look at the TA, looks like it has hit the peak. I refused to sell and this caused me to lose some capital gains. Reduced some today as I soon realised my exposure has been quite much now and this allows me to re-deploy some of the funds. I still hold a good amount but no longer blink when I see my galaxy chart. It is still a recovery counter but I think it may take some rest before moving forward again. Singapore and Malls cannot go away.

Sheng Siong has shown indication of good result by the amount of bonus they have declared for their staffs. So is in a hunch that I think their result probably is good so decided to add some more to my current position. Is still relatively small. But for a portfolio of mainly banks, Reits and some blue chips, they are welcome addition. I use to hold quite an amount in this counter and profit wise is one of the best preforming after Singtel during it's heyday. I like the business as they are not only profitable but also a household name. One thing I find excited of Sheng Siong is that their online business which complement their overall fulfillment. Looks like they are well managed.

There are a few stocks which are really hot in the SG market right now. iFast, Nanofilm, SGX, ... and there are also quite a number of penny stocks animated to my dismay. While the more established stocks can be hyped, they are still good business fundamentally behind it whereas penny stocks always give me the impression that they are heavily manipulated through forum, news or analyst reports. When things start to die down, retailers again will likely be hanging up there dried ... . Anyway I decided to buy Nanofilm to satisfy my itchy fingers.

Finally, I did a quick Buy/Sell trades on Boustead for kopi. Decided not to hold another "Reit" like counter since I have much of them. People who get them hope for a further re-valuation. I decided not to wait.

Cheers

Cory

2021-0123

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.

Cory Diary : Value Notebook to continue my Investing Journey

My Struggle

Old workhorse that helps me to earn hundred of thousands will be decommissioned from active duty. The keyboard was broken with the caps falling apart for a few years already but I was reluctant to repair or change instead I spend like $25 bucks on a wireless keyboard as workaround. On/Off the wireless will stop functioning but due to the SSD drive, the reboot often fixes it quickly.

The machine is HP Folio 13.3" for 7.5 Years. Slightly more than $1k as it was an exhibition set for already 6 months. Yeah I am that "Value". Weight about 1.5kg which is quite heavy for mobility use. My back not helping. And then the SDD is only 100GB which in today standard is not enough. Period. 

I also did a self-upgrade on the memory. It was a harrowing experience because I basically have to tear the machine apart to slot in the new memory stick which is behind the mainboard. Finally got it working and when I put them altogether, I found a few screws to spare that I decided to do away. Maybe I should add a badge for putting humpty dumpty back again on my blog wall.

I have been struggling how to manage it every time there is a major app installation considering Windows OS easily takes up more than 70% of it spaces. The software was upgraded on courtesy of Microsoft from Win 7 to Win 10 even though I preferred the older version. The touchpad is hard to use. I am not sure was it after long years of service or what, as I could not remember but mouse is a must to navigate around the workspace.

Finally, as is a consumer unit, the screen is very crisp, it lit very well and so are the reflection. The brightness getting more and more intolerable. Often I feel my eyes aging on me. The last straw is the power adapter is connecting loose to the machine. It will slips out if I move my notebook a little and need to remind myself to ensure is plugged as the battery aren't pristine anymore. I guess the friction is gone.

Delay Gratification

HP ProBook AMD Ryzen 13.3" 

Despite record returns in 2019 I did not budge. Decided during Covid Year that if I do get a decent profit I will seriously consider to get a new computer and I achieved. With the amount of time facing the computer, there is list of requirements.

1. It has to be SSD drive. Speed of booting up is superb but most importantly the media reliability. How often has hard drives failed on us and we loose everything.

2. 1TB sounds good. A 10x upgrade. I would be happy to pay a little extra for 2TB if there is a SKU for it but there aren't for the range I am looking at.

3. Long battery life like more than a day. At least can last my "World Tour" in flight.

4. Click feel keyboard to register my feel.

5. No Built-in ODD of-course . I want it slim and light ! 1 Kg is nice. I painted this exact goal by the way. Just want to be able to carry around with me even to the Everest climb I think.

6. Display with little reflection. Eyes are important. The size has to be 13.3" for my preference.

7. CPU speed that allows me to game like AK ! Forget about Intel. I want AMD for the Class. I feel the Emperor has been dethroned.

8. Type C USB for charging is the norm nowadays which is what I wanted.

9. Ya has to be Windows. We have a love hatred relationship. But I am not a Mac guy. Is too late to re-learn for me for better or worst.

10, Fast USB speed. This will save a lot of time backing up and transferring data. Time is money especially when we are dealing with GBs of data to manage. No clouds for me but maybe I will evolve later.

And I found HP ProBook 13" AMD Ryzen 7 4750U 16GB 1TB / Win 10 Pro. It comes with fingerprint sensor. I blocked off the cam on first use and disabled the location. I also prepared a recovery USB drive immediately. Fortunately, the touchpad feel is good without need for a mouse. For $1.8k I think this is a Value Buy. Happy Buy, Happy Man, Happy Investing. My dear says finally.

Cory

2021-0121

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.

Cory Diary: Year 2021 Portfolio Strategy

Building Up of CPF and The End of Bonds Age

With the portfolio growing, emergency funds filled and cash increased, and finally the focus of CPF returns supporting retirements, is time to slowly phase out Bonds managed in the portfolio. As CPF is not tracked in active portfolio, we will be expecting higher yield moving forward with higher volatility.

So why the focus on CPF.  Stability of the returns, and roughly 4% XIRR. This beats many bonds.

Furthermore, with locked mechanism or restrictions in CPF, I view it as positive. In-addition to that, it can also be a good holding place for extra cash in OA to be withdrawn as needed after 55. Yes, rule will change but usually is for the better or rational reason. Nevertheless, is prudent not to solely depend everything on it.

This will formed a solid base and a release of 1/4 M to more active investing. The plan is to do more cash top-up via VC3AC for the next few years as I hit FRS.

Investment Accounts

Fixed Deposit is so yesterday especially in foreign currency as there aren't much good ones after AUD/NZ dramatic reductions over the years. For local currency, the only place will be temporary holding. So basically cash is best placed in investment holding accounts subject to safety of assets consideration. I hold the view that we should not be fully invested unless we are really good in stock picking. I am not there yet.

Most of equities invested are cash flow generating for dividend.

US Investment

Have some shares in US which has seen almost doubled in returns over the years. I think is time to slowly sell them off with the rising market. However I need to get my W8BEN renewed. They aren't tracked in investment portfolio. Compared to more famous stocks like Nvidia or Tesla, this returns frankly is mediocre LOL. What a time !

If there is a large correction in the US market, I may consider some investments over there.

Chicken Genius

I watched the Video from this local man in utube who make millions from Tesla. Strike the cord that we have to invest into Needs of the World. I think this makes perfect sense. The result could be long term. Of-course is in context.

For example I would think Nvidia provide high end solution to Bitcoin farming machines, high end graphics and Gaming. Covid helps to push it up another few  levels. There's a need for it. There  aren't strong competitor. 

Growth Allocation will be opportunity based.

Cory

2020-0116

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.

Cory Diary : Late Night Chat - CPF

Last night I have a chat with wife like 2.30 am as she was tied up with work while I was trying to manage my CPF accounts in preparation for retirement plans. This aren't a systematic work discussion but kind of jumping in and out from one topic to another and then jump back to previous again. 

We talked about the worst case scenario like both of us decided to call it quit. How financially we able to continue to manage our expenses and taking care of our babies. And what outstanding to get our financials in order. 

Progress on CPF nominations which I have been procrastinating for a while, and how we can use CPF to supplement our expenses. I still have few years before hitting 55 so if we have to do something on topping up CPF using cash, is time.

I could release my fixed deposits that has been tied down. Singapore Saving Bond will be the core backup for emergency loan installments.

One of the possibility open up is for her to take 6 months leave-in-absence to take care of our household while continues to have nanny to care for the toddlers during our day time. She still want to keep her job.

She also propose to make active her saving available for future investment with my guidance. This will give our family a boost on dividend income. So I thought this is great. We have been reserving this option as additional emergency fund. However, this will take a while as we need to map this out more carefully.

Nominations

Long time since I last did my nomination so is time to update them. The Online nomination is cool. Hopefully it get processed. Few minutes job in the actual submission but need to get two witnesses with SingPass access for the declarations. I also found from 1M65 Telegram that if we nominated minors, they will have to wait till 18 before they get distributed. Here's the link if you like to find out more. (PTO)

Discounted Singtel Shares

Found some Singtel shares in my CPF which I just requested to be sold. Ouch ! for not managing them actively. Last traded my Singtel Shares in Year 2019 on some leftover shares as I do not see strong future of the business. This will simplify administration.

Singtel is one of best performing counter based on investment life of the stock. Today with the banking license, I have yet to see fundamental change that will improve the business significantly though it can still be profitable. 

CPF Interests

Have my SA Account Max to FRS mainly through OA to SA Transfers. And now exploring VC3AC(Top-up to all 3 CPF Accounts). This is interesting because is not via Retirement Sum Topping-Up Scheme ( RSTU) so we can do SA shielding later as I understand if we still can later. The main idea is that this option allows me to continue piling up my SA other than regular work contribution (MC). The downside is that some allocations depending on age group will  go to OA and MA. There is annual limits that we can contribute so every year before 55 counts.1M65 is great source of info in Telegram. 

My hope is that we could live off with some interests off CPF after 55 without touching the principals in OA and SA. What this mean is as someone feedback in my blog and from the Telegram Chat is that we should withdraw interests earned from OA and SA in the 2nd half of the year, preferably later months to allow interests YTD to accumulate before they get credited as principal in Jan next year. This will ensure the OA and SA Principals remain untouched. This is after 55 where the SA is FRS into RA and we have left over monies in CPF OS and SA.

Children CPF

Just requested for my children CPF details to be make available to me for verification. I have done some samples top-up into their accounts recently and would like to understand this further. Currently just nominal sum into RSTU. Some people prefer VC3AC as this will make the funds available to their children in their OA for housing and MA for their Medical. I thought this is neat idea.

Please DYODD as I am new to this journey. With that of my sharing, hope you have some ideas too.

Cory

2021-0113

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.

Cory Diary : Net Worth Reporting

Year 2020 is one of my most expensive year to date. There's quite an amount of expenses. On top of this is the housing loan. in-additional the stock market has been challenging. After understanding Baby Bonus better, did Max Top-Up for both my girls and more.

Year 2020 is also one of more trying period I have encountered to manage family, taking care of newborn, working from home and sharing the house cores. There is so many things happening that I lose count of time and likely neglected some duties or expectation.

Year 2020 is where I am asked to take on additional new challenges in work to manage more international team members in different functional area on top of regular job tasks I have been doing. The experience is a lot of learning from it as different countries have different way and culture that they perform to.

As if above is not enough for Year 2020, on CPF side, completed Voluntary Housing Refund (VHF), did some Medisave Top-Up, shift loads from OA to SA.

On the positive financial side, I still have regular job, dividend income and housing funding to support. To top this off, a good bonus plus shares. Past years shares allocated record strong gains. I do not include allocated shares in my tracking.

Therefore, with above in context, here's the Net Worth Chart.

,

Net worth hits a new level and hopefully by end 2021 will hit my new goal of next bold white horizontal line in the chart. Cross my fingers because the market in US side is really lofty.

Liquid asset,  thanks to some support from Home CEO, stock market and bonus, managed to register a cash flow increase. However the overall pace is noticeably slower due to completing full VHR and some Medisave Top-up.

Equity Investment, not much has changed in invested amount as I have prepared some warchest for investment opportunities similar to Year 2019. This is despite registering a higher record sustainable dividend portion. This is interesting phenomenon. Maybe If I have placed more I would have catch a better recovery gains. The fear of Covid must have gotten me so I focus more on rebalancing and churning stocks for capital gains that probably instead result in net dividend gains as well.

Subconsciously I maybe more careful with capitals as Year 2021 would expects higher dividend if bank cap and Mall rental rebates are reduced with same amount of invested. The Market has hit euphoria stage judging from Bitcoins 41k and Tech Stocks PE as high as 1700. This hit my fear of Tulip Mania. Hopefully it is not the case and will not pull down the broad market as well if it bursts. Should we position ourselves to kio Durian ? 

To end this, I could feel that if one do not have saving, regular income or income supports, the stress will be high and demoralizing. It will be real struggle trying to keep up with needs.

Cory

2021-0110

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.

Cory Diary : Casting Wider Net for more stocks with $50k Budget

For the past months or weeks I have list of stocks that I like to get but did not. So in Year 2021, allocated roughly 50k to indulge myself by casting my net wider for more stocks for diversification and gain some exposure to segments that I have been missing out. Broadly for now, excluded hospitality and transport stocks that are tourists dependent. There could be a recovery theme but feel is not at the right pace. SAT, SIA Eng and STE have dependency too. Commodity, Oil and Shipping industries I have no interests.

Selection edge will be Tech, Diversification, Sustainable Yield, Currency consideration and if possible management.

1. Sheng Siong

Sold some of the this share last year to consolidate the number of my counters as the amount it not huge but to my regret because it shoots up after. This is one thing I learned that don't consolidate for sake of it. After going one round, decide to explore this gain. There is a significant correction from peak though. As a Supermarket business, they also support online order which I find it interesting. With Covid still in play, expectation is the next Q report expects to continue to be colorful. The question is what happen after ? Will they able to continue to perform ? Get some first.

2. Venture

Tech Solution company. Doesn't look like is cheap and do not have a good feel on the company. Will need to do more homework and education to know the company better. Quite opaque to me to understand their operation and future. I won't have much conviction even though I really wish to add a Tech company to my basket but this is out.

3. EliteComReit

This provides roughly 6% yield but there is currency risk due to their properties are in UK. Tenant wise is UK gov on triple net lease. The stock is traded in pound so there is need for special management on the invest money and rate. New IPO risk ?  Diversification from Singapore ? Most of the building I see from the photos seems quite old but to be fair freehold afaik. Risk play wise, with Brexit and leadership in the gov, there are good chance GBP will strengthen. For risk adjust a stake as we monitor will be nice. This will help provide a small boost to the average dividend if this works well.

4. Boustead or Boustead Project

With the recent fund setup to hold properties of Boustead project which Boustead is vested, value is unlocked. There is interest due to the high NTA after but the dividend yield is low based on past record. This could change ? I could try Boustead Project instead but risk could by higher but returns look much higher. We could see a re-rating but need to do more homework if going invest deep. A small stake first to keep up my interest up first in Boustead. Will need to do more homework in Boustead Project. 

5. Keppel DC Reit (KDC) or MIT (more)

The yield is very low but DC gives a nice story. Stock price has come down from high. Maybe 10% discount from peak. Is that cheap enough ? A better alternative could be MIT but still is not cheap. Their downside in rental during this period will likely be safe. I could wait a while longer but then missed an opportunity to ride on Tech related exposure which is sorely lacking in my portfolio for growth. A small initial investment in KDC. I already have some MIT in my portfolio.

What's your thought on my new selections ?

Cory

2020-0106

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.

Cory Diary : Annualized Returns since Year 2007 and Earlier

One of the interesting way to measure share investor performance is to use XIRR for multi-years computation. And this can be done easily summing up all the years of transactions that we usually keep annually.

If you are aware, in some measure, past year very old data may "cloud" years of recent performance. Some may practice 20 years cutoff as a compromise. For Cory Annualized Performance we can try as follows.

14 Years of Annualized Result

ANNUALIZED

Cory Annualized Performance ...

of last 14 Years will be 7% which starts from one year before 2008 GFC. This is captured in above chart. This returns pretty align with 3 Years and 5 Year benchmarks.

If we retain the recent years of data only,

Last 03 Years will be 7.1%

Last 05 Years will be 7.5% 

Last 07 Years will be 5.2% which reflects poor returns in Years of 2014, 2015 and 2016 periods

Last 10 Years will be 6.1%

GOALS

Therefore for Year 2021, the Goal is to be above 7.5 % Annual Return in order to improve in all the above levels. And therefore achieve consistent above 7% returns.

Stretch goal for Year 2021 will be 17.8% annual return to achieve 8% annualize of 15 years. That is how hard to move a needle of 1% on 14 years data. This will be a tough one to get for a dividend portfolio and may required some re-engineering on my part. I will need to put a thinking cap on this.

STI ETF

For STI, is -0.7% for 14 Years annualized data. STI Index has never recovered after Year 2009 rebounds. So if we are to include STI ETF dividends probably 3%-4%. We can try 3 Years and 5 Years data and I bet they will not be swimming well. This broadly defines the impact to Singapore Economy on Oils Sector follow by Covid-19.

I remember reading a challenge on re-investment of STI ETF every time dividends are distributed by STI ETF. What will the returns be like for the past 14 years then ?  To save time to do this. Allocated 11.5 cents dividend to each year and reinvest equally on 1st and last date of their respective year closing share price. The estimated answer I found is 3.2%.

Cory

2020-0105

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.

Cory Diary : Long Term Investment Results

There are few tricks when come to investment and there aren't much magical about it so far from my experience. A lot is common sense and this comes with personal experience or read up of others. Here's my result so far. The drawdown has been low. Gains have been accumulating. Portfolio size has grown many times.

Here's pointers. I think Point 8 is most important.

1. Be Risk Adverse : Position Sizing of each stocks even if average down. One way is to buy another stock of similar traits and average down by industry or different segments. There are usually bad reasons for a high yield stock else is a gem. Again sizing is important.

2. Cut Loss : Never wait for breakeven. Say one invested in stock 50k and loss 25k. A rebound happens and now loss is reduced to 15k but still deep loss. Cut loss if fundamental has change for the worst. Of-course if one is confidence that we can sell with gain and not due to false hope, it could make sense.

3. Take profit/buildup in stages : A speculative stock I may take 50% off table first. In good fundamental stock maybe 15%. There is no hard rule on % range for each stage. Some stocks may never start selling till price point hits. Same for increasing the size in an equity that we do in stages over time. 

4. Use TA for guidance : For some human behavior reasons there are tendency for stocks to move to around resistance levels. Make use of them for entry or exit. Not always.

5. FA for selection : Something to fall back on when broad market is down. You want to bet on something that will be uptrend long term while short term there are fluctuations. Management integrity is important. If we sense or find there is suspicion of potential misconduct or legality, avoid.

6. Diversification : For risk adverse, this can reduce our gains but we also cover our down sides. We can have bonds to minimize portfolio fluctuations however make sure it does what you hope too and not increase your risk. Amount allocation depends on each.

7. Peace of minds : If any position cause me to keep thinking or have sleepless night. Act on it quickly. The actions may cost but in the long run we will have healthy minds and body. And this is needed to manage our portfolio and our life.

8. Treat your portfolio as a holding company : And each stock a company in your holding. Unlike real life owner running their own company, stock investors have the flexibility to adjust the percentage of each company to manage the risk and rewards. With this mindset, is really a business of managing your holding company.

The above best describe my investment behaviors.

Cheers

Cory

2020-0102

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.

Cory Diary : Year 2020 Performance

Year 2020 has been quite tough. Both STI and Cory Performance have been underwater for most part of the year till early Nov when we see a significant breakout. The year is best remembered for Covid-19 freezing up the broad economy excepts for the Basic essentials, Medical Protective equipment  and technological companies.

For Dividend Players, depending on the specific segment we focus on, have range of impact to performing ones. Hospitality stocks are significantly hit. Retail Malls are bad. Industrial and DCs are doing well.

STI dives deep into negative territory and at it worst more than -30% in Mar'20. It then do a surprise leap from -25% to -10% range before settling at -11.7% for the year. Including dividend probably around -8% range.

Cory Portfolio do a further rise in a not-so-tandem to STI index and ended up with +5.4% beating the Index by 17% margin or around 13% if we include STI ETF dividends. Do keep in mind Cory portfolio has about 23% allocated to fixed return investment in low yield bonds. All this is relative. Compared to significant Tech rise, Bitcoins and medical stocks who benefitted from the Covid-19 situation, the Portfolio returns is mediocre.

The disappointment for this year is the dividend cap on the banks and the rebates by the retail malls which directly hits Cory Portfolio. While the banks have recovered in stock price, I still wish the cap to be removed. The malls have yet returned to their previous price level. It will takes some time and hopefully we get to see it in Year 2021.

What I did well is to clear hospitality stock before the march crash which have my down side protected. Investment in AGT bears fruit as well. What not so good is to clear all my STI ETF right before the Nov Climb which mute my recovery a little. However this put the portfolio in better yield position in the future.

Right now It appears the Portfolio has reached certain limits and for a breakthrough in Year 2021 the banks need to have the caps removed and Retail Reits will need a more robust business recovery. I may also consider exploring for more growths.

With limited risk mitigated option, Year 2020 investing in CPF is not a bad idea at this moment but we can only do so much as funds are basically locked away for long time. Do we have to explore more in Year 2021 ?

Happy New Year !

Cory

2021-0101

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.

Cory Diary : A Short Story for my Daughters - VC MA Contribution

To be frank I only learn this term VC MA quite recently. This refers to Voluntary Contribution to Medisave Account. Few weeks ago I tried out VC MA with $1K via mobile transfer. And today after reading another blogger doing contribution and as a reminder, I decided to add another $5K. The process is very similar to CPF Housing Refund which I blogged few months ago.

There are few reasons why I am doing this. 

Firstly, my MA is not max obviously and I missing out 4% returns without risk of capital technically for years. This week trying to find an investment return in the last week of December seems quite tough. Nothing looks cheap enough for me in the stock market despite my search for the past couple of hours. The market is as listless as ever. So frustrating.

Secondly, total S$6K contribution amount pale in comparison to the fund available for equity investment. What's holding me up is liquidity if I do need the cash which I find rather silly now.

Thirdly, unused amount of CPF MA will be passed on to family when I expired. 

(The remaining Medisave balance, after the payment of the last medical bill, will be distributed to your nominees upon your death. You can nominate those you want to receive your CPF savings by making a CPF nomination)

Fourthly, of-course CPF MA can be used for medical bills and for my loved ones. And for technical matters Tax Benefits.

Dear Daughters, this is the way. My legacy to you.

Cheers,

Cory

2020-1229