Cory Diary : Financial Well-being Ending 2017

Year 2017 has been awesome for many investors. Based on many financial bloggers so far, double digits gain are a norm. And this keeps me thinking about how unfair to saver is where some will die for $1000 while those who are more adventurous makes $100K extra just sitting in his living room tweeting with his spare time.

Even when one step out of his comfort domain, a double digits gain of 10K in absolute returns are no where near to one with 100K portfolio for example. And here come the chicken and egg things. We need to achieve a good size portfolio to benefit from scale and returns but we can't jump the gun as we need to fall and learn when small, and grow them. This takes time for most people probably.


Saving and Net Worth

In 2017, I have achieved 45% in saving from salary and bonus. This is a nice surprise since I do not track them deliberately to save. It just occurs naturally to me what is worth to buy and value to enjoy however I knew spending were up given that I have been giving regular treats to friends and colleagues. Total Net worth is probably up 10%, and that's quite significant for me on the last decade of my working lifespan.


Anxiety Freak

One of the blessings I had is not having dividend target in my early years. I only have few K dividend then and they just happens to receive it. They just grew slowly over the years with portfolio size. I did a re-balance in 2013 and never look back. However if I am to start with a dividend target on current size that time it can be a bit demoralising. There won't be target for 2018 on Net worth as usual as there aren't a robust plan and specific needs to start. I will leave this for the future. Liquid net worth portion increased by almost 12% and this do allows me to project a higher SG equity dividend target of 45k-50k. A situation where money grow money.

One step at a time

One last thing for today into my diary. The road to prosperity for people without inheritance or financially strong family are not that straight forward. We need to find our way to get the best education within financial limit. And then get a good job and save to grow our Net Worth. To learn financial literacy from scratch is something oneself has to fix. One is handicapped if we are not optimally invested. Is even harder when we do not have a regular job to save the required to build. Even when we overcome all this problems, able to invest and win enough is another challenge investors have to beat.  But this is not impossible to start doing something today in baby step that I have went through. And the bottom lies with Passion I feel. Once we open our minds to it and have a plan that can overcome the risk adversity.

Happy 2018

Cory
20180103

Cory Diary : XIRR Performance - 2017 Final

With the last trading day over for the year, is time to publish 2017 annual return.

Here's the Logic of the measure to produce the performance table

- Final book value between the last trading day close of the years
- Excel XIRR Dollar weighted is more rational as Time is Money and reflect portfolio growth rate of an investor better

As above, Equity return for year 2017 is 13.5%. This is quite a good year but still fall short of this year STI Index hitting 18.25% excluding dividends. The main reasons are due to lack of significant bank exposure and mute Telco returns. Despite so, able to achieve double digit returns should be satisfied.

For reference, annualized returns since 2007 (below chart) , is still ahead of STI Index. Do note STI index 0.8% excludes dividends. I am truly humbled through simulation that is not easy to move an 11th year old XIRR figure of 7% to just 1 % more. This is because of expanding portfolio and time value. So for Warren Buffet to achieve more than 20% over 50 year is incredible.

Current Bond/PS exposure constitutes 22%. Lower Reits figure of 33% due to late buying of Singtel, HrNet and ST Engineering. And re-balancing of CMT. I am glad to be back into LMIR when the stock corrected more than 10%.


Cory
20171229

Cory Diary : Ones Passive Income

So why another article on this ? Just watched a Ted by a young chap on Passive Income and it hits many notes that I have been trying to formulate in my mind. There are many out there by bloggers. Last I can remember I do not have one. At least I couldn't remember. So I should. :)

I REALLY should because I feel is very important and it can help lifes. So if I can help one, just one to think about their future, is enough for my time.

What is Passive Income ?

Income that requires only some work upfront to setup, and spend little of your time in exchange for it thereafter.

What is Financial Freedom ?

When my Passive Income surpass my living expenses.

Why Passive Income ?

There are many reasons

- Out of regular income

- Better lifestyle

- Do not exchange significant time for it

- Alternative streams of income

- Do other things that I like

- Build up your confidence by being financially sound

- Peace of mind

Passive Income is Not

- Instant Returns. It takes time to learn and build it up.

- I view Stock investment returns as passive but not trading.

- Exchange time for money

- Certainly not walk in the park. You need to be smart about doing it.

Don't get me wrong. I love my job. But I am also realist that I could be out of job that is beyond my control. Over this past week I met up with four friends on different occasions. They have one thing in common. They are unemployed. For commoners, once they are out of job, there aren't much alternative to go back to market. One has a studio but do not have enough rental to cover his loan, One downgraded to HDB, One starts doing Index trading and the last One stays at home. There are two more unemployed friends that I did not get to meet. One just got a contract job for a year while the other still looking for something to do.

So the earlier we can start the better. What will be your Passive Income ?

Merry Christmas

Cory

20171223