Technically I think we can never retire if we are to cater for the most expensive medical expenses where Insurance may not cover or is limited. Life is priceless or so to speak. So we technically can never retire if we buy-in to this idea regardless of cost. Hence, where do we want to draw the line to be practical for retirement planning ?
I take the time to ponder this morning questions. I am sure there are many scenarios.
1. If we have 2M dollar, do we spend all in order to prolong our lives say for another 6 months ?
2. What-if we survive and need life long care and a burden to family after ?
3. What-if we are young and recover completely ?
4. What-if bed ridden for rest of my life ?
This are real hard questions. No good answer but something to think about.
One key insurance I am happy to pay is hospitalization bills. The cost is not high and reasonable. CPF wise I can max whatever inside complement with Medi-save.
Anything beyond that, maybe I would define certain percentage of my net worth for it. That could an answer. I dunno. Simply Medical condition can be Wills of God. Meantime we try to stay healthy by living healthy. But we are limited by genes and external factors.
Health is important to enjoy the fruits which people tends to neglect. I got a scare a year ago and realize life can be short. Too short. ( "Wife, I want to retire ... really ... 😗 )
Cory
2020-0704
Jul 4, 2020
Jul 1, 2020
Cory Diary : End June Report - Portfolio Performance
After mute May Month, early June shows enthusiasm but the Market quickly starts to fizzles out by mid-June. STI ended Negative -19.6% YTD. This is one of the bad year to be in the market so far. Generally Banks, Telco, Commodity, Tourism, Transports and Oil related counters suffers. Oil related and Telco counters have been dragging their feet for years which the portfolio did well to avoid.
The market can be worst if people still don't go back to work and learn how to live with the Covid-19 virus. There seem no readily answers and continue to close the economy generally results in higher crimes rate, unemployment, home evictions, millions of unrelated deaths simply people cannot afford or able to seek medical attention for other illness. Social unrest becomes stronger and so is nationalism.
What is even more critical is the Depletion of saving that can be use for investment to generate money for future retirements. A double blows. So is important for people who is yet ready for retirement to make sure they have a job and take the opportunity to buy the lows.
Cory Portfolio is at -2% which has 17% lead against STI currently as above chart. There is some timing trades this month. Basically SBS Transit lucky timing and the buy over of AGT golf courses. As I said previously, AGT investment mainly follow AK leads in earlier article.
As for SBS transit, I thought the opening up will stop the downtrend which indeed it did. Since is a speculative trade, I have to take profit.
This are the 2 key events that partially help support the portfolio this month.
Cory
2020-0701
Jun 30, 2020
Cory Diary : Re-Balance Strategy
Saw this Video by John ( link )on impact of Covid-19 to people in West getting evicted. The impact on economy is so great and wide to everyone, relative to people that die from it is relatively small in percentage. Hopefully common sense prevail and strike a good balance. What can we do to avoid it in the first place not to run out of money ?
There is this solid couple doing Dividend Investment Strategy. They retired recently despite iron rice bowls. Their sharing is awesome. Link right below. Many thinking I shared.
One key point I like to highlight is Re-Balance Strategy. What is it ?
To Optimize Return and Minimize Risk. This is something I will put special focus. But what is it actually ? I would think exposure that I feel is getting riskier and try to par down stake at optimal price. This will mean there should be an upper limit cap. to minimize risk. And diversification is key.
Finally, being Average is so great !
Cory
2020-0630
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