Cory Diary : Increasing my active investment for Passive Dividends

The Goal

The Covid-19 throws a spanner on increasing Portfolio to $1.3M quickly from 1.2M as in we need to be careful in our investment injection by $100k which is part of Warchest. So why this amount ?

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Here's the link because of the compounding effect @1.3M per my lifestyle. (contingent to yield 5.3% able to maintain @ 1% growth). However if the stock price keeps increasing but business fundamental weaken or not enough improvement, the yield will be lowered. To compensate it, higher cash inject will be needed or expenses reset as we age. Hope I don't lose you by now !

Let me explain again using Reit term. if the stock price increase by 1% (Growth), and we have corresponding reduction in yield say -1% (DPU in cents maintain), it kind of neutralize the compounding effect. This is not good as we lose that year of compounding. So DPU has to increase accordingly to maintain the yield. If is not which could be, and to bring the portfolio backup,  we need to increase our investment through injection or we spend less to support the injection. Get it ?

Of-course we can increase our yield by investing in riskier asset to maintain it but this is not sustainable long term and will mean Portfolio keeps getting RISKIER over time .... . And that is Dangerous which some people may make, like me on what I feel right now  ? LOL

Therefore, come to think of it, is not so easy as the calculation is a simplified model. To mitigate it therefore using above example, if 1% growth of 1.3M that is equal to $13k has to come out of Real growth. When there is no DPU growth, we need to inject in this amount of $13k or spend less to support it roughly.

This is why advocating dividend re-investing is important or injection from saving if you have a job as changing stock aren't easy for same quality. But the key is capital gain has it's price to fulfill for dividend investing.

Something new today.

Cheers

Cory

2020-0726

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Cory Diary : Improving Parental life - Investment well worth the money

When I become a new father, no one taught me what to do in an up-to-date package. Is based on experience through trial and error, tips from sales people, advise from bloggers and friends.

After 1.5 year into parenthood, there are few things I like to share that can improve our life and that is value for money. This are good investment in my opinion and well worth my money. This are also not sponsored, and based on my limited experience and affordability so take it for your reference only. Please do your own due diligence as it may varies with one's situation.


1. Nappy :  About $20 per pack ... varies with pc, size and type. Buy in bulk !

We only use Pampers and it has to be made in Japan version. Wife swore by the quality and the safe. Some babies develop rashes in other brands. I would suggest to buy in bulk or whenever there is promotion. Upgraded to pant type as my child get bigger.

As I know most of the nappy in the market aren't environmentally friendly but there is limited options for the convenience. I guess mother earth will understand. 

2. Electric Sucker : $50 excluding accessories

Get a good one with enough suction power. Is well worth the money. It helps my babies to breath and sleep well. Keeps me worry at night if their nose is fully congested especially when they are hit with flu. I use BabySmile. Most babies do not like to have their nose sucked so there will be some wailing.

The brand I have has an adapter accessories for newborn which comes in very handy. Try not to plunge the adapter into the deeper part of nostril as they will feel uncomfortable or may irritate the linens inside the nose. Just enough to suck and from my experience wait for few seconds for the pull to materialize so be patience. Usually I will try to use my other finger to press the nose lightly to make sure a tighter seal for better suction. 

Clean the rubbery adapter thoroughly after each use. I always keep the batteries outside the compartment to avoid drainage. The sucker use is not effective if the battery power is not strong so do keep additional batteries handy.

3.  Floor Mat : $300
Good and large one can cost a few hundred bucks. A place where the toddler can rest and play.  Usually I have it near my sofa as she tends to climb up to them. Few times the mat has help to arrest the fall from the sofa. Goodness. I am not sure about other babies but mine keep moving constantly so hard knock from fall happens. Just one catch from hard fall is well worth the money. Do be careful that it won't be easy to cover entire area especially corners so may needs some fillers if you are worried.

4. Baby Bottle Sterilizer : $140

Get a big one that can hold a few bottles. Preferably those that can also sterilizer the loose parts, powder containers and pacifiers at the same time. Don't skim on this because it saves me a lot of headaches trying to handle the limited space in the kitchen and cleaning each of them.

I use below from Baby City. Make sure not to pour to much or splash the water on the heat pan as it can gets into the venting hole on the side.

5. Medical Syringe : In cents ... per pc

This are quite cheap and I use to buy in a large bag of 50 easily. I use this to feed the upright baby slowly by 0.1 ML at a time as they may get choke easily. Useful for liquid medicine, Probiotic-Digestive Enzymes (baby friendly ? ) and even water.

We don't need the needle portion so make sure they are carefully put away with their cover on. Older toddler will reach for anything and this must be carefully kept away.

6. Leak proof water bottle : $25

She carries it around, suck it upside down, and won't leak easily. Helps to keep her hydrated to poo. I don't have specific brand recommendation. Go for those that is baby safe materials, and has a tube weight in the bottle to support the sucking. There is long and thin brush provided for cleaning the flexi-tube if you saw one and if do not know what it is for.

7. Baby cot bed : $ 400

I prefer one with rollers as I found later they like to be rolled to sleep for certain period of their development time. I prefer to go for one that do not have adjustable side as I may forget to pull back and baby may roll off the bed if they flips or struggle around. Need to also make sure the elevation is low enough to prevent older toddler from climbing out.

I think is best to use the mattress that comes with the supplier as it fits perfectly and leaves no gap which can be dangerous to baby. I also bought some side linens from Amazon to protect falls from older toddler and their bites on the woods.

8. Changing Mat : $25 In the early months, the nappy may not seal properly due to the baby size or our inexperience in folding it resulting spillages. We do not want it to be too tight on our newborns. So a changing mat place under the mattress help to ensure we do not need to wash and clean it. It can be real hassle when all the things can contaminated.

Cory

2020-0716

Cory Diary : GE 2020 Afterthoughts

The Election

Year 2020 Election returns PAP the super majority unsurprisingly. In a democratic world today, this is rare feat let alone since independence. Personally I feel even running a clean government with strong efficiency they still need to do a number of shrewd moves to secure that amount of seats. The opposition is not dumb either and they try to outsmart the incumbents.

If we remember in the Year 2015, there is lingering sentiment from Lee Kuan Yew's death and Jubilee Year celebrations. There is also ongoing issue over financial lapses discovered at the Aljunied-Hougang Punggol East Town Council in opposition ward. This inadvertently push up the votes.

In this year election, a Covid-19 and Recession Year, there is no good timing for PAP. ( Timing can be even worst for the ruling party), WP's Pritam Singh has shown maturity who also has Jamus Lim as a wild card that probably single-handedly turn the tide of battle to a public looking for credible opposition voices in the parliament.

Is with this context, that we enter GE2020. The PAP votes are much lower than GE2015 which broadly defines GE2020 trends but marginally higher than GE2011. Interestingly, WP do no better in votes count if we look at the chart above even though they have more seats.


Highlights

1.  East Coast GRC is ripe for grab by the opposition. With a number of potential candidates in the cabinet, this allowed the party to move PM in waiting Minister Heng to East Coast in the last minute. This is a calculated moves. If he loses, which is unlikely but for the rare possibilities if he does, maybe another PM should be selected. The move is to ensure the GRC remains with PAP and then strengthen the area there over time. If Mr Heng cannot achieve that so be it and PAP won with a slim majority. phew !

2. Another weak spot is West Coast GRC challenge by Tan CB team. In 2015 Election the smaller GRC was challenged by RP which is a much weaker team. PAP has a commanding lead that time with 78% votes. This year they almost lose it with a slim majority of just 52%. This can be seen as TCB effects. A big disappointment to him. This also show how vulnerable Singapore election can be which LKY was highly concern that the government can flip overnight. Singaporeans do care to remember.

3. CSJ of SDP decided not to continue to lead GRC and gun for the weakest SMC other than opposition ward Hougang (WP) to contest in Bukit Batok SMC. Unfortunately for him, Murali wins Bukit Batok SMC with 54.8%.

4. Seng Kang GRC loss is a surprise but not impossible considering the swing of votes. Led by labour chief Ng Chee Meng ,lost to the WP team by a margin of 4.26%, losing his ministerial post, though he will remain as Secretary-General of NTUC. Is a loss to PAP but not something they cannot live with.

There are also a few marked Wins that underscore they have the confidence of the people despite some controversy over the years in them.

5. A new team from the People's Action Party (PAP) led by Manpower Minister Josephine Teo secured 65.37 per cent of the votes against the Peoples Voice (PV) team headed by party chief Lim Tean in the four-member Jalan Besar GRC. This is an acknowledgement that voters willing to looks beyond "You don't need much space to have sex" and cramped migrant worker dorms problem.

6. Tanjong Pagar voters chose the team led by Minister for Trade and Industry Chan Chun Sing, 50. The PAP team won 63.13 per cent of the votes in the ward. Another key member is Prime Minister's Office Indranee Rajah. Leaked audio clips of the Minister didn't do much damage. I thought is quite comical but real life.

7. Ms Tin Pei Ling, of the People's Action Party (PAP), romped home to victory for the second time in MacPherson SMC, sweeping up 71.74 per cent of the votes. Pretty Amazing score. No more little girl next door.

Lastly which I feel important is that PM Lee’s move to formalise Workers’ Party (WP) chief Pritam Singh as Leader of the Opposition role. What this mean is he will have access to thing they never before which could signifies the trust the government has on WP that they can work with for betterment of Singapore. 

This is also align with voters view as well that WP is a much more credible than others and is better that PAP starts to work with someone that they are comfortable with. The move means we avoided divisive politics in the future and kudos to PM Lee for stepping up to do this before he steps down. This is a big plus for Singapore.

Quite exciting event for a Covid Year !

Cory

2020-0714