Tuesday, September 15, 2020

Net Worth Update Sep 2020

My net worth increases $14k or 2.1% to $965k from Aug 2020.

Dividends received, savings from active income, CPF contributions, recovery of stocks particularly retail Reits in my portfolio contribute to the strong increase.

More than half of my net worth (55%) is illiquid in CPF, SRS and Insurance plans. I am still working on increasing the percentage of my liquid net worth in cash and stocks.

The component of stocks (Reits & Equity) -21% is almost on par with my cash (19%). My short term target is to be less conservative and increase the percentage of my stocks to 25%.

I have started to build up war chest in Phillips POEMS Money Market Fund from dividends received and active income. This will come timely as I look forward to participate in the upcoming equity fund raising by Frasers Centrepoint Trust.

I also look forward to the merger between Capitamall Trust and Capitaland Commercial Trust, that may possibly propel the share price of Capitamall Trust higher. Together with the imminent recovery of the likes of Mapletree Commercial Trust and Frasers Centrepoint Trust, they should give my net worth a boost in the coming months.

I am grateful and fortunate to be working in the recession proof IT industry immune from Covid-19 to allow me to continue farming the CPF contributions and monthly cashflows.

I am glad that my long term strategy of staying vested in the markets and not chicken out during market crash continue to boost my net worth and financial health.

I believe this health pandemic will make the rich go richer and the poor go poorer. While this crisis presents immense money making opportunities for many in recession proof businesses and stock market, there are many rank and file workers affected deeply by losing their jobs. More companies will not be able to survive in the new world and go bust in the coming future, causing more people to lose their jobs. All these happenings in the world only reinforce my belief in the pursuit of passive income and financial freedom through frugal and simple living.

We should be grateful for what we have, be optimistic on the future and always be prepared for the worst that can happen to our lives.

 Thanks for reading.

With love & peace,

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