Net Worth Update May 2023

   

S$1.46m

My net worth increases $5k to $1.46m in May 2023 achieving another all time high!

This is after savings from salary, CPF contributions and dividends in the past weeks.

My CPF forms more than one-third bulk of my wealth. I have already achieved full retirement sum in CPF SA and topped up my Medisave account to the basic healthcare sum of $68.5k early this year.

My stocks and Reits constitute 22% of my net worth. I intend to slowly add high quality S-Reits or local bank stocks to my SGX income portfolio when the opportunity arises. I will not increase exposure to US or HK growth stocks but just dabble with options to collect premiums.

My cash and war chest remains at 19% of my net worth in the current high interest environment. They are being stashed away in bank fixed deposits yielding more than 3% p.a., in Fullerton cash funds under custody of Moomoo and Tiger Broker, and in Money Market Funds held by Phillips Capital yielding around 3.5% p.a. with interest paid daily.

SRS forms 8% of my wealth and I have already completed the top up of $15.3k annual limit for 2023. I have deployed the new SRS funds to increase my investment in OCBC amidst fear and uncertainty in bank stocks after the collapse of several US banks since Mar 2023.

8% of my net worth is in risk-free Singapore Savings Bonds ($110k) and relatively low-risk Astrea 7A PE bond ($9k). I plan to continue subscribing to Singapore Savings Bonds for the rest of the year if they yield above 3% for the next decade. Ultimately, I hope to max out SSB individual limit of $200k by end of this year.

I am building a well balanced portfolio for my financial assets conservatively. My asset allocation of low-risk assets is 64%:

a. CPF (37%)

b. Cash (19%)

c. Risk-free bonds (8%)

relative to higher-risk assets at 30%

d. Equities (22%) 

e. SRS (deployed largely into equities) (8%) 

This provides a huge defensive safety net but the opportunity cost is that my net worth will not grow as fast and furious but slow and steadily.

My target net worth by the end of 2023 of at least S$1.45m is already hit so now I target for S$1.5m with an annual passive income of S$22k.

Life is exciting in a post pandemic world. Ignore the noises. Remain on track. Be greedy when others are fearful. Be hungry when others are contented. Live everyday to the maximum! En route to financial freedom!

Thanks for reading. Stay focused and remain steadfast as always!

With love & peace,

Qiongster