Net Worth Update June 2023

    

S$1.47m

My net worth increases to $1.47m mainly due to a rebound in my investment portfolios and cash flow from salary, CPF savings and dividends in the past weeks.

The Fed has calmed down market nerves by holding off on rate hike but hinted at 2 potential hikes by end of 2023 but I believe the stock markets will remain volatile and choppy for the coming months.

CPF savings form 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 around a quarter of my net worth after I injected another $16k into Mapletree Logistics Trust and rotated Sembcorp Industries into DBS this month. I plan to continue adding high quality S-Reits or local bank stocks to my SGX income portfolio when the opportunity arises. For US or HK stocks, I will not increase exposure but just dabble with options to collect premiums.

My cash and war chest drops to 18% of my net worth. In the current high interest environment, my cash is 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 also 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. After emptying my SRS funds in Mar 2023, it self replenished to around $3k due to dividends collected from ST Engineering, OCBC, Wilmar, Keppel DC Reit, Keppel Reit and Comfortdelgro in the SRS ultra long-term portfolio.

7% of my net worth is in risk-free Singapore Savings Bonds ($110k) and relatively low-risk Astrea 7A PE bond ($9k). I have redeemed an old tranche (SBAPR19 GX19040X) yielding 2.12% last month and the funds which came in early this month were injected into MLT. I have also abandoned the plan to continue subscribing to Singapore Savings Bonds for the rest of the year as they yield below 3% for the recent 2 tranches and I forsee the yield shall stay below 3% for the coming months.

I deployed my financial assets conservatively and allocated almost 62% to low-to-no risk assets:

a. CPF (37%)

b. Cash (18%)

c. Risk-free bonds (7%)

The higher-risk assets are at 38% and given a long time frame to generate passive income or grow.

d. Equities (24%) 

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. I may reduce my low-to-no risk ratio to 60% as I decided to my risk appetite.

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