In December 2025, my net worth soars to a record high of SGD 2.06m.
This milestone is driven by collection of salary, bonuses, CPF contributions, stable performances from core investment holdings in S-REITs and local banks; and successful capture of US option premiums from tech stocks.
My conservative net worth allocation is as follows:
Safe Heavens (59%)
CPF (33%): bulk and foundation of my retirement savings. I intend to make cash top-ups to my Medisave account after the Medishield Life premium deduction in Dec 25 to enjoy tax reliefs.
Cash and war chest (17%): Liquid reserves strategically stashed in fixed deposits and Fullerton cash funds earning around 1% p.a. provide peace of mind and security for unexpected expenses or investment opportunities.
Bonds (9%): A balanced portfolio of low-risk Singapore Savings Bonds and Astrea PE Bonds ensures stability and provides steady source of passive income.
Retirement Savings and Protection (16%)
SRS (12%): A tax-deferred engine for supplementary retirement savings, diversified across $30k of SSB, local stocks such as Comfortdelgro, DBS, OCBC, Keppel DC Reit, Keppel Reit and Wilmar, and idle funds deployed in money market funds.
Insurance (4%): A Prudential whole life insurance plan and other savings plans will provide me with 6-digit lump sum payout after my retirement while offering continual protection for peace of mind.
Equities (25%)
Stocks and Reits (25%): A real estate-focused portfolio of stocks and Reits provides long-term dividend income and stability. This financial asset class is riskier, more volatile and sensitive to interest rates but offers me the opportunity to indirectly own diversified portfolios of industrial, retail and commercial properties locally, and around the world for consistent passive income.
To enhance returns, I have decided to build up the US growth stock portfolio to include the likes of tech compounders such as MSFT, AMZN and NVDA while also actively selling cash-secured put options to collect premiums, a strategy aimed at either generating income or acquiring desired assets at a discount.
The Attainment of FIRE
While net worth remains the critical compass of Financial Independence, Retire Early (FIRE) reflecting the assets required to sustainably fund living expenses, the philosophy itself transcends mere accumulation. Having already exceeded SGD 2 million in assets and generated over $40,000 in annual passive income (details to be blogged separately), I am pleased to achieve FIRE before age 40.
FIRE is, fundamentally, about reclaiming control: control over our time, our choices, and the design of our lives. It creates the ultimate flexibility and power to choose to work if we want to, to pursue passions full-time, or, as I am currently experiencing, to take a 15-day break for self-healing, recharging, and resetting without financial strain.
I may not retire from full-time job immediately, but financial independence grants me the ultimate leverage moving forward: the freedom to adopt a truly carefree—and where necessary, 'f* you'—attitude in the workplace. This journey is a deliberate investment in security and a growing buffer against life's unpredictability.
With the financial milestone of SGD 2 million successfully attained, the focus shifts decisively from accumulation to tangible cash flow and long-term expansion. My updated targets for 2026 are:
Passive Income: Adjusting the goal to $48,000 in annual passive income.
Growth Portfolio: Establishing a US growth portfolio valued above USD150,000 as part of my total SGD1 million investment portfolio.
Net Worth: Aiming for a net worth of SGD 2.25 million by the end of 2026 and SGD 3 million by the end of 2028.
Retirement Early: Aiming for a step-down in full-time employment by the end of 2030.
In the coming weeks, I am secretly looking forward to a potential >$30,000 in 'free' interest from CPF on 1 January 2026 to further anchor this wealth foundation.
Financial independence is not an end; it is the power to design a life we do not need a vacation from, with the space to breathe, to live, and to thrive.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. It's crucial to conduct your own research or consult with a qualified financial advisor before making any investment decisions.
Thanks for reading.
No comments:
Post a Comment