Saturday, June 15, 2024

Why I Paid Off my Income Tax One-time in Full?

 



In life, the only constants are Taxes and Death.

It is the heart wrenching time of the year as we receive Notice of Assessment from IRAS.

My income taxes of ~$3.8k are due by 1 Jul 2024.

I have explored ways to earn miles through paying taxes using payment platforms such as CardUp, IPayMy or CitiPayall.

The lowest admin fee is 1.75% and I am unable to get the $30 new user discount as my accounts do not qualify as new user.

Effectively, I would be buying a mile for $0.014 if I use CardUp or ipaymy with Citibank Premiermiles card from incurring $60+ admin fee.

I decided to skip earning miles from tax payment this year. I will just pay off using Citibank Premiermiles card on AXS without any benefit, saving up $60+ from buying miles while enjoying deferred tax payment of 1 mth from the credit card cycle. In today's high interest rate environment, the yield from $3.8k for 1 mth at 3% p.a is around $10.

There it goes.


Why not GIRO instalments? I hated continual liabilities and by paying off the taxes one-off, it gives me a peace of mind and greater freedom feeling of being debtless.

Thanks for reading.

Regards,
Roy

Net Worth Update June 2024

 


I am happy to share my net worth for June 2024! It has reached S$1.643 million, another record high thanks to contributions to my CPF, salary savings and some dividend collections.

Asset Breakdown:

Safe Heavens (62%)

CPF (37%): Huge shoutout to my CPF for making a significant portion of my wealth. Attaining Full Retirement Sum FRS in 2022 was a great accomplishment.

Cash and war chest (15%): My cash is strategically placed in fixed deposits and Fullerton cash funds earning over 3% p.a.

Bonds (10%): A mix Singapore Savings Bonds and Astrea bond provides stability. I am planning to add to this with the upcoming Jul 24 SSB with average yield of 3.3%. 

Retirement Savings (8%)

SRS: I have already maxed out the $15.3k contribution limit for 2024, adding another layer to my retirement savings plan.

Income and Growth Assets (32%)

Stocks and Reits (24%): This portion of my portfolio caters for generation of passive cashflows and potential growth, with a focus on long-term compounding growth through dividend investing.

Tracking net worth is not just about the final figure. It is about seeing the results of all those past financial decisions. This update is a reminder that every step forward, big or small, is worth celebrating. This keeps me motivated on the journey towards financial freedom. 

Thank you for reading!

With love & peace,
Qiongster

Saturday, June 01, 2024

Portfolio Update May 2024

Here is an update of my investment portfolios for May 2024.

My SGX Income Portfolio value dips slightly to $365k from $366k.

My US/HK Growth Portfolio value inches up to US$18.5k from US$17.9k.

My SRS Ultra Long-Term Portfolio value increases to $168k from $163k mainly due to dividends collected.

The US stock markets have challenged to sustain its highs amidst uncertainties over interest rates, ongoing wars and fears of economic recession. US 10-year and 30-year government yields have rebounded and the Federal Reserve is expected to hold interest rates high with a possibility of no rate cut for the year.

Despite being clouded by uncertainties, immense noises and fears, it is crucial that long-term investors like us always remain calm, unwavered and focused on our investment objectives. Stick to our own plan and continue deploying our financial resources into high quality income-producing instruments such as government-backed risk-free bonds, property assets, or strong growth businesses tactfully according to our own risk appetite. 

Portfolio Actions

Nil

Portfolio Dividends

1. Received $463.50 of dividends from Savings Bonds on 2 May.

2. Received $850 of dividends from UOB on 9 May.

3. Received $188 of dividends from ST Engineering on 14 May.

4. Received $165 of dividends from Wilmar on 14 May in SRS.

5. Received $540.54 of dividends from DBS on 20 May.

6. Received $2,100 of dividends from OCBC on 20 May in SRS.

7. Received $126 of dividends from OUE on 24 May.

8. Received $185.12 of dividends from Astrea 7 A-1 PE Bond on 27 May.

9. Received $212.64 of dividends from Frasers Centrepoint Trust on 30 May.

10. Received $75.55. of dividends from Suntec Reit on 30 May.


SGX Income Portfolio

Portfolio Value = $365k


US/HK Growth Portfolio

Moomoo

US$4.1k





Tiger Broker

US$13.4k


Syfe Trade

US$1k


Portfolio Value = US$18.5k

SRS Ultra Long-Term Portfolio

Portfolio Value = S$168k

Thanks for reading.

With love and peace, 
Qiongster




Tuesday, May 28, 2024

Applied for Singapore Savings Bonds (SBJUN24 GX24060A) Redeemed SSB (SBSEP18 GX18090T)

   

The Jun 2024 tranche of Singapore Savings Bonds (SSB) has an average yield of 3.33% over 10 years.

The first 6 years yield a flat 3.26% per annum; 7th year yields 3.33%, 8th year yields 3.46% p.a and 9th, 10th years yield 3.54% p.a.

Even though such yield is lower than other low to risk-free alternatives such as T Bills and money market funds which easily yield more than 3.5% currently, it is higher than many fixed deposit rates on offer by local banks as well as CPF OA rate of 2.5% p.a.

If we also consider the great flexibility, liquidity of SSB for redemption and long-term lock down at above 3% p.a for the next decade, then this tranche of SSB is fairly enticing for us to park our spare cash at zero risk, capital guaranteed for the mid to long-term. 

We could redeem SSB anytime, earning interest at 3% in the short-term while getting back our capital for deployment to other investments or large item purchases unlike T Bills and bank fixed deposits which would incur losses or forfeit of interest with premature withdrawals. Do note that the redemption process of SSB can be up to 1 month of lead time.

As interest rate cuts are on the cards by end 2024, this SSB could be one of the last tranches to have an average yield of above 3%. We should expect the average yields for next few tranches of SSBs to be in the range between 2.9% to 3.5%.

I decided to apply for $10k of this Jun 2024 tranche using my savings.

There it goes.


S$1b is up for grabs.

The first payment will be on 1 Dec 2024 and this bond will mature on 1 Jun 2034.

If you are interested in this tranche of SSB, do note that the application dateline is 28 May 2024, 9pm for online applications.

At the same time, I also redeemed an old tranche of SSB (SBSEP18 GX18090T) with an average yield of 2.44% and currently only yielding 2.6% in its 6th year. It is hence a no brainer decision to recycle the funds.



Thank you for reading.

With love & peace,
Qiongster

Tuesday, May 21, 2024

Passed IPPT to earn back some Taxes

After surpassing 38 years existence on earth this month, I decided to book an Individual Physical Proficiency Test (IPPT) today.

For Singapore guys, IPPT is an annual national service (NS) liability for those who are certified fit and have not completed the 10 operationally ready cycles after completing full time NS.

I am surprised to be able to do 33 standard push ups and 36 sit ups, clocking 39 points out of 50 for static stations under my age group of 37 to 39.

I then need to run under 15 mins for 2.4km to earn 22 points to achieve at least 61 points in total to qualify for a $200 pass incentive.

The evening weather was good with cool breeze today. Track conditions was dry and perfect too.

I managed to run 2.4km in 13:56 mins to pass with 67 points for $200!

Happy to earn back $200 from the $5k taxes which IRAS shall collect from me soon for nation building whereby a large part will be channelled into defence.


Fitness is Wealth.

This shall be one of my last few attempts to take fitness tests in life.

This achievement will encourage me to exercise more this year.

I hope everyone will take care of our own health and fitness despite our busy work schedule and family commitments.

Thanks for reading.

With love & peace,
Qiongster

Saturday, May 18, 2024

Net Worth Update May 2024 | New Record High

      

My net worth rises to S$1.635m after CPF contributions, savings from salary and collection of dividends in May 2024.

My CPF makes up 37% of my wealth. Full retirement sum (FRS) is achieved in 2022.

Cash and war chest form 15% of my net worth. My cash is stashed away in bank fixed deposits and Fullerton cash funds under custody of Moomoo and Tiger Broker yielding more than 3% p.a.

Bonds consist of low-risk Singapore Savings Bonds ($150k) and Astrea 7A PE bond ($9k) contributing to 10% of my wealth. I intend to subscribe $10k of the June 24 SSB tranche with average yield of 3.33%.

CPF, cash and war chest, and bonds amount to 62% of my net worth as relatively safe heavens. 

SRS account accounts for just 8% of my wealth. I have already completed the $15.3k contribution limit for 2024. 

Currently, 24% of my net worth is in stocks and Reits. This, combined with the local holdings in SRS, brings my exposure to riskier assets up to 32%.

Tracking net worth is not about the numbers. It is about seeing where our past financial decisions lead us to. This update is a reminder that progress on this financial journey, however big or small, is worth celebrating. It fuels the fire and motivation to keep grinding towards the financial freedom goal. 

After watching AK's latest video, I got a stark reminder that Cashflow is the real King. It is important to upkeep our positive cashflows by boosting our income sources while reducing expenses from cash outlays. The journey continues and I am excited to see what the future holds. Stay tuned!

Thank you for reading.

With love & peace,
Qiongster

Tuesday, April 30, 2024

Portfolio Update Apr 2024

This is an update of my investment portfolios for Apr 2024.

My SGX Income Portfolio value rises to $366k from $347k due to capital injection for purchase of DBS and Reits. 

My US/HK Growth Portfolio value inches up to US$17.9k from US$17.7k.

My SRS Ultra Long-Term Portfolio value increases to $163k from $159k.

The US stock markets have attained fresh record highs amidst uncertainties over interest rates, ongoing wars and diminishing fears of global recession. US 10-year and 30-year government yields have rebounded and the Federal Reserve is expected to hold interest rates high with a possibility of no rate cut for the year.

Despite being clouded by uncertainties, immense noises and fears, it is crucial that long-term investors like us always remain calm, unwavered and focused on our investment objectives. Stick to our own plan and continue deploying our financial resources into high quality income-producing instruments such as government-backed risk-free bonds, property assets, or strong growth businesses tactfully according to our own risk appetite. 

This is a month when I am planting more seeds for the future.

Portfolio Actions

1. Bought 310 shares of DBS on 15 Apr.

2. Bought 5,000 shares of Frasers Logistics & Commercial Trust on 16 Apr.

3. Bought 4,000 shares of Frasers Centrepoint Trust on 16 Apr.

Portfolio Dividends

1. Received $302.17 of dividends from Savings Bonds on 1 Apr.

2. Received $340 of dividends from Frasers Centrepoint Trust on 2 Apr.

3. Received $324 of dividends from DBS on 19 Apr.

4. Received 91 bonus shares from DBS on 30 Apr.


SGX Income Portfolio

Portfolio Value = $366k


US/HK Growth Portfolio

Moomoo


US$3.9k





Tiger Broker



US$13k


Syfe Trade


US$1k


Portfolio Value = US$17.9k

SRS Ultra Long-Term Portfolio

Portfolio Value = S$163k



Thanks for reading.

With love and peace, 
Qiongster

Thursday, April 25, 2024

Applied for Singapore Savings Bonds (SBMAY24 GX24050X)

   

The May 2024 tranche of Singapore Savings Bonds (SSB) has an average yield of 3.06% over 10 years.

The first 6 years yield a flat 2.99% per annum; 7th year yields 3.03% p.a, 8th year yields 3.2% p.a. and 9th, 10th years yield 3.27% p.a.

Although such yield is lower than other lower risk alternatives such as T Bills and money market funds which easily yield more than 3% currently, it is higher than CPF OA rate of 2.5% p.a. and some bank fixed deposits which yield less than 3%.

If we also consider the great flexibility, liquidity of SSB for redemption and long-term lock down at above 3% p.a for the next decade, then this tranche of SSB is fairly enticing for us to park our spare cash at zero risk, capital guaranteed for the mid to long-term. 

We could redeem SSB anytime, earning interest at 2.99% in the short-term while getting back our capital for deployment to other investments or large item purchases unlike T Bills and bank fixed deposits which would incur losses or forfeit of interest with premature withdrawals. Do note that the redemption process of SSB can be up to 1 month of lead time.

I decided to apply for $10k of this May 2024 tranche using my remaining funds in war chest.

There it goes.



S$900m is up for grabs.

The first payment will be on 1 Nov 2024 and this bond will mature on 1 May 2034.

I will still be happy to inject more cash into SSB in the next few months if the yields stay above 3%. My ultimate aim is to max out the personal limit of S$200k soon.

If you are interested in this tranche of SSB, do note that the application dateline is today, 25 Mar 2024, 9pm for online applications.

Thank you for reading.

With love & peace,
Qiongster