Net Worth Update Apr 2025

  

My net worth rises slightly to S$1.837 million after CPF contributions, dividends and salary savings despite tanking by more than $60k at one point after Trump’s tariffs stirred carnage in the markets.

Net Worth Breakdown:

Safe Heavens (63%)

CPF (36%): CPF is the foundation of my retirement savings and wealth. I am comfortable with not investing my CPF funds and letting them idle to earn the basic 2.5% in OA and 4% in SA. I have shared the 8 key changes to CPF in 2025 previously.

Cash and war chest (17%): Liquid reserves strategically stashed in fixed deposits and Fullerton cash funds earn around 2.5% p.a. This financial cushion provides me with a peace of mind and security for unexpected expenses or investment opportunities.

Bonds (10%): A balanced portfolio of low-risk Singapore Savings Bonds and Astrea Bond ensures stability. I have maxed out my SSB individual limit of $200k in Aug 2024, just before the interest rates declined.

Retirement Savings (15%)

SRS (11%): This tax-deferred savings account provides a supplementary source of retirement savings and its value has recently surpassed $200k despite a cumulative contribution of less than $150k in past 8 years. I have completed the $15.3k contribution to maximise the annual individual limit for this year. My SRS funds are invested in $30k of SSB and 6 local stocks - Comfortdelgro, DBS, OCBC, Keppel DC Reit, Keppel Reit and Wilmar. Recently, I have also used SRS funds to add more DBS shares, nibble Amundi Prime USA fund to gain exposure to S&P 500 tech growth businesses and stash away in Fullerton SGD Money Market Funds to yield 2.5% p.a. instead of meagre 0.05%.

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. I have also upgraded my MediShield life to integrated shield plan for private hospital coverage.

Equities (22%)

Stocks and Reits (22%): A real estate-oriented portfolio of stocks and Reits, focuses on long-term dividend income and stability. This segment of financial assets 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.

The Pursuit of FIRE

Our net worth is a rough measure of our wealth to provide us with the peace of mind. The focus on building passive income streams and growing my overall net worth is not solely about retiring early. It is about creating options in life to possibly regain time, location and financial freedom.  It is about having the choice to pursue passions, work less, focus on living life on this earth, and navigate life's uncertainties without financial stress.  This journey is about building a foundation of security that empowers us with choices in life.

I hope to achieve my next milestone of SGD 1.85m soon in the coming months and $36k annual passive income by end of this year.

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.

With love and peace, 

Qiongster

Subscribed to Frasers Centrepoint Trust Preferential Offering at $2.05

I subscribed to 4,000 Frasers Centrepoint Trust (FCT) preferential offer (PO) shares at $2.05 today.

As I currently own 12,000 FCT shares, my entitled right is 648 FCT PO shares based on the allocation ratio of 54 shares per 1,000 shares owned. My Subscription of 4,000 PO shares include the 648 entitled shares and 3,352 excess shares.

In Mar 2025, Frasers Centrepoint Trust (FCT) has issued 105.3m shares at $2.09 from private placement to institutional investors to raise funds of $220m to partially fund the acquisition of Northpoint City South Wing from North Gem Trust for $1.2b.

This PO exercise for retail investors will raise another $201.3m and the last date/time of acceptance will be on this Wednesday, 16 April 2025 at 5.30pm.

This yield accretive acquisition of Northpoint City South Wing is a strong diversification and consolidation move to cement FCT's position as heartland mall king in Singapore. After the acquisition, FCT effectively owns Northpoint City fully and will still be the only pure local retail mall Reit in Singapore which also owns Causeway Point, 50% of NEX, Century Square, Waterway Point and Tampines One etc. I hope and believe that FCT will eventually also acquire Nex fully to also give shareholders an opportunity to participate in equity fund raising again.

FCT has always been in my watchlist to grow my SGX income portfolio for more dividend income. It will be announcing its results and the dividends of 1H FY25 on 29 Apr 2024, which is expected to be between 6.13 and 6.17 cents.

My recent visits to Northpoint City and Tiong Bahru Plaza owned by FCT have been encouraged by great shopper traffic, strong retail sales, high tenancy and highly efficient usage of atrium spaces for sales events. 

FCT is a stable S-Reit which allows investors to own a slice of the suburban malls in Singapore, thereby collecting some “rental income” to offset our daily expenses or fuel our compounding growth of investments.

At current market of $2.13, FCT is trading at 6% below its net asset value of $2.28 and yielding more than 5.5%. As the PO price of $2.05 is still lower than the market price, net asset value and private placement price, I am comfortable with the margin of safety and feel obliged to subscribe to the PO shares including excess, saving up commission and trading fees than if I were to buy from open market.

I believe it is a no brainer to add FCT for long-term investment albeit the short-term volatility due to immense fears and uncertainties over impact from tariff policies, trade war, potential economic recession and interest rates.

Thanks for reading.

Related posts:

Added FCT

Applied for FCT Preferential Offer Shares

Nibbled FCT

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.

With love & peace,

Qiongster

Lost a Bomb after Market Crash? Stay Calm and don't Panic!

 

Ouch! There's no easy way to put it – seeing a significant chunk of your portfolio value evaporate in a market downturn is a gut punch. 

For me, that recent dip translated to a paper loss of more than $60,000, representing more than 3% of my net worth and many months of my salaried income. And let's be honest, even though we intellectually understand that these fluctuations are part of the investment game, it still hurts. A lot.

If you're feeling that same knot of anxiety in your stomach, know that you're not alone. This isn't the first rodeo for many of us. Memories of 2020, 2018, even the more distant echoes of 2009, likely resurfaced. It feels like the same old story playing out again – a sharp decline that leaves us questioning our decisions and staring at red numbers on our screens.

It's easy to get caught up in the immediate panic. The news headlines scream of market turmoil, friends, experts and analysts whisper about potential further drops, and the urge to do something – anything – to stop the bleeding can be overwhelming.

But here's the crucial point, the mantra we need to repeat to ourselves during these turbulent times: this is often the price of admission to the long-term wealth-building journey.

Market cycles are a fundamental aspect of investing. Periods of exuberant growth are often followed by corrections and even crashes. These downturns can be triggered by a myriad of factors – economic slowdowns, geopolitical events, shifts in investor sentiment, or even just a natural cooling-off after a period of rapid expansion.

And yes, it can feel incredibly unfair. The narrative that "the rich get richer" during these times often stems from the fact that those with more capital can often weather these storms more comfortably and may even be able to capitalize on discounted asset prices. Meanwhile, those with less financial cushion can feel more vulnerable and trapped.

However, succumbing to panic and making rash decisions is often the biggest mistake we can make. Selling low locks in those paper losses and prevents us from participating in the eventual recovery. As history has repeatedly shown, broad market indexes like the S&P 500 have a long-term upward trajectory, weathering numerous crises and ultimately reaching new highs.

So, what can we do when the market takes a nosedive?

 * Breathe. Seriously. Take a moment to step away from your screens and acknowledge your emotions without letting them dictate your actions.

 * Remember your long-term strategy. Why did you invest in the first place? What are your financial goals? A temporary market dip shouldn't derail a well-thought-out long-term plan.

 * Resist the urge to panic sell. This is often the most damaging reaction. Selling low crystallizes losses and means you'll miss out on the rebound.

 * Focus on what you can control. You can't control the market, but you can control your contributions (if you're still in the accumulation phase), your asset allocation (ensure it still aligns with your risk tolerance and time horizon), and your spending.

 * Consider it an opportunity (if you have the means). For long-term investors with available capital, market downturns can present opportunities to buy quality assets at discounted prices. Think of it as a sale on your favorite stocks or ETFs.

 * Review your portfolio, but don't obsess. It's wise to periodically check your asset allocation, but constantly monitoring daily fluctuations will likely only increase your anxiety.

 * If you're trading on margin, act decisively to cut losses. Margin calls can amplify losses significantly. Regroup, understand what went wrong, and re-strategize without the added pressure of margin.

This recent market dip is a stark reminder that investing involves risk and that volatility is a normal part of the process. It's uncomfortable, it can be disheartening, but it's not the end of the world, and it's certainly not unprecedented.

So, let's take a collective deep breath. Let's stay calm, stay cool, and remain focused on the long term. This too shall pass, and those who maintain a disciplined and patient approach are more likely to reap the rewards in the long run. We've seen this cycle before, and while it never gets easy emotionally, understanding its nature is the first step towards navigating it successfully.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investment decisions should be made based on individual circumstances and after careful consideration of risks and potential rewards.

Thanks for reading.

With love and peace, 

Qiongster

Scooped DBS

 

This week, the share price of DBS (SGX:D05) plummeted by more than $5 or 10% following the US president's global tariffs announcement, igniting trade war fears and amplified concerns of a global recession and economic slowdown.

I smelt blood on the streets, pounced on my passive income greed to catch the falling knife amidst the global fears to add some DBS shares using idle SRS funds.

There it goes.

Ideally, I would prefer to add DBS at below $40 and the time is now. 

At its peak of $46, DBS has a forward yield of more than 6.5% assuming annual dividend of $3 (inclusive of 4 quarters of $0.6 dividends and $0.15 capital return) and based on less than 60% payout ratio. Hence it is very attractive relative to S-Reits which pay at least 90% of their income to achieve more than 5% yield. 

In the past weeks, DBS has been buying back its own shares at between $36 and $44 as part of its $3 Billion share buyback programme. Hence, I feel that at $38, DBS is fairly valuated by the markets to factor in its future lower net interest margin income, greater uncertainties and lower growth prospects.

I am determined to make the idle funds in my SRS work harder after they were recycled from the sale of ST Engineering in my SRS portfolio last year.

It is crucial that long-term investors like us always remain calm, unwavered and focused on our investment objectives.

While the share prices of local banks and US tech stocks may remain volatile and continue to tank, we have nothing to fear if we are in the game for the long haul.

I shall continue to monitor and shall not hesitate to add more local bank or other great company shares for alignment with my investment objectives in the future.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investment decisions should be made based on individual circumstances and after careful consideration of risks and potential rewards.

Thanks for reading.

With love and peace, 

Qiongster

Portfolio Update March 2025

Selamat Hari Raya Puasa on the last day of Mar 2025. Here is an update of my investment portfolios.

My SGX Income Portfolio value increases to $388k from $372k. S-Reits have rebounded due to institutional inflows in recent weeks as the Federal Reserve maintained interest rates at 4.25 to 4.5 percent, leaving the market sentiments to believe that interest rates have peaked and will be cut at least 2 times in 2025. Trump’s inflationary actions from the impose of tariffs potentially spark off a global trade war and recession, causing the US and Asian stock markets to tank and remain volatile.

My US Growth Portfolio tanks to US$10k from US$14.2k due to my exposure to NVIDIA and GOOGL through selling put options which have also resulted in hefty paper losses despite their recent strong results beating expectations. Nonetheless, I still believe in their long term growth potential and plan to keep rolling over the options to delay the expiry date and take assignment of the NVIDIA and GOOGL shares.

My SRS Ultra Long-Term Portfolio value rises to $212k from $193k mainly due to capital injection from SRS contributions and the strengthening of Keppel DC Reit and OCBC share prices.

Portfolio Actions

1. Bought $1,000 of Amundi Prime USA AS SGD Fund at $193.35 in SRS.

2. Rollover 2 put options of Nvidia with strike prices $120 and $134 with expiry dates 16 May and 20 Jun respectively.

3. Rollover 1 put options of GOOGL with strike price $190 with expiry date 16 May.

Portfolio Dividends

1. Received $299.50 of dividends from SSB on 3 Mar.

2. Received $138.00 of dividends from SSB in SRS on 3 Mar.

3. Received $400.00 of dividends from MPACT on 7 Mar.

4. Received $768.10 of dividends from Ascendas Reit on 11 Mar.

5. Received $438.24 of dividends from Mapletree Log Trust on 13 Mar.

6. Received $527.73 of dividends as 249 shares from Mapletree Ind Trust DRP on 14 Mar.

7. Received $90.09 of dividends from Keppel DC Reit in SRS on 17 Mar.

8. Received $289.83 of dividends from Keppel Reit on 17 Mar.

9. Received $674.65 of dividends from CICT on 21 Mar.

10. Received $840.00 of dividends from Aims Apac Reit on 26 Mar.

11. Received $282.14 of dividends from CapitaLand China Trust on 27 Mar.

12. Received $295.16 of dividends from IREIT Global on 27 Mar.

SGX Income Portfolio

Portfolio Value = $388k

US Growth Portfolio

Moomoo

US$0.6k

Tiger Broker

US$8.3k

Syfe Trade

US$1.1k

Portfolio Value = US$10k

SRS Ultra Long-Term Portfolio

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.

With love and peace, 

Qiongster

Passive Income in 1Q 2025 Exceeds $6k

   

The first quarter of 2025 is drawing to a close.

While I am grateful to be a wage slave having collected 3 months of salary from work, I am actually not happy because active income is derived from trading time for money, seeing bosses' faces, dealing with crappy work portfolios and worse of all, taking a toil on my mind, soul and body and being taxable.

Real joy emanates from passive income streaming into my bank account automatically from doing nothing, other than owning a tiny piece of income-producing cake such as properties, businesses, REITs or stocks. What’s best? Dividends are tax-free.

For Q1 2025. my passive income from Singapore Savings Bonds, stocks and Reits in my investments are as follows:

$544.50 Savings Bond (2 Jan)

$147.50 Savings Bond SRS (2 Jan)

$377.40 Savings Bond (3 Feb)

$326.64 Keppel DC Reit (10 Feb) SRS

$355.00 Ascott Reit (28 Feb)

$78.50 Suntec Reit (28 Feb)

$299.55 Savings Bond (3 Mar)

$138.00 Savings Bond SRS (3 Mar)

$400.00 MPACT (7 Mar)

$768.10 Ascendas Reit (11 Mar)

$438.24 Mapletree Log Trust (13 Mar)

$527.73 Mapletree Ind Trust (14 Mar) DRP 249 shares

$90.09 Keppel DC Reit (17 Mar) SRS

$289.83 Keppel Reit (17 Mar) SRS

$674.65 CICT (21 Mar)

$840.00 Aims Apac Reit (26 Mar)

$282.14 Capitaland China Trust (27 Mar)

$295.16 IREIT (27 Mar)

Altogether they amount to $6,873.03.

As the dividends payout of most REITs have dropped, there is only a 6% Year-on-Year increase from my passive income in Q1 2024 of $6,471.90 

While the allure of readily available cash is undeniable, my primary focus remains on building sustainable passive income. I highly value this approach, particularly due to the minimal effort required and the tax-free dividends in Singapore.

My strategy is simple: maintain a frugal lifestyle, consistently save, and invest prudently through all market cycles. This disciplined approach is my pathway to financial freedom.

My ultimate goal is a $1 million investment portfolio generating at least $50,000 annually, or $12,500 quarterly, in passive income. Though I'm currently working towards the halfway mark, I'm optimistic about the potential for more passive income throughout the remainder of 2025.

Thanks for reading.

With love & peace,

Qiongster

Net Worth Update Mar 2025

 

My net worth rises to S$1.83 million after CPF contributions, dividends, savings from salary and due to recovery of S-Reits investments.

Net Worth Breakdown:

Safe Heavens (63%)

CPF (36%): CPF is the bedrock of my retirement savings and constitutes the bulk of my wealth. I am comfortable with letting the funds in CPF idle and have no plan to invest them. Earlier, I have shared the 8 key changes to CPF in 2025.

Cash and war chest (17%): Liquid reserves strategically stashed in fixed deposits and Fullerton cash funds, earning around 3% p.a. This financial cushion provides me with a peace of mind and security for unexpected expenses or investment opportunities.

Bonds (10%): A balanced portfolio of low-risk Singapore Savings Bonds and Astrea Bond ensures stability. I have maxed out my SSB individual limit of $200k in Aug 2024, just before the interest rates declined.

Retirement Savings (15%)

SRS (11%): This tax-deferred savings account provides an additional layer of retirement savings. I have started to contribute around $7k to the annual individual limit of $15.3k, leaving $7.9k more to do. My SRS funds are invested in $30k of SSB and 6 local stocks - Comfortdelgro, DBS, OCBC, Keppel DC Reit, Keppel Reit and Wilmar. Recently, I have also use SRS funds to nibble Amundi Prime USA fund to gain exposure to S&P 500 tech growth businesses.

Insurance (4%): A Prudential whole life insurance plan and other savings plans could provide me with 6-digit lump sum payout after my retirement while offering continual protection for peace of mind. I have also upgraded my MediShield life to integrated shield plan for private hospital coverage.

Equities (22%)

Stocks and Reits (22%): A property-oriented portfolio of stocks and Reits, focuses on long-term dividend income and stability. This segment of financial assets 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.

The Pursuit of FIRE

The true value of net worth numbers lies in the peace of mind they provide. The focus on building passive income streams and growing my overall net worth is not solely about retiring early. It is about creating options in life to possibly regain time, location and financial freedom.  It is about having the peace of mind to pursue passions, spend time to enjoy living life, and navigate life's uncertainties without financial stress.  This journey is about building a foundation of security that empowers me to make choices based on what truly matters.

I hope to achieve my next target of SGD 1.85m soon in the coming months and then the next significant milestone of SGD 2m before reaching 40 year old next year.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investment decisions should be made based on individual circumstances and after careful consideration of risks and potential rewards.

Thanks for reading.

With love and peace, 

Qiongster