Net Worth Update Dec 2022 | All Time High!

 

S$1.347m

My net worth rises $27k or 2% to $1.347m, an all time high!

The increase is mainly due to collection of Dec salary, bonuses, dividends from investment portfolios and latest CPF contributions.

Another interest rate hike of 0.5% has been announced by the Fed on 14 Dec to demonstrate its unwavering stance of curbing inflation. This means that interest rates will remain above 4% range in next year 2023.

In such high interest rate environment, cash is the best yielding asset at close to zero risk, especially in the short-term whereby short-term bonds and bank fixed deposits are yielding more than 4%.

I will slow the pace of adding high quality S-Reits or growth tech stocks into my investment portfolios as the stock markets remain weak and volatile despite signs of stabilizing recently.

I am accumulating cash, stashing them in cash funds yielding above 4% daily interest while slowly subscribing for the next few months of Singapore Savings Bonds, which should lock in average yields above 3% for the next decade. Ultimately, I target to max out individual limit of $200k by end of 2023.

My conservative strategy of building a well balanced portfolio for my financial assets involves hoarding cash to earn decent risk-free interest rates above 4% short-term while waiting for greater opportunities to slowly invest in income-producing assets and growth tech businesses for the long-term.

My allocation of cash (18%)/risk-free bonds (6%)/CPF(38%) to equities (23%)/SRS equities (8%) ratio is around 62-31, which provides a rather huge defensive safety net.

I am not putting in additional effort to deploy my CPF OA funds to T-bills or fixed deposits for additional yield as I am lazy, contented with 2.5% and prefer to earn fuss-free passive income which do not require time queueing or waiting at the banks or stress over the luck-dependent system of T-bills cutoff rate. I also believe in money abundance and we should not be greedy to earn all the money in this world.

Life is exciting in an endemic world. Ignore the noises. Remain on track. Be greedy when others are fearful. Be hungry when others are contented. We will get to our goals and dreams. En route to financial freedom!

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

With love & peace,

Qiongster