Saturday, January 14, 2023

Net Worth Update Jan 2023

  

S$1.38m


Welcome to my first net worth update in 2023.

My net worth rises $33k or 2.4% to $1.38m, another all time high!

The increase is mainly due to CPF interests for 2022, CPF contributions and savings from Jan 2023 salary.

My CPF forms the bulk 38% of my wealth. Though illiquid, it is my safety net to be unlocked if I could live beyond 55 years old. I have already achieved full retirement sum in CPF SA and could only top up my Medisave account to the basic healthcare sum of $68.5k. I will also top up $8k into my mum's CPF Retirement account.

My stocks and Reits in SGX income portfolio forms 22% of my net worth. I will slow the pace of adding high quality S-Reits as low-risk assets such as fixed deposits, short-term government bonds are yielding more than 4% in today's high interest, inflationary environment.

SRS forms 7% of my wealth and i accounted for it using the cost amount of contribution rather than market value. I have used the idle $10k of funds in my SRS account to apply for the recent tranche of T-bill.

In terms of US growth tech stocks, I plan to just dabble with options to collect premiums this year. I have no plan to increase exposure to HK or china equities.

I am stashing away cash in Fullerton cash funds under custody of Moomoo and Tiger Broker yielding above 3.5% daily interest. I plan to subscribe for the next few months of Singapore Savings Bonds, if they yield above 3% for the next decade. Ultimately, I hope to max out SSB individual limit of $200k by end of this year.

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 (19%)/risk-free bonds (7%)/CPF(38%) to equities (22%)/SRS equities (7%) ratio is around 64-29, 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

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