Passive Income in 2Q and 1H 2024 Exceeds $15k!

Between 1 Apr and 30 Jun 2024, I collected the following dividends.

$302.17 SSB (1 Apr)

$340 Frasers Centrepoint Trust (2 Apr)

$324 DBS (19 Apr)

$463.50 SSB (2 May)

$850 UOB (9 May)

$188 ST Engineering (14 May) SRS

$165 Wilmar (14 May) SRS

$188 Comfortdelgro (15 May) SRS

$540.54 DBS (20 May)

$2100 OCBC (21 May) SRS

$126 OUE (24 May)

$185.12 Astrea 7 A-1 PE Bond (27 May)

$212.64 Frasers Centrepoint Trust (30 May)

$75.55 Suntec Reit (30 May)

$530.91 SSB (1 Jun)

$188 ST Eng (5 Jun)

$458.00 MPACT (6 Jun)

$504.84 Mapletree Ind Trust (10 Jun)

$132.50 Netlink Trust (12 Jun)

$1044 Frasers L&C Trust (18 Jun)

$829.50 Aims Apac Reit (24 Jun)

$461.32 Mapletree Log Trust (26 Jun)

My passive income in Q2 2024 is $10,209.59, a 25% YoY increase from Q2 2023's $8,130.21.

Together with the $6,471.90 passive income in Q1, my passive income in the first half of 2024 is

$16,681.49

At $2,780/month on average, I am contented that my passive income is able to cover most of my basic necessities and essential expenditure. 

I hope to collect more passive income in 2H 2024 to boost my depleted war chest, while staying on the lookout for great investment opportunities for letting the compounding effect do its magic.

My ultimate financial freedom goal is to own an investment portfolio valued at one million dollars yielding at least $60k of passive income annually, or $15k of passive income quarterly. I hope my passive income can hit $30k for 2024 then I will be halfway there.

I shall continue to live frugally, save up, invest in any bear or bull market conditions, slowly and steadily build up my investments. Ignore the fears, noises, distractions. Remain focused and stay on track in the journey towards financial freedom.

After slogging half a year without any break, I am packing my bags and will head to the airport soon for a dividend-funded "free" trip to China today.

Thanks for reading.

With love & peace,

Qiongster

Portfolio Update June 2024

This is a quick update of my investment portfolios for June 2024 before I fly off for a China trip funded by dividends.

My SGX Income Portfolio value decreases to $359k from $365k.

My US/HK Growth Portfolio value inches up to US$18.6k from US$18.5k.

My SRS Ultra Long-Term Portfolio value stagnates at $168k.

The US stock markets have challenged new highs amidst uncertainties over interest rates, ongoing wars and fears of economic recession. US 10-year and 30-year government yields have declined 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.

Besides subscribing to Singapore Savings Bonds and rolling over Alphabet call option, I did not make any other moves in the stock markets. I also collected some dividends towards the end of 2024 mid-year.

Portfolio Actions

Nil

Portfolio Dividends

1. Received $530.91 of dividends from Savings Bonds on 1 Jun.

2. Received $188 of dividends from ST Eng on 5 Jun.

3. Received $458 of dividends from MPACT on 6 Jun.

4. Received $504.84 of dividends from Mapletree Ind Trust on 10 Jun.

5. Received $132.50 of dividends from Netlink Trust on 12 Jun.

6. Received $1,044 of dividends from Frasers L&C Trust on 18 Jun.

7. Received $829.50 of dividends from Aims Apac Reit on 24 Jun.

8. Received $461.32 of scrip dividends from Mapletree Log Trust as 347 shares  on 26 Jun.

SGX Income Portfolio

Portfolio Value = $359k

US/HK Growth Portfolio

Moomoo

US$4.5k

Tiger Broker

US$13k

Syfe Trade

US$1.1k

Portfolio Value = US$18.6k

SRS Ultra Long-Term Portfolio

Portfolio Value = S$168k

Thanks for reading.

With love and peace, 

Qiongster

Applied for Singapore Savings Bonds (SBJUL24 GX24070S) Redeemed SSB (SBDEC18 GX18120X)

 

The July 2024 tranche of Singapore Savings Bonds (SSB) has an average yield of 3.3% over 10 years.

The first 6 years yield a flat 3.26% per annum; 7th year yields 3.29%, 8th year yields 3.38% p.a and 9th, 10th years yield 3.42% 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%. 

I decided to apply for $15k of this July 2024 tranche using my redemption proceeds from older SSB and war chest funds.

There it goes.

S$1.1b is up for grabs.

The first payment will be on 1 Jan 2025 and this bond will mature on 1 Jul 2034.

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

At the same time, I also redeemed an old tranche of SSB (SBDEC18 GX18120X) with an average yield of 2.57% and currently only yielding 2.73% in its 6th year. It is hence a no brainer decision to recycle the funds.

Thank you for reading.

With love & peace,

Qiongster

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

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