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

Portfolio Update February 2025

Here is an update of my investment portfolios for Feb 2025.

My SGX Income Portfolio value decreases to $372k from $387k. S-Reits and property stocks remain feeble as Donald Trump’s inflationary actions from the impose of tariffs on Canada, Mexico and China goods lead the market to be fearful of prolonged high interest rate environment and diminishing chances of rate cuts this year. This will severely erode the bottom line and distributions of S-Reits. Local banks have announced their awesome results and higher dividends but are expected to experience tapered growth or even declines in profits moving forward due to the potential trade war causing global uncertainty, dampening loan demands and higher non-performing loans.

My US/HK Growth Portfolio drops to US$14.2k from US$14.7k mainly due to my liquidation of HK-listed shares of Alibaba, Tencent and Meituan ending my 4 year experiment with China stocks with a modest gain. I decided to focus on just SGX stocks for income and US stocks for growth even though Chinese and HK stocks may have more leg room to run higher. Previously, I dabble in HK market by leveraging on free stock vouchers given by Tiger Broker.

My exposure to NVIDIA through selling put options have also resulted in losses despite its strong results beating expectations. Nonetheless, I still believe in the long term growth potential of NVIDIA and I am planning to keep rolling over the options to delay the expiry date and take assignment of the NVIDIA shares below $130.

My SRS Ultra Long-Term Portfolio value dips to $193k from $195k mainly due to the weakening of Keppel DC Reit and OCBC share prices.

Portfolio Actions

1. Bought 200 shares of DBS at $45.68 in SRS.

2. Rollover 2 put options of Nvidia with strike prices $120 and $137 with expiry dates 16 May and 21 Mar respectively. A put option of Nvidia with strike price $134 has expired on 14 Feb.

3. Sold 101 shares of Alibaba at HK$121.80, 1 share of Meituan at HK$159.70 and 1 share of Tencent at HK$442.

Portfolio Dividends

1. Received $377.40 of dividends from SSB on 3 Feb.

2. Received $326.64 of dividends from Keppel DC Reit in SRS on 2 Jan.

3. Received $355.00 of dividends from Ascott Reit on 28 Feb.

4. Received $78.50 of dividends from Suntec Reit on 28 Feb.

SGX Income Portfolio

Portfolio Value = $372k

US Growth Portfolio

Moomoo

US$2.3k

Tiger Broker

US$10.5k

Syfe Trade

US$1.4k

Portfolio Value = US$14.2k

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

Net Worth Update Feb 2025

     

My net worth in Feb 2025 remains fairly stable at S$1.82 million after CPF contributions, dividends and savings from salary.

Net Worth Breakdown:

Safe Heavens (63%)

CPF (36%): As the foundation of my retirement savings, my CPF accounts has been boosted by more than $20k of interests credited on the 1 Jan 2025. I have shared the 8 key changes to CPF earlier.

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 plan to start contributing to the annual individual limit of $15.3k soon. My SRS funds are invested in $30k of SSB and 6 local stocks - Comfortdelgro, DBS, OCBC, Keppel DC Reit, Keppel Reit and Wilmar. 

Insurance (4%): Prudential whole life insurance plan and other savings plans which in total, could provide me with 6-digit lump sum payout after my retirement.

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.

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

Added Money Tree with 6.5% p.a. forward yield to SRS Ultra Long-Term Portfolio

Today, the share price of DBS (SGX:D05) surged by more than $1 or 2% after announcement of $2.52 billion Q4 24 earnings, record high full year profit of $11.29 billion, $0.60 quarterly dividend per share and $0.15 quarterly capital return for next 3 years.

I pounced on the fear of missing out motivation to nibble some more DBS shares using idle SRS funds.

There it goes.

Ideally, I would prefer to add DBS at below $40 however it is very challenging to time the market. 

Even at $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. 

Recently, DBS has also bought back its own shares at around $43 - $44 as part of its $3 Billion share buyback programme. Hence, I feel that at $45-46, DBS is still not expensive but still below its intrinsic value of $50 - $60 based on future cashflows and earnings.

I am focused on making the idle funds in my SRS work harder as they were recycled from the sale of ST Engineering in my SRS portfolio.

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, 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 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

Exploring the Diverse Landscape of FIRE

Financial Independence, Retire Early (FIRE). It's a catchy acronym, a tantalizing dream, and a lifestyle that's captured the imaginations of countless individuals seeking freedom from the traditional 9-to-5 grind. But FIRE isn't a one-size-fits-all approach.  Just like snowflakes, no two FIRE journeys are exactly alike.  This article dives into the diverse landscape of FIRE, exploring the different flavors and helping you discover which might be the best fit for your aspirations.

The Classic: Lean FIRE

Lean FIRE is often the starting point for many. It emphasizes aggressive saving and a minimalist lifestyle to achieve financial independence with a smaller nest egg. Think tiny houses, budget travel, and a focus on experiences over material possessions.  Lean FIRE requires discipline and a willingness to embrace frugality, but it offers the quickest path to early retirement.  It's perfect for those comfortable with a simpler lifestyle and prioritizing freedom above all else.

The Comfortable: Regular FIRE

Regular FIRE strikes a balance between frugality and comfort.  It involves saving a substantial portion of your income, but allows for more flexibility and spending on things you enjoy.  Retirees can maintain a comfortable lifestyle, perhaps with a slightly larger home, occasional vacations, and more leeway in their budget.  Regular FIRE offers a less restrictive path than Lean FIRE while still enabling early retirement.

The Luxurious: Fat FIRE

Fat FIRE is for those who want to maintain or even upgrade their pre-retirement lifestyle in early retirement.  It requires a significantly larger nest egg and a high savings rate, allowing for luxurious travel, upscale dining, and other indulgences.  Fat FIRE provides the greatest level of financial security and freedom to pursue passions without financial constraints.  However, it also requires a longer accumulation phase and a higher income potential.

The Flexible: Barista FIRE

Barista FIRE offers a hybrid approach.  Retirees leave their traditional careers but take on part-time or flexible work that covers their basic expenses and health insurance.  This allows them to tap into their savings at a slower rate, making their nest egg last longer and providing a buffer against unexpected expenses.  Barista FIRE provides a sense of purpose and structure while still offering significant freedom and flexibility.

The Independent: Coast FIRE

Coast FIRE focuses on reaching a point where your existing investments are projected to grow enough to reach your FIRE number by your desired retirement age, without requiring any further contributions.  Once you've "coasted," you can relax your savings rate and focus on other goals.  While you might not retire immediately, you have the peace of mind knowing you're on track.  Coast FIRE provides flexibility and allows you to prioritize other life goals without the pressure of aggressive saving.

Beyond the Labels:

It's important to remember that these are just general categories.  Your FIRE journey might be a blend of different approaches, evolving as your priorities and circumstances change.  Perhaps you start with Lean FIRE and transition to Regular FIRE as your income grows.  Or maybe you pursue Coast FIRE while exploring different career paths.

Finding Your FIRE:

The key to a successful FIRE journey is to define what financial independence means to you.  Consider your desired lifestyle, your risk tolerance, and your long-term goals.  Research different strategies, talk to financial advisors, and create a personalized plan that aligns with your unique circumstances.  Don't be afraid to adapt and adjust your plan along the way.

FIRE is a marathon, not a sprint.  By understanding the different types of FIRE and taking a personalized approach, you can pave your own path to financial freedom and live a life on your own terms.  So, which flavor of FIRE resonates with you?

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

Portfolio Update January 2025

A month has passed in the new year and today is already 1 Feb 2025.

Here is an update of my investment portfolios.

My SGX Income Portfolio value inches up to $387k from $377k. S-Reits and property stocks in the Portfolio remain sluggish as the Federal Reserve has indicated a more conservative approach for 2025, projecting only 2 rate cuts instead of the previously anticipated 4. Current high interest rate environment is expected to prolong and erode the bottom line and distributions of S-Reits while allowing local banks to stay resilient by sustaining high net interest margins and the market possesses great anticipation of higher dividends while we await their next round of results announcement.

My US/HK Growth Portfolio tanks to US$14.7k from US$21.3k mainly due to my exposure to NVIDIA through selling put options. Thanks to Deepseek's recent breakthough, shockwaves are sent through the US tech sector, causing significant volatility in US tech stocks, particularly NVIDIA. Selling put options involves giving someone the right to sell you shares of a stock at a specific price by a certain date. In exchange, you receive a premium. If the stock price stays above that price, you keep the premium. However, if the price falls below that price, you may be obligated to buy the shares, potentially at a loss. Unfortunately, NVIDIA's stock price experienced a sharp decline this week. This resulted in significant losses on my sold put options, as I was obligated to buy shares at a price higher than the current market value. This setback is a reminder of the risks involved in options trading. While selling put options can generate income, it can also lead to substantial losses if the stock price moves against you. Despite this setback, I remain confident in my long-term investment strategy. I believe that NVIDIA has the potential to rebound in the future, and I'm planning to take assignment of the NVIDIA shares or keep rolling over the options to delay the expiry date. This experience has reinforced the importance of diversification and risk management in investing. While I'm disappointed with the recent performance, I'm committed to learning from this experience and continuing to grow my portfolio over the long term.

My SRS Ultra Long-Term Portfolio value increases to $195k from $192k mainly due to the strengthening of Keppel DC Reit and OCBC share prices.

Portfolio Actions

1. Sold 3 put options of Nvidia with strike prices $120, $135 and $145 and expiry 16 May, 7 Feb and 14 Feb respectively.

Portfolio Dividends

1. Received $544,50 of dividends from SSB on 2 Jan.

2. Received $147.50 of dividends from SSB in SRS on 2 Jan.

SGX Income Portfolio

Portfolio Value = $378k

US/HK Growth Portfolio

Moomoo

-US$400

Tiger Broker

US$13.7k

Syfe Trade

US$1.4k

Portfolio Value = US$14.7k

SRS Ultra Long-Term Portfolio

Portfolio Value = S$195k

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

CPF Retirement Account Top Up can be Great Ang Baos

 

Happy Lunar New Year!

I topped up $3k into my mum's CPF Retirement Account today.

The transaction and RA account balance are updated instantly in my mum CPF statement.

In my CPF Retirement dashboard, my tax relief is also reflected instantly.

Let me share 5 great reasons why CPF Retirement Account top up can be great ang baos.

1. Tax Relief

For personal financial objective, we could enjoy tax relief of up to $8k per calendar year for topping up our parent's CPF Retirement Account under the Retirement Sum Top Up (RSTU) scheme.

Assuming a tax bracket at 11%, a relief of $8k will save $880 of individual income taxes in cash, which is a rather big Ang Bao to ourselves.

The tax relief is also applicable to family members such as parents-in-law, grandparents, grandparents-in-law, siblings and spouse.

2. Compounding growth at 4%

CPF Retirement Account yields at least 4% and up to 6% for senior folks risk-free and guaranteed by the Singapore Government. Monies growing at compounded rate of at least 4% will double in 20 years hence, by leaving cash in CPF RA account, they will grow much faster than inflation rate to preserve and uphold its real value.

For CPF members aged 55 and above, an extra 2% of interest is paid on the first $30k of their combined balances (capped at $20k for OA), an an extra 1% for the next $30k.

3. CPF Life

In order to qualify for CPF Life, one need to have at least $60k in their CPF retirement savings before reaching 65 years old. We could help our parents to boost their CPF retirement savings to qualify for CPF Life if they do not have active income and CPF contributions.

CPF Life offers payouts perpetually for life. If one's CPF RA does not have $60k before reaching 65 years old, then he or her will only rely on Retirement Savings scheme to draw down their CPF savings till it is depleted.

If our parent is already enrolled in and receiving monthly payouts from CPF Life, any subsequent new inflows to the RA will automatically be used to increase the CPF Life premium so as to achieve higher monthly payouts for life.

4. Matched Retirement Savings Scheme

Under the Matched Retirement Savings Scheme (MRSS), the Government will match every dollar of cash top-ups made to the Retirement Account of eligible members up to a annual cap of $2,000, which can amount to $20,000 over an eligible member's lifetime. To be eligible, the person has to be aged 55 and above, has a CPF RA of less than the current Basic Retirement Sum of $106,500, has average monthly income of less than $4k, live in a property with annual value less than $21k and not owning more than one property.

By topping up at least $2,000 to a qualified family member's CPF RA account, we can milk $2,000 of free money from the Government.

However, do note that from 1 January 2025, cash top-ups that attract the MRSS grant will not be eligible for tax relief.

5. CPF is like golden ATM for senior citizens

For senior folks close to reaching the 55 year old and 65 year old milestones of being able to touch their CPF monies, their CPF accounts are like golden ATM that offer high interest rates for "withdrawable" cash with the click of a button. This is unlike younger folks who could only stare at their CPF balances as numbers. Hence, the concepts of 1M65 and CPF life annuity payouts are indeed beneficial and practical to folks who could really live long beyond 50s or 60s and on the brink of drawing down cash from their CPF balances. People who lived past 50 years old and could achieve Full Retirement Sum (FRS) should try to pump more monies into their CPF accounts, by all means, in order to reap the risk-free guaranteed returns on their monies.

CPF members above 55 year old can withdraw excess savings in Ordinary account above the FRS. CPF members can also withdraw up to 20% of their Retirement Account savings in a lump sum anytime from age 65 onwards.

I topped up my mum's CPF RA account with cash instead of giving cash, in order to maximise the value of money. For the $3k topped up today, I can enjoy $330 of tax savings myself, let my mum earn at least $120 of CPF interests for 2025 despite not being able to qualify form MRSS. This $450 of "earnings" from $3k gives a whopping ROI of 15% in a year.

Furthermore, there is compounding effect from future years' interests and being eligible to receive higher CPF Life monthly income payouts for life. Overall, I feel that it is a decent financial move. However, cash is king and it may be more financially rewarding if we were to deploy our cash in investments which yield greater returns.

In conclusion, topping up CPF accounts using cash is an individual decision depending on a myriad of factors and may only suit some of us and not everyone. One should always exercise our own due diligence to make the best decision for our own financial matters.

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. Stay focused and remain steadfast as always!

With love & peace, 

Qiongster

Topped Up CPF MA

   

I just topped up $1k into my CPF Medisave Account (MA) today. 

An early Ang Bao to myself from left hand to right hand.

My CPF MA balance now stands at $73,703.73, $1,796.27 away from the Basic Healthcare Sum (BHS) of $75.5k for 2025.

As my idle cash are stashed away in money market funds yielding more than 3% daily interest and being staked for selling cash secured put options, I plan to wait for the next CPF contributions from employment in Feb 25, before topping up my CPF MA to BHS using free money from dividends.

The key benefits of voluntary CPF MA top up are to enjoy tax relief as well as earning 4% p.a interest.

As I have already attained Full Retirement Sum in my CPF Special Account, I could no longer make Retirement Sum Top Up. This is the best effort I can make with CPF.

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.

Thank you for reading.

With love & peace, 

Qiongster

Net Worth Update Jan 2025 | SGD 1.81m Record

    

This is my first net worth update of year 2025.

Due to the boost from CPF interests, dividends and a change in accounting my SRS account to reflect the market value instead of cost, my net worth reaches a record high of S$1.83 million.

Net Worth Breakdown:

Safe Heavens (63%)

CPF (36%): As the foundation of my retirement savings, my CPF accounts has been boosted by more than $20k of interests credited on the 1 Jan 2025. I have shared the 8 key changes to CPF earlier.

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 allows me to set aside an additional layer of retirement savings. Annual individual limit of $15.3k is maxed out. My SRS funds are currently deployed into $30k of SSB and 6 local stocks - Comfortdelgro, DBS, OCBC, Keppel DC Reit, Keppel Reit and Wilmar. From this year onwards, I decided to reflect the market value of my SRS account at $192k instead of $132k cost value, thereby boosting my net worth.

Insurance (4%): Prudential whole life insurance plan and other savings plans which in total, could provide me with 6-digit lump sum payout after my retirement.

Equities (22%)

Stocks and Reits (22%): A carefully curated portfolio of stocks and Reits, focuses on dividend income and long-term growth. This segment of financial assets is riskier and more volatile but offers the potential for consistent passive income and returns.

Net Worth is More than just Numbers

While the net worth numbers are encouraging, the true value lies in the journey. It has been a journey of patience, discipline, and a relentless pursuit of financial freedom. Starting off a poor kid born into this world with nothing, I have learned to survive, live frugally, learn, save, invest, navigate market volatility, embrace uncertainty, and make informed financial decisions.

The Art of Financial Wellness

Financial success is not solely about accumulating wealth; it is about achieving a state of financial wellness. I realised that true wealth encompasses more than just building net worth. It is about having the freedom to pursue your passions, enjoying quality life, and contributing back to the society and world.

As I move forward, I strive to balance financial growth with personal fulfillment. By setting realistic goals, making informed choices, and staying mindful of my spending, I hope to inspire others to embark on their own financial journeys.

Remember, the journey of a thousand miles begins with a single step. Start small, dream big, and never stop learning.

Thank you for reading!

With love & peace,

Qiongster

Free Monies from CPF have Dropped!

 

Happy New Year 2025! 

Interests earned in 2024 have been credited to our CPF accounts today. 

As the CPF website is on maintenance from 12am to 8am today, the first thing I did after waking up is to check my CPF balances.

Pleased to receive more than $20k of free money!

Another important step in the journey towards financial freedom and retirement.

Even though CPF monies do not seem to be like real monies, I believe they are still illiquid monies that can be used to fund our retirement in our late lives, purchase properties, pay for education fees of children and pay medical bills or insurance.

Here are my CPF interests for 2024:

In total, I received $20,459.49.

This is an 11% increase from $18,409.68 for 2023.

The interest of $2.9k earned from Medisave account can easily cover the premiums for Careshield life and Medishield life. In a way, it is possible to enjoy free insurance by using passive income from CPF savings to cover the insurance premiums. This can be achieved if we bother to top up our own medisave account and strive to hit the maximum Basic Healthcare Sum limit of $75.5k in 2025 to let the 4% interest rate do its compounding work. 

I am certainly satisfied with this source of passive income which certainly boosts my CPF total and net worth on the first day of a brand new 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 & peace,

Qiongster