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