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.
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