Saturday, December 31, 2022

How much do I have in stocks? | Financial Snapshot - Dec 2022

 This is a snapshot of my finances at the end of 2022.

Naturally, I do not want to disclose too many details or my net worth, the amount I have in banks, etc. so I will just share the following:


Not included in the above are bank savings, insurance policies, CPF, SRS, etc. The above is just the amount of stocks and cash in my 3 stock brokerage accounts, the stocks in my BCIP, SRS, and Robo-advisor accounts, and the bonds I am holding at the moment. Since I worked in the US before, I also added my 401K and Wealthfront investments to the above. For completeness, cryptocurrencies are included in the Stocks portfolio (though only a small percentage). 

For 2022 my Stocks portfolio only increased 2.89% YOY, the lowest across all years since I started tracking. For reference, the S&P500 dropped 19.4% in 2022, the worst year since the 2008 financial crisis (https://sg.finance.yahoo.com/news/stock-market-live-news-updates-december-30-2022-113654551.html). It does not mean my portfolio fared better though because I top up stocks into it regularly using dollar-cost averaging strategy. 

Here's a visualization of the Stocks (SGD) and Bonds (SGD) over the years:


Onwards!





Friday, December 2, 2022

Dividends for Nov 2022 [Financial Independence]

Here are my dividends for Nov 2022:

So I collected $1093.75 in dividends for Nov 2022. 

In case you are wondering, some stocks are repeated because I have 2 brokerage accounts. 

Here are my monthly dividends over the last 4 years:


Here are the dividends I collected every year until the current day:



Saturday, November 26, 2022

My Monthly Passive Income as of Nov 2022

 Sharing my passive income for the year 2022:


Basically, I am collecting $1922.07 in passive income monthly this year, compared to $1299.85 last year. 

Here's what it looks like on a chart:


The increase in my monthly passive income is going as planned. 

Onwards!

Sunday, November 20, 2022

Portfolio Returns for Nov 2022

I have been sharing the returns of my portfolio in the last few months:

http://financeopti.blogspot.com/2022/05/this-too-shall-pass.html

http://financeopti.blogspot.com/2022/07/this-too-shall-pass-part-2.html

http://financeopti.blogspot.com/2022/10/this-too-shall-pass-part-3.html

I felt it will be good to track the returns on a regular basis since the returns will fluctuate from time to time depending on the stock market. 

Looks like most of the returns are trending up, with the exception of the Cryptocurrency portfolio:


Here's a recap of the major market events (positive events in green and negative events in red):

  • May 2022: the crash of TerraUSD and Luna
  • July 2022Covid-19 is causing lockdowns still in major Chinese cities. US-China tensions remain high. Russia-Ukraine managed to ink a deal to reopen grain exports, thereby alleviating the global food crisis. Petrol prices dropped to the lowest in 4 months.
  • October 2022: rising interest rates, high inflation, the war in Ukraine, and a possible recession in the US. China-Taiwan tensions due to Pelosi's visit.
  • Nov 2022: CPI increased less than expected which suggests inflation has peaked, in turn causing markets to rise as they believe Fed will not increase interest rates as much
As I have insinuated a few times, as long as I do not need the money, the plan is to hold even if there is a WW3. 

Saturday, November 5, 2022

Financial Independence: Dividends for Oct 2022

 Here are my dividends for Oct 2022:


So I collected $533.80 in dividends for Oct 2022. 

In case you are wondering, some stocks are repeated because I have 2 brokerage accounts. 

Here are my monthly dividends over the last 4 years:


Here are the dividends I collected every year until the current day:



Saturday, October 29, 2022

Portfolio Snapshot - CAGR and Breakeven Price Oct 2022

 Here's a snapshot of my current SGP portfolio:


The column 'cagr' represents the compound annual growth rate of that stock.

The column 'cagr_inc_div_drp' shows the compound annual growth rate including dividends paid out and additional stocks obtained through distribution reinvestment plans.

The column 'cagr_benchmark' shows the compound annual growth rate of the benchmark. The benchmark is the SPDR STI ETF, stock code 'ES3'.

The column 'cagr_benchmark_status' shows yes if we beat the benchmark. 

The column 'returns_one_year' shows the returns in the past year. 

The columns 'cagr', 'cagr_inc_div_drp', 'cagr_benchmark', and 'returns_one_year' are shown in percentages.

Here's a comparison of the stats with previous years:


Here's another snapshot of my portfolio based on the breakeven price:



The column 'price' indicates the current price of the stock.

The column 'breakeven_price' indicates the breakeven price of the stock with dividends and stocks from the distribution reinvestment plan included. As long as the price of the stock is above the breakeven price, I can sell the stock for a profit.

The column 'breakeven_price_status' indicates if the stock price is above the breakeven price.

Here's a comparison of the stats with previous years:


Here are the returns of my portfolio versus the benchmark:


2022 is not a good year for stocks. Only 19.05% of my stocks have had positive returns in the last 1-year period. Mainly due to the Ukraine war, inflation, and rising interest rates by the Fed. Also only 61.9% of my stocks achieved break-even status. In retrospect, from the above tables, 2019 was a really good year for my portfolio. 

Monday, October 24, 2022

This too shall pass - part 3

 

 It has been 2 months since my previous post about my portfolio taking a beating:

http://financeopti.blogspot.com/2022/07/this-too-shall-pass-part-2.html

I think it is time to re-evaluate the percentage gain(or loss) on my portfolio.

At this point in history, there are several things investors worry about: rising interest rates, high inflation, the war in Ukraine, and a possible recession in the US. 

The war in Ukraine has no end in sight, with Putin calling up a country-wide mobilization to call up to 300,000 soldiers for the Ukraine war (the last country-wide mobilization in Russia was in 1941).

https://en.wikipedia.org/wiki/2022_Russian_mobilization

War in Taiwan seems increasingly likely. I just watched a video by Mr. George Yeo who shared that there are some in the US who feel that war should come sooner rather than later, because even though both will be bloodied, China at this stage will be bloodied more than the US (and hence will take longer to recover). 

https://www.washingtonpost.com/world/2022/10/18/china-seize-taiwan-plan-blinken/

The S&P500 and NASDAQ are in a bear market. 

Here are the overall returns of the components in my portfolio:

Cryptocurrency -58.20%

SPY Fund          -10.16%

Bond                 -13.17%

USA                  -8.44%

One-Fourth       -19.17%

SGP                  -6.44%

BCIP                -2.64%

CPFIS              +9.63%

Dividends are not included in the above. 

Yes, almost all my portfolios are negative without including dividends. 

What is my plan? Well, I plan to hold on for 2 reasons: 

1. I have no emergency need to withdraw money from my portfolios right now, 

2. I plan to continue collecting dividends from them.

As for my dollar cost averaging investments in Roboadvisors, BCIP, and ILP, I plan to continue for as long as I am financially able. Without a doubt, this is the BEST buying opportunity in the long-run. 

Hope things will get better soon. Is the worst over? I have no crystal ball, only time will tell. 

Saturday, October 1, 2022

Dividends for Sep 2022

 Here are my dividends for Sep 2022:


So I collected $2014.27 in dividends for Sep 2022. 

In case you are wondering, some stocks are repeated because I have 2 brokerage accounts. 

Here are my monthly dividends over the last 4 years:


Looks like Oct will be a dead month lol. 

Here are the dividends I collected every year until the current day:


Hope it keeps increasing! We'll see how high it can go.

Tuesday, September 20, 2022

Trust Bank Review - Singapore's first Digital Bank! (With Screenshots)

It's here!

(If you need a referral to get FREE $10 NTUC voucher, here it is: ZAAV495B)

Pros:

Nice UI:



UI gives clear goals to achieve to earn bonus interest



Clear tracking of expenses



Free Coupons/Stamp Cards!

 


Cons:

Lower interest rate than the SCBonusSaver account. The highest interest you can get in Trust is 1.4% provided you are an NTUC Union member. Non-members get only 1.2% like me:


Overall, I feel this is a well-designed app, with a lot of freebies. It is well worth your effort to sign up!

Sunday, September 11, 2022

Side Hustle Earnings for Jul-Aug 2022

 Below are my earnings for Jul-Aug 2022:


Around one year ago, in Aug 2021, I took up this new side hustle doing food delivery.

It was refreshing, allowed me to get out into the neighborhood, exercise, and discover new places.

But I guess with many things in life, once things become routine, it gets mundane as time passes.

So I decided to take a break from this indefinitely. I may still do food delivery from time to time, maybe just to exercise my legs or feel the wind in my face as I ride. But no longer sticking to my old routine of 3 deliveries every Friday night, Sat, and Sun afternoons.  

Here are my total earnings from this side-adventure of my life:

MonthsEarnings
Aug-Sep 2021339.21
Nov-Dec 2021536.41
Jan-Feb 2022351.6
Mar-Apr 2022284.3
May-Jun 2022270.05
Jul-Aug 2022178.33
Total1959.9

Also, an acknowledgment to the many delivery riders delivering meals to hungry folks every day. They brave rain, sun, horrendous traffic, and unreasonable folks sometimes to accomplish their job, and earn money to buy food for the table for their families. Truly, it is hard-earned money and they deserve our respect. 


Friday, September 2, 2022

Dividends for Aug 2022

 Here are my dividends for Aug 2022:


So I collected $1843.99 in dividends for Aug 2022. 

In case you are wondering, some stocks are repeated because I have 2 brokerage accounts. 

Here are my monthly dividends over the last 4 years:



Here are the dividends I collected every year until the current day:




Sunday, August 28, 2022

A misconception about FIRE

So I was chatting with my wife who is not really an advocate of the FIRE lifestyle.

Her reasoning is as such:

There is no point saving up so much if you can't enjoy it in the end.

She cited the example of an uncle who suffered from dementia and died with $1 million in his bank account. It seems that this uncle worked hard his entire life but was not able to enjoy the fruits of his labour. He also has no offsprings who can inherit his wealth.

This story to me, is the perfect example why we need to pursue the FIRE lifestyle. With the FIRE lifestyle, one can retire much earlier e.g. 40, 45, 50, or 55 and enjoy the fruits of his labour

Undeterred, she raised another point. 

There is nothing much to enjoy about the FIRE lifestyle. You cannot eat at restaurants, you cannot travel, so what is the point even if you are able to achieve FIRE?

Do not be mistaken, actually FIRE does allow one to eat at restaurants and travel. But you have to build this into your budget, so it simply means you will need a bigger sum of money to achieve FIRE, which in turn means it will take longer for you to FIRE. There is nothing wrong with that, it is simply a matter of choice. Nobody is saying you have to FIRE by 40. The retirement age in Singapore is currently 63, you can FIRE at 62 if you want. Imagine! You have earned yourself an opportunity to retire and escape from your soul-sapping work one year earlier. Is this not a worthwhile pursuit in itself? Is this not worth fighting for?

In a span of a few days, CNA published another article about FIRE:

https://www.channelnewsasia.com/singapore/fire-movement-financial-independence-retire-early-2881076

From the article, here are some crtifcisms of FIRE:

Despite achieving FIRE, these individuals “found no satisfaction in their accumulated wealth”, suggesting that “frugality can diminish the joys of life greatly”, he noted.

You have to understand what your priorities are. If you plan to travel to far-flung places yearly, then probably FIRE is not for you. On the other hand, if you are fine with travelling to nearby countries, and yet have the time to pursue your passions, then FIRE is worth it.

“The most common criticism I get is that life is uncertain, and one should enjoy what money can do, while you still can,” he said. 

This is the typical YOLO mindset which got a lot of youngsters into trouble later on in life. There is uncertainty, but life is a game of probabilities. You have to plan for the scenario with the highest probability for you. For most, it is living to your 80s.  

“But what you cannot get back is time. What you are giving up to save the money … is hours with your children, with your friends, with yourself. If you are willing to give up that time, then I think it’s a perfectly sound decision. For most people, it depends on what their priorities are.” 

This is nonsense!  The whole purpose of FIRE is to allow yourself more time to pursue what you have always wanted to do.

What do you think? Let me know in the comments below. 

Tuesday, August 16, 2022

FIRE is going mainstream

You know FIRE is going mainstream when it appeared on the national news:

https://www.channelnewsasia.com/commentary/fire-financial-independence-retire-early-work-jobs-invest-2881331

Here's a summary of what FIRE is about in one paragraph:

Adherents of FIRE aim to save 70 per cent or more of their full-time income. The holy grail is to save 25 times of one’s annual expenses and make 4 per cent annual withdrawals for living expenditures.

The author tried to show both the pros and cons of FIRE:

When FIRE becomes the prism through which one views the world, decisions are rational only when they make financial sense. However, things that don’t make financial sense are enriching in many other ways.

And he gave some examples below this paragraph, such as planning an extravagant wedding to celebrate with friends, splurging on pumpkin-spiced latter while catching up with old friends, etc.  

The above does not really make sense if you think about it. If the intention is to celebrate with friends, you do not have to splurge on an extravagant wedding. Also, if you want to catch up with old friends, you can do so at the neighborhood kopitiam. 

Coincidentally there is another article about FI in the news. I think this gentleman summed it up best what's good about FI:

https://www.asiaone.com/singapore/inflation-what-inflation-asks-carsexpo-visitor-after-seeing-long-lines-car-show-travel

Asked whether inflation has affected him, Francis, 65, told Stomp: "I retired at 59 when I achieved financial independence because I married early to bring up my kids who are now independent. I started financial planning after national service, taking advantage of my long runway. I worked hard and saved. 
"Now I am enjoying the fruits of my labour and enjoying life with no worries. I don’t bother about inflation."


Saturday, July 30, 2022

Dividends for Jul 2022

 Here are my dividends for Jul 2022:



So I collected $685.91 in dividends for July 2022. 

In case you are wondering, some stocks are repeated because I have 2 brokerage accounts. 

Here are my monthly dividends over the last 4 years:



Can't wait for the bumper harvest of dividends coming up in Sep!

Here are the dividends I collected every year until the current day:





Saturday, July 23, 2022

This too shall pass - part 2

 It has been 2 months since my previous post about my portfolio taking a beating:

http://financeopti.blogspot.com/2022/05/this-too-shall-pass.html

I think it is time to re-evaluate the percentage gain(or loss) on my portfolio.

At this point in history, the Russia-Ukraine war is still ongoing with no signs of letting up. Covid-19 is causing lockdowns still in major Chinese cities. US-China tensions remain high. 

However, there are a couple of good news:

Somehow Russia-Ukraine managed to ink a deal to reopen grain exports, thereby alleviating the global food crisis:
https://www.straitstimes.com/world/europe/ukraine-russia-ink-deal-to-reopen-grain-export-ports

Petrol prices dropped to the lowest in 4 months:
https://www.straitstimes.com/singapore/transport/petrol-prices-fall-to-lowest-in-four-months-with-two-grades-below-3-a-litre

Here are the overall returns of the components in my portfolio:

Cryptocurrency -56.68%

SPY Fund          -7.23%

Bond                 -10.41%

USA                  -4.62%

One-Fourth       -7.39%

SGP                  +6.48%

BCIP                +3.03%

CPFIS              +17.89%

Dividends are not included in the above. 

Clearly, we are not out of the woods yet.

Thursday, July 14, 2022

Roboadvisor Returns - Are they Real?

 So this link came to my mailbox the other day:

https://blog.seedly.sg/robo-advisors-returns-revealed-endowus-syfe-kristal-ai-and-more/#syfe

Some of the claims seem too good to be true. For example, for Endowus below, most of their funds had positive returns:


It is the same for Syfe:


The good thing is that I have both Endowus and Syfe accounts, so I can verify whether their returns are as good as claimed. 

Firstly, for Endowus I have the Endowus Core Flagship (80/20) fund. I started with $9,999.91 in Feb 2021 and ended with $24,911.83 in Dec 2021. I contributed $1000 every month starting from Feb 2021 till Oct 2021, and then in Nov and Dec 2021, I contributed $2000 monthly. 

Another piece of information you need is that the tables above show time-weighted returns, which is equivalent to the compound annual growth rate (CAGR) or the 'rate' in the fv() formula in Excel and Google Sheets: https://support.google.com/docs/answer/3093224?hl=en

So now you have the start value of your fund, the end value, and the monthly installments you make to the fund, all you have to do is to adjust the 'rate' inside the fv() formula until the displayed value is the same as your actual end value ($24,911.83 in my case).

Here's what I found for Endowus:
Claimed returns from the table above:  17.91%
My actual returns:                                 13.10%

Hmm...a bit off but that could be because I didn't contribute for the month of Jan 2021.


Now let's do the same analysis for Syfe:

For Syfe I have the Core Equity 100 (100%) fund. I started with $2,028.28 in Jan 2021 and ended with $16,879.90 in Dec 2021. I contributed $1000 every month starting from Feb 2021 till Oct 2021, and then in Nov and Dec 2021, I contributed $2000 monthly. 

Here's what I found for Syfe:
Claimed returns from the table above:  16.04%
My actual returns:                                 10.50%

Hmm...again the actual returns are lower than what is claimed.



So what do you think? How did these roboadvisors compute their time-weight returns? My actual results seem quite off the mark. 

By the way, if you are interested in these Roboadvisors, feel free to use my referral codes:

Endowus:   HDOJH

Syfe:           SRPSL4GWK

Sunday, July 10, 2022

Side Hustle Earnings for May-Jun 2022

 Doing food delivery is getting more mundane as time passes.

Firstly the weather is the really hot meaning I break out in heat rash after 2-3 trips. 

Secondly, I have been to most of the popular restaurants/routes in my housing estate so most deliveries are not new to me.

Hope that I will feel motivated enough to continue doing this for months to come.

Below are my earnings for May-Jun 2022.



Saturday, July 2, 2022

Dividends for June 2022

 Here are my dividends for June 2022:


So I collected $1174.18 in dividends for June 2022. 

In case you are wondering, some stocks are repeated because I have 2 brokerage accounts. 

Here are my monthly dividends over the last 4 years:

Here are the dividends I collected every year until the current day:





Saturday, June 25, 2022

Portfolio Allocation - Jun 2022

The time has come for my once-a-year portfolio allocation breakdown.

This will be presented in a doughnut chart.

This year I have achieved equal weightage on both my Local and US stocks. 


Here's the portfolio allocation for the previous year (2021) for comparison:

Finally here's a comparison of 2021 and 2022 in the same chart:

You can see that I have brought the allocation of my US stocks down, and the allocation of my local stocks up, achieving almost equal weightage on both. 


Saturday, June 11, 2022

Of Adeline and Wei Foo from TWS

This is one of my favorite posts from The Woke Salaryman.

I associate myself most closely with Wei Foo.

But I don't fit his description exactly, because I have 2 kids.

My kids give me meaning in my life and make me a better version of myself. It gives me a reason to keep going every day. 

It raises the bar for FI definitely, but that's what makes it more fun!

The one I least associate with is Adeline.

I discovered pretty early in my adulthood that I just simply never had an interest in such material things. 

Check it out!

https://thewokesalaryman.com/2022/06/01/why-most-of-us-wont-achieve-financial-independence-early/






Monday, June 6, 2022

Dividends for May 2022

 Here are my dividends for May 2022:


So I collected $1084.17 in dividends for May 2022. 

In case you are wondering, some stocks are repeated because I have 2 brokerage accounts. 

Here are my monthly dividends over the last 4 years: