The email address in "Contact AK: Ads and more" above will vanish from November 2018.

PRIVACY POLICY

FAKE ASSI AK71 IN HWZ.

Featured blog.

1M50 CPF millionaire in 2021!

Ever since the CPFB introduced a colorful pie chart of our CPF savings a few years ago, I would look forward to mine every year like a teena...

Past blog posts now load week by week. The old style created a problem for some as the system would load 50 blog posts each time. Hope the new style is better. Search archives in box below.

Archives

"E-book" by AK

Second "e-book".

Another free "e-book".

4th free "e-book".

Pageviews since Dec'09

Financially free and Facebook free!

Recent Comments

ASSI's Guest bloggers

A happy marriage is worth waiting for.

Thursday, March 31, 2016

Something I have blogged about from time to time is how people who plan to get married and have children should be financially prepared first. 

Have a strong financial foundation and we would have less money problems in future.


I can understand why those who have children on the way must get married in a hurry. Oops.

Bad AK! Bad AK!


Otherwise, why should anyone be in a hurry to get married and have children? Hmmm.








I have blogged about how some people borrow money in order to have a wedding or to renovate their matrimonial homes. 

I have also blogged about how people ran out of money and had to borrow money from friends to pay the monthly installments on their matrimonial homes.


"I was told of a person in his early 30s who is married and has two children.

"He is regularly borrowing money from his family and friends.

"In fact, he would borrow from friends to pay the installments on the mortgage of his 5 room HDB flat as well.

"Amount? S$800 a month."


From: Not enough money to be married.





It is quite mind boggling and I wonder why some people just become stupid when they fall in love. 

Can being in love generate income to pay for everything? Hmm...

Of course, one thing that so many in Singapore complain about is how they cannot hope to ever retire because they don't have enough money. 

For some, if they are honest with themselves, they might not have enough money because they got married (and had children) too early in life.






Wealth needs a base and this base takes time to grow. 

If we spend all our money as soon as we make them, a base can never form and our wealth will never grow.

"... the sooner we realise the benefit of delaying gratification and the sooner we start investing for a more secure future, the better."


From: Delaying gratification and getting stuff for free. 

So, if we have a choice, it isn't so terrible a thing to push back marriage plans by a few years or is it?





"I transferred much of my CPF-OA money into my CPF-SA in the first 4 years of my working life. 

"Then, I let the magic of compounding do the rest. 


"This is something that anyone, especially those in their 20s, should seriously consider doing.

"It might mean putting off marriage plans by four years for some but it would be worth it."


From: How to upsize $100K to $225K in 20 years? 

Regular readers know that I do not believe in being overly pessimistic or optimistic. 

I believe in being pragmatic. 





In a world like ours, financial security must be of paramount importance. 

The pragmatic me tells me that this is a hard truth.

Certain decisions in life have very long term or, indeed, life long consequences. 

They are not to be taken lightly or we might not ever see the light of day.


"A Happy Marriage is Worth Waiting for."
Taken during one of my visits to the National Museum.






A happy marriage is worth waiting for.

Not I say one hor.

Our government say one hor.

Yes, I know.

Bad AK! Bad AK!







Related posts:
1. What is our attitude towards having children?

2. Financially prepared to be married?
3. How to have children and retire comfortably?

1Q 2016 income from S-REITs.

Tuesday, March 29, 2016

This is the first time I am blogging about income received from S-REITs in the first quarter of the year. So, what did I do in the S-REITs space in 1Q 2016?

Honestly? Nothing.

The last time I did anything was in December 2015 when I added to my position in Soilbuild REIT at 73c a unit which I thought was a fair price to pay.

In 1Q 2016, I received income from the following S-REITs:

1. AIMS AMP Capital Ind. REIT
2. First REIT
3. Saizen REIT
4. K-REIT
5. Suntec REIT
6. FCOT
7. Cambridge Ind. Trust
8. Cache Logistics Trust
9. Sabana REIT
10. IREIT
11. LMIR
12. Soilbuild REIT

Total received in 1Q 2016: 

S$ 379,630.94

This is really due to a bumper payout from Saizen REIT which will not be repeated.





Am I pleased that my patience has been rewarded or am I sad that I will no longer be receiving a regular income from a portfolio of freehold residential properties in Japan? 

Well, a bit of both, really. 

Yes, I have mixed feelings.

Now, what am I going to do with the money that came in? 

Start a few fixed deposits. I know that a 9 months fixed deposit at CIMB will pay 1.8% per annum and a 12 months fixed deposit in BOC will pay 1.9% per annum. UOB is offering 1.7% per annum for a 13 months fixed deposit. Yes, I know.

To fellow shareholders of Saizen REIT who are wondering what to do with the money, although it is important to have a war chest ready, remember to reduce the cost of holding cash while waiting for the next investment opportunity to come along.

Congratulations and good luck!

Related posts:
1. 2015 full year income from S-REITs.
2. A lesson on the right prices and luck.

Tea with FunShine: Crystal Ball Predictions.

Monday, March 28, 2016

Diary of an Investor
Funshine's Crystal Ball Predictions

I lost count of how many hours have I invested into reading or watching articles on the subprime crises or more commonly referred to the Bear followed by the the Leman Brothers collapse or 07/08 financial crisis.

If I was to estimate at least 20 to 30 hours watching the video version of such movies related to it or documentaries. Lost count of how many articles I read relating to it.

I just watched the movie, the Big Shot. And is reflecting on the current market conditions. One of my friends bought bonds last year and lost some money. Sounds familiar.

My portfolio due to my experience and believes has always consisted of:
20% Cash/FD/Bonds
20% Precious Metal/Oil
60% Stocks of which:
35% Dividend Stocks
20% Growth Stocks
05% Trading Stocks

I have stuck with this portfolio mix since 2012 July.

I started investing in Oct 2011, the returns has fluctuate per year from positive 17% to negative 15%. Average out to around 5-7% returns per year only. 7% is considered an average investor. So in a way, I am merely average. However, if I remove Precious Metal/Oil from the mix, the returns is a lot more juicy since I start buying Gold from 1700 to 1500 to 1450 to 1320 to 1250 and most recently trading it.

My financial period is from July to June. Think I will stick on to the current portfolio allocation till end June 2016.

On 1st July 2016, I should be changing the portfolio allocation which I have not done so since 2011 to:
25% Cash
05% FD, 3 months rolling
20% Precious Metal/Oil
30% Dividend Stocks
15% Growth Stocks
05% Trading

Looking at the crystal balls this is my market predictions, of cos I am no different from the weather man.

My next five years forecast, FY16/17 to FY20/21:

2016 to 2018:
STI should bounce back to 3200-3400.
If it hit 3600 sell 30% of all stocks.
If it hit 3800 sell 50% of all remaining stocks and rotate the money to rolling 3 months FD.

2016 Sept to Early 2018:
Market will be very volatile
Cash is King and Key
Stick to the portfolio mix and react appropriately.

Mid 2018:
Time to consider buying a property

End 2018 to Mid 2019:
Acquisition of a property

2019 to 2021:
Market should recover.
Back to buying dividend generating stock

FY16/17:
25% Cash
05% FD, 3 months rolling
20% Precious Metal/Oil
30% Dividend Stocks
15% Growth Stocks
05% Trading

FY17/18 to 18/19:
20% Cash
12% Precious Metal/Oil
08% Property(Hold Cash if no Opp)
60% Stocks of which:
40% Dividend Stocks
15% Growth Stocks
05% Trading Stocks

FY19/20 to 20/21:
20% Cash
10% Precious Metal/Oil
10% Property
60% Stocks of which:
45% Dividend Stocks
10% Growth Stocks
05% Trading Stocks

My savings and emergency fund does not form my portfolio. My SRS is considered as the portfolio under cash but CPF is not included.

SRS and CPF(SA) are considered as war chests.
SRS is open when STI ETF give a 4% yield.
CPF(SA) is open when STI ETF give a 5% yield.

I am turning 36 in July. May draw out some savings to give myself a present, either to upgrade myself or buy into a friend's company.

Once April ends, my 6 months break from work will end. Meanwhile, I am going to apply for a subject in Master of Gerontology which will starts in July. I am also taking M5, M9 and M9A in April if I choose to switch from Social Service to Financial Advisor.

Market will be very bad. Not wise to be a Financial Advisor during this climate. Study first, think later. End April will have time to think about it as I will be in reservist.

Meanwhile, glad to have visited Facebook, Google and Apple in Silicon Valley. Glad to have seen the economy of Canada too as part of my cash holding may be in Canadian dollar if it is still so low.

On my flight back to Singapore from San Fransisco one week holiday after being in Canada, Toronto and Edmonton for nearly two months.

Can't wait to eat a good bowl of BCM, Mee Pok dry with lots of lard.



Diary of an Investor
Funshine's Crystal Ball Predictions
---------------------------------------------

AK's comment:
"It is important for all of us to have a plan, our own plan, so that we know what to do in different scenarios and not freeze into inaction when action is required. It has to be our own plan, one that we are comfortable and familiar with, one that allows us to sleep well at night."

Related posts:
1. Have a plan, your own plan.


Monthly Popular Blog Posts

All time ASSI most popular!

 
 
Bloggy Award