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Portfolio Update - July & August 2018

I am not sure if you follow Nas Daily. Frankly, i didn't even know who he was until he visited Singapore recently.

According to the Sunday Times article, he has 7.6m followers and is one of the most successful vloggers since starting this in 2016. (compared to my 6,944 fans . . . ) 😅 and he rakes in US$80,000 a month.

I think i should quit and be a full time vlogger also. 😂 So far my blog raked in $1,600 in 2018, think once i turn full time, the only way the income from blogging can go is upwards. 

For those with kids, don't ever laugh if your kids tell you they want to be a Youtuber or Vlogger ... you might even want to send them for video editing courses when young.

Portfolio Updates

There hasn't been much activity on my portfolio. I have "maxed out" my capital recently in terms of investing for income where i bought quite a bit of Astrea IV USD bonds mentioned in my previous post. I also received $2,000 dividends from UMS Holdings Limited.

I will also receive about $1,145 worth of dividends in the shares of Frasers Commercial Trust. DRIP is a good way to 'reinvest' the dividends without incurring the brokerage fees. It is suitable as i have no need for the cash for now but when i retire next time, i may elect to receive the dividends in cash.

Hitting the magical $1m portfolio

Our passive income portfolio crossed the $1m mark this year and is yielding around 6.8% per year (net of the Hyflux Perps that i have written down).

If you asked me 20 years ago whether we would hit the $1m portfolio, i would have laughed it off and said it is not possible.

Fast forward 20 years, we have actually managed to build up a portfolio of more than $1m. Just to be clear, it excludes the CPF balances and the house that we are staying in. I will let you know the day i pay off my mortgage 😇

What can i share with you that will help you in your journey ?

  • Save as much as you can while you are young - I can't emphasize this enough. Without the initial capital, you will not be able to invest and get out of the rat race. The younger you are, the better your chances. So seize the day and make every drop of your savings and the magic of compounding work for you
  • Property is still the way to go - Remember to invest in property. It is a great inflation hedge and one of the best assets to use leverage for. If you buy well (once or twice), it will shorten your retirement journey greatly. Of course, timing is important, so watch the property valuation cycles closely
  • Take care of your career path closely - Your career is important and unless you are an entrepreneur, it will be your major source of income for retirement. I often reflect on my own career, what have i done well or areas which i should work on. I am not a scholar and doesn't have the best grades in school but i have "outperformed" some of my friends. Why is that so? It is because I take great care of my career path. Of course being at the right place at the right time helps but you have to create those chances yourself. I don't "job hop" easily but each move i made has enhanced my value   
  • Seek to have a balanced life - Life is a marathon, don't get burnt out with work and neglect those around you. Treasure friendships and kinship. Do good and have a happy balanced life will make you more productive in work and more pleasant as a person to work with. That, in turn, opens up new opportunities in life 
  • Keep a journal to document your journey - I still have my journal with me. It documents the different stages of my life and the goals at that point in time. Set mini achievable goals for yourself and work towards them each year 
I have shared with you what i think are the 5 most important things in my life that help hit the $1m passive income portfolio.

Have i reached my goal?

Nope. I am still working towards them. I am going to travel the world one day like the Nas. hahaha. Maybe i should just quit and be a full time vlogger?

Happy working towards your retirement and hope you reached your "magical" $1m portfolio soon!  

Portfolio Update - May & June 2018

Apologize for the lack of postings for the last 2 months. I had been pretty tied up with work, so let me do a quick update for May and June.

The local market has also turned quite badly in Q2, and is fact quite disastrous on my portfolio.

Hyflux 6% Perps

Hyflux announced that it will not paying interest on the Perps during this period. 

I have written a post in Feb 2018 on how disgusted i was with Ms Olivia Lum but didn't cut loss on that position then.  I hope the authorities will look into whether she has contravened any articles in the Securities and Futures Act . . . 

In any case, i have written down the value of my perps to 10% of its face value. 🤕

Lesson Learnt : Don't be lured by high interest rate and "high profile" business lady. Watch the cash flow and credit quality of the investment closely 

Dividends Received from SRS Portfolio

I received $5,918 from the SRS portfolio, contributed primarily by UMS Holdings ($3,000), Netlink Trust ($1,620), Starhill ($545) and Frasers Commercial Trust ($753).

The SRS value has tumbled quite a bit to $223,050, compared to its peak in March of $265,214. A drop of more than $42,000.... 🤕

Lesson Learnt: More nimble on equity positions in my dividend portfolio. To consider selling the equity if the returns are good

Trading positions

The trade in Facebook has turned out well and i sold my position in June.

Passive Income Update

One of the hottest "IPO" in June turned out to be the Astrea IV bond issuance. I managed to load up quite a bit on both the USD and SGD tranches from the wholesale market. My IPO write up is here. This is one of the more secured bond (definitely better than Hyflux Perps). It is also rated A by the rating agencies where the banks will also provide leverage against the purchase. 

On the flip side, I have written Hyflux Perps to 10% of its face value and projected zero income for the future. 

This is how my monthly passive income looks like on the portfolio.

The good news for me is that the passive income hit a high of $76,473 (or average of $6,372 per month) and exceeded my 2018 goal of $60,000 per year earlier than expected.The figure will drop towards end of the end as Perenial Bonds will mature in October this year.

That's all for now.

Happy SRSing