Happy New Year and Goals for 2020
I started the 2019 with 8 goals and i made some slight revision to the goals in Aug 2019.
Let's see how the year has been and whether the goals has been achieved. Do note that some of the goals are achieved by including wife's portion as well as i view retirement planning on a holistic level (after all, I am not going to retire alone . . . right ?)
Goal no.1 - Increase net worth by $250,000
This goal was achieved with a combination of savings + passive income from bonds + interest income from CPF + a decent bonus. Once your portfolio crosses certain level, you will be able to see the "8th wonder" of compounding better. My constant encouragement for readers is to work diligently, save hard and let your investments work harder for you. The aim will be to repeat this goal for 2020.
Goal no.2 - Passive income of $138,000
This goal was achieved through the use of leverage and buying a portfolio of investment grade bonds. The CPF balances were also left untouched, benefiting from a full year of interest income that was credited on 31 Dec 2019 into your CPF account. $158,065 of passive income was received
The breakdown for the passive income is as follows:
Bond interest - $95,653
Dividend income - $11,392
Interest income (mainly CPF for wifey and I) - $51,020
If i exclude the CPF portion, the passive income for the year was $115,425. This didn't hit my target of $138,000 on paper as i only received half a year of bond interest for some of the positions. 2020 will benefit from a full year of bond interest income.
The new goal for 2020 will be to continue building up a portfolio generating passive income of $150,000 per year (without including CPF). This will be achieved by borrowing against the bond portfolio.
Goal no. 3 - Build a stock portfolio of $1m by 2025
This is still work in progress and a multi year goal. I have managed to build up a portfolio of high quality bonds. I would like to build up a portfolio of stocks over time. If i use the passive income of $150,000 each year to buy stocks, i would theoretically be able to build up a portfolio worth $1m by 2025.
Goal no.4 - IPO tikams of $5,000
This goal failed miserably. I couldn't find any IPO counters worth "punting" in 2019. You can find the post here.
My new goal for 2020 is to have IPO tikams of $10,000. That will depend greatly on whether the IPO market revived.
Goal no.5 - 8 new places or experience
This is one category that i will "definitely" not missed out on. I have shared some of my travel exploits with you to Japan, watching US open Final and an autumn hike in Catskills. I had a very busy 2019 for work and didn't really travel to a lot of new places. The 8 new "experiences" are mainly trying out new stuff or visiting new places in countries which i have traveled to before.
I will maintain this goal for 2020.
Goal no. 6 - Lower weight to 82kg
My final weight on 31 Dec at midnight was 82.5kg. Missed the mark by 0.5 kg. The year end parties of wining and dining are not helping!
I will try to achieve this goal again - maintain my weight at 82kg or below.
Goal no. 7 - Read 3 new books and blog fortnightly
Somehow it doesn't go hand in hand. I managed to read a few books but failed to blog fortnightly. I only managed to blog 21 times on my SRS blog this year!! There is much room for improvement. My readers deserve a lot better. Lol.
I am going to break this into 2 separate goals - read 6 new books and write 26 blog posts for 2020.
Goal no. 8 - Hit 680k KF Miles balance
I am not going to track this going forward.
To summarise, these are my goals for 2020:
Goal no.1 - Increase net worth by $250,000
Let's see how the year has been and whether the goals has been achieved. Do note that some of the goals are achieved by including wife's portion as well as i view retirement planning on a holistic level (after all, I am not going to retire alone . . . right ?)
Goal no.1 - Increase net worth by $250,000
This goal was achieved with a combination of savings + passive income from bonds + interest income from CPF + a decent bonus. Once your portfolio crosses certain level, you will be able to see the "8th wonder" of compounding better. My constant encouragement for readers is to work diligently, save hard and let your investments work harder for you. The aim will be to repeat this goal for 2020.
Goal no.2 - Passive income of $138,000
This goal was achieved through the use of leverage and buying a portfolio of investment grade bonds. The CPF balances were also left untouched, benefiting from a full year of interest income that was credited on 31 Dec 2019 into your CPF account. $158,065 of passive income was received
The breakdown for the passive income is as follows:
Bond interest - $95,653
Dividend income - $11,392
Interest income (mainly CPF for wifey and I) - $51,020
If i exclude the CPF portion, the passive income for the year was $115,425. This didn't hit my target of $138,000 on paper as i only received half a year of bond interest for some of the positions. 2020 will benefit from a full year of bond interest income.
The new goal for 2020 will be to continue building up a portfolio generating passive income of $150,000 per year (without including CPF). This will be achieved by borrowing against the bond portfolio.
Goal no. 3 - Build a stock portfolio of $1m by 2025
This is still work in progress and a multi year goal. I have managed to build up a portfolio of high quality bonds. I would like to build up a portfolio of stocks over time. If i use the passive income of $150,000 each year to buy stocks, i would theoretically be able to build up a portfolio worth $1m by 2025.
Goal no.4 - IPO tikams of $5,000
This goal failed miserably. I couldn't find any IPO counters worth "punting" in 2019. You can find the post here.
My new goal for 2020 is to have IPO tikams of $10,000. That will depend greatly on whether the IPO market revived.
Goal no.5 - 8 new places or experience
This is one category that i will "definitely" not missed out on. I have shared some of my travel exploits with you to Japan, watching US open Final and an autumn hike in Catskills. I had a very busy 2019 for work and didn't really travel to a lot of new places. The 8 new "experiences" are mainly trying out new stuff or visiting new places in countries which i have traveled to before.
I will maintain this goal for 2020.
Goal no. 6 - Lower weight to 82kg
My final weight on 31 Dec at midnight was 82.5kg. Missed the mark by 0.5 kg. The year end parties of wining and dining are not helping!
I will try to achieve this goal again - maintain my weight at 82kg or below.
Goal no. 7 - Read 3 new books and blog fortnightly
Somehow it doesn't go hand in hand. I managed to read a few books but failed to blog fortnightly. I only managed to blog 21 times on my SRS blog this year!! There is much room for improvement. My readers deserve a lot better. Lol.
I am going to break this into 2 separate goals - read 6 new books and write 26 blog posts for 2020.
Goal no. 8 - Hit 680k KF Miles balance
A bit difficult to track as i eventually used the miles to redeem tickets for my holidays. I am sure i would have hit 680k balance if i convert some of the credit card points into miles! lol.
I am not going to track this going forward.
To summarise, these are my goals for 2020:
Goal no.1 - Increase net worth by $250,000
Goal no.2 - Passive income of $150,000
Goal no. 3 - Build a stock portfolio of $1m by 2025
Goal no. 3 - Build a stock portfolio of $1m by 2025
Goal no.4 - IPO tikams of $10,000
Goal no.5 - 8 new places or experience
Goal no. 6 - Lower weight to 82kg or below
Goal no. 7 - Read 6 new books
Goal no. 8 - 26 blog posts in 2020
Happy 2020!
Goal no.5 - 8 new places or experience
Goal no. 6 - Lower weight to 82kg or below
Goal no. 7 - Read 6 new books
Goal no. 8 - 26 blog posts in 2020
Happy 2020!
The CPF balances were also left untouched, benefiting from a full year of interest income that was credited on 31 Dec 2019 into your CPF account. $158,065 of passive income was received
ReplyDeleteHi, Mr IPO.
I also invested in bonds, all AA rated. But the interest is miserable. How did you achieve a Bond interest of $95,653 in this low interest environment? Hope you can teach me how to increase my bond interest.
@anoymous - the SGD interest is low, so i looked more at USD Bonds and then i levered up using JPY or EUR loans, which cost 0.75%. Assuming the interest on USD bond is 5%, if i double up, i can get high single digit returns. ^_^
DeleteThanks for your input. Appreciate if you can share the USD bonds paying 5% coupon and good for investment. I saw you did mention to share bonds portfolio, good if you can start sharing some details. Thanks once again.
DeleteHi Mr IPO,
DeleteI'd also be interested how you're doing exactly. Especially how to get attractively priced JPY/EURO loans. Are you hedging currency fluctuations?
Regards,
Talan
Your capitals must be very large to amass such great interest esp your bonds. You can FIRE now and travel in style.
ReplyDeleteNah.... i levered up to generate the passive income... need to pay off the loans first. Lol.
DeleteI have always been mindblown by the amount of your passive income that is so many times more than my active income! Happy New Year and have a good year ahead!
ReplyDeleteYou just have to keep thinking how to increase your monthly salary, then don’t increase the expenses and then invest the excess!! Can’t procrastinate :)
Delete