Portfolio Review (December 2023)

Review of my Portfolio (31/12/2023)

Total unrealized profit: +5.7%

YTD performance: +28.8%

S&P500 YTD: +24.73%

Added in December

Goal 1: ( $71,573.34 / $66,186) 🥳🥳 ACHIEVED 🥳🥳

Growth Portfolio: -

Dividend Portfolio: United global durable Equities,

Portfolio Weightage

Dividend Recieved

• Goal 2: ($10,712.37 / $11,000) 🥲🥲 FAIL 🥲🥲

Dividend recieved in DEC = $784.76

NET WORTH 2023- $1,296,121.26

• As shared previously, steps to save 100% of salary and achieve $1M net worth by 40 with a median income.
• Always have more than 1 income source at all time and never spend your main income. That is the secret. 😉

INVESTMENT PROPERTY - $296,441.41

• Valuation minus mortgage divided by 2: ($1,600,000 - $1,007,11.18 ) ÷ 2 = $296,441.41
• If you wipeout your CPFOA/cash or pay ABSD investing in property then something is wrong. You should only pay for the downpayment and nothing more.
• It is okay to be in debt, but you should never be the one paying for it.
• Property is all about using other people money.

• You can always deleverage when near retirement age by downgrade to a HDB, there is no hurry to be debt-free at a young age.

CPF- $281,498.02

• OA+SA+MA+ CPFIS (T-Bill)
• OA+SA+CPFIS = $213,124.77.
• If you just want to hit FRS before 40, just ensure that you stay employed and your salary is at the median range.
• TBH, I am not keen or excited to be a CPF millionaire, so i will not top up CPF without any valid reasons.

CASH- $143,631.54

These are always my recommendation:

• At least $50k emergency fund for singles.
• At least $100k emergency fund for married with kids.
• I am my parent retirement plan 😆, so i must ensure that even i lose my job i have the ability to continue to give them allowance.

SSB/TBILL- $70,000

INVESTMENT PORTFOLIO- $436,677.14

• Only started Investing in 2020, mostly are my principle, compounding effect had not kicked in.🥲

INSURANCE PLANS- $67,873.15

• ILP & Endownment Plan- i make mistake too when i was young. 🥲
• If you dont have ILP, dont buy it.
• However, if you already holding an ILP for quite awhile, find out when you are able to go on premium holiday without penalty, then keep sufficient amount in the account for insurance coverage.
• I think this is the best approach, since majority of the commission and fee are already paid in the first 5 years.
• If you terminate it, you will still have to buy term insurance which cover for a period of time.
• ILP coverage will always be inforce as long there is money in the account.
• Insurance plans are always an inferior tool for wealth building, treat it as an expenses for ILPs.

Financial Roadmap For Next 10 Years

• Another decade had passed, time to draft out my financial roadmap for the next 10 years.
• The final lap of the rat race. 🥳
• The plan is to fully retire by 50, if i am able to achieve all the milestones before 50, i will just add new milestones. 😆
• After 50, i am not going to work anymore. I am sticking to the plan!

• My next milestone will be $1M of liquid assets in 2028
• My current liquid assets are $718,181.83. To make calculation simple $700k
• So i still short of $300k. 🥲
• $300k / 5 years = save at least $60k per year. Assuming 0% growth in my portfolio.
• Should be doable. 😌

2024 Resolution

• Although, i missed my 2023 dividend target, but is close. So i will still use the similar rate for dividend projection
• As for the capital injection, i had underestimated myself 😂. Instead of 6% increment, i should use 14% this year.

Target by End of 2024

• Dividend Recieved= SGD $14,212
• New capital injection= SGD $81.6k

Conclusions

• Many time we are unable to do certain thing is just because we dont have enough money.
• I am a simple guy, so the simplest way to address the root cause is to have money. 😂
• Drawing out the financial roadmap provide a rough visualization where we will be in a few years time. A sneak peek into the future.
• While setting goals, it is important to be very specific, so we will be able to quantify, review the results and improve the following year.
• Every goals should drive us nearer to the next milestones.
• However, it is also important to set realistic goals, the best way is to reference to past results, make some conservative assumptions then project into the future and is good to give abit of challenge.

Previous Review

https://seedly.sg/opinions/portfolio-review-november-2023/