Portfolio Review (June 2023)

Review of my Portfolio (30/06/2023)

Total unrealized profit: +0.7%

YTD performance: +23.8%

Added in June

Goal 1: ( $40,345.72 / $66,186)⚔️

Growth Portfolio: KWEB, BABA, META, QQQM

Dividend Portfolio: Allianz income and growth, United global durable Equities, CLR, C2PU

Portfolio Weightage

Dividend Recieved

Goal 2: ($5,441.5 / $11,000)❤️

Dividend recieved in June: $695.77

Opinons

• I remain caution about the US market, The weekly chart look too excited and i abit scared. 😂
• I am holding some cash and wait for retracement.
• My US stock unrealized gain just write off my unrealized loss in SG and china.😂

• I added some China shares, as it is still undervalued. There is actually very little downside now.
• The only issue is nobody know what will be the catalyst for a bull run.

• SReits are also very attractive for dividend investors, the drop of the stock price is due the rise of interest rate, thus if the interest rate drop the price theoritically should also rise.

How difficult to save $100k by 30 & is it really never too late to do career switching?

• Charlie Munger once said the first $100k is a bitch. If i start all over again as a fresh graduate how difficult will it be today? 🤔
• In addition, is it really never too late to switch a career path?

• I am going to use the income by occupation as a guide. I have to assume it is accurate.😅
• Also based on the statistic, the saving rate of Singaporean is ~40% and i think that is decent saving rate.

Assumptions

• Everybody start with $0 when entering the workforce, able to save 40% of take home pay and do not have other sources of income.
• They do not invest the savings.
• CPF contribution 80% for easy calculation. Did not account $6k cpf ceiling, you will have more cash if i did.
• Lifestyle inflated with salary increase. In reality, some may earn more but expense remain the same, causing saving rate to increase.
• The minimum qualification of Managers & administrators and professionals are degree. The rest are diploma or below.
• At 20 - 24, the managers & administrators catagory are drawing a salary of a professional and get promoted in 25.
• For male, just graduate from university at 25 years old. While female started work ~22 years old.
• Those who did not go university will enter the workforce earlier. For male 21 years old, female 19 years old.

Observations & Discussions

• At our 20s, most of our saving should be similar.
• Most of us should be able to achieve $100k by 30 simply by staying frugal, saving 40%, regardless of education level due to different timeline of entering the workforce.

• Female will usually hit the target earlier, some before 30.

• However, the amount of saving will start to diverge after 30 depending on the occupation.
• Those with a higher education will more likely to have a higher salary jump in the 30s.
• Based on observation, the salary likely to peak at early 40s.

• Thus we really only have 10 years to work hard and achieve whatever monetary benefit we want in our career.

• Achieving $100k is not as tough as before, because of the inflated salary.
• Although, the monthly gross salary had increased, as shown in figure below, so is the cost of living.
• Charlie Munger's remark is in the 1990s, the value of $100k back then is different from today.
• Fact 1: When your salary had increased, it just means that the value of the dollar had decreased.
• Fact 2: The salary will never able to keep up with inflation.
• Fact 3: To earn the same amount you may need to take on more tasks than before, because everybody is focusing on improving productivity.
• These just mean that you may be getting poorer with increase workload despite of pay increase.

https://stats.mom.gov.sg/Pages/Income-Summary-Table.aspx

Conclusions

• The difficulty level of achieving the first $100k by 30 had reduced compared to 10 years ago simply due to the inflated salary. The next $100k will be a different story.
• If your only source of income is from your 9 to 5. It is important to understand the career cycle and your current stage, then act accordingly, if you want to maximize your income.
• I agree with Jack Ma advice for young people.