Thursday, 1 April 2021

Monthly Financial Updates

This monthly sustainability report does not include any of the salaried income. The basis for this monthly financial review is to gauge the sustainability status of my financial independence based on the total amount of passive income received.

This month marked the 11th month of me working from home due to Covid-19, almost coming to one year. As more and more people are getting vaccine, the government starting relaxing some rules on the restriction, look like this working from home arrangements might be ending soon. Well, lets see how it works out.

This month passive income were boast by a larger dividend payout to an amount of  $3564.11. There are signs of recovering in the market, but certain business like tourism are still far from recovering. My portfolio are quite well diversified, so while some are still reeling from the impacts of covid-19, others are recovering enough to enter into positive range. 

Rental income remain stable and looks to remain so for another one more year because the tenants had expressed their wish to extent the tenancy. This will certainly boast our sustainability on rental income for another one more year. Nice! 

This closed our first quarter with a total passive income of $11,575.59 which amounted to an average of $5046.56 per month. Not bad! That is well far above the monthly expenses.

Portfolio largely remain unchanged in allocation with more cash holdings now increasing each month as I no longer need to divert additional funds to pay down housing loan. 

STI is clearly recovering as it broke through 3000 STI. As the market recovers, so does my portfolio which has been on negative for most of the months last year due to the impacts of covid-19 is finally entering positive. As seen from the chart below, if anyone had entered the market during March-April last year, most likely your counters would be in positive path now. Congratulation for those who got it at the right timing. LOL.


 



 

Tuesday, 2 March 2021

Monthly Financial Updates

This monthly sustainability report does not include any of the salaried income. The basis for this monthly financial review is to gauge the sustainability status of my financial independence based on the total amount of passive income received.

Its a short February. And a rather boring Chinese New Year. Thanks to the pandemic, all the events are closed or sized down, confined to home entertainments. Even home visiting are restricted. Well, nothing much we can do about it. 

This is my 10th month working from home since April 2020, some of my friends are already getting bored and restless. Well, these are some of the social active guys. As for me, I gets even more busy. LOL. I got lots of things to do but,,,,,,no time. Sigh. And they wondered, why I got so much things to do apart from my job. Its the brain, or rather the mind that keeps pounding new ideas and knowledge that kept me occupied for days, weeks and months. It seem endless. LOL.

The market start roll forward with the first of the dividend month. The month of February yield a total of $2060.62. This is somewhat 20% lesser compare to last year. This is to be expected, with the pandemic still wrecking the global business and keeping the consumers at home, profits naturally will be lesser. As I always mentioned, I look for sustainability in an investment, if my portfolio can remain sustainable during a crisis, I can expect it to reward me more during a blooming period. A year has passed since the pandemic strike the world, and I am still getting dividend income on lesser scale, this does boast my confidence in the sustainability of my portfolio. 

Rental income still remains stable. This brings overall passive income for the month of February to an amount of $3869.89. 

The market continued to hover around STI 2800-2900. There has been some surge but otherwise, the whole market pretty much stagnant. Swinging here and there according to the armies of 'Shorters'. 

As my portfolio remains unchanged with no addition. My cash holding continued to rise as I no longer need to divert cash funds to finance my housing loan. So, in the months to come, I can expect to build a larger cash position.  



Monday, 1 February 2021

Monthly Financial Updates

This monthly sustainability report does not include any of the salaried income. The basis for this monthly financial review is to gauge the sustainability status of my financial independence based on the total amount of passive income received.

Ouch! Chinese New Year around the corner. But it is going to be rather boring festival season due to the unending pandemic. Crowd are restricted, events are cancelled...blah blah blah. Well, life still goes on.

Once again, it is a cold month for dividend. Only one company paid out dividend for the month of January, amounted to $510.00. Because the fixed deposit matured last month, it paid out one month earlier than I expected. I had previously positioned the schedule in such way to cover the cold month to ensure some form of consistency in monthly income. Rental income remained stable.

As the pandemic still running sore all over the world, the economy remains weak. The market however has begun to recover since November,  it has seen some downturn, but overall the STI Index remains at 2800. Most of the blue chips has seen some recovery in prices especially the bank stocks.

It is unlikely I will be investing anymore in current market, so I will be focusing now in increasing my cash holdings and wait.  Should the market sees another downturn, I want to be in a position to seize the opportunity. 


 


 

 

 

Sunday, 3 January 2021

Monthly Financial Updates

This monthly sustainability report does not include any of the salaried income. The basis for this monthly financial review is to gauge the sustainability status of my financial independence based on the total amount of passive income received.

It's a new year!!!

December has been a rather long month, half of the month I was busy tidying up my affairs including the final down payment of my housing loan. Final payment of dividends by all the companies for December amounted to $4847.03. After reviewing the differences between 2019 and 2020, I realized my portfolio turned out to be much more resilience than I had projected. Early this month, I had projected a 30% less dividend income, but after final reviewing, it came to a rather surprising loss of 15%. This certainly reassured my confident in my financial sustainability in view of the pandemic. Still, it is unlikely the market will recover much for 2021, naturally dividend income may further cut for some companies.

Rental income remains stable. December however saw an early cash out of an Fixed Deposit which amounted to $905.00. The interest rate for the next one year dropped dramatically to less than 1%. It appeared that the passive income for the new year 2021 will face much challenges.

 
Portfolio remains unchanged for December, as the market slowly recovered back to STI 2800 range, there wasn't much to offer from Mr Market. But this month I finally finished the last down payment of my housing loan with cash. So I can now expected my cash holdings to increase faster than before.  
 



 



Thursday, 31 December 2020

The year end resolution- The Transformations

A year end. And begins another.

Many things had happened for year 2020, the most dramatic was none other than the covid-19 pandemic and its impact on the world. Not only it had inflicted loss of human life, it had transformed the life of many people around the world. The borders between countries were forced to close, trade halted, people were trapped at home with limited human interactions. Fear and panic occurred on different scale across the countries affected. The race against time to find a cure til now is still on, although vaccine has been developed, its results is yet unknown as the pandemic continued to work its havoc over the world of human race.

The pandemic has brought about drastic changes in human movement. Gone are the days of an vibrant office environments, meetings now has to be held through Skype and Zoom, more than ever now we have to rely on technology to get their messages across and assignments to be carry out. 

Singapore as a small nation relying on foreign investments and international trades faced its greatest challenges since the financial crisis 2008. As a city state, the vibrant scene of shopping malls and tourism has been the main features of the country. The impacts of pandemic has changed everything, retail business struggled to sustain in the face of shrinking customers and the loss of tourists. When the storms end, our world will never be the same again.  

45% of Singapore population are foreigners working or staying in Singapore as work permit holders or permanent residents. The transformation of the working environments meant that works and assignments are transmit through network. This totally closed the physical barrier of  distances between the parties involved, without the need to meet at a designated location or venue. What would be the impact on us? If the foreign executive talents can fulfill their assignments working from home, it is likely they could do it from their own native home without the need to come to Singapore. 

First thing that comes to mind, when these pool of foreign executives no longer need to stay in Singapore to fulfill their jobs, this may indirectly results in shrinking pool of potential tenants. Rental income especially for higher grade accommodations like condominiums which has been among the favor type of house for executives may faced difficulties in future. 

While the pool of potential executives tenants may shrink in future, the pool of skilled workers however should continued to remain in demand as the job scopes of skilled workers required them to remain in the country due to the nature of their jobs. These group however are not among the higher tier salaried jobs, and tend not to look for rental house in condominiums as these require higher maintenance and expenses. 

Our own experience with the impact on the rental market occurred in April and May as Singapore government enforced the first phase of the covid-19 restrictions, our tenants are a group of skilled workers whose livelihood were affected as they were forced to stay at home with no salary. In view of the events, we lowered the rental by 30% to help our tenants as half of them were unable to generate income due to the working restrictions. While this lessened our passive income, it provided better sustainability in retaining the tenants. I believed landlords should adjusted with the changing times to constantly meet the market demand to ensure more sustainability and stability. 

On personal level, this month sees the end of my 18 months journey in paying down my housing loan. Starting in January 2021, I no longer need to finance my house with cash, as the CPF itself is now sufficient to service the loan on its own. This neutralize the threat of a main liability and free up more funds to increase my cash holdings. 

So, whats next?

For now, I am still working from home. Even with the opening of phase 3 in Singapore, it is unlikely there will be much changes in my job. There have been some plans laid out for 2021, but the pandemic has brought about some uncertainly in my plans that will require further reviews. Until then, we shall see. 

Stay strong, mankind. Nothing last forever. So does the pandemic.  


Friday, 25 December 2020

Christmas Orchard 2020

Times passed, its Christmas again. 

This year Christmas however is rather quiet in Orchard Road due to the impact of Covid-19. Performances were cancelled, social gatherings restricted, decoration much simpler. Even the traditional giant Christmas Tree that used to highlight the entrance of Ngee Ann City is replaced by the set up of Covid-19 contact tracings facilities. 

Although the Festival moods is still evident, it is foreshadow by the presence of Covid-19. The crowd is much lesser than before.

Paragon Orchard still the same as before.
But CK Tang below certainly has changed, no shiny lights. Notice the bus stop in its front, less crowded and this is Christmas Eve, a far cry from the old time scene when it was usually crowded with people.

 
The traditional entrance into the main shopping district of Orchard Road still look shiny as before.
  

This clearly shows the impact of the Covid-19 on the retail business of shopping malls, with lesser retail crowd, business owners now have to rely on online sales and delivery orders to sustain their business. I witnessed one restaurant at Wheelock Place where while they were still serving retail customers within their restaurant, they were busy packing delivery meal orders on one side of the restaurant. Such a sight was never seen before the impact of Covid-19. 
 
This send a clear signal to all business owners. The world has changed, it is unlikely the past of glory will ever return, business now has to evolve to keep up with changing time.  

 


Tuesday, 1 December 2020

Monthly Financial Updates

This monthly sustainability report does not include any of the salaried income. The basis for this monthly financial review is to gauge the sustainability status of my financial independence based on the total amount of passive income received.

Wow, another month breeze passed. And its December, the last month of the year. The month of November has been rather eventful, suddenly I was washed with plenty of innovations and ideas to do something different. LOL. The brain overactive. Ops. Enough blabbing, lets review our finance for November.

Dividend income has lessened in the mist of the covid situation. Payout from several companies has been reduced. Total amount received was $2,765.49, almost 30% less than the projected amount. Well, it is more than our monthly expanses. Rental income remain stable. 

Portfolio remains unchanged with no addition of any counter. As such, my cash holdings continued to grow and reached 5%. And it appear that I will not be adding anymore in near future, because Mr Market has begun to climb back up the slope.

After almost 6 months of weakness hovering around STI 2500s. Mr Market begun to recover in November climbing up the slope to as high as STI 2900. With the recovery, my portfolio also begun to regain some positive results. As I mentioned before, the market eventually will recover. It is just a matter of time. 

Still, there is no improvement in the pandemic around the world. Until then, border crossing and businesses will still be affected limiting the recovery of Mr Market.
  



Wednesday, 4 November 2020

Monthly Financial Updates

This monthly sustainability report does not include any of the salaried income. The basis for this monthly financial review is to gauge the sustainability status of my financial independence based on the total amount of passive income received.

The last quarter of the year, Christmas is coming. Well, with this covid-19 situation it is going to be a rather gloomy festival seasons. 

It is a cold month for dividend, and with the business still badly impacted by covid-19 the payout has become quite unpredictable. This month dividend collection comes to an amount of $618. But we got a fixed deposit matured in October which vastly boast our passive income for that month. 

Prudent investments and careful positioning of wealth helps maintain sustainability in the event of any egg basket went burst. Although the profit returns is not as pretty as those who adopt focused investment, it gives us a peace of mind. For ordinary folks like us. a peace of mind is far better than the excitement of staring at the jumping numbers of the market.

Portfolio adjusted a bit. One of my investments has just divested their assets and paid out in cash. This increased my cash holding to over 4%. 

Some of my friends asked me whether this portfolio included my emergency funds. The answer is no. This portfolio pool of money is purely used for investment purposes in the stock markets, which is why my cash holdings is usually less than 5%, some 95% of the soldiers are holding their ground in several companies generating passive income for me. In the event the investment goes haywire my financial status will not be seriously crippled, as these group of soldiers are meant for fighting the war at the front line,  causalities is expected but will strive to avoid losses to the best of my abilities. 




 

Saturday, 3 October 2020

Monthly Financial Updates

This monthly sustainability report does not include any of the salaried income. The basis for this monthly financial review is to gauge the sustainability status of my financial independence based on the total amount of passive income received.

The 3rd quarter of the year closed with a passive income of $3,817.22, this brought the total amount of passive income for the 3rd quarter to $12,036.61, an average of $4000 per month. Not bad. The interest rate of DBS Multiplier has been cut really low, but still it doesn't cost me any effort to earn that small pocket money. 

Dividend income however is certainly much lower than before, the Covid-19 impacts on the business is still pretty much evident. Some of the companies has delayed the payout date til much later, overall I am still getting paid for all those soldiers parked inside the companies. Household expenses continued to be maintained around $2000.


Portfolio adjusted, with some funds diverted to pay off the housing loan. This weakened the amount of war chest, but still maintained around 3% allocation. Other than that, nothing much change.


 

Friday, 2 October 2020

Accordia Golf Trust completes divestment

 Well, while the world still reeling from the impact of the Covid-19. Business still as usual for companies.

And this.....company is finally on the move. Link

 

 

This has been going on for a long time, finally its going to be divested. I been holding this for almost 5 years, and the offer price is .....well just somewhat better than my purchased price. So, one less company from my portfolio. 

Based on the news, there will be a second tranche of payment before delisting from SGX. Although it has not been a gold mine investment, it has been steady and paying me for the past 5 years. In other words, it has served its purpose in my portfolio as part of diversification. Thank you, Accordia.