Retirement income

If we were to coast FI at 50, we should be looking at 1.2m of portfolio that will self run with no likely fresh funds till age 60 for full retirement.

The dividend payout at 50 will supplement our likely meagre salary then. We will ideally take temp or long term PT jobs near home to save on transport and to have time for our own interest.

By 60 we may then aim for full retirement and we will draw the portfolio for living expenses till our cpf payout at age 65.

The last resort would be our property for liquidity if required via lease buy back (we are attached to the flat’s prime location and convenience, plus no kids to inherit our asset since we are child free)

Current portfolio

This does not include robo advisor investments with Syfe and Endowus.
Overall – TWR = 119.81%, Xirr = 13.99%
CurrencyCurrent ValueCurrent P&L (+Div)Closed P&L (+Div)Overall P&L (+Div)
HKD33.2%+13.35%0.0 (0.0%)+13.35%
SGD20.3%+16.67%0.0 (0.0%)+16.67%
USD46.5%+35.71%+22.04%+37.25%
Total in SGD+23.94%+29.71%+24.76%
Portfolio as of 11 August – stockscafe

In terms of purchase in last 2 weeks:- bought 2000 qty of iShares Hang Seng TECH ETF and 10,000 qty of ICBC in HK stock exchange.

WFH woes?

Some love and some hate WFH.

For me is a love, I can avoid unnecessary commute, distraction and small talk. There is more work life balance and is conducive.

Many jobs are be remote these-days with technology advancements.

There is one ex customer that told me he had depression during covid. I reckon so as his partner are not in good terms with him and being at home most of time exacerbated it.

I am thankful to have a loving hubby and we love being home people. We are perhaps the minority aka weirdo that love WFH.

CNA – I lost my job during covid

Three individuals from Thailand, Singapore and Hong Kong were interviewed by CNA. They have something in common – losing their job during covid. https://youtu.be/b7nYcxsaNHk

From own experience at nearing 40 in 2020 it is tough and disheartening to find a job, going through various interviews and getting rejections. Ageism is real.

During that job finding period, I was not pressured by mortgage or living expenses. Liquid cash was able to sustain 3 years of living expenses. CPF OA then was able to finance 10 years worth of mortgage loan even without fresh income. I was glad to live a simple life, deterring any additional anxiety in job finding journey.

Eventually I was able to land a job through a network though it was 20+% less than previous income, I am very thankful to have a job.

The Thai lady and Hong Kong lady interviewed were admirable in their endeavor. However the Singapore couple was rather trapped in chasing material wants (continental car and a condo) unknowingly. When pandemic hit, the husband livelihood was affected and the new income was close to 40% less than what he used to have, moreover he had to take on grab delivery job to supplement their expenses. Adding to their financial stress, they wanted to hold a ceremonial wedding dinner.

I am in no position to comment the lifestyle one wants to subscribe to.

We are living in a world of flexing, it is easy to be the same living mindlessly chasing status.

I will remind myself this when I am tempted to be the same: “every want is exchange with my priceless time.” This delays gratifications or deter inconspicuous wants. The notion of coastFI to FI is what spur me to focus and not get sidelined by unwanted noise.

July week 2 investments (50k)

In month of July:

  • Endowus – pumped in additional 5k into cash smart, 25k into fund smart with lionglobal infinity global stock index fund, lionglobal us 500 stock once fund and infinity European stock index.
  • Syfe – pumped in additional 10k in cash+, 10k into Reit with risk management.

Warchest & emergency funds

  • still have approx 80k-90k of warchest to invest after setting aside emergency funds of 1 year. I’m thinking of buying a PP watch for flipping purpose, not sure if it is wise to do so.

Current cpf balance as of 9 Jul

  • Cpf OA expected balance in April 2024 should be able to cover remaining home loan. CPF SA should be able to reach FRS by Jan 2024

End note

  • I hope we are on the right track, investing prudently and getting different perceptions from reputable resources and own sane research.
  • Average savings achieved for first half is at 60%.
  • We look forward to a continual investment for next 7 to 10 years…

Buying some again instead of timing market

Loaded my first ETF – VWRA at 22k SGD, trying to be more diverse in our portfolio which are heavily vested in tech.

Been studying TTD investor relations but don’t think they can penetrate the growth market in China as it is very entrenched with local presence and culture. Plus I don’t think China wants a foreign entity to dilute their expertise. If China didn’t fend off Amazon, Google, FB they will kill off their innovation and made them reliant on US tech, you won’t have Alibaba or Tencent of today.

The next wave is clean energy or carbon neutrality it seems, so I am contemplating to load ICLN or equity Xinyi solar.

I just realized I do not have much finance stock, ICBC HKex maybe a good dividend play. Parking 10k here would be good money to offset mandatory spending such as yearly cny angbao money or some mobile bills. Currently SingTel, Propnex and Sasseur reit dividends are my main dividend play for fueling some mandatory spend at 2.5k in 2021.

Perceptions on full FI changed

I have a habit of reading finance blog posts from http://www.sginvestbloggers.com/ and this post caught my attention.

Plus Kyith previous comment on my post makes me rethink having a middle path in the journey to FI.

Full FI can be disheartening but with coast FI it is more achievable and happier – front loading investment in younger years and take a less stress job, lower pay when coast FI is attain while the portfolio self run to reach FI.

I would envision working temp jobs that fit my time table while dividend from investment portfolio pay for expenses outside of mandatory spending. I did a trial run – sabbatical break – before and realized monthly mandatory expenses are low:-

Yearly expenses basic

In fact, I can coast FI now but I would like to include my hubby in this journey with me, that would mean another maximum 7 years of front load investments. For now his idle cash would be emergency fund (1 year) for both of us, any extra would be channel and combined with my money for investment. I am extremely thankful we could front load investments from these few years of sudden and better job remuneration especially on my end.

CFO of the household

My hubby is a simple man with reasonable pleasures spent on consumables especially food.

His regular attire is uniqlo tee and shorts, sauntered in his havainas even on cny.

He only save what he has left, based on 10 years historical records he saves roughly 30% of his salary but doesn’t care if he deplete to use it on things he need (very rarely). The reason why he is so confident that there will be savings is because he doesn’t spend unnecessary. Very different from me…

I will accrue nearly 70% of salary because I easily get tempted to spend conspicuously and slogging in a high stress work environment drives this behavior. Moreover the thought of firing the company as soon as I could makes me excited to save. Hubby on the other hand can take a high stress job as long it doesn’t affect his quality of life or intrude into his weekends or leave.

Some side story: He doesn’t even know what’s a Rolex until I got one years back without his knowledge. He commented it looks not only super auntie and is shocked at the price. He quipped a mobile phone can tell time, the same function as the Rolex. I regret buying it which I could have finance our FI.

Since he is more chill in the approach of savings and I hate to enforce my belief into him which didn’t work so naturally I became the household CFO. I track expenses, savings and invest regularly on behalf of us. Though I believe he will do a better job if he wants to.

60k per year investment

60k per year investment with 5% return annualized, we are looking at 850k approx in 10 years. Combined our current portfolio, we are looking not far to retire early (I hope)

1.2m (inflation adjusted) is sufficient for both provided we have no dependents at age 50. With a 4 percent dividend payout, this shall last us for 15 years till age 65. Even stopping work at 50, we could have a decent 2-3k plus each (today’s dollar) in monthly payout through CPF life basic plan from age 65.

At 65 year old, if the bodies are able then, we may embark on mm2h residency in Penang for even a slower pace of life, with ample space and dollar stretch renting out our home in central Singapore. Else if we are too comfy in Singapore with limited mobility, we have option to downgrade the home if we want to stretch the dollar.

Thankfully hubby and I have the same value, simple in wants and pretty recluse in nature. We value time to do the things we like than the rat race. Time is valuable than money.

I look forward taking time to wake up together while the whole world hustle, make coffee leisurely, visit the wet market thinking of meals to cook daily, reading books free on overdrive (NLB), writing blog, watching Netflix, gardening (herbs) and taking evening walks together.

I have tried that during 3 year sabbatical break, rest assured my mind didn’t degrade, or feel a moment of boredom or mundane, I thrive mentally and had so much fun investing in hobbies like making YouTube videos, cooking etc. It becomes clearer that this is the path to embark on.

Indeed the love of finite time on earth fuel our investment motivation.