Why dividend stocks are not sexy.

Read here

This above posted article basically sum up what I think of dividend stock.

Dividend stock is like extra angbao money with perhaps little expectations of YoY share price growth. This is more of a safe haven for older folks, maybe my perception will change when I reach there.

Reorg or retrenched…

Mister is just given news that their global team roles are going to be outsourced to a 3rd party. There will be upcoming programme to transit their headcount to the 3rd party. It was vague and whether all or some were be offered a position with the 3rd party is still unknown. The transition should be finished by October this year and hundreds are affected.

This is a big shock still as this is the first time this has happened to mister despite knowing this is inevitable as the global trend is moving to cloud or outsourcing IT to cut cost. This business decision may be particularly accelerated by COVID-19 situation too.

He probably needs time to let it sink in as he has been with the company for 11 years long, I have to support him with positivity through his personal tough time together as a family.

If this happen to me, I would have teared. And I guess as a man, it is even more difficult to bear, and much emotions intertwined.

Life is not a linear path but full of ups and downs. This is the time for me to weather bad times with him as a couple. Yes for good or for bad, we will go through this storm or future storms and emerge stronger.

Portfolio divestification

Different asset class in the portfolio provide a greater safety net for falls and mitigate risk.

Currently I’m heavily vested in equities and cash.

Growth equities are mostly in HK, US market and only blue chip dividend play in Singapore market. For US stocks, I go for non dividend stock to avoid 30% WHT. For commodities I am done and dusted, sold off gold after a few years of holding with annualized return of 3.6% just prior to covid situation. Fixed income is endowment plan that is going to mature next November. Bonds do not whet the appetite yet, maybe when I am older, yes. REITS are not my cup of tea at the moment at this climate, and also I missed the boat & good old days (timing).

Currently I’m waiting to bag a particular pharmaceutical stock, S&P index fund when market cool down. I am finding and researching fundamentally sound companies that is worth investing later on too.

To be honest, I’m not particularly optimistic with the rally in the market recently. It’s like a false positive given the full impact of covid to the economy has not sink in. Or perhaps interest rate is so low that many people are driven to invest in the market for the hope of better returns. I do not know when the next wave of tsunami will hit, I am moving to higher ground to preserve capital. Hope my hands won’t be itchy and buy needlessly (self sabotage) at this time.

Reflection of last sabbatical

Everyday felt like weekend so much so I lost track which day is which, no more teeth grinding at night due to stress, and mobile phone has cease ringing incessantly from work calls.

I had time to read immensely, lost weight due to healthier conscious lifestyle, took up a short diploma, and on weekdays whipped up home cooked meals, watched documentaries etc.

I thorough enjoyed it, and can see that I’ll be doing the above still when fully retired.

This sabbatical also serve as a motivation for me to finish the last 5 miles to financial freedom.

minimalist living

Every now and then, stores and emails are flooded with discounts and great offers. It seems silly to miss out buying at a good deal, a FOMO thinking.

I used to buy on a weekly basis, clothings delivered to the house so frequently that I forgot what I have ordered prior. It was a destress activity to reward oneself from working hard.

But I was wrong, soon the things pile up unused forming clutter around the house. I had to spend time to tidy and declutter, it is frustrating and stressful. I did not know time is way precious than to spend time tidying material wants.

I came to realize each unnecessary wants bought is in exchange of the precious time put in at work. I decided to change the bad habit of buying unwanted things. Now I look at what I have instead of what I do not have to curb impulsive buying. I use experiences to destress instead of buying – eg. Reading, traveling, spending time with family, cooking, watching documentaries.

I still indulge myself in wants but on special occasion such as birthday or xmas and I’m still happy. 🙂

Retire at 50 (stimulation)

We (the 39 year old DINK) did the above and discovered that for myself that working 7 to 9 more years will allow CPF SA meet FRS with annual voluntary SA top up at 7k. For mister it is approx 9 years to reach FRS with annual voluntary SA top up at 7k, not sure if he would like the idea because he does not like having liquid cash locked up, if so it would take 13 years for him to reach FRS.

Even without voluntary SA top up, with our current SA balance and continued employment, we can achieve BRS in 3 to 5 years time. It is an encouraging insight and consolation that we can meet the safety net of BRS at the very least and meet FRS within a decade if nothing goes wrong with employment.

Next we naturally did a projection on how early we can retire – in 10 years time probably age 50, provided we have passive income to cover expenses till age 65 for cpf life payout that will provide combined approx more than 3k SGD minimum monthly.

To achieve 15 years of passive income, 1 million portfolio with 5 percent annualized return is required to cover our expenses from 50 to 65. We are at 50% of our goal now.

Hopefully mm2h option is still available then and we have the choice to retire more than comfortably in Penang from age 51 onwards with potential annual passive income from portfolio and Singapore flat rental combined expected 74k SGD in today’s dollar.

So the short term goal is to :-

– voluntary top up SA 7k annually for as long as possible to enjoy tax relief and accelerate FRS in SA asap

– Continue working with aggressive cash savings of 100k SGD annually which in 6 years at age 46 or 47, the portfolio excluding CPF will reach 1 million, and concurrently investing in the market while keeping 20% cash liquid at all times.

– And it doesn’t harm to work as long as possible even if we reach 1 mill before age 50 coz no one will forgo opportunity to accumulate wealth. If possible we want to work beyond age 50 as long as health and conducive workplace is presented. But we doubt we want to retire at 65 because that is when expected health would spiral much to enjoy substantial amount of activity such as sports or travelling. 55 will be the ideal age, perhaps?

Life is of course not linear and anything can happen between now and then, deviation is probably expected but no planning is definitely a recipe for disaster.

What about you? What are your retirement plans? Do share.

How are you spending CB time?

CB time is a good time for slowing down and taking a check point in life, re aligning them to one goals.

I picked up working out, was able to devour more books and a couple did resonated with me.

One book was Educated, and the other ichigo IChie.

The takeaway for the former book is the art of questioning in our life, examine what is given from our environment eg family values, beliefs, societal nuances etc and if it does make any sense, it is alright to differ without the pressure to conform to mass consensus. It is easy to cruise along with the values that are ingrained in us from our environment, but it is an art form to live a mindful and purposeful life with values that one shaped throughout in the journey of life.

The latter book is about living in the present, focus on the essential and taking away the unnecessary distractions. A good reminder to not just plan and live in the hope of reaping the fruits in the future but also enjoy the every little moments to that goal.

Reading provide an avenue for introspective moments like this, reflecting on perceptions and questioning what can be done better. Other than working towards wealth creation, I guess I can work on the inner self more. Like what my amigo say – attempting to attain buddhahood. Lol

别人笑我太疯癫

别人笑我太疯癫, 我笑他人看不穿。

When I quipped that I’ve goals to retire before 45, not many can fathom. Their eye balls almost popped out?

Our society is wired that we work till 60s and enjoy our retirement then.

Isn’t it quite sad to toil the abled years and leave the miserable last decades where one is almost withering, unable to physically carry out the things one set to do.

难道现在的日子不是日子么?

For me finding that pivoting point and middle path in everything matters – working a reasonably enjoyable job for as long as I can, giving me some work life balance and pay the bills while enjoying life still.

孤臣

I have been a much introverted person since young but grown to accustomed to the vibrancy of the world to be outward social and much of career favors such personality.

However as I grow older, I see myself slipping into this hole back again unconsciously.

Learning to accept who I am and be what I am takes a great deal unless i am entirely not bother with the societal should bes.

I’m getting better in recognizing humans are fallible so there is no need to get anyone’s approval. Emotional well being will be a swinging pendulum if I based my actions on people’s approval which to me is not desirable.

I just need to be in the present, living it and that all it matters. 🙂

And learn not to give a f*** when necessary