Portfolio Net Worth & Dividends

[abutan]

Hi Dividends Warrior,

I saw that you have some City Spring Infrastructure Trust. What are your views on the declining price due to the poor rating from S & P?

 

[Dividends Warrior]

Hi Dividends Warrior,

I saw that you have some City Spring Infrastructure Trust. What are your views on the declining price due to the poor rating from S & P?

Hi abutan,

I am vested wif 3 lots. The current price is actually quite attractive. If the distribution stays at 1.05 cents, the yield is about 7.8%. Secondly, CitySpring deals with utilities and I believe almost all the school canteens in Singapore get their gas supply from CityGas, so the company will not go bust suddenly.

However, at the moment, I am slimming down my portfolio and moving towards more quality, stable blue chips. Therefore, i will not be loading more of CitySpring.

 

[Dividends Warrior]

wow he sure have that kinda capital growing dividends ? the blog is very similar to those marketing stuff, very very doubtful.

Its easy to say 500k and 4-5% yield, but I believe that will take 10-20 years to build up.Unless you earn alot in your ady job, or you could have started like 10+ years ago ?

U guys think this it is possible to generate 1% a month ? If i had a 500k portfolio i think i can generate 5k a month, about 1%. Thats roughly 10% approx a year.

Hi savagemp5,

I assume you are referring to my blog. I just wanna set the record straight to prevent any misunderstandings. So, I am going to answer all your doubts.

My blog is a real blog. The updates are posted by me. Definitely NOT "those marketing stuff".

I do NOT have 500k in my portfolio.

I started investing only last year.

My take-home pay is about 3.5K per month.

So here it is, I hope I clear everyone's doubts.

Anyway, what is so doubtful about my blog? Is my portfolio so awesome that people find it unbelievable? Strange, because my colleagues always tease about how pathetic my portfolio is. Lol......

 

[Paul Lee]

Hi savagemp5,

Anyway, what is so doubtful about my blog? Is my portfolio so awesome that people find it unbelievable? Strange, because my colleagues always tease about how pathetic my portfolio is. Lol......

Nay, actually to be brutally honest, your portfolio is far from awesome - which is exactly why I believe it it the real thing.

Nor do I see it necessarily (not online anyway) my net portfolio value or profit or dividends or your take home pay. But its yr call and I respect that.

Its ok for the naysayers to say what they want. The important thing is to stay true to your investment goal. My feel is that you are on the correct track and if you continue with your disciplined approach, I'm sure you will achieve your investment goals. So keep at it!

 

[escapee]

Nay, actually to be brutally honest, your portfolio is far from awesome - which is exactly why I believe it it the real thing.

Nor do I see it necessarily (not online anyway) my net portfolio value or profit or dividends or your take home pay. But its yr call and I respect that.

Its ok for the naysayers to say what they want. The important thing is to stay true to your investment goal. My feel is that you are on the correct track and if you continue with your disciplined approach, I'm sure you will achieve your investment goals. So keep at it!

So the first step to building a portfolio is to be discipline...Does updating ur investment portfolio monthly or yearly part of the discipline? Cos i m always so lazy to tabulate, so at the end of the day, i don really noe how much dividend i got or how much i really earn or lost. Btw, my div is so small that i don really feel there is a need to take into account, like less than $100...

Secondly, if u have some spare cash, would u buy a car or invest it further? My gf keep nagging me to buy a car, sian...

 

[Dividends Warrior]

So the first step to building a portfolio is to be discipline...Does updating ur investment portfolio monthly or yearly part of the discipline? Cos i m always so lazy to tabulate, so at the end of the day, i don really noe how much dividend i got or how much i really earn or lost. Btw, my div is so small that i don really feel there is a need to take into account, like less than $100...

Secondly, if u have some spare cash, would u buy a car or invest it further? My gf keep nagging me to buy a car, sian...

Hi escapee,

Personally, for me, updating my portfolio monthly is a necessity because I receive dividends from different companies almost every month. Therefore, I need to keep track of my "Net Price", which is calculated after deducting the dividends from the actual price. I also want to keep track of the total amount of dividends I received so far.

If you feel it is too troublesome to update monthly, I suggest maybe you can update quarterly (every 3 months). Not so tedious.

Secondly, I also do some minor adjustments in my portfolio once in awhile. E.g. If there is a correction, I might use the opportunity to average down. Base on history, there is always 1 or 2 corrections per year (Mar & Jul)

 

[abutan]

Hi savagemp5,

I assume you are referring to my blog. I just wanna set the record straight to prevent any misunderstandings. So, I am going to answer all your doubts.

My blog is a real blog. The updates are posted by me. Definitely NOT "those marketing stuff".

I do NOT have 500k in my portfolio.

I started investing only last year.

My take-home pay is about 3.5K per month.

So here it is, I hope I clear everyone's doubts.

Anyway, what is so doubtful about my blog? Is my portfolio so awesome that people find it unbelievable? Strange, because my colleagues always tease about how pathetic my portfolio is. Lol......

Hi Dividends Warrior,

you are quite young right? and your take pay home pay is 3.5K?

may I ask what is your job now?

 

[Dividends Warrior]

So the first step to building a portfolio is to be discipline...Does updating ur investment portfolio monthly or yearly part of the discipline? Cos i m always so lazy to tabulate, so at the end of the day, i don really noe how much dividend i got or how much i really earn or lost. Btw, my div is so small that i don really feel there is a need to take into account, like less than $100...

Secondly, if u have some spare cash, would u buy a car or invest it further? My gf keep nagging me to buy a car, sian...

Adding on to my previous post......

I understand how you feel. When I first embarked on this income investing journey, I had the same thoughts as you. My friends, relatives and even family members were not very encouraging. They will often tease me by saying "aiyo, dividends so pathetic. Why waste your time just to get that little benefit? Not worth it lah!" So, I also feel lazy to update.

However, as my portfolio grew bigger, I realised that all the little dividends can add up to quite a substantial amount. That's why I decided to start a personal finance blog. Maybe you can do that same too.

As for your second question, this is how I personally feel. You should ask ur gf why she wans YOU to buy a car bcos YOU are the one paying for the car, COE, insurance, parking, maintenance and fuel, NOT her. Is it for convenience? Is it to look good in front of her female friends/colleagues? etc. etc.

I dunno wad reason she will give u. If you accept the reason as valid and reasonable, then go ahead and buy a car.

Jus to let you know, my gf used to bug me for a car too. I told her we will get one when we are married and have children. Fortunately, she is a reasonable woman. Lol...

 

[Dividends Warrior]

Hi Dividends Warrior,

you are quite young right? and your take pay home pay is 3.5K?

may I ask what is your job now?

Hi abutan,

Errr...... I m 27 yr old. I dun really consider myself young. Youngsters are starting to call me "Uncle" liao. Lol......

I am a civil servant.

 

[attagurl]

So the first step to building a portfolio is to be discipline...Does updating ur investment portfolio monthly or yearly part of the discipline? Cos i m always so lazy to tabulate, so at the end of the day, i don really noe how much dividend i got or how much i really earn or lost. Btw, my div is so small that i don really feel there is a need to take into account, like less than $100...

Secondly, if u have some spare cash, would u buy a car or invest it further? My gf keep nagging me to buy a car, sian...

maybe one "mindless" way is to start a new account, and deposit the dividends cheques into that a/c. then you can easily track how much you get back. later on you can use it to buy another couple of lots when it accumulates.

 

[sAVaGEmP5]

Hi savagemp5,

I assume you are referring to my blog. I just wanna set the record straight to prevent any misunderstandings. So, I am going to answer all your doubts.

My blog is a real blog. The updates are posted by me. Definitely NOT "those marketing stuff".

I do NOT have 500k in my portfolio.

I started investing only last year.

My take-home pay is about 3.5K per month.

So here it is, I hope I clear everyone's doubts.

Anyway, what is so doubtful about my blog? Is my portfolio so awesome that people find it unbelievable? Strange, because my colleagues always tease about how pathetic my portfolio is. Lol......

Hi my mistake, maybe i saw wrongly cos someone say dunno u have what 400k-500k portfolio making 2k a month.

 

[musicwhiz55]

A reasonable looking portfolio is probably what will keep you steady and earning a decent return for the long-term. There have been too many cases of "flash-in-the-pan" type returns which demonstrate how one can create a lot of sparks but in the end, there's hardly any sparkle. A simple case of exuberance which affects proper judgement and decision-making. Investing is supposed to be slow, boring and consistent; hardly exciting and titillating!

As for a car, to be honest you don't NEED one. My wife and I have been married for 6 years and we now even have a 1 year old kid but still no car since I started working 10 years ago. We can survive without one and have been doing so all this time. A car is a luxury which many can ill afford, and it sets you back significantly on your wealth-building journey and impedes your path to financial freedom. You'd be better off convincing yourself that you don't need a car, and that most people owning one are heavily leveraged.

 

[focus1974]

Secondly, if u have some spare cash, would u buy a car or invest it further? My gf keep nagging me to buy a car, sian...

I would Invest further.. and I will also dumped the gf who nags me to buy a car.

 

[Dividends Warrior]

Hi my mistake, maybe i saw wrongly cos someone say dunno u have what 400k-500k portfolio making 2k a month.

No problem at all. These things happen sometimes. I understand.

 

[Dividends Warrior]

maybe one "mindless" way is to start a new account, and deposit the dividends cheques into that a/c. then you can easily track how much you get back. later on you can use it to buy another couple of lots when it accumulates.

I am using the Excel spreadsheet to help me organise my finances. Just type in the numbers, press "Save" and everything is done.

 

[Wealth Bingo]

50% on super dividend stocks, 50% on middle risk stocks

Buying 50% of my investment budget for super dividend stocks like SPH during down turn and continue to trade another 50% for middle term gain. It works for me

 

[escapee]

I would Invest further.. and I will also dumped the gf who nags me to buy a car.

Don b so mean la, haha. Cos i m riding now, she discourage me to ride. She sae if i cannot stand taking public transport, buy a car lor. So its rather my part that wans the convenience.

I try my best to resist the temptation, HUAT ah

 

[Dividends Warrior]

Don b so mean la, haha. Cos i m riding now, she discourage me to ride. She sae if i cannot stand taking public transport, buy a car lor. So its rather my part that wans the convenience.

I try my best to resist the temptation, HUAT ah

I see. In that case, my advice is to get a second-hand car. Many of frens have 2nd-hand cars which are still quite new.

 

[Paul Lee]

So the first step to building a portfolio is to be discipline...Does updating ur investment portfolio monthly or yearly part of the discipline? Cos i m always so lazy to tabulate, so at the end of the day, i don really noe how much dividend i got or how much i really earn or lost. Btw, my div is so small that i don really feel there is a need to take into account, like less than $100...

Updating yr portfolio is important and DW has already gave you the reasons. Your story is not unique and a lot of us started off thinking like you. I still have a hard time convincing my frens and colleagues that there is nothing wrong with collecting $50-$100 dividends because like you, they feel its is pittance. But apart from discipline, one must learnt patience when it comes to dividend investing too.

All of us want to have a passive income of a few K a month in dividends. But unless you have a sizeable inheritance to start you off, we would need to build up our portfolio steadily and allow our passive income to grow. I started with receiving less than $300 dividends but my yearly dividends now is many many times more now. How did I do it? By being patience and slowly build my portfolio up.

Its important that you adopt the correct mindset when you are investing. Its unacceptable for you to be lazy about how much you are receiving or even whether you are making or losing money from your investment. You also need to be kept in the loop of the developments of the companies you invest in. That means keeping yourself abreast of the news and announcement especially with news that may impact your investment.

Hi escapee,

Personally, for me, updating my portfolio monthly is a necessity because I receive dividends from different companies almost every month. Therefore, I need to keep track of my "Net Price", which is calculated after deducting the dividends from the actual price. I also want to keep track of the total amount of dividends I received so far.

I find yr approach of calculating net price intriguing and a little puzzling. Technically speaking its not correct since you do not re-channelled the dividends received back to the share in question. And doing so skew yr dividend yield calculation for the share.

I only make adjustment to my stock price when I add new positions to the shares either from new purchase or rights issues or PO.

But just my 2c. Whatever works for you, man.

 

[Paul Lee]

Investing is supposed to be slow, boring and consistent; hardly exciting and titillating!

You are always good with the words, MW. Look forward to seeing more of you gems.

By the way, OT a bit. I was looking through some of the bookmarks on my browser and realised that your blog used to be called 'Focused Thoughts from a Rambling Mind' Nice name. You should keep to that one!

A car is a luxury which many can ill afford, and it sets you back significantly on your wealth-building journey and impedes your path to financial freedom. You'd be better off convincing yourself that you don't need a car, and that most people owning one are heavily leveraged.

I think its a given that car is an liability in Spore; and with the crazy COE prices now, its doubly so. I would like to propose that regardless of the above, someone who is sensible can make car ownership less arduous on yr finance.

The problem with a lot of people is that they changed cars before the 5th yr to maximise their COE rebate. But they failed to realise that unless they are giving up the car for good, they are back to square 1 with their car loans.

And get a car that you can afford comfortably. Just because you can afford a Merc/BMW doesn't mean you have to get one when a Camry/Accord would do as nicely.

The way car loans are structured, you would want to keep your term as short as possible. Doing so means you pay more every month but it will saves you interest in the long run and let yr reached your 'breakeven' point much faster. The faster you clear your loan, the faster you have spare cash to build up your portfolio.

So like MW says, why even bother?? Well the appeal of car ownership is that it gives you schedule flexibility and convenience. Some people are willing to pay for this flexibility and convenience. Still one must be sensible about it and not overpays for this convenience. I know of some people who are using >50% of their take-home pay for car expenses. That to me is lunacy. To me car related expenses should not take up more than 20% of your take home pay.