Financial resolutions for 2020

[highsulphur]

Local etf at nil as i type this msg.

Portfolio consists of global/us etfs and a couple of us stocks

You sold off your local etf over this year? Sti etf?

 

[Okenba]

New to investing. Unfortunately, I don't think I've really settled down yet. Still itchy to play with the portfolio, but trying hard not to touch it. =D

Portfolio is entirely global, 80/20. Though I have realised that with CPF, I'm probably a lot more conservative that I need to be. =/

For 2021, just want to stay the course. Try not to be itchy fingers.

 

[SpeedingBullet]

Resolution didn’t change since 2018, not changing into 2021. Just keep doing what im doing

 

[malthead]

Anyone has set aside his for 2020? Mine is to lower my cash holdings allocation in my assets.

I finally did a stock take for my financial health for 2019. Net asset increased by 11% due to salary/bonus and a good run up in financial market. But due to the bullish run in 2H 2019, I slipped up in doing my DCA in a disciplined manner (I even took profit on some overseas ETF and market prices are now higher ) Now my cash component is at 34% (it was actually lower than end 2018 which was 36%).

It would be a challenge mentally for me to increase my DCA under current record high environment for BOTH equities and bonds. Have been waiting for that pull back since late Q4-19 but that hasn't really happened. Ideally I would like it down to below 30% for a start. Fortunately, the cash component so far has been yielding almost 2% due to parking them at high yield current accounts with banks but we seem to have hit the peak in Q419.

Non-liquid component like SRS and CPF have increased in line at 10% and should provide baseline retirement needs by 55 if I stay employed till then.

looking back at this post. I have been DCAing with discipline over the past 3 years and finally brought my cash holding down to less than 3%.

 

[Mephist0pheLes]

looking back at this post. I have been DCAing with discipline over the past 3 years and finally brought my cash holding down to less than 3%.

Gratz, sld be sitting on a nice gain now?

 

[s0crates]

looking back at this post. I have been DCAing with discipline over the past 3 years and finally brought my cash holding down to less than 3%.

Good time to think about investing your CPF now that you have some confidence and cpf interest rates being so low..m

 

[malthead]

Gratz, sld be sitting on a nice gain now?

now yes but was a wild ride most of last year and some parts of this.

Good time to think about investing your CPF now that you have some confidence and cpf interest rates being so low..m

No. Not touching CPF SA. I have been buying T-bills using OA since last Nov. My equity exposure outside CPF is quite sizable already. No need to add non-cash for equities.

 

[s0crates]

No. Not touching CPF SA. I have been buying T-bills using OA since last Nov. My equity exposure outside CPF is quite sizable already. No need to add non-cash for equities.

I have had the exact same thoughts for half a day and my own conclusion was that that train of thought doesn't make sense just like the below statements.

"I just don't want more money because I don't want to retire early"

"Boss, please don't give me a pay raise because I don't want to pay more income tax".

I eventually realise I am gonna manage a multi million portfolio, so why not take up more risk now when I have the risk appetite and Tue ability to manage? If I get too rich in the future I will just spend it. Easy problem.

 

[malthead]

I have had the exact same thoughts for half a day and my own conclusion was that that train of thought doesn't make sense just like the below statements.

"I just don't want more money because I don't want to retire early"

"Boss, please don't give me a pay raise because I don't want to pay more income tax".

I eventually realise I am gonna manage a multi million portfolio, so why not take up more risk now when I have the risk appetite and Tue ability to manage? If I get too rich in the future I will just spend it. Easy problem.

everyone's portfolio is different. more than 70% of my portfolio is already in equities and the rest are in cash, bonds etfs and CPF. My daily swings in portfolio are already usually more than my monthly salary. No need to add more volatility given my age.

The risk profiles of monies in SA vs investing in equities are totally different. No one will reject free (or more) money as per your quotes but you are not exactly comparing apples with apples.

 

[reddevil0728]

I have had the exact same thoughts for half a day and my own conclusion was that that train of thought doesn't make sense just like the below statements.

"I just don't want more money because I don't want to retire early"

"Boss, please don't give me a pay raise because I don't want to pay more income tax".

I eventually realise I am gonna manage a multi million portfolio, so why not take up more risk now when I have the risk appetite and Tue ability to manage? If I get too rich in the future I will just spend it. Easy problem.

Yep it is true can definitely take up "more risk" but how much more differs from person to person

 

[s0crates]

everyone's portfolio is different. more than 70% of my portfolio is already in equities and the rest are in cash, bonds etfs and CPF. My daily swings in portfolio are already usually more than my monthly salary. No need to add more volatility given my age.

The risk profiles of monies in SA vs investing in equities are totally different. No one will reject free (or more) money as per your quotes but you are not exactly comparing apples with apples.

Sure, SA risk profile is different, what about OA though? The money is stuck there anyway, short term volatility has absolutely zero relevance unless you have some plans to use it for property investment.

My portfolio daily swings are much bigger than yours because I have a 7 digit portfolio. It will get even higher as I age and I grew to be at peace at it.

I believe you are doing a good job for yourself, maybe you don't want to do better (if my way of doing is even "better"). Many Singaporeans life goals can be met simply by being more aggressive with their cpf monies. I just like to highlight that. Investing cpf, which is locked up anyway, is free money.

If you don't agree with the above statement then it's like saying you fundamentally don't agree that equity index funds will return more than 4% p.a. over a long time frame.

 

[malthead]

Sure, SA risk profile is different, what about OA though? The money is stuck there anyway, short term volatility has absolutely zero relevance unless you have some plans to use it for property investment.

My portfolio daily swings are much bigger than yours because I have a 7 digit portfolio. It will get even higher as I age and I grew to be at peace at it.

I believe you are doing a good job for yourself, maybe you don't want to do better (if my way of doing is even "better"). Many Singaporeans life goals can be met simply by being more aggressive with their cpf monies. I just like to highlight that. Investing cpf, which is locked up anyway, is free money.

If you don't agree with the above statement then it's like saying you fundamentally don't agree that equity index funds will return more than 4% p.a. over a long time frame.

appreciate your post but I think it is a bit presumptuous for you to assume that I don't wan to do "better" just because i am not investing my SA especially you don't know my age, networth, portfolio size or composition.

Even if I agree that equity index funds will return more than 4% pa over a long time doesn't mean I should or need to dump every single cent that I have into them.

 

[limster]

I have a certain percentage of liquidity which is part of my warchest.
If there is a sale, I am prepared to draw down my liquidity to buy cheap stocks.
If stocks are not super cheap, then I am ok with balanced asset allocation and holding T-bills and SSB.

I have drawn down my warchest 3 times
(1) GFC
(2) 2016
(3) Covid-19

pls DYODD and chose the strategy that suits you. I prefer not to 'criticise' people just because they got different strategy. there is more than one way to reach FIRE

 

[s0crates]

appreciate your post but I think it is a bit presumptuous for you to assume that I don't wan to do "better" just because i am not investing my SA especially you don't know my age, networth, portfolio size or composition.

Even if I agree that equity index funds will return more than 4% pa over a long time doesn't mean I should or need to dump every single cent that I have into them.

Talking about cpf OA throughout, not SA. Am still thinking about cpf SA investing.

As with any thing that seems too prescriptive online, no one online is in a position to say who's right or wrong since there's no way we can uds a person full circumstances.

Maybe you don't have much cpf OA in the first place?

 

[malthead]

Talking about cpf OA throughout, not SA. Am still thinking about cpf SA investing.

As with any thing that seems too prescriptive online, no one online is in a position to say who's right or wrong since there's no way we can uds a person full circumstances.

Maybe you don't have much cpf OA in the first place?

right now OA are in t-bills so around 3%+. Have around 600k of OA

 

[hwmook]

right now OA are in t-bills so around 3%+. Have around 600k of OA

How did you ever get so much into OA? Your property paid in cash? I have recently sold and bought a new place so now I got a big mortgage that will take up all my OA until 65, no need to ever consider what to do with my OA.

 

[malthead]

How did you ever get so much into OA? Your property paid in cash? I have recently sold and bought a new place so now I got a big mortgage that will take up all my OA until 65, no need to ever consider what to do with my OA.

i repaid OA used for property. Not owing anything to CPF now