Thursday, 26 April 2018

SSB (May 2018) Subscribed by 2.6 times

(EDITED 28/04/2018: SSB (May 2018) Subscribed by 2.6 times, instead of oversubscribed by 260%. I'm terribly sorry for any unintended confusion caused and kindly pardon me for the mistake.)

Today is the day MAS releases the result of the SSB allotment for May 2018 SSB.

MAS has raised the issuance size from S$150 million to S$200 million earlier this month, in response to the higher demand for SSB.

The first time SSB is oversubscribed is during the 1.55% January 2018 SSB issue, which it was briefly oversubscribed by S$22 million. This was the best interest offered by SSB till this month's tranche.

The second time happened last month when it was oversubscribed by S$111 million, which is when MAS decided to increase the issuance size to S$200 million.

Now, today, for May 2018's SSB issue, it is oversubscribed by S$321 million or 160%!!


Take a look!
Source: SSB
Seems like finally, SSB is getting some support from the public!

Indeed, I felt that the interest rates offered by May's tranche are really attractive at 1.65% for the first year and 2.39% average return per year if you plan to hold it for the full 10 years.

For applicants that applied for SGD 13,000 or lower, congratulations. You're fully allotted.
Those who applied for more than SGD 13,500 were allotted either SGD 13,000 or 13,500 randomly.

Meaning to say, the most one can get from this tranche is SGD 13,500. For those who applied for more than SGD 13,500, you may wish to take a look at your bank account to check for the refunds posted.



Source: SSB - May 2018 Issue Interest Rate

Similar to January's issue, I've gotten myself $500 worth of SSB for May 2018's tranche using the funds in my opportunity funds.

Regular readers would remember what my 'opportunity funds' here is for.


To those newer readers, here's a small recap of my post back in December 2017:

The 19-Year-Old Year Review, Reflection & 2018 Resolution

As my 'additional war chest' that I've included in my portfolio updates only has $850.00, I've decided to only subscribe for $500, leaving $350 in that account.

It would be really strange, why did I not top up another $150 to make it a thousand instead, as such 'guaranteed' high rates do not come by so frequently in SSB!


Silly me!

$500 in May 2018's SSB will mean that I will be receiving $4.12 in November and another $4.12 in May 2019.

This will also mean that I'm getting 2 free Fillet-O-Fish burger every half a year! Ala-carte burger only. No meal this time round!

On a side note, I'm really glad that I finally manage to convince my mother into applying for some SSB this month, instead of the 0.05% interest POSB account that she is holding onto.

As an extremely risk adverse person, probably it's time that her money will start working a little harder for her.

I will continue to look out for the upcoming SSB for further opportunities to park my opportunity funds. Remember. Opportunity funds!

Read: Singapore Saving Bonds (SSB) - 1.65% (May 2018)

Link to MAS's announcement can be found here.

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Sunday, 22 April 2018

Young adult thinking to start on investment.. with Rolex?

Recently, over dinner, I've been brought to attention when one of my colleague express interest towards investing.

Hence, being a curious listener and a little excited, I couldn't hold myself to ask more.
This is one of my first time seeing a young person in real who's interested in this topic and having goals.

Surprisingly, another fan of Robert Kiyosaki!

Rich Dad, Poor Dad - Robert Kiyosaki
We were chatting about some daily stuff before hearing this.. a house is a liability and we need to escape the rat race. This instantly rings a bell right in my head - Rich dad, poor dad.....

"I'm interested to get some investment before my savings is eroded by inflation and is looking to buy assets"

As a curious audience.. I asked: What type of asset are you looking to get? Property?

"Nah. Property is a waste of money. It's a liability"





Another fan of Robert Kiyosaki I thought.

"...I'm looking into getting a Rolex in 2 years time. I believe that they're a really good investment and milestone. I've read from a book that we must buy asset and not liability!"
I'm stunned for a moment




Upon hearing so.. I decided that I should remain silent and continue eating my noodles.

I believe that this fella here would have read the book - Rich Dad, Poor Dad, and have understood that there is 2 column in your balance sheet - Asset & Liability.

According to the book, an asset is something that puts money into your pocket while a liability is something that takes money of out it. 

And to get rich, one simply get more 'asset'!

Applying the actual definition to an asset, indeed, Rolex is a tangible asset and it does hold it's price well over the years.  One must not forget that Rolex is a luxury consumer goods and to keep it well running, you're requireed to send it in for servicing.

Aside that, you've to keep this 'asset' of yours in a good condition in order for you to cash out your 'profit' in the future! This servicing here will cost you money and it does not put money into your pocket.

Arguably, yes. The servicing you're looking at is your 'cost', and by selling it in the future, provided at a big gain, you will not be seeing anything out of this asset apart from the ticking hands. Any knock and dings while you're wearing it, will in fact take cents out from your pocket.

Throwing all this aside. Any seniors who bought a Rolex many many years ago at $1000 or 2000. May see that the same model now cost $10,000.

We must not forget that $1000 or 2000 back then is relatively 'big' too!
Hence, your purchasing power did not change!

Similarly to some who includes the value of your HDB in the list of your 'assets'!
For the duration that you're staying in it, this HDB does not put money into your pocket!
Probably.. unless you rent a room out.
 
Not forgetting our HDBs in Singapore has only 99 years of lease!

How now!?

To my friend above, it is pretty much a milestone in some sense that you've gotten your 'first luxury watch', 'I've earned my first 5 digits in my life' or probably a terrible way to say it is 'I've spent the first 5 digits I've earned in my life'.

Perspective is important.

As a human, I do love Rolex watches and would gladly get one in the future, as a luxury good to pamper myself.

Not an 'asset' in which I have to hope and pray for the value of it to go up in order for my gains to be 'realized'.

Another thing to remember about 'realizing your gains' is that, when you sells it in the future, this is marked as a pre-owned product, and the market here is different.

There's definietly some rare or limited Rolexes that will probably be a really good investment in due time.

As time is a very important factor in investing, there is no certainty in investment.
I know there's many who believes that Rolex is an investment.

I'm not an watch expert here.
But a Rolex to me. Is merely a watch.
As a person who love watches, I do have my weak spots too.
But, for now. A Rolex is definietly not for me :)

Nonetheless, if I happen to have one, I'm clear on what I expect from my Rolex.

Friday, 13 April 2018

Fake News: sleepydevil's CDP Statement

To begin with, I'm not someone that has a good command of English.

Through this journey of using blogger as a platform to jot down my thoughts, I'm really thankful and fortunate to learn from many wise seniors along the way. While I do not consider myself as a blogger or writer, I'm heartened that some readers enjoy my post.

It's really encouraging to receive emails from readers as well as comments from various seniors around that educate me through their series of informative articles and comment.

Recently, I've chanced upon a pretty significant amount of 'fake news' lurking around the various social media platforms to social influencer and even to bloggers.


This reminds of a post by STE earlier in February this year about fake news.

Here's a snapshot of STE's blog: 

Source: STE's Stock Investing Journey

Indeed. I thought to myself.

While I do not know the real idea behind some blogger's mentality towards blogging. Mine is simple and I've stated it in my very first post - to jot down on my journey towards financial freedom and to learn.

Perhaps like what STE wrote up there, to gain revenues in whatever form, be it advertising or promoting his/her own courses.

Some might be even here to 'boast' about what they 'have'.
There are indeed many ways to beautify things!

Inflating your account by various means? Playing around with mathematical equations?

I'm sorry but please don't hit me!

The generation today has evolved to one that uses social platform to 'brag' isn't it?
Or maybe for some to achieve self-satisfaction!?

I don't know. Beats me. I'm a simple guy and I really don't know that much.


Maybe if I ever find my second half and get married with kids, this blog is going to be a gift from Daddy to share on his journey. It might look good, it might look terrible. I have no idea. But I hope that if ever this happens, this will be a good 'Daddy's history book' for my kiddo.


Will my kid be surprised or doubt Daddy's actual financial situation when he is 19?
Are you sure this crazy 19 year old fella really has that money?

To my kid: Here's Daddy's CDP Account Statement
sleepydevil's CDP statement (end 31/03/18)
For some obvious reasons, I've removed my particulars in the statement above.

Daddy didn't lie, right?
Remember that being transparent and honest is an important virtue!

Once again, Daddy has been lucky this far as an 'investor'.
At this point of writing, he has yet to see any Nobita's attack on our local equities market. Perhaps, that's when he will chop his fingers!

To acknowledge this, I do not feel that I'm a good investor, writer or even a 19-year old peer. I've still many many things to learn about. I am really not.

I should only say that I'm lucky that my self-actualization comes early.
I'm glad if ever, this CDP statement above comes in useful for any millenial to motivate them into personal finance.

Once again, I do not advocate buying/selling anything nor investment.

But what the big deal with this?
Showing off his 19-year-old CDP/CPF account statement?
That's not the case Ah Boy or Girl.. Remember to work hard and save diligently. Else, there wouldn't even be a chance for you to beautify your accounts! Papa won't beautify your account for no reasons!!

Larger number and bigger account size are really nice and there will be many changing factor with that. But one must remember:

It's never on how successful you are by using leverage nor how lucky you are, although luck plays a fair share.

It's neither how successful you are by getting a big lump sum by your parents.

If you wonder how, please take a look at the few posts below to get a better idea.
Or maybe.. I'm not that simple and I like to complicate things..
Oh god...

Remember.. Don't hit me!

You may also subscribe to receive my latest email updates here.

Read:
The 19-Year-Old - Year Review, Reflection and 2018 Resolution 
How Many Account does this 19-Year-Old have? 
Polytechnic Student with $3.63 As Net Worth - 1 Year Later
My 19-Year-Old CPF Account - For Millennials & Young Adults
A Letter To My 30-Year-Old Self, 10 Years Ago

Saturday, 7 April 2018

Peace Of Mind and Emergency Funds

I've come across this question several times as the amount of cash I've indicated seems relatively low in comparison with my invested capital. 

'Do I have an Emergency Funds available?'
The answer is, Yes. I do. 


I've also indicated this at the bottom of my page on 'Portfolio':

Portfolio you see here does not include emergency funds, CPF funds or any other form of money required for daily expenses. Funds/equities here are purely my investment portfolio which I've established when I'm 19 years old back in 2017. Also, should the market evaporate completely, I will not starve because of what that is here. 


The keyword is 'starve because of what that is here'


It's definitely not pleasant to go through this sticky situation twice after 2016.

Read: Polytechnic Student with $3.63 as Net Worth - 1 Year Later

If you are going to starve because of your investment in big financial events such as GFC or losing sleep because the counter you've bought is going south, it's very likely that you are overly-invested in the market. 

While I will not talk about how good/bad having an investment is. Neither will I talk about the need to have one. The most important thing is to have a peace of mind, regardless of what you do. 

Personally, I feel that the emergency funds provides me with a safe level of comfort, which gives me a peace of mind when being invested. This has allowed me to sleep easier at night too. 


One can definitely argue about the need to have an emergency fund available to you when credit cards and several options are readily available. Or even certain that you have no kids, no liability, still studying.. Why do you need it?

Remember the word there? Emergency Funds.
This means that this sum here is supposed to help you when there is an emergency. This emergency could be a sudden loss of income, illness or anything that demands an unexpected amount of expenses from you

As a student, having emergency funds suggests to me that even if I do not work and my invested capital fully evaporates, I will not need to ask for dollars from my family even when my expenses account depletes totally. 

I don't enjoy asking for dollars from my family and it had been a really long time since I last done so. 

At least for 6 years, if I did not remember wrongly. 

Yes, it applies to even when I have $3.63 as my net worth. 
Fortunately enough, I had been working a little and my pay came in the very next day. 

This taught me a very serious lesson. 



Having this emergency funds available, it prevents me from starving and offers me a peace of mind.  

At least for the duration that my emergency funds are able to sustain me and that I do not have income due to any reasons, I'm not having a big headache as someone who doesn't have one!




So, instead, ask yourself:
1. How much is your overall monthly expenses? (This includes mortgage, food, bills etc.)
2. What is your age and how 'long' of emergency funds will you need?
3. Most importantly, with that amount, will you be able to sleep in peace when you loses your income and investment evaporates completely? 
4. No? Increase the amount by a fold.
5. Still no? Increase it by another fold. Repeat until you can sleep peacefully. 
6. If you still couldn't sleep peacefully, it's time for you to reduce on your un-neccessary commitments. 

Remember.. peace of mind is priceless.

It's important to be able to sleep in peace. 

You may also subscribe to receive my latest email updates here

Read: Peace of Mind and Emergency Funds. Really?

Monday, 2 April 2018

Singapore Savings Bond (SSB) - 1.65% (May 2018)

This time round. It's more attractive!

The SSB issue for May 2018 offers a 1.65% interest for the first year! Stretching up to 3.00% for the 10th year. Aside this, the SSB monthly issurance size has also increased from the usual 150 million to 200 million due to increasing demand for SSB!

Image taken from SSB's site - www.sgs.gov.sg
Seems like SSB is getting some popularity in recent days!



As usual, I've been looking around for a good place to park some funds for a short term. Today's release of SSB for May 2018 has come to me as a surprise.

The rates we see here today is even better than rates offered by fixed deposits from banks that I know off (in SGD for 12 months)!

I've mentioned earlier in a post back in January about the shiny part I like for the SSB issued in Feb 2018:

1. The flexibility in your funds
2. A risk-free place for you to park your money with no capital loss
3. A relatively lower amount required compared to FDs.  

If the rates offered by SSB is lower than what we can get from fixed deposits, why SSB then
As a consumer, I must find product that caters well to my needs/wants.
 
I do not want my funds to be rotting and the interest here from fixed deposit or SSB today will save me a little on the opportunity cost.

I want the funds here to be easily liquidated. SSB can be liquidated at any given month before the bond matures with no penalty. Interest is pro-rated too (more information here). On a side note, the only charges will be $2 for redemption and $2 for application.

I want some assurance on these funds too so I can sleep in peace knowing that my opportunity funds will not lose its value or evaporate. This will allow me to better make use of bargains in the future.



Too good to be true? But never buy blindly!

One must bear in mind that it may seem really attractive for a risk-free bond to generate 1.65% on a short term of 1 year, only proceed on when this fund here is a spare fund to you and that you can last for at least a month while waiting for proceeds from redemption.

Do note that for redemption of SSB, it will require a little bit of time as well.
Redemption of SSB will be closed on the last 4th business day of the month and proceeds will only be paid on the 2nd business day of the following month.

For more information on redemption, please check on from SSB's official website here.

Interest Rates for May 2018's SSB (for GX18050E):
Source: SSB









Here are some important dates for this bond for anyone who's interested to consider:
Issue Date: 1 May 2018
Maturity Date: 1 May 2028
Interest Payment: 1st interest payment date on 1 Nov 2018 and subsequently every 6 months on 1 May and 1 Nov every year.

Application Period: 
Opens: 6:00 pm, 2 Apr 2018
Closes: 9:00pm, 25 Apr 2018
Results: After 3:00pm, 26 Apr 2018


For more information, please visit SSB's website on the latest bonds here.

I will be applying for some SSB in May 2018's edition to park my funds.

You may also subscribe to receive my latest email updates here.

Read: 
Singapore Saving Bonds (SSB) - 1.55% (Feb 2018) 

Sunday, 1 April 2018

Portfolio - March 2018

Current Portfolio (31/03/2018)
No.
 Counters
No. of Shares
Market Price (SGD)
Total Value (SGD) based on market price
Allocation %
1.
SingTel
500
3.37
1,685.00
17.84%
2.
Wilmar Intl
500
3.18
1,590.00
16.83%
3.
ComfortDelGro
700
2.05
1,435.00
15.19%
4.
Starhill Global REIT
1,700
0.73
1,241.00
13.14%
5.
Far East Orchard
800
1.48
1,184.00
12.54%
6.
AIMS AMP Cap REIT
400
1.36
544.00
5.76%
7.
Guocoland
200
2.08
416.00
4.40%
8.
Singapore Saving Bonds
1500.00
500.00
5.29%
9.
Warchest
1
850.00
850.00
9.00%

Total SGD:


9,445.00
100.00%


Happy April Fool!

March had been a really really busy month for me. Hence, explaining the lesser amount of post that is on my blog. March is also a really interesting month having Trump wanting a trade war and imposing sanctions on China.

I remember exactly a month ago in previous portfolio update, I've mentioned that I wanted to build a bigger position with REIT to increase my dividend income for the year. I'm also looking to do some portfolio adjustment.


Indeed, my wish came true earlier in March and my itchy fingers had gotten better of me once again when Starhill has fallen to 71 cents. I took the opportunity to accumulate 1,200 shares of Starhill Global REIT at 71 cents from Mr Market.

I'm buying some dustbins in Wisma!

Read: SGR's Analysis (FA, TA) - Buying some dustbins in Wisma


I've also done a CPF OA-SA transfer in this month, emptying my OA account in the process which I've briefly covered in a post earlier. Though I would say that this is not directly related to my monthly portfolio update, but I decided that I will write briefly about this in this update.

It is common to be hearing complains such as "My hard-earned cash are all locked up in the CPF" or "I want my 20% salary in cash, why did they take it away? I'm working hard for it!" or even "CPF is a Ponzi Scheme!!!".

Source: CPF

Once again, as a Singaporean, we must bear in mind that the CPF system is actually a benefit to us and we're entitled to this privilege. Perspective is important.

Do be reminded that CPF OA-SA transfer is IRREVERSIBLE and it is very important to consider your own situation before doing anything. I repeat once again, I'm not an advocate for CPF. 

Read: My 19 Year Old CPF Account - For Millennials and Young Adults

Source: Grab
CDG: Aside from this, Grab has also confirmed on the acquisition of Uber in Southeast Asia. It is reported that Uber will in exchange receive 27.5% stake in Grab.

CDG-LCR's deal is currently in the second stage of review by the Competition Commission of Singapore. Hence, I do not see anything materializing yet. It will just simply tell us that Uber and Grab is no longer competing, but not CDG.

On a side note, Uber seem victorious having to cash out and tap onto Grab's growth for it's earning. I believe that this is an attempt by Uber to tidy up their balance sheet before rolling out on it's IPO next year. Well, this is business.

You may wish to read more on CNN's report about Grab-Uber's merger here.


A deeper look into my portfolio:
Taking a serious look at my portfolio today, it seems like I'm soon attaining my target I've set for myself earlier on hitting my first 5 digits in portfolio before 1H2018. Just as I'm doing so, I've also took this opportuinty to calculate my actual capital injected this far since the start of 2017.

Take note that my portfolio I've stated here excludes CPF, emergency funds or monies required for expenses. In the capital injection computation below, I've also excluded the funds under 'Warchest' a.k.a Opportuinity Funds as they have yet been deployed.

Funds that are recycled from sales & cryptocurrencies gain are also computed and adjusted below.

Overall Portfolio Performance (as of 31/03/18):
Total (Capital Injection) in 2017 = S$ 5,882.09 + 684.70 = 6,566.79
Total (Capital Injection) in 2018 = S$ 1,377.22

Total Capital Injection 2017 & 2018 = S$ 7,944.01

Realized P/L = 19.39% or S$ 1,586.35 (Based on cost)
Unrealized P/L = -2.58% or - S$ 204.59 (Based on cost)
Cum. Dividends = S$ 119.23
Realized + Unrealized P/L + Dividends = $ 1,472.67 (18.53% base on cost)

Current Portfolio Value: S$9,445.00 (+10.95% m.o.m due to capital injection, dividends and portfolio performance)

CAGR = 16.66% (Based on start date at 14/02/17) - Days Count: 410
XIRR = 34.49% (This high % you see here is due to the wild card from Crypto in 2017)

Both XIRR and CAGR % is on a very high side due to the relatively short duration that I'm in the market. As the time goes on, the % will reduce significantly. A big contributing factor is due to crypto currency gain which takes up a significant part of my portfolio. I'm lucky and fortunate to have profitted from this event, but this is just an one-off event.

A simple bear market will be more than sufficient to wipe out all the % you see on top.

Current Cash Position (based on Opportunity Funds + SSB) = 14.39%

Aside the $850 in warchest, a pretty significant portion has been channeled to accumulating some shares during the recent market weakness.
 
Dividends received in March: $12.70
Total dividends received in 2018: $39.91
Average dividends/month: $3.32

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