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Thursday, August 30, 2012

A Happy Birthday Edition Post

This is my first birthday edition post since the inception of this blog.


Birthday, at times means absolutely nothing to most people. But to me, it means everything. It is a time where I can have a nice gathering together with my family and loved ones. It is also probably one of the only time where I can actually pause and reflect on myself. And most importantly, it is where I make my countdown to my RETIREMENT plan (officially 8 more years to retirement). Ok. This is way too early, but still a goal is a goal and I planned to reach it objectively.

I have devised myself a 10 year plan and now I am down to the last 8. It is going to be even more difficult now as my obligations become increasingly more and more.

Annual Capital Injection $60,000.00
Starting Capital $100,000.00  - Achieved
Average Long Term Dividend Yield 6.00%
Starting Date 1/9/2012
Year Year Starting Capital Cumulative Annual Capital Injection  Dividends on Starting Capital Total Yearly Dividend Payout Monthly Passive Income
0 1/9/2012 $100,000.00 $60,000.00 $6,000.00 $6,000.00 $500.00
1 1/9/2013 $166,000.00 $60,000.00 $9,960.00 $13,920.00 $1,160.00
2 1/9/2014 $245,920.00 $60,000.00 $14,755.20 $19,190.40 $1,599.20
3 1/9/2015 $345,030.40 $60,000.00 $20,701.82 $25,453.25 $2,121.10
4 1/9/2016 $469,594.05 $60,000.00 $28,175.64 $33,302.84 $2,775.24
5 1/9/2017 $627,460.53 $60,000.00 $37,647.63 $43,245.80 $3,603.82
6 1/9/2018 $828,572.82 $60,000.00 $49,714.37 $55,909.12 $4,659.09
7 1/9/2019 $1,085,594.23 $60,000.00 $65,135.65 $72,090.20 $6,007.52
8 1/9/2020 $1,414,705.83 $60,000.00 $84,882.35 $92,807.76 $7,733.98
 *Above excel spreadsheet was extracted from www.investmentmoats.com

Alright, probably enough about that now. Since the difficult part is done, maybe it's about time to add a little fun stuff to this birthday post edition.

I admit. I went for a shopping spree. Buying clothes, shoes and eating some luxurious meals are not something which I often indulge. But anyone would agree that this was an exception (Hmm, I hope so). Come tomorrow, it'll probably be back to the normal routine, saving up and continuing the journey towards my goal for financial freedom.

Here's some of the things which I bought:


Lacoste leather shoes @ S$205
 
TH's Long sleeve shirt @ S$150


Wild Honey @ S$65


 Caffe B dinner @ $280
 
A Wedding ring band @ S$2,500
 
A Pre-wedding package @ S$2,100
 
So that is it. I dream today and wake up tomorrow and when I do so, I live to look forward for the next 365 days to my 28th birthday. Until then, I wish everyone healthy and prosperous.
 
"Dream as if you'll live forever. Live as if you'll die today"
 ~~
 

Saturday, August 25, 2012

"Aug 12" - Transactions & Portfolio Update

I'm not going to add to my position in the month of Aug further hence will post the T & P update earlier than usual.


Transaction
Date
Counters
No. of Lots
Price (S$)
Amount
Buy
06/08/2012
Boustead
1
0.940
S$940
Buy
08/08/2012
First Reit
1
0.965
S$965
Buy
10/08/2012
FraserCenterpoint
2
1.755
S$3,510
Buy
13/08/2012
ParkwayLife Reit
1
1.965
S$1,965
Buy
23/08/2012
QAF
2
0.70
S$1,400

In the month of Aug, I have added on a few stocks such as Boustead, First Reit, FCT, PLife and QAF on market dips. Most of the stocks I've added above have went ex-dividend in the month of Aug and I decided to add a few more to my portfolio. I have also added QAF in view that they will be going ex-dividend on the 28th August. Price is comfortable enough for me at current price, though the lower the better of course.

August has been a good month as I have received and/or will be expecting dividends from Neratel, Boustead, First Reit, FCT, Singtel, Plife Reit, QAF and ST Engineering. I will be looking to reinvest these dividends in the month of September. Main counters I am looking closely in the month of Sep include PLife Reit, QAF as well as Keppel Corp. If there's anything interesting to look out for in the month of Sep, please let me know as well :D

Friday, August 24, 2012

Dividend investing is boring, boring...

"A good defense doesn't lose you games." This was one of the quotes from the famous soccer coach dubbed as the "Special One" Jose Mourinho during his times in Chelsea.

What does Jose Mourinho and dividend investors have in common? They both play boring tactics but one that could be very fruitful in times to come. Don't believe? Just take a look at what Mourinho achieve at Chelsea. Or what about the tiki-taka style of Barcelona?



Dividend investing is outrightly boring and often the road to achieving success from it can be very lonely at times. Time and time again you will see and hear the many stories people achiveing the big money from highly volatile stocks company. Well, what they said ain't wrong exactly. When market is in a bull mode (which of course is not the case in recent years), dividend investors usually tend to underperform the public and by a huge mile usually. From the wall street to the analysts in the news operator CNBC and Bloomberg, everyone will be advocating investing in the highly cylical growth stocks. So what is left for the dividend investors? For those of you who are a dividend investor, what's your motivation and goals you are trying to achieve at the end of the day?

To me, my main motivation is CASH FLOW. In fact, I'm a big fan of cash flow. Cash flow is the one and solely ticket in my life which would allow me to play the game of my life at my own terms. I set the rules and I control my game, as simple as that. I like to have a constant cashflow which I can decide if I want to reinvest it into the same company or compound it to invest in other better companies. I must admit that this will not allow me to become rich overnight, but it will make me rich one day and when that time comes, it must be such a mesmerizing effect to it.





Tuesday, August 21, 2012

A Perfect Life Balance is all about Time, not Money

We've seen many people struggling to choose between work and life balance and to such extent they are lost in transition not knowing what they really want to do in the end. Just take a look at the people around you. There are some who struggle to find their feet, some who struggle at their career and some who struggle in juggling their families. All of these people have one thing in common. They simply plan too much to not to plan.

To me, if you are spending the time right now determining the priorities in your life, an awful lot of hard decisions later on will not become as hard as you think it is after all. For instance, if you are a fresh graduate, putting your career first, whether you are operating in a corporate world or as an entrepreneur, is definitely high on your priority. You can look forward and set yourself a 10 to 15 years goal. But you absolutely need to put in your effort into achieveing this and that means throwing your energy into succeeding. Treat your career and job as a platform to keep a steady check coming in, a platform which you can enjoy later on in your life.



However, as years pass by, you may feel like something is missing. You may be confused and disheartened. Something which you felt was once mighty important to you in the past may suddenly lose its appeal. Suddenly you feel like you want to spend more quality time with your family. If that is the case, you may want to set your family as priority. You may want to settle for a lesser paying job with more flexible working hours for instance, so that you can have time and energy to spend with your loved ones. Some money is still required here as you will still need to fund your expenses and others such as your children's education which I'm sure you will want to give nothing but the best.

The key to finding a perfect life balance is all about figuring out your time, not money. Time, at the end of the day, is the one limited currency we are racing against in life. We can always make and earn more money, but we can never buy time. Not even the richest person in the world can afford that.

Today, one of my colleague at work asked me why do I always have to go home and eat dinner with my family. I just looked at them and replied because they are my family. It is a pretty straightforward answer but am surprised of the number of times I was asked the same question. Traditional culture some of them would say. Maybe they are correct....maybe so....maybe yes.

Monday, August 13, 2012

LKY's National Day 2012 Hint Takeaways

Year after year the government's national message to the public would always involved mainly the economy status of the state. Not this year. This year main takeaways from LKY's national day message is clear and precise. "Get Married, have babies...Otherwise, the country will fold"

Over the past few years, the government has tried ways and means to raise the nation's falling birth rate but to no avail. It currently stands at 1.2, which obviously is well below the ratio needed to replenish more Singaporeans.

Is the government going to offer more incentives to couples to encourage them to give birth? Does a 6 month maternity leave and/or paternity leave will entice couples to have babies in the near term? It obviously is one of the toughest social issue the nation have to face in the next decades. Not only the government has to tackle the social living costs of doing so, but it has also triggered many Singaporeans to challenge the government's intention of being able to support the cause of saying so.



With an ageing population dilemma irreversible at this point in time, it will impact and cause a rise in the public health care burden which will led to assessment of new health technologies and hospitals demand for the public. This could be a silver lining for investors. Hospitals, drugmakers and insurance companies should benefit most from this social issue within the next decade as we will potentially see more and more debate arising both from the government and the public. If you have not thought about investing in a healthcare industry at this point in time, it might be time to consider having at least one in your portfolio. Some of the more popular names that are listed in SGX which I like (i.e if you are planning to invest SG stocks) are First Reits and PLife Reits*. They may not be directly involved in the medical aspect of the schrotum, but these are nevertheless one of the better Reits around in a healthcare industry. If you are looking at stocks in a healthcare industry globally, you are no less spoilt for choice with stocks such as Abbott Laboratories, Pfizer and/or JnJ leading the pack of group.

*Plife Reits has undergone a few days of falling prices since its XD last week. As there are no announcements updates on PLife Reits, I would attribute the falling prices to after XD effects and a surge in STI, causing the more defensive sector to underperform in this case. I am currently long PLife Reits with 7 lots, which include the 1 lot I have added today.

Wednesday, August 8, 2012

Confession of my investing journey junkey

I had graduated from my Bachelor degree for more than 4 years now in 2008. Back then, I was filled with much hunger and desire to succeed in the corporate world. I was spending time at work on weekdays and money on weekends, not surprisingly to buy things that I don't really need. I was earning around $2,500 per month back then I remember and I actually felt it was quite difficult to finish spending all those money on food, clothes, gadgets and everything else. Nevertheless, I still did finish spending all my money without a blink in the eye, thinking that more money are going to come my way given that I had just started working.

I began to delve more into sports betting at betfair.com and started playing tennis and soccer trading and scalping. Just like trading in the stock market, playing scalping in sports betting do require a lot of energies and most importantly patience, with a strategy stop loss in place. As with all humans, I ended up winning and losing, winning and losing and finally ended up at a net loss (I think so?? wanna bet?) from it.

One day, right around my 25th birthday, I started to ponder on my financial future. I had a good job and a good income but technically my net worth is still zero. I was essentially waiting for the next salary to come, only to find myself waiting again for the same in the second week (how many of my friends have this same problem as me I wonder). Is that a bad thing? Realistically I was only 25 years old so maybe I'm doing well or maybe I'm not. I wasn't really sure myself.


Then I began to delve into the financial world, in particular a blog which I came across the Finance.sg which compiles all the investment expert blogs. I began reading them one by one and over several days and weeks and was inspired by most of the post and their humble beginnings. In particular, I remembered reading AK71, MusicWhiz, FF, Createwealth888 and Dividend Warrior blogs as most inspiring for beginners to begin with.

Since then, I have purchased shares in Fraser CenterPoint (FCT), First Reit, Parkway Life Reits, Singtel, ST Enginnering, Neratel and many more on market dips in order to build up my arsenal of solid dividend payers. I also began tracking each individual dividend payment I received and tallied them over time to reinvest again. I kept my watchlist of dividend stocks very near to my sight and began to track them every single day so that if there's an opportunity to enter, I will do so.

Now that my goals are in place and I'm on a designated path to my financial freedom goals, I live my life everyday with these goals in mind. While the amount on my portfolio is near to nothing as compared to most investors, I am now significantly more calm with regard to my financial situation than when my net worth was a lackluster zero.

I hope that for beginners or anyone reading this, this post can inspire you in the best personal manner just like how the others' posts inspire me back then.
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