Presenting 2020 Annual Financial Report!
Key Highlights & Notes From CEO
Financial Milestone (2020)
1. Passive income grew by $150/month despite COVID recession
2. CPF MA exceeded BHS, CPF exceeded FRS 2020. Top up another $7K.
2. CPF MA exceeded BHS, CPF exceeded FRS 2020. Top up another $7K.
1. Liquid net asset value grew 11% despite topping up $7000 to CPF-SA
2. Total saving rate of 81% % (77.4% in 2019, 80.8% in 2018, 80.5% in 2017)
3. Safety passive income now cover 84% of our recurring expenses (skewed by COVID)
4. Portfolio market value grew almost $100K (inclusive of capital injection and gains)
5. Portfolio XIRR for 2020 at 14.23%
6. Yearly dividend exceeeded $10000! ($8300 in 2019, $7800 in 2018, $4900 in 2017)
"And they say money doesn't grow on trees... well, they grow on Mapletree."
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Income Statement (2020)
Total income is about 4% higher despite the massive bonus cuts (no mid year and year-end) and dividend cuts (circuit breaker)
Income Statement (2020)
Total income is about 4% higher despite the massive bonus cuts (no mid year and year-end) and dividend cuts (circuit breaker)
Passive income still grew around 25% thanks to the largest ever capital injection in 1 year.
Expenses were about $3000 lesser (in line with 2018), with the signicant ones being:
1. Birthday angbao to parents (gave about $600 than last year)
2. Lenovo S540 Ryzen 7 Laptop (about $1400)
1. Birthday angbao to parents (gave about $600 than last year)
2. Lenovo S540 Ryzen 7 Laptop (about $1400)
Recurring Expenses Breakdown
Categorical expenditures remained pretty much the same as every year. Top expenditures were the essentials - food, travel (transport) and utilities (internet and phone), heavily skewed by working from home (an average of twice a week in office)
1. Lottery spending was only $120 (lowest ever). Won a single System 7 Group 6 of $40.
2. I ate fast food 60 times (60 in 2019, 64 in 2018, 70 in 2017, 81 in 2016), counting only lunch, dinner, supper. Same a last year and think we'll maintain this.
3. I brought 14 (48 in 2019, 22 in 2018, 11 in 2017, 31 in 2016) cups of Bubble Tea
4. I brought 9 cups of Cafe drinks (17 last year)
5. Visited restaurants 32 times (37 in 2019, 32 in 2018, 20 in 2017). Most expensive single trip restaurant is $34.
6. Only 2 KTV sessions and 2 movies! (RIP Teo Heng)
7. 10 Taxi/Grab trips this year. Overall, spent about $400 less on transport expenses.
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Brokers Promotion Galore
Just as banks cut back on interests, we have many competitors entering the local brokerage scenes. After much research, I finally went with Tiger Brokers (for now) due to its numerous promotions (free stock vouchers, angbaos, etc... I have earned around $150 now, on top of the CNY hamper).
I will probably eventually move to IBKR SG once my global portfolio reach a more significant amount, mainly due to the following:
1. Accessibility to London Stock Exchange for Irish Domicile funds (IWDA, EIMI, here I come).
2. Near spot forex exchange rate (with $2 minimum), compare to closest competitors 0.3% to 0.5%. It is not even close. All commission and forex exchange fees would count towards off-setting the minimum $10 activity fee.
4. A lot of its competitors pricing are "promotional pricing". Will it still be as cheap once they secure enough market share?
5. IBKR is a long-standing internationally renowned broker, secured by SIPC for up to $500K USD (think of it as the SDIC equivalent in Singapore)
Investment Moats has an incredibly comprehensive guide on IBKR:
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CPF Actions
At first I only expected to top up for 1 year, but it seems to be becoming a regular thing (heh), especially with interest rates at an all time low. 4% risk free is really difficult to beat, and I have since discovered even more CPF "hacks" as the government introduces even more incentives.
1. In 2021, CPF introduces the Matched Retirement Saving Schemes. Being a housewife, it's a no brainer to top up $600 for my mum (100% returns?!)
2. My parents also earn up to 6% on the first $30K which is really incredible. Even blue chips stocks and reits might not yield you that amount.
3. Having met the FRS, I can actually transfer any additional amount to my parents (basically earning the extra interest, from 4 to 6%). And my parents are at the eligible age to draw out, meaning I am in a way "spending" my CPF money.
4. Any unused amount would be return to your own CPF account (if you do CPF transfer). If you do a cash top up, it is consider a gift and not recoverable (will be distrubuted according to nomination).
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Outlook For 2020
We finally ventured into foreign market and I brought my first ever foreign holding in HKEX - Alibaba.
We finally ventured into foreign market and I brought my first ever foreign holding in HKEX - Alibaba.
I forsee myself buying more foreign stocks to diverse away from my Singapore holdings - my watchlist includes FAANG, Tesla, ARK ETFs and HK Tech ETF 3067, but they are really pricy at the moment. Any significant correction would be great to add more positions.
