Presenting 2021 Annual Financial Report!
The only growth that you should care about is your salary. The next move is to get out of the rat race.
The career growth is a fallacy to retain you as a rat and wage slave.
At the end of the day, you are the mercy of your company (restructuring), your bosses and the economy (pandemic?)
You may not understand yet, but planning your escape route is more important than planning your career."
Key Highlights & NotesFinancial Milestone (2021)
Passive income finally cover all expenses (largely due to expenses reduction), meaning we are saving 100% of salary.
1. Liquid net asset value grew 4%
2. Total saving rate of 87% (81% in 2020, 77.4% in 2019, 80.8% in 2018, 80.5% in 2017)
4. Portfolio market value grew $130K (inclusive of capital injection and gains)
5. Portfolio XIRR for 2020 at 4.88% (14.23% in 2020, dragged down mainly by China market)
6. Yearly dividend now exceed $1000/month
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Income Statement (2021)
Total income is about 8% higher due to pay increment and better bonuses (year-end), making it our highest earning year.
Income Statement (2021)
Total income is about 8% higher due to pay increment and better bonuses (year-end), making it our highest earning year.
Dividend income grew significantly by almost $3000, but was almost entirely offset by the massive interest rate cuts. The destruction of DBS multiplier and Singlife took away more than $2000+ worth of bank interests.
Total expenses almost $4000 lesser than 2020 and $7000 lower than 2021.
Recurring expenses $1000 lesser than last year and $2000 lesser than 2021.
Most of the savings would come from transportation due to WFH and more eating in at home.
No exceptional one-time items this time except the usual angbao to parents.
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 about $400, and we did not win a single time...
2. I ate fast food 64 times (61 in 2020, 60 in 2019, 64 in 2018, 70 in 2017, 81 in 2016), counting only lunch, dinner, supper. Right where we want it.
3. I brought 20 cups of bubble tea, excluding using vouchers/gifts (14 in 2020, 48 in 2019, 22 in 2018, 11 in 2017, 31 in 2016)
4. I brought 12 cups of Cafe drinks (9 in 2020, 17 in 2019)
5. Visited restaurants 11 times only! (32 in 2020, 37 in 2019, 32 in 2018, 20 in 2017). Most expensive single trip restaurant was only $37.
6. 0 KTV sessions and only 2 movies! (RIP Teo Heng, Marvel + Spiderman)
7. We ordered Grab Food 4 times (excluding those free ones where we used vouch.
8. We took only 8 Taxi/Grab trips this year. Annually, transport expenses were less than $500 (far less than $1300 in 2019)
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Investments Breakthrough
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Investments Breakthrough
1. First foray into the Hong Kong market in Jan 2021, grabbing up tech giants such as Tencent, Alibaba and Tech ETF. Unfortunately, our timing could not be worst off as the China crackdown is relentless and brutal, wiping off as much as 30% off our HK positions by year end. Luckily, HK is still less than 20% of our portfolio.
2. First foray into US market towards the end of the year as US head into correction territory due to FED tapering fears. We are looking at high growth ARKK innovation coy (Palantir, Fastly, Teladoc) as well as big giants which have been re-rated (Paypal, Adobe, SEA, FAANGs).
3. First foray into options in Q4, partly inspired with Adam Khoo and many month of study. In just 3 months, we made $2000 off cash secured puts (on capital $20000), making about 3% per month? This is like discovering an entirely new way to make "dividends' off growth stocks, and I forsee this being a huge supplement to our dividend strategy going forward.
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CPF Actions
Top up $600 to both my parents, and transferred $5000 to my mum to make greater use of the additional interests.
I deliberated whether to further top up more to CPF but decided to hold back this year to keep more ammunition. considering the opportunities in the stock market.
Over the past 3 years, we have top up at a total of $15K and CPF is growing to become a very huge portion of my networth.
It is important to balance our near and future needs. Considering that:
- Age 35 onwards, SA allocation will increase
- MA has reached BHS and overflow to SA
Our SA amount is on track to hit the FRS in the next few years, retirement foundation is quite stable and I feel there is no need to further lock up ammo at this time.
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Outlook For 2021
We made multiple breakthrough in terms of investments this year - not sure if Crypto will finally be next. Maybe if there is some kind of ETF.
We made multiple breakthrough in terms of investments this year - not sure if Crypto will finally be next. Maybe if there is some kind of ETF.
I forsee myself doing a 'restructuring' of some sort to sell away the weaker holdings in my SG portfolio and allocating more into HK and US markets.
