“Wealth is not about having a lot of money. It’s about having a lot of options.”
Key Highlights & Notes
Financial Milestone (2022)
I know we say this every year, but this year was a truly massive leap in terms of wealth growth, smashing all previous records. For the first time, I felt I really could FIRE if I wanted to. I am just missing that house!
Dividends alone covered all expenses despite some very large purchases, and that's not even counting options (which shall be treated as portfolio earnings/losses) and bonds (T-biills and SSB)
1. Liquid net asset value grew 26%
2. Total saving rate of 88%
4. Portfolio market value grew $100K (inclusive of capital injection and gains)
5. Portfolio XIRR for 2022 at -3.2% (Dragged down massively by China and partially US)
6. Yearly dividend roughly $1500/month
7. Options income of $1500/quarter
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Income Statement (2022)
Total income is almost 20% higher than last year - thanks to a combination of higher pay and bonuses, options and dividend income. I also had some lucky wins at RWS.
Income Statement (2022)
Total income is almost 20% higher than last year - thanks to a combination of higher pay and bonuses, options and dividend income. I also had some lucky wins at RWS.
Passive income grew by almost $5000, and I expect this to grow signficantly in 2023 given the comebakc of high interest saving account and risk free rate.
Total expenses totalled below $20K, wth the majority coming from the air-conditional overhaul ($3300). Recurring expenses increase by about $1500 but is still below 2020 level - probably due to greater return to office .
Recurring Expenses Breakdown
This table makes it worthwhile tracking my expenditures over so many years. You can really see the effects of inflation.
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Major Actions
1. Top up $600 to both my parents for MRSS.
2. Top up SRS for the first time. With the high interest environment, SA 4% does not seem as enticing anymore. With the SRS funds, I can place it into SSB, T-Bill, or for now, I decided to try out Endowus Core Portfolio to further increase/diverisfy my US allocation.
The main reason is that I really forsee a good chance of FIRE-ing for good in the next 5 years. If it comes to the point that I need to draw out SRS, it means I am no longer working, and I can pay 5% "tax" instead of 7% or 11.5%.
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Outlook For 2023
I will be doing a 'restructuring' of some sort to sell away the weaker holdings in my SG portfolio - maximizing the high interests account and then allocating more to US / China.
