Charlie Munger - Enough

"I'm not saying poverty is noble. I'm saying extravagance is foolish. Between those extremes lies something wonderful. Enough. Enough means you don't wake up and panic. Enough means you don't worship luck.

Enough means you can think clearly without the noise of greed. But modern culture hates that word. Enough doesn't sell. It doesn't trend. It doesn't make your neighbor jealous, so people ignore it and end up slaves to excess. I'm telling you this as someone who's seen both sides. We built fortunes at Berkshire not by chasing fantasies, but by avoiding idiocy.

Warren and I didn't need 20 mansions or five yachts. We just needed peace of mind and the ability to keep playing the game. The game isn't about getting rich. It's about staying rational long enough to let compounding do the work."

Nothing to Do?

As I inch closer and closer to the finishing line, I have been hearing stories of being "bored out of your mind" after retirement.

Frankly, I have no idea how that is possible. Perhaps when my turn come I will face the same problem.

There are so, so much things I want to do.

1. Exercising much more frequently (3-4 times a week)

2. Hundreds of games (on Steam) that I wanted to play 

3. Hundreds of shows (dramas, movies, anime, donghua) that I wanted to watch.

4. Hundreds of books (on my NLB app) that I wanted to read.

5. Endless new content coming out on News / Youtube / Reddit everyday.

6. Relearning my Japanese and going Japan more often.

7. Trying famous food all across the island (1 hour queue? Not if I go there at 10am or 3pm)

What's more, I will still be spending a portion of time managing my portfolio, following up with financial news.

Is that enough to keep one occupied?

And that is just the main bulk of things I can think of. I might even revisit some of my old hobbies (meetups groups, games development). 

Let's see if I would have "nothing to do" next time...

Almost There...

Been a long time since I blogged anything (haha, life and laziness got in the way), and I'm so, so close to the end of the rat race.

It's time to take stock of how I intend to sustain myself once this is over.

Bucket 1 - Core Singapore
This consists of STI ETF, CFA ETF, REITs, local banks and other ahgong holdings like ST Engineering. The dividends generated can fully cover all my expenses.

Bucket 2 - Cash / SSB
More than $200K in this bucket, to act as "sleep well at night" fund aka margin of safety aka warchest during market downturn. It will fund any future large expenses (e.g. home renovation, top-up for home). In the meantime, the yield generated can supplement Bucket 1 for additional discretionary spending (e.g. holidays) or reinvestment.

Bucket 3 - CPF / OA
Around $250K now. One portion in CFA ETF, one portion I intend to deploy to Amundi World, and the rest will sit in OA. This will be utilized when I get a house - probably a 2-room BTO if nothing changes. In the more 'luxurious' case, I might get a 3-room resale which will be covered using Bucket 2.

Bucket 4 - CPF / SA
Aim to hit FRS (Almost there). That's it. The annual interest should be able to cover the rise in FRS.

Bucket 5 - US & Options
My 'trading' portfolio, where I hold a few US blue chips (e.g. Magnificient 7) and do wheel strategy to generate abit of kopi money. Based on historical performance in the past 3 years, I can generate around $5000 a year in option premium, which is reinvested into this bucket.

Bucket 6 - China / HK
My side bet on the rise of China with 3 main holdings - HS Tech, Tencent and BABA. This should be an indefinite hold until drawdown.

Bucket 7 - World ETF
Currently consists of SRS Funds (in Endowus, intend to transfer to Poems Amundi) and FWRA in IBKR. This is a small bucket (< $100K), but I hope to DCA for a little longer and then let it autoroll until drawdown.

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I am at about 90% mark of the race. Just less than 2 years to go.

My only concern now is to build one last buffer against a future HDB purchase. I need to be confident of securing a house without drawing down my portfolio, and that'll be it.

For big luxury expense (e.g. if I want to Japan a few more times) in the future, I might drawdown from Bucket 5 or 6.

After FIRE-ing, my portfolio should still, minimally grow at a very slow pace (maybe $500 to $1000 per month). Will look to drawdown only when I hit my 50s.

Hang in there~!

Annual Report 2022

“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)

Achievements (2022)
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.

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 .

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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.

Life Update 2022 - End of Youth

I have finally arrived at the end of the official "youth years".

Times really flies.

Slowly & surely we are creeping towards our inevitable demise... haha.

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1. MR lo

I decided to go for the early MR despite them introducing a $500 additional "voucher" this year.

I really don't want to go back to some forest again.

No more pressures of IPPT, but I hope to keep active for life.

As of now, I am still running at least twice a week, albeit at a more relaxing pace.

From BMT to the fun-filled days at K9, to 10 years of reservist.

Sayonara~

2. Animes

Somehow I started watching a few more animes, thanks to different youtube reactors.

Demon Slayer Season 2 - Probably the greatest "shonen" genre of all time, and unmatched god-tier animation. There are some scenes which I have watched n times and they still make me teary eyed today.

My Dress Up Darling - I almost never watch romance genre shows but I find this to be a super sweet anime. There is some slight sexuality but it only add more spice to the show. Gets good/become special after episode 4 as it starts to narrate more from the female lead perspective)

Mieruko Chan - A girl with a mysterious ability to see demons. Gets good after episode 3 when the Godmother appear.

Spy X Family - Amazing show which hook you in right from episode 1. Handsome male lead, pretty female lead and cute child, each with their own secret identity. Winning formula?

Chainsaw Man - I never find this very appealing but just kept watching due to the reactors. It gets good at episode 8 onwards.

3. RWS Visit

Went to RWS Casino after at least a 5 year hiatus? Much thanks to my mum friend who offered us a free room. I just treat the entry levy as payment for a 2 night staycation (a typical night costs >$300 usually).

Thankfully, I walked away quite a big winner (low 4 digits) :D 

4. KL Trip

Went to KL and Genting for the first time, and also with a big group of girls. First time traveling in such formation haha. 

Now I know what girls concern about during trips... all the beauty and hair products *facepalm.

Details already in previous posts.

5. Random Person

Finally got rid of an unnecessary person in my life entirely. I did not expect one can be so heartless - we used to be close but this person actions irks me the more I think about it. 

Things like:
- Secretly blocking me from IG
- Being the last one to know of this person departure
- Not a single thanks despite farewell gift (I wonder why I still give this? Kinda regret?)
- Exclusion from activites
- All the gaslighting actions in the past

These are just some of my last memories of this person.

I have wasted far too much time and energy on this, to the extend it even changed my personality at work and outlook in life. It is really time for me to move on and become a happier person.

6. Financial 

One of, if not the most scary year (up there with Covid) since I started investing.

The Russia-Ukraine war, rapid inflation, fed tightening and interest hikes, massive crash of US tech, execerbate by China covid-zero policies, then the crash of Crypto (Luna then FTX).

My portfolio crashed $60,000 at some point before rebounding near the end of the year. I lost $40K alone in China holdings.

That said, I also hit some of the most important milestones and did many first:
- Passive income cover total expenses (despite some major purchase like air-condition for the house) 
- Applying T-bills
- Contribution to SRS (and possibly investing it in my first Robo to reduce admin work)
- Scrip dividends and knowing how to calculate how much you will receive down to exact share
- Selling options for income
- Foraying into US markets

I plan to streamline my bank accounts, credit cards and brokerage accounts to tap on the high interests and better manage the family expenses (e.g. Grab/AXS combination, UOB One for utilities & transport)

To quote from Adam Khoo:

Oil was always going to $200 until it didnt.
China was never going to reopen until it did.
Covid would destroy the service sector until it didnt.
Europe was going to have a gas shortage until it didn't

The market will continue to go down until it doesnt.
Staying invested in the market will always reaps rewards over time. 
Pessimists never win, optimists always do

7. Health - Insomnia, Sinus Headaches

My insomnia issues have largely gone away, but I suspect it is due to the hybrid working environment.

I no longer have consecutive nights of sleeplessness, or complete zero sleep nights.

I still get bouts of insomnia, but can usually squeeze in at least 3 or 4 hours of sleep.

My sinus headaches continue to be a problem, and I have narrowed it down to following:
- Irregular sleeps (e.g. napping for too long or waking up too late on weekends)
- Skipping breakfasts
- Not drinking enough water

When it occur, the most effective remedies are:
1. Steam bath / hot cloth to dilute and expel the mucuses
2  Sinomarin (decide to use this due to ease of application) or Sterimar salt water
3. If things get really bad, use Sinus Rinse / Neti Pot.
4. Drinking hot tea - chamomile, peppermint, ginger (really don't like the taste) are all fine.
5. As last resort, Panadol cold and & flu for the headaches

Pharmacist recommended Flixonase Allergy but I am still observing.

8. Dating

This video sums it up: https://www.youtube.com/watch?v=h-mxesCotgs