Saturday, 4 March 2017

SRS Feb 2017 update

On Valentine's Day, I used the cash in my SRS portfolio to buy presents - 2 REITs for myself. My criteria was pretty simple:

1.  Yield of REIT is more than 6% (both yield more than 6.5% at my purchase price)
2.  Price/NAV is less than 1.0x (both trading around 18-20% discount to its book value at my purchase price)

From that list, i bought 30,000 units of Fraser Commercial Trust (yield of 7.6%) at $1.29 and Starhill Global (yield of 6.9%) at $0.755 each on 14 February.

The addition helps bring my projected passive income to around $40,717 each year. Based on my historical cost of $610,349 (without accounting for revaluation gain), the portfolio is yielding around 6.7% and you can see from the chart below that i have some cash coming in every month except for Feb and Aug.

 

I have in my goal for 2017 to reach $60,000 per year by end of this year and at $40,717, i am close to the 68% mark. Assuming I am able to utilize my cash of $75,000 cash in the SRS account, i should be able to hit the 75% mark. My eventual target is more than $100,000 per year, so i still have some way to go. I will continue to add on to dividend or interest paying counters when the opportunity arises.

Happy SRSing ^_^



Monday, 16 January 2017

Moolahsense / Trading Update - Jan 2017

I first blog about Moolahsense in May last year. My blog post is here.

Since then, I have met up with the management team of Moolahsense and decided to increase my allocation to $75,000.



My interest earned for 2016 was around $4,335. Having said that, the potential delinquency has gone up in recent weeks and currently, i have about 3 cases of late/no repayments currently.

Let's see if it turns out well eventually but with the economic downturn, i am expecting higher delinquencies in the coming months. 

Goal 2 - Generate trading income of $1,000 per month

I mentioned that one goal of 2017 is to generate about $1,000 per month. My blog post is here. January has turned out to be a good month so far.  Let 's see i can meet the goal by end of the year. As of mid Jan, i am slightly higher than my $1k per month goal. This is a 12 month journey so let's hope i can keep this up.



I haven't shared my trades as i am still not sure if i should but my current trade is in SGX made a few days back.



Happy swinging. Make the hay while the trump rally last! 

Saturday, 7 January 2017

Passive Income Update - Goals for 2017

I spent the first weekend of January setting the goals for 2017. I do track my goals regularly and 2016 was a mixed bag where i managed to hit 50% of the goals set (quite an achievement already! lol)

Your goals will depend on the life cycle which you are in and i have set some very "stretched" goals for myself for end 2017 (not all are listed here):
  • Achieve passive income of $60,000 per year
  • Achieve trading income of $1,000 per month 
  • Travel to 3 new places or cities 
Goal 1 - passive income of $60,000 per year

My eventual target is about $120,000 per year so i am still a long way from this. The idea is to build up a portfolio of bonds and dividend paying stocks. My existing portfolio is projected to generate around $36,000 for 2017 on a blended yield of 6.6%, so i still have some way to go. 

I will probably add more dividend paying stocks and REITs as well as some corporate bonds. I may consider using leverage to achieve this. This is probably a stretched goal but i need to "just do it". 

Goal 2 - generate trading income of $1,000 per month

This is just to keep me in tune with the market. I will use a $100,000 portfolio to trade anything under the sun. Stocks, Futures, Forex. This is of "moderate" difficulty. The difficulty is that i hardly have time to monitor the market due to my travel and work commitments. Let's see if i can meet this target.

Goal 3 - Travel to 3 new places or cities

I aspire to travel round the world one day (need to build up that stream of passive income still) so in the meantime, i will try to visit 3 new places or cities every year. This should be an easier goal. 

CPF Accounts and Mortgage Repayments

I have decided in December last year to stop using CPF for our mortgage repayments. From this year onwards, I will use cash to pay down the monthly mortgages.



You must have read about AK47's CPF account balances. The inspiring post is here. I too, have decided that it is probably better for my CPF balances to earn that 2.5% from government then to "pay for it" myself. As you can see, the interest is $17,933.23. 

Come to think of it, it is probably better off to pay down the amount drawn from CPF then to pay off the bank. Otherwise it is a "double whammy" since bank interest rate is lower and doesn't require you to "pay back" the interest. Wifey's withdrawal from CPF is almost similiar. I will try to pay off my CPF portfolio if i have excess cash and can't find a good use on them.


Ok, that's it for today. 

Happy CPFing

Sunday, 25 September 2016

Exeggcute?


Greetings! 

You must be wondering where Mr. IPO has gone to ... Is he busy catching Pokemons and neglecting this retirement blog?!?


Well... I have been living in a suitcase for the last few months, round the world for work and not for catching Mr. Mime unfortunately... And this is likely to continue for the foreseeable future... Sigh 

The Pokemon eggs is probably an apt picture. It symbolize the state of our IPO market, it symbolize how the bond markets here has "crashed", thereby affecting some of the prices of my bond holdings, it also symbolize that I should be busy "executing" my retirement plan instead (which I am guilty as charged of not doing anything). 

Being all the road all the time is really not conducive for retirement planning and plus the fact that my new set up requires me to seek approval for every single buy and sell decisions is seriously bothering me. I am still figuring out how to execute my retirement plans given the various constraints (including minimum holding period) !

While I am still keen to build up my dividends / income generating portfolio, I am probably more cautious now as the local economy is not doing well. Having more cash on hand is probably not a bad thing (excuses for not doing anything I guess). 

Anyway, I am back, picking up the paces and getting my momentum back to the market, yearning for the day where I can freely buy and sell shares again...

Perhaps I should look at the REIT ETF instead... 

Happy "exeggcuting" your retirement plans ! 


Monday, 20 June 2016

SRS Portfolio as of 31 May 2016

The last 3 months had been very hectic. My life is upside down is probably an understatement as i put through relentless hours of work (including many weekends) to make sure my deal closes. Anyway i will likely be moving on after the deal closes...need a break to blog. lol. 

My last update was for the month ending 31 March 2016 and below are the "actions" in May. 

Corporate Actions for April / May 2016
  • Received dividend distribution of $1,500 from UMS 
  • Sold my Jumbo at 52 cents and missed the remaining run up to 60c (ouch)

Passive Income Update

I first blogged about Moolahsense here on 8 May 2016. As of 15 June 2016, I have received about $312 interest to-date. Let's see if this is sustainable when i do the next update. So far so good.



I also committed some money to a new PE bond issued by Temasek through a bank. This is a interesting concept which is rather innovative and bondsupermart has written two articles on them and the two parts are linked here: Part I and Part II. Interesting to note that Bondsupermart actually allows you to indicate your interest here. Assuming i get some allocation, then my passive income will grow to approximately $35,000 per year. While it is still some way off my target of $120,000 per year, it is definitely inching closer as i create the bond ladder i blogged about here step-by-step.

Happy bonding till we next "meet". 


Sunday, 8 May 2016

Moolahsense - growth of fintech companies



I have been tracking the fintech scene in P2P lending since early last year with a view to invest as an angel investor. 

You can find an interesting article here about P2P lending with a more detailed "Money of the Future" report here

Examples of P2P lending companies in Singapore include:
  1. Capital Match
  2. Funding Societies 
  3. Moolahsense
  4. Fundedhere (for accredited investors only)

  

I think Moolahsense became more "legit" and the "de-facto" leader this year after it reported a tie up with DBS Bank. The fact that a listed company has raised funds through the platform also helped boost its profile. I enclosed the news announcement below:


There has been a lot of brickbat about Epicentre "borrowing" money at 13.5% through crowdfunding but if you bother to look through the actual effective interest rate paid, it is around 7.5% (based on my recollection and yes, I am one of the lenders). You weigh that against the administrative hassle and the time you need to deal with banks and the opportunities are lost. In fact, banks are probably known as people who will lend you an umbrella when you don't need one. 

Why Crowdfunding?

Crowdfunding meets an unique niche within the banking ecosystem with great potential to disrupt the financial ecosystem. This threat is real and it can be disruptive. We already see it happening in United States, Europe and China.

For the entrepreneurs, borrowing from the crowd is probably better than maxing out the credit cards. The interest is definitely more palatable than borrowing from "loansharks", legal or otherwise. These are firms which are too small for our local banks who find them a hassle. 

Through P2P lending, I hope to help some of these entrepreneurs successful.  

For the investors, crowdfunding helps lower the risk as you only lend out small amount of money in return for a higher yield. The yield has to commensurate the risk you take. What investors need is a platform who is reliable in making due diligence on the companies and entrepreneurs who are not crooks. 

It is also important P2P platform will not "run away" with investors money as what happened in China recently. 

My Moolah account

Being the ever "high risk high return" investor who is open to new ideas, I tried out the Moolahsense account this year with a $20,000 initial funding. Have yet to make any "interest" yet as I just started recently. I will blog about my "P2P journey" here over time. If there is a default, I will also let you know. Lol. 


The nominal rate is around 15.05% but the effective is only 8-10%. I will roll over the P+I into new projects and see if the money will compound over time. 

You can watch me from the side and see my "experience" first hand but please don't participate if you have low risk tolerance and definitely don't treat it as an endorsement from me either. It's more for me to share my journey with you. 

What to consider if I want to try out P2P lending?

Well these are the things to consider if i want to try out peer lending :

• it's money that I can afford to lose if any of the companies go bust. Keep to a cap on each loan and spread to many "loans" to get a diversification effect

• invest only in industries which you like or are comfortable with  

• invest in lenders whom you believe will repay you. Most of the lenders are required to provide personal guarantee to the loans they borrow from you. The more guarantors there are, the more "assurance" you have. While lenders who defaulted may not go to jail, it can still be a painful thing for most. 

Happy moolahing. ^_^

Sunday, 3 April 2016

SRS Portfolio as of 31 March 2016

March seemed to be an "active" month for both SRS portfolio for my wife and I.

Corporate Actions for March 2016
  • Sold my position in DBS Bank for a profit of around $3,500
  • Made a stupid mistake to "chase" Jumbo and bought at the highest price of 48.5 cents ^_^ 
  • Contributed $15,300 to both SRS accounts. In case you are not aware, the limit was raised this year. You can read more from IRAS website here.
  • A late entry was a $492 distribution from Keppel DC REIT which i didn't update early.
Including the 2016 contributions, the invested capital for our SRS accounts stands at $189,975. Including the unrealised mark to market values of UMS Holdings and Jumbo, the fair value as of 1 April 2016 is around $208,570.


Passive Income Update

This section is purely our investments made for passive income. It does not include the gains or losses from trading. My target is to hit $120,000 per year at retirement using the bond ladder i blog about here. That will hopefully create a monthly income of around $10,000 which we can use to travel round the world. I promise to blog more about my world travelling plans here when i retire next time)

Mrs IPO applied for the Aspial Bonds which i had a write up here. Since she applied for it, i gave it a miss so that on a combined basis, we are not overly exposed to a single counter. Believe it or not, it was her first "virgin" application. Although the interest income goes to her, i will view it as part of the passive income that i am creating for the family. Hopefully, she will get more interested in investing and spend less time on bags and shoes. :-P

I was also allocated 25,000 shares in the placement tranche of Croesus Retail Trust at 75 cents each. The trust is currently yielding more than 10% but i have to say they used a lot of leverage to get that 10% yield. I will hold it for now since i got it at a really nice price.

Based on our stocks and bond investments, the current projected interest income is around $11,600 per year. Still a long way from our target and most of the income coming in April and October. 

Till next time and best wishes for your personal pursuit for financial freedom.



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