Author: A Path to Forever Financial Freedom (3Fs)

Portfolio Construction On Ensuring The Sustainability of Cashflow

I received a lot of queries pertaining to the amount of little cash that I’m holding for my investment purpose so I thought I’ll use this chance to explain the thought process on my portfolio construction. Our goal as a family has always been to ensure that we have $5,000 / month worth of passive income in order to reach our definition of financial independence. Working back the maths, this means we would need $60k/year or $1m portfolio at 6% yield. While this amount would give us financial independence, we also know that we needed some sort of margin...

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How To Play OUE Commercial Reit Rights Issuance

It’s been quite a while since we last had an M&A news that involves right issuance hence I think it is time to refresh our memory on how we can play this for interested parties. The proposed acquisition this time is from their own sponsor, OUE Limited, with the acquisition of the OUE Downtown, which comprises of both 50-storey building Downtown 1 and 37-storey building Downtown 2, as well as some retail podium and carpark which they had not too long ago carried out an enhancement work. The proposed acquisition is in the range of $908m, which is a...

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Does Your Equity Portfolio Needs Hedging?

I received an email from an avid reader who is genuinely concerned if the next recession will put a dent on her portfolio which she has been building for years.   She asked if it’s necessary to put a hedging instrument in the portfolio in order to minimize the downside risk of her portfolio given that they are mostly in traditional equities and the nature as such that she is worried her net equity portfolio will go down once recession hits.   While she didn’t specify her age, it appears that she is in the 30s range.   It...

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First Week of My New Work

I’ve finally completed the first week of my new work at a new environment so I thought I’d pen out my thoughts for my own future reference.  My first immediate thought was that the office was far away from where I lived hence the commuting time has to be 1.5x longer than the previous job. By comparison, it also doesn’t help that the official working hour was half an hour earlier and ended half an hour later. Hence, I have to wake up earlier and get home later, even when leaving at the dot. This is what Vicki Robin...

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Should You Guide Your Children To Become Millionaire?

The goal to become a millionaire follows a strict direction guide for most people.  I’ve previously written about the 3 different levers that we may need to adhere if we want to grow our wealth exponentially to the north and they are no different when we are giving advice to our children, except for the part that they may have to study hard first, get a cert then land a good job.  Okay, I admit my still-to-be traditional form of belief when it comes to landing a good job in our small tiny island.  Teaching our children how to...

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33rd Birthday Post – Officially 2 Years To Countdown

It’s been a tradition for me to journal my birthday every year to see where I am coming up short at so I can plan on something to patch up if necessary. This year is no different and the first thing when I woke up this morning, I was greeted by a lovely birthday kiss cheek from my wife and 2 kids and I quickly realized how much I’ve grown up to where I am today. The past years of the edition can be found here: 32nd Birthday Edition – A Year of Milestones 30th Birthday – Officially The...

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How Much Budget Do We Allocate For The Weekends?

It’s been a while since the last time I wrote something about personal finance so I think it’s an appropriate time to revisit. The budgeting concept has been very strictly enforced in my wife and I practice as we know the inportance of keeping things tight within the household budget. The idea is to review each of the category at appropriate intervals regularly and instill a habit to follow them throughout. By the time we get to the stage of financial independence, we hope to be master of our own spending pattern. This week topic is on the spending...

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Recent Action – Sasseur Reit

I managed to squeeze in another purchase this month by accumulating a new Reit in my portfolio, with the addition of Sasseur Reit which I purchased for $0.705 today. The idea bends well with the objective of the portfolio, which is to go in the direction of more to the yield over time. Sasseur Reit announced their 2nd quarter results two weeks ago and had recently gone ex-dividend, so I was glad that I was able to get them today. Total portfolio sales for the announced period from 28 Mar to 30 Jun 2018 was 8.8% ahead of the...

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"Aug 18" – SG Transactions & Portfolio Update"

No.  Counters No. of Shares Market Price (SGD) Total Value (SGD) based on market price Allocation % 1. Vicom 28,300 6.17 167,400.00 25.0% 2. Singtel 46,000 3.11 143,060.00 18.0% 3. Frasers Logistic Trust 126,000 1.07 134,820.00 20.0% 4. M1 75,000 1.59 119,250.00 18.0% 5. Starhill Reit 100,000 0.68   68,000.00 10.0% 6. Far East Hospitality Trust 100,000 0.65   65,000.00 10.0% 7. Warchest – –     1,000.00 1.0% Total 698,530.00 100% Less: CFD Leverage @ 3.2%  (12,810.00) Net Gearing: 0.018x Net Total 685,720.00 100% August was a very good month for the portfolio. While there was ongoing market turbulent...

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Upping Your Game Level – With Margin Financing and CFD

In the spirit of supporting my good friend’s Chris in his next upcoming talk on achieving financial independence with Reits, I have decided to do a blogpost on it which I’ve been wanting to do it but have very little time and interests in the past to do it. If you still have not registered for Chris talk, you can register it here. This is not a sponsored post or anything, so read as usual with your own pinch of salt. Margin Financing or CFD   In layman terms, margin financing or CFD simply means leveraging by borrowing money to...

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Dividend Income Updates – Q3 FY2018

I am writing this dividend update in an attempt to compile my quarterly dividend performance for the year. The theme for this year dividend income updates will be based on my understanding of the advantage of dividend investing and that is to compound dividends for as early as we can, for as long as we live. Time is our friend for this very same purpose. While some may argue that dividend is not everything there is to investing, as they can be easily trumped by other factors such as the larger capital loss, dividend has played a very important...

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How Do You Negotiate Your Next Pay Rise?

As a minor retail investor like myself, income has always been an important determinant over the years as part of our capital size on top of the other factors such as savings rate and capital allocation. It is therefore important that we do equally well in our human capital ability and measure it the same way we did for our investment return as an investor. One way to measure this is through our active income growth rate, i.e the ability to grow our income in the form of sidelines or salary increase either through progression or promotion or pay increase...

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Far East Hospitality Trust – Q2 FY18 Results & Thoughts

Far East Hospitality Trust (FEHT) announced their Q2 FY18 results which was very much under expectations as we saw topline increases 10.2% year on year and DPU increases by 4.1%. The results is in line with my expectations when I blogged about them about 3 months ago which you can find here. If you have attended my recent talk in the Investors Exchange, you would also notice that this is an example of the 6+4 = 10% strategy type, where 6% is their current yield and 4% is their inorganic + organic growth potential. In terms of the portfolio performance,...

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What Should Your Networth Be At 20s, 30s, 40s, 50s, 60s

This is something that I think a lot of people are benchmarking their networth to. Often, I receive email asking if they’ve done good enough by accumulating $X at the age of Y. To be honest, any answer you may get is going to be arbitrary at best because every single permutations depend on many mutual factors that are very relative. What Constitutes Networth? Networth, by its own definition, is very personal. To me, in the local context, networth should consists of all liquid funds including cash, bonds, stocks and gold and also includes retirement social security such as...

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Some Updates So Far

I just wanted to document a few updates so far that are happening right now. I tendered my resignation from my current company which I’ve been working for 6 years now to take on a new role outside the Group. The decision has not been easy to make mostly due to the great knit connection I have with some of the people there. Over the years, we’ve been bonded and through a lot and many of our lives activities surround the same group of people that I spent much time with. Still, I thought if there was a day...

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