Author: A Singaporean Stockmarket Investor (ASSI)

Chinese New Year of the Rat 2020. (Of rats and races.)

In a few days from now, my year will be over. We will be going from year of the “oink, oink” to year of the “squeak, squeak”. Good bye to Piggy. Welcome to Ratty! Yes, AK is not a rat. AK is a pig. Unless we are Chinese, saying that we are a rat or a pig would probably sound rather strange or even offensive. However, if are familiar with the phrase “rat race”, then, all adults would have been a rat at one time or another. “The origin of the expression is from laboratory experiments where two rats are...

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Investors eat crusty bread with ink slowly for peace of mind.

Older readers will remember an older blog of mine which asked “How to have peace of mind as an investor?” In that blog, I suggested that we should “Eat bread with ink slowly.” Using mnemonics, it stood for: 1. Emergency fund. 2. Borrowings. 3. War chest. 4. Income. 5. Sizing. If you cannot remember the details or if you are new to my blog, you might want to read the blog: HERE. Actually, there is something missing from the list and I have been thinking of doing an update for a while but long time readers of my blog know...

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CPF fake news and financial prudence.

When we use our CPF-OA money to purchase a property, we must be aware of the opportunity cost that comes with the decision. When we use our CPF-OA money to purchase a property, we are losing out on interest payments made by the government to us. Despite what some people say, we are not paying interest to the CPF for using our CPF savings in the purchase at all if we should sell the property with a capital gain. We are, in fact, paying ourselves interest (to our CPF account) for the CPF savings we have utilised in the...

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Voluntary contributions to CPF in January 2020.

Remember the blog I published two years ago in January 2018? Which blog? This blog: 8 years AAA bond with 2.5% and 4% coupon! I was referring to a AAA rated sovereign bond. Know where to find such a bond? Pause. Pause. Pause. Regular readers will know that I was talking about the CPF, of course. Guess what? This “bond” is even more attractive to me now! Why? It is more attractive to me now because the tenor has shortened by 2 years and the coupons are still 2.5% and 4%! Get the same coupons from the same bond...

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CPF interest earned in 2019. (Make money while you sleep.)

There are people who think that CPF is not real money. Therefore, the interest earned by CPF savings is just a lot of smoke. Well, I think the people saying that are the ones who are producing lots of smoke. Cough, cough. Don’t stand too close to these people. Breathing in second hand smoke is more hazardous to our health than smoking ourselves. If these people stop being emotional and think rationally instead, they will stop misleading themselves. What is worse than being misled by others? Yes, it is misleading ourselves. If our CPF savings is not real money,...

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Made $1.5 million investing for income. (4Q 2019 and FY 2019 passive income.)

Once every three months, my calculator gets more work than usual. Yes, another three months have gone by and this is another quarterly passive income update. As usual, I will share some of my thoughts on some of my investments before I share my passive income numbers. So, please bear with me as I talk to myself. Of course, I know some readers will just scroll down to see the numbers right off the bat anyway. Go ahead if that is what you came here for. You happy can already lah. HAPPY NEW YEAR! :D 4Q 2019 turned out to...

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Understand CPF LIFE and make it work for us. (Size of CPF LIFE payouts depends on a few things.)

I shared in a recent blog on the possibility of withdrawing my CPF savings from age 55. I also shared that my plan is really to let my CPF savings grow and to enjoy a monthly income from CPF LIFE from age 65. See: Withdrawing CPF savings: How much and how? (Maximising CPF-SA savings and returns?) CPF LIFE is an annuity. What is an annuity? “An annuity is a series of payments made at equal intervals.” Source: Wikipedia. “Annuity holders cannot outlive their income stream, which hedges longevity risk.” Source: Investopedia. So, the money we put in our Retirement Account (RA)...

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Withdrawing CPF savings: How much and how? (Maximising CPF-SA savings and returns?)

Although I hope I wouldn’t have to do it, if things should go terribly wrong, I might have to withdraw some savings from my CPF account in future. So, I will have a newly created Retirement Account (RA) at age 55. Funds will be taken from from my Special Account (SA) to make up the Full Retirement Sum (FRS). For those who do not have sufficient funds in their SA, funds will be taken from the Ordinary Account (OA) to make up the shortfall. Of course, we can also intentionally make it so that we have insufficient funds in...

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ASSI celebrates 10 years of blogging! Merry Christmas!

ASSI is 10 years old. Time flies, doesn’t it? If someone had told me 10 years ago what ASSI would become today, I would not have believed him. Worse, I would imagine that he was from some SEO outfit trying to sell me some package of services. :p Yes, I know. Bad AK! Bad AK! “Giamsiap” AK is so terrible. Last year, when ASSI turned 9, I said: “To be quite realistic, one day, I will stop blogging but that day is not today.” I also said: “However, I will probably be blogging less often from now.” Well, this...

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Accordia Golf Trust: Buying cheap and cheaper.

Accordia Golf Trust requested for a trading halt three days ago on 18 December 2019. I thought to myself then that it was probably too soon to release details about the offer. Well, yesterday, they released some information along with the appointment of Daiwa Capital Markets Singapore and Ernst & Young Corporate Finance as financial advisers to look into the offer to buy all of the Trust’s golf courses. I don’t know who drafted the announcement but it wasn’t very clear at all what it would mean for unitholders. The irony is that they called it “Clarifactory Announcement” and...

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CPF can be our best friend in our golden years. (CPF is a bond, an annuity and a savings account.)

In a blog published in February 2019, I said that even if I were to stop doing voluntary contributions to my CPF account then, I would have approximately $1.5 million in CPF savings when I hit 65 years of age. If you are a new reader or if you don’t remember, read the following blog. See: $1.5m in CPF savings by doing nothing henceforth. Why did Albert Einstein call the power of compound interest the “8th wonder of the world?” You tell me. In a more recent blog, I revealed that I was doubling the amount of financial support...

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Smart money exiting US hospitality sector?

This is a blog to share some food for thought regarding the US hospitality sector. It is going to be partly about what I picked up from someone who seems to be in the know. It might or might not explain in part why there were two IPOs of US hospitality assets in Singapore earlier this year. As usual, remember that it is just me talking to myself here in ASSI. Of course, don’t take everything in ASSI as the Gospel truth. It is just my perspective most of the time. The US hospitality sector has grown robustly for...

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Accordia Golf Trust: Reasonable or realistic price?

This is in response to a reader’s question. As it is going to be about managing expectations, I think it is important enough to be a blog. In a recent blog on Accordia Golf Trust in response to a friend’s question as to whether it was realistic to expect an offer price for Accordia Golf Trust’s golf courses which would translate to $1.20 a unit at the Trust level, I explained that although I didn’t know if it would happen, it certainly wasn’t an unreasonable expectation. If you are a new reader or cannot remember why I said that,...

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IREIT Global is going to Spain! Excelente!

In early October, I shared my reasons for significantly increasing my investment in IREIT Global. In that blog, I also said: “I do not know for sure whether the new management team is going to grow the REIT but it is a reasonable assumption that CDL would not have invested so much in the REIT if they had expected it to stagnate.” Well, IREIT Global is growing. Yesterday, on 7 December 2019, IREIT Global did a presentation on a proposed acquisition of office buildings in Spain. It is a portfolio of four freehold multi-tenanted office buildings in Spain, two...

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Eagle Hospitality Trust: His plight and my philosophy.

Since my last blog on Eagle Hospitality Trust, I have not looked at it. I am looking at it again in response to a reader. The reader who invested in Eagle Hospitality Trust left me a comment but requested that I do not publish it so as not to reveal his identity. He bought into Eagle Hospitality Trust at 70c a unit this year in July, thinking that he got a pretty good deal. He bought more when the unit price declined to 66c a unit later in October. That time in October, he invested for his children using...

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