Author: A Singaporean Stockmarket Investor (ASSI)

Retirement adequacy for late bloomers 101.

I have said many times before that we should start saving money and investing for income as soon as possible. If time is on our side, the journey to financial freedom is likely to be less demanding. This led me to say that everyone should start young. The younger we start saving and investing for our retirement, the easier it is going to be. Imagine a 25 year old investing S$650 a month.  Let us say his investments give a 5% dividend yield.  Let us say he re-invests the dividends. How much would he have by age 65? A...

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Longevity should be a blessing and not a curse.

“One in two Singaporeans aged 65 today is expected to live beyond 85, and one in three will live beyond 90. “Tripartite Workgroup on Older Workers to look into whether changes are needed on the retirement age of 62 and re-employment age of up to 67, and if so, when they should be made.  “It will also relook the impact of Central Provident Fund contribution rates on retirement adequacy of older workers.” Read full article: HERE. Reader says… “I know one person in Singapore who could not care less about this review. LOL.” Who? Who? What I want to draw...

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Survivability and opportunity in times of distress. ("E-book")

Be warned. This blog could be considered heavy reading, especially on a weekend. From time to time, I still read or hear people say that an emergency fund is really over rated and that there is no need to have one. Of course, regular readers know that I disagree with this and that I even have an emergency fund that does not only cover 24 months of my own expenses but my parents’ as well (and then some). Bad things do happen in life and that is what insurance is for but if we buy insurance for all the...

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What is worse than growing old and destitute?

I have blogged about my fear of growing old and destitute many times before. Indeed, it is this fear that helps shape the person that is AK and not just in terms of money matters. However, what is worse than growing old and destitute? Today, I had a chat with a fellow blogger: FB: Oh .. I wanted to ask a qn Suddenly figure out the answwr Hahahahaha sorry AK: LOL FB: Was wondering when I buy using CPF, SRS and cash When I sell, how they know which to sell? AK: :o FB: Then I realised I put the option...

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Late showing off CPF OA, SA and MA in 2018.

Reader says… Thanks for sharing your CPF details but those are for 2017. I looked for your 2018 numbers but without success. Could you show me the link? I am a new believer and it is all thanks to your blog! AK says… I thought I shared but I can’t find the blog. Aiyoh, if AK cannot navigate ASSI, no one can. :p So, here are the numbers: If you are comparing the numbers with those from 2017 (here), please note that I did a voluntary contribution in January 2018, maxing the annual CPF contribution limit. This is why...

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Evening with AK and friends 2018.

Many have been asking when the next “Evening with AK and friends” is going to take place? Some have been asking since the beginning of the year. My reply has been that there would definitely be one before the year ends. Many have asked that the venue be a bigger one because the tickets are always sold out so quickly. So, this time, we have booked an event hall twice as big as the last one. This will be the largest “Evening with AK and friends” yet. Hopefully, it is large enough to satisfy the demand. Some have even...

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Investing or speculating in real estate?

Reader says… My friend bought 2 units private condo (District 9-10) last year and early of this year. One for own use and one for investment purposes (still vacant as at to-date). As recently all banks increase the loan interest. Thus, I asked him whether it is stressful to service the two condos. He told me… AIM FOR THE CAPITAL GAIN. WHY WORRY IF YOU KNOW THAT YOU CAN MAKE 300K IN THREE YEARS TIME? Any idea whether Singapore property sure will increase price? See so many en bloc recently, I believe developer here won’t anyhow dump their money....

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This condo investment has also been a drag.

Reader says... A lot of people like to buy property for investment only. I don understand. To get 4% yield is hard on properties AK says… I dun understand also. 😛 4% is a dream… 3% (gross yield) is already very good. 😉 And if cannot rent out, it is not 0% but negative because still must maintain. (Vacancy rate is so high now) 😛 Ask these people to buy Martin Modern by Guocoland, OK? 😛 http://www.martinmoderncondo.sg/ (Yes, I know. Bad AK! Bad AK!) Reader says... My mom 5 years ago bought a condo on impulse. The rental from...

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Time is precious and time will tell.

Reader says… I just read about your post on ST engineering and how it funded your trips etc. See: Mystical art of wealth accumulation. The importance of delaying gratification When I tell people, sometimes they will say “But what if the investment turn out bad how?  “Might as well spend the money enjoy now?”  What will you say to them ah? It happens to me quite often cos I don go travelling and save the money top up CPF, buy reits etc Thank you as always. 🙂 AK says… Someone on my FB wall just said CPF is PONZI...

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CPF is all we need unless we are very rich. (Why did AK build his CPF to the significant sum it is today and still building?)

Don’t trust AAA rated Singapore government bonds and trust some people who say investing in wine or paintings is better? Oh, puh-lease lah. Many or most Singaporeans do not realise what a good thing the CPF is. This is the truth. Many do not trust the CPF but are willing to put their money in alternative investments. It just boggles my mind. The CPF will help us secure a measure of retirement funding adequacy because we will retire with 1. an investment grade bond(excess beyond prevailing Full Retirement Sum can be withdrawn at age 55) and 2. a lifelong annuity (CPF Life) that pays...

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Could we be financially free by investing in Singapore only? (PART 2)

Reader says… Notice that you only has local sg shares for income. Any reasons why not consider overseas shares to avoid the standard “home bias” portfolio allocation? AK says… Singapore has ample investment opportunities for the income investor in me. This is partly also because I am not managing a large multi-million dollar portfolio. I am not so rich. 😉 And it helps that I am not too greedy. 😛 Reader says… But does it mean a lack of diversification in non sg assets? AK says… If you want geographical diversification, you can always put money in counters which...

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"My wife says I should have balls of steel like AK."

Reader says… I invested in Comfort before you but sold when stock price dropped so much because I thought would drop more. Then, I could buy back at a lower price. Till now, I am still waiting to buy back. My wife told me I should have balls of steel like AK. Haiz. How you do it? AK says… Alamak. Balls of steel? Sounds heavy and probably painful to walk around with too. They might also rust and would need polishing. Aiyoh, sounds like work. I don’t like pain and I don’t like work even more. Don’t curse me leh. Seriously,...

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Use CPF OA or cash to pay for HDB flat?

This is something I have blogged about many times before but I want to remind readers that I am not telling them what they should do. It is really up to them. Take into consideration our circumstances and our beliefs before making a decision. Your flat. Your CPF. Your cash. There are many questions we must ask but, ultimately, there is one question that would determine if we would have peace of mind and it has to be asked. Reader says… I would tink paying for my hdb with oa would free up my cashflow for taking on more...

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Topping up our CPF savings can wait for some.

Reader says… Thank you for providing clarity on my current situation. I will stop using my CPF OA for my mortgage payment, since my rental is able to cover this obligation. To date, I have used about $87K of CPF for my property purchase ($85 plus K for principal and $1 plus K for accrued interest). If I have limited cash at my disposal, am I correct to say that I should first prioritize repaying CPF the amount of money used for my property purchase, so as to reduce the amount of accrued interest which continues to grow as...

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Nominated to be CPF’s ambassador?

Reader says… I wanted to let you know how inspirational your blog has been. I have been a quiet reader of your articles and have learnt so much from you regarding the benefits of using CPF as a cornerstone of my investment portfolio. I was recently called by CPF to share my experiences as a regular user of CPF top up and the mobile app. The officers were very impressed at how savvy I was in using the top up schemes for myself and loved ones like my spouse and parents. I shared my own experience of topping up...

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