Author: A Singaporean Stockmarket Investor (ASSI)

3Q 2017 passive income from non-REITs.

I continue to invest more in non-REITs, reducing my reliance on S-REITs for passive income in the process. The largest investment in non-REITs in 3Q 2017 was in SingTel. See: SingTel and Netlink NBN Trust. I accumulated a relatively large investment as SingTel’s share price declined to below $3.70 a share. I am more interested in the entity’s ability to pay consistent and meaningful dividends although a special dividend from the sale of Netlink NBN Trust would be a nice bonus. In 3Q 2017, I also nibbled at the following: 1. Wilmar. 2. Tuan Sing Holdings. 3. Comfort Delgro. As...

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"E-book" on AK the investor in 7 chapters.

Over the years, I received several requests from the media for interviews. Due to the fact that I would only do these interviews in disguise, these interviews did not materialize. I am a very private person. There is no reason good enough for me to sacrifice something as valuable as privacy. OK, maybe, if someone were to offer me $1 million, I would consider. I am only half kidding. Seriously. Anyway, when I received another request recently and apparently this is going to be a campaign in collaboration with Temasek Holdings, I offered them a series of blogs that...

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Technical analysis of ComfortDelgro.

It has been a long time since I shared a technical analysis (TA) here in ASSI. I used to do a lot more TA when I was trading more actively but I have not been trading as much for quite a while now. Alamak. You don’t believe me? Why? AK is lazy? OK, you win. I too lazy to defend myself. ;p Anyway, since I haven’t done this for a while, I am probably rusty. Looking at the chart, it should be obvious that the trend is down. However, what is more noteworthy is that the downtrend is a...

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An incomplete analysis of ComfortDelgro.

Retail investors have limited resources at their disposal and very rarely are able to do a thorough analysis of any business. Time is one of those limited resources. OK, I admit. I am lazy and I want to spend more time watching anime, K-drama and playing MMORPGs. Bad AK! Bad AK! Anyway, like what I have done in so many other instances in the past, I just zoom in on what I feel is the crux of the matter and try to make a decision based on what gives me peace of mind. The biggest problem facing ComfortDelgro now...

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Decline in Soilbuild REIT’s DPU likely.

In its 1H FY2017 report, Soilbuild REIT’s management said that the biggest challenge they were facing was to lease the entire space at 72 Loyang Way because of the weak oil and gas sector. Now, they are going to have to deal with 2 hot potatoes instead of 1. NK Ingredients, one of the REIT’s top 10 tenants by revenue, has defaulted and the fact that they accounted for almost 6% of Soilbuild REIT’s revenue is going to hurt. The loss might not be as traumatizing this round but to be hit by another loss before being able to...

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Cromwell European REIT cuts IPO size.

Earlier this month, when I blogged about Cromwell European REIT, I mentioned that the sponsor, post IPO, would be holding a rather smallish stake in the REIT. To me, it seems as if the REIT is a place for the sponsor to dump their rojak portfolio. “It gives me the feeling that the sponsor wants to dump everything into a pot and be done with it.” (See related post at the end of this blog.) Well, things have changed. I don’t know why but it seems that they have decided to shrink the size of the IPO and the sponsor...

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"Is this ILP good for my mother?"

Reader: My mum’s insurance agent sent this. Would you consider this ILP? It’s also being marketed at an event at the sports hub… AK: Generally, I would say to anyone not touch ILPs even with a 5 feet pole. However, ILPs are especially unsuitable for older people as the cost of life insurance jumps after age 55 and from age 60, it becomes very costly. This is because mortality risk increases as we age. In an ILP, the cost of insurance is deducted from the policy value by selling units. As we age, the cost of insurance goes up...

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Bribed to buy a diesel car and regretting now.

arlier in March this year, I blogged about how I could sell my car for a higher price when the Vehicular Emissions Scheme (VES) is introduced. This new scheme replaces the Carbon Based Vehicle Scheme (CEVS). The VES will come into effect in the new year and we will see some vehicles which used to enjoy green rebates from $5,000 to $20,000 being slapped with surcharges of up to $20,000 instead. My car, for example, will go from receiving a $15,000 green rebate to being slapped with a $20,000 surcharge. That is a $35,000 difference! Many car models which...

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When to get a private annuity?

Reader: Been reading your blog for a while now and wanted to ask you what do you think of XXXXXXXXXXX as a retirement plan. My financial consultant suggested this (product) to me recently but I wanted to get a second opinion on this. Could you talk to yourself about this please? AK: As a retirement plan, there is nothing out there that can beat the returns offered by CPF Life. Unless I have maxed out my CPF account, I would not consider putting money in a private plan. http://singaporeanstocksinvestor.blogspot.sg/2015/02/an-annuity-would-you-rather-have-it-or.html I have done a case study of a private plan...

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Cannot do this in Singapore because…

Most of us are amateurs when it comes to anything that has nothing to do with our full time job. It stands to reason. However, even if we spend hours each day doing something, we might not be very professional about it. So, we could remain amateurs. This stands to reason too. AK is an amateur this and an amateur that in retirement. I do the things I enjoy but I am not necessarily good at them. It is about having fun and not making a living. So, I am not going to set professional targets or high standards....

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Reduce home loan with CPF OA or do OA to SA transfer?

Reader: I have an existing HDB loan of 270k over 30 years with my spouse and we are deciding whether we should try toreduce the loan amount with our CPF OA or transfer some to CPF SA. Objective is to pay the housing loan – debt free and to have a good retirement amount at 65 (hopefully to hit at least 500k in CPF). We are 35 this year and we have around 80k in our CPF OA each with around 30k in CPF SA. Hope to get your kind advice on this! AK: When we use our CPF-OA...

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Small savings might not add up to big money but…

It has been a while since I blogged about my money habits. Readers who have been following my blog for a long time might remember the blogs on packing lunch to work and not buying drinks when eating out (and definitely not from Starbucks), for examples. For sure, the blogs did not sit well with everybody and I was even labelled a person with a peasant mentality (or a person with a “poverty mindset”) in wealth building because of them. Well, I hope people who don’t like my money habits don’t read this blog. Wait a while. Filtered. Still reading? OK,...

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Cromwell European REIT IPO.

Cromwell European REIT is a mega IPO that will raise S$ 2 billion. I looked at the distribution yield first. 7.5% (@ 57 euro cent per unit) to 7.7% (@ 55 euro cents per unit). Then, I looked at the gearing level. 34.3% to 36.6%. It would have been better if it were below 30% but it is not excessive. Then, I do what I do pretty often which is to compare with other REITs in the same sector. Alamak. This is where the problem lies. This REIT has a rojak portfolio of 81 retail, office and light industrial properties...

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"Retrenched with almost zero compensation in my late 40s but…"

Serejouir said… Hi AK,  I am a long time reader of your blog and felt compel to write in and share my own experience after reading about the reader who was jobless for almost a year.  I could not agree with you more on living prudently, avoiding unnecessary debt and investing in income generating tool. To add to that, we should also make an effort to to build up transferable skills. I’m in my late 40s and single, earning $8-9k a month. I was retrenched in Nov last year, a week before my 25th year anniversary with the company, with almost zero...

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Total and Permanent Disability (TPD) Insurance.

Reader: Won’t you be also concern for yourself? The TPD part. Medical is already covered for everyone aka Medishield. I believe most people say not afraid to die, but afraid cannot die. AK: Why should I be concerned? Reader: Sick and disability. I imagine this 2 are for everyone to think about. Sorry I don’t mean to pry. But sought your thoughts on what’s necessary to insure for own self. If not necessary one then don’t have to pay for it. AK: If we have dependents, we need life insurance. Buy term. We also need the following: For hospitalization,...

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