Author: A Singaporean Stockmarket Investor (ASSI)

CPF interest is passive income and real money.

Reader says… We were talking about the CPF during lunch and I said it is good passive income. It is like investing in bonds and getting interest income. Who said that? Who? Who? Ha ha. My colleague said he would not refer to CPF interest as passive income especially interest in MA. He said anyone who says CPF interest is passive income must be twisting logic. He insisted normal people will not think of CPF interest as passive income. AK, you blur or not? I very blur. AK says… You very blur? I more blur than very blur. However,...

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Reduce volatility by having fixed income as we age?

Reader says… Morning AK, as you get older, will you consider to be more defensive in your portfolio? Means shifting more to SSB, CPF etc instead of blue chip stocks for example? Just in case touch wood financial crisis then your portfolio less time to recover. Appreciate your thoughts as always. 😉 AK says… I guess your question is about reducing volatility in our investment portfolio. Well, for most of us, that should be the job of our CPF savings. 😉 Why do I say “for most of us”? Remember my blog on “unless we are very rich”? Too...

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How to maintain lifestyle in retirement?

Reader says… My friend each month spends about $2k on tuition for her only child! 😮 4 tuition each cost about $500!! 😱 Money is a scarce resource for the vast majority of us. What do we do when a resource is scarce? We try to conserve it. That is what the government keeps telling us when it comes to the use of water in Singapore. We should have the same attitude towards money. Of course, if you are very rich and have money sloshing around, ignore this blog. I believe that for the rest of us, we can...

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"Should I give up on my husband?" (Warren Buffett’s late wife saw him as a challenge.)

Reader says… I simply LOVE your blog! However, reading your blog makes me a bit regretful. I got married a year ago to a very kind and loving man. He is very obliging and we never had an argument, ever. I decided he was the one after a short courtship. He is not rich and doesn’t make a lot of money at work but it doesn’t bother me because I earn my keep. I did not think that it could be a problem until a few months into the marriage. He is very caring and sweet but he doesn’t...

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Free income producing assets. You want?

Has it really been 10 years since the Global Financial Crisis? Time really flies. What triggered this blog post? Messages from two readers. Reader #1 says… First Reit dropped quite a bit recently. Not sure if it is due to rising interest rates. Am thinking of buying more for retirement income. What is your view? Thanks. AK says… I have not been paying attention but it is probably because I am not thinking of adding. Reader #2 says… BTW i was looking to increase my shares in first Reit but Cloudy Outlook On Sponsor Ownership for them made me...

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1H 2018 passive income exceeded $96k.

Reader says… I just started reading your blog last week and I am already a fan! Your passive income is amazing! Totaling first two quarters for REITs and non-REITs, you have already exceeded $96k! How old are you now? AK says… Welcome to my blog. :) I am 47 this year. Reader says… Oh, I see. I thought you might be a retiree in your 60s or 70s. A bit difficult for me to reach your level by 47. AK says… When you say you are my fan, it follows that I am your idol. Honestly, I don’t want...

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Free ourselves from wage slavery now.

I have blogged about how someone told me that I should be ashamed of myself. I should be ashamed that I am unemployed although, more accurately, I am economically inactive. See: AK should be ashamed! I have also explained why I worked hard to achieve financial freedom and why I chose early retirement. To put it quite bluntly, I didn’t want to be a wage slave forever. See: Why want an early retirement? What is a wage slave? If we are 100% dependent on our monthly wages to support our lifestyle, we are wage slaves. What does this mean?...

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How to be ready for unemployment? (He took a 50% pay cut but was unemployed again one year later.)

Reader says… I am with you on achieving Financial Independence. It’s a fallback plan in the midst of a super competitive employment environment flooded with Foreign Talents. Government can raise the retirement age to whatever they want but how many companies are willing to offer those above 50 YO decent paying jobs, except fast food outlets and a few others. Speaking from experience on this. Once retrenched, even in our 40s, it is hard to get back the same job. I took a 50% pay cut for a 1 yer contract job and then became unemployed again.  Every year...

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Buy a private condo and wage slaves we become?

Over the years, quite a number of male readers have asked me if they should upgrade from HDB flats to private condos. For some reason, it is always the wife’s desire for an upgrade. I wonder if the husbands were being honest with me. Hmm… I wonder also if there is some truth in the saying that it is easier to sell luxury goods to females than males? Hmm… Aiyoh! Did some (female) readers throw shoes at me? Ouch! Wait, I see some branded ones. Maybe, I can sell these later. OK, yes, I know. Bad AK! Bad AK!...

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2nd update on largest investments in 2018.

This blog is in response to some readers’ requests for an update. Not heavy on reasoning, I will be sharing more in my quarterly passive income updates for both REITs and non-REITs. This would happen end of September or in early October. Patience. For many years, AIMS AMP Capital Industrial REIT was the biggest investment in my portfolio but it has been unseated. It is pretty amazing as this did not take place within the same bracket either. A new bracket has to be created for the largest investment in my portfolio by market value now. $500,000 or more:...

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Money from RHT Health Trust past and future. (We are responsible for our own financial future.)

I want to share an interesting video before starting on the blog proper. There is a lot of wisdom in this 5 minutes video clip and, unless we are born with a spoon made of some precious metal in our mouth, everyone, especially the young, should watch it. 1. Delay gratification (i.e. discretionary consumption), 2. understand the danger of taking on too much debt, 3. save money (that is what 401K means in USA and, for us, it would be the CPF and SRS), 4. start investing early, 5. let time and compound interest work their magic! We are...

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10.5% yield but must take a 200% loan.

Reader says… I have some money in bank and my Relationship Manager is pushing me to buy unit trusts with leveraged. Recommend me to take 100% loan so the yield will be higher from 5% to 8%. I could also take a 200% loan to get 10.5% yield. Good or bad? AK says… Gear up 200%!? Sack your Relationship Manager. Of course, the bank he works for won’t sack him. You sack him! I don’t borrow money to invest with. When you buy a unit trust, the only people guaranteed to make money are your Relationship Manager, the bank...

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Make investing easy by saying ‘here are three things’.

Reader #1 says… I attended few of your “Evening with AK and friends” sessions and like the way you analyse stocks. Can you share how you filter stocks, any key criteria before you put in your shortlist and start going through in details? AK says… Well, I cannot give you a set of criteria. Like Charlie Munger would say: “I can never make it easy by saying ‘Here are three things’. You have to derive it yourself to ingrain it in your head for the rest of your life.” However, I would tell you my starting point. I invest...

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Unfair FRS and ERS’ CPF LIFE payouts compared to BRS’?

Reader says… Singapore government seems to be steering the country to be more inclusive. What does that mean? It means if you have a lot of money in CPF, it will be used to tilt the balance or contribution to the needy individuals who do not have enough in their CPF. As in FRS CPF Life is NOT exactly twice payout from BRS CPF Life. AK says… Of course. People who have greater ability to help themselves should do so and not lean too much on the government for assistance. Reader says… Should do so? Based on? Retirement planning...

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Keep $20K in CPF OA when taking HDB loan. (Growing CPF SA after OA was wiped out by home purchase.)

Just as I was about to publish this blog, I saw the news hot from the oven. “Flat buyers will have more flexibility in using their Central Provident Fund (CPF) money, the Housing Board said as it launched 5,101 flats for sale from Tuesday (Aug 28). “Buyers can now keep up to $20,000 in their CPF Ordinary Accounts (OA) when they take a Housing Board loan. Before, they had to use all the funds in their OA first. “The funds can be used for their monthly mortgage instalments in times of need and will improve retirement adequacy if left...

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