Author: Investment Moats

Your Returns if You Dollar Cost Average into the STI ETF

10 years ago, my friend did a form of mindless investment. He thought investing in the STI ETF is a great idea. The STI ETF is an exchange traded fund, that is listed on the Singapore Stock Exchange. It owns a basket of stocks similar to that of the Straits Times Index. The Straits Times Index (STI for short) consist of the top 30 companies listed on the Singapore Stock Exchange. This index is jointly calculated by Singapore Press Holdings, FTSE and Singapore Stock Exchange. When you purchase the STI ETF, it tries to mirror this STI Index, by...

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The Total Returns of Dollar Cost Averaging into Cache Logistics Trust

Cache Logistics Industrial Trust is an interesting logistics REIT that was listed in Singapore around May 2010. Back then, majority of its properties was from CWT, a large logistics company in Singapore. The WALE was 6 years which is a long lease expiry by local REIT standards. However, 6 years later, as the lease are expiring, most of the leases, which was under master tenancy was turned into multi tenanted. This reduces the overall occupancy and the rental income. As of today, Cache Logistics Trust give a dividend yield of 7.1% on my Dividend Stock Tracker. So what we...

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What I think you should do with your Bonus

Ming Feng from Seedly asked me if I have any advice for what people should do with their bonus. So I thought I will share the answer I gave to you guys and gals as well. I often felt that I am in no position to tell you what you should do with your money. You spend the past year slogging to get this reward, so I think you should decide what you want to do with it. However, if you are looking for ways to allocate your bonus in a fundamentally sound manner, then perhaps I can share...

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I Picked M1 for the Budget Sim Only Singapore Mobile Plan

My Mobile Plan’s 24 month contract is up. And now M1 is charging me $37/mth for it. I got to do something about this. As a frugal office worker, who travels from site to site, which new plans and which set up should I pick? My Requirements If you do not know what you want, you will have a hard time figuring out what is suitable to you. I am a frugal budget user. I use only what I need. I need some outgoing calls and SMS as I need to make them for operation and support purpose. I...

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How would Your First $60,000 in CPF Compound Over Time?

This exploration article might be applicable if you are a business owner, freelancer who could build up your net worth faster than a salaried employee. One of my reader went through this thought exploration about the CPF and he selflessly shared it with me. I thought I will share it here as well. The question here is how would your first $60,000 in your CPF grow to in 40 years time? Your first $60,000 in your CPF is interesting as CPF gives you an extra 1% on top of the usual CPF interest on your Ordinary Account and Special...

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Manulife US REIT – Estimating the Forward Dividend Yield After Acquiring 500 Plaza Drive and 10 Exchange Place

Manulife US REIT announced their 3rd quarter 2017 results last week. The 3rd quarter result factored in some of the rental earnings they earned from the acquisition of 500 Plaza in the New Jersey Suburbs. There have been quite a fair bit of activities with Manulife, so it might be rather challenging to visualize what is the dividend yield when all these acquisitions are accounted for. This is my short notes on that. Recall that there have been 2 major purchases: 500 Plaza Drive by way of share placement to institutional investors and small amount of debts. Property is...

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How 1.95% More Interest on Savings Can Greatly Impact Your Wealth

Why do some of my Millennial friends don’t want to go on 2 free trips to Europe? That is a good question. Being the oldest millennial around, I get to work with a bunch of co-workers that are at least 7-10 years younger than myself. I get to see their spending habits but knowing whether they do save money, or how they build their wealth is another matter altogether. 3 weeks ago we went to the nearby Ghim Moh market to have some cheap yet great food. I took the opportunity to ask one of my co-worker which savings...

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Yahoo Finance Data Shuts Down – My Modification to My Stock Portfolio Tracker

The users of my FREE Stock Portfolio Tracker, which tracks stocks that you own by transactions are complaining that their prices were not updating. Specifically, the Yahoo prices on Yahoo Data Ref are not updating. And they were wondering if its my spreadsheet acting up again. The answer is no. If you view the Yahoo Data Refs, you will see something like this. What happens is that Yahoo, which got bought over by Verizon, decided to shut down the Yahoo Finance API, which they deem we are using not legally. It has come to our attention that this service...

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CPF Retirement Planning Roadshow Comes to Seng Kang this Weekend

The CPF these few years runs a few road shows where they bring the concept of retirement and your life closer to you. The games are interactive and there are some freebies to be had, if you go through the stations. This weekend, the road show will come to the north east at Compass One in Seng Kang. It will be held on 4th and 5th of November from 11 am to 6 pm. If you live close by why not take a peek or talk to the volunteers at the road show. Details here...

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Freegan, Dumpster Diving and Financial Security, Independence

I can’t remember well, but… When I was in secondary school I used to do something with mum. We were not very poor then, but money was tight. So I asked my mom whether we could make more money by collecting the pamphlets and papers littered on the floor around the letter box around our old estate in Yishun. If we collect enough, we may be able to make more of how much we usually sell to the karang guni man. My mom accompanied me in these trips late night to stuff a bunch of papers into bags around...

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BIGS LIVE: Quantitative REIT Strategy – the Passive and Active Approach

REITs were supposed to die at this point. 2 years ago mid-June, we have a scare that interest rate will rise. That rate hike didn’t happen. Then 1 year ago the hike started. REITs being interest sensitive instruments, are supposed to be adversely affected in their net rental income and property prices. Yet for the past year, the REIT sector in Singapore have been doing well. On average, we reached a 12 to 16% value appreciation, not to mention getting a 5 to 6% dividend yield. We know this is not always the case, but as an investor how...

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Mapletree Industrial Trust Purchases a Portfolio of 14 USA Data Centres

You got to hand it to these government linked REITs. A few years ago, Ascendas REIT (5.8% dividend yield on my dividend stock tracker) decides to go forth and venture south to the land of Australia. They went in big, by enlarging their short land lease portfolio by 25% with Australia freehold assets. They were able to finance such a large acquisition with a combination of rights issue, preferred shares and debt. The net effect is that they managed to lengthen the average land lease of the portfolio, the WALE, added some rental escalation and diversified the geographical region....

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The 1987 Crash – The Environment, the Parallels with Today and The Experiences

The 1987 crash was so far away. That was like 30 years ago. 7 years after I was born but I have no recollection of it. Our experience with huge market draw downs may be different. For many of us, its limited to the 2007-2009 drawdown. For some of you, your whole market experience was spend between 2010 to 2017 where there were no market draw downs. Going through something like this affects your perception of certain financial assets. It also affects how you set up your portfolio. I get so scarred that I am always in a large...

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How to Reduce the Taxes You Pay in Singapore

How would you feel if you need to pay an income tax of $800? For my high earning readers, you would tell me that its a privilege to pay such a low income tax. But this income tax is a distress to some of my friends. Now I think this primarily stems from 3 reasons: Nobody likes to pay taxes to the government To you, you do not get to enjoy the benefits from paying taxes directly or indirectly They have never factor the need for income tax payment into their budget Now I cannot argue against the first...

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Singapore Private Property Price to Income Shows Valuation Not Running Away

Private housing prices are not cheap but we have been in a 4 year consolidation. Those that did well have increased their income and private properties are affordable for them. Bernard Tong, CEO of EdgeProp has a guest post out in Channel News Asia. In it, he explore the topic of whether the Singapore Private Housing scene is in a bubble. I thought its a piece with some quantitative data that we can snapshot in our mind. To help everyone, here is the points I can distill: Bernard starts off explaining what are lemmings and explores whether Singapore property...

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