Author: Investment Moats

Some Brain Farts can Cost you $3.5 million, slowing down your F.I Journey

I never had brain farts that cost me dearly monetary wise for some time (touch wood). Brain farts, for those that are not acquainted with the term, is some temporary mental lapse in judgement. I think the closest was in 2009 January. That was in the midst of one of the greatest financial crisis of our time. I decide to spend $2,107 on a STI put warrant. The idea was to hedge my downside exposure for the portfolio. Given that is the objective, if I lost money on this, at least it means the rest of my holdings would...

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The AXA Retire Happy Plus Increasing Payout Retirement Plan

I am going to cover some of these insurance retirement plans, since I have the resources to do so. I am doing this in order to let readers see it from my perspective. This is so that, if you met up with an adviser and this is put in front of you, you got another way of looking at it. Since I written a whole section on retirement planning & financial independence, it does make sense for me to view these plans, putting those considerations in mind. AXA Retire Happy Plus belongs to a class of limited payout retirement...

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The Feared Inverted Yield Curve is Often Useless

Yesterday, I posted the latest yield that you can get if you purchase the Singapore Savings Bonds. And a few readers main comment is that the yield curve is inverting and we should be careful. As you can see from the 1 year and 10 year SGS bond yield, the yields look to be narrowing. And if the yield inverts, it is a really bad thing. I think there is validity about respecting the yield curve, but as an indicator, it might not be the most reliable. My understanding of the yield curve The yield curve shows the prevailing...

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Singapore Savings Bonds SSB Jan 2019 Issue Yields 2.45% for 10 Year and 2.01% for 1 Year

Here is a higher yielding, safe way to save your money that you have no idea when you will need to use it, or your emergency fund. The January 2019’s SSB bonds yield an interest rate of 2.45%/yr for the next 10 years. You can apply through ATM or Internet Banking via the three banks (UOB,OCBC, DBS) However, if you only hold the SSB bonds for 1 year, with 2 semi-annual payments, your interest rate is 2.01%/yr. $10,000 will grow to $12,474 in 10 years. This bond is backed by the Singapore Government and its available to Singaporeans. A single...

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Could we Model Our Retirement Spending like Endowment Funds?

If you are planning for your retirement, you will approach your financial planner to help you plan how you can systematically spend down your wealth. Your goal is probably to create a stream of cash flow that can meet your retirement expenses and perhaps, leave a sum of money for the next generation (we called this the bequest) In the past, I have written about planning for retirement (RET) or financial independence (FI), how much you need, how do you know if you are ready, and what are some ways to systematically spend down your wealth. I consolidated them...

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Would it be Possible we need to Save Much Less for Retirement?

Suppose you need to spend $40,000/yr the next year for your family. Based on the proverbial 4% Safe Withdrawal Rate, you would need to accumulate $1 million in order to seriously think about whether both spouse could both retire or not. The 4% withdrawal rate is tested through historical rolling 30 year periods, on a 50% equity 50% bonds allocation. 4% gives a high probability your money would last 30 years. It is inflation adjusted and therefore preserve your purchasing power. So could we use this to evaluate we are ever ready to not work? In yesterday’s New York...

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A Bunch of Higher Rate Deposits and Singapore Life’s 3 Year 3% Endowment

Singapore Life came up with a 3% insurance savings plan with a 3 year duration. And judging by what the bulletin I received says, they should meet the target before the deadline of 29th Nov (tomorrow). Compared to the Temasek T-2023 bond, the duration is shorter (versus 5 years), and the yield is higher (versus 2.7%). The rating of the firm behind the bond issuer is lower though. I think this will become a Singaporean saver’s past time, to see how many of these short term, higher yield insurance savings plan they can pick up. Generally, Singaporeans are still...

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Thoughts on Keppel Infrastructure Trust’s Ixom Acquisition

Keppel Infrastructure Trust (KIT) is the merger of K-Green and Cityspring in the past. K-Green is very clean, no debt but its assets are concession based and the highest contributing had a concession of 10 years. Cityspring turned out to be 50% leveraged and didn’t performed as what retail investors thinks it should. Worse, they made an acquisition in Basslink in Australia that was nothing short of a disaster. So the merger of K-Green and Cityspring helps both sides, in that it gives the entity a “longer WALE” and less leverage. KIT just announced that they are proposing to...

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Keppel KBS US REIT makes another Acquisition, boosting Dividend Yield to 10.5%

Today, Keppel KBS’s shares from the rights issue starts trading, and we have an announcement this morning that they made an acquisition. This is not new, as there were some warm rumors that the Westpark acquisition was not the only acquisition. Keppel KBS would be acquiring Maitland Promenade I from The Realty Associates Fund X, which is an unrelated third party. The acquisition will come up to US$48.5 mil. This is much smaller compared to the previous acquisition. My initial question would be that, back in my article about Keppel KBS’s rights issue and withholding tax debacle, KBS set...

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Could that $1.2 million Whampoa HDB Terrace used more as Home Office?

On 21 November, Channel News Asia reported a record sale for a HDB Terrace. The terrace home in Jalan Bahagia, categorized as a 3 Rm HDB Terrace, was sold for S$1.185 mil. The home is 237 square meter and its land lease has only 52 years left. Much of the discussion about this transaction is how stupid are Singaporeans to pay so much for this terrace home. When I first heard about this, I thought it is still workable. It does not sound like this terrace was purchased by a buyer who do not know what he or she...

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11 Deeper Things I Learned about Manulife US REIT

Manulife US REIT announced their Q3 2018 result not too long ago and generally, it is not filled with surprises. However, much of the attention was taken away from the results, the focus being on its falling share price. The current share price (2018 Nov 23) is US$0.77. If we annualized the adjusted DPU of US$0.0152 we get a dividend per share of US$0.0608. The dividend yield is 7.89%. Rather juicy. In my opinion, the share price was weigh down by a combination of Rising interest rate environment generally challenging for REITs Volatile stock markets these few months Fundamental...

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Automatically get Yahoo Finance End of Day Stock Price in your Google Spreadsheet

Everyone have their own way of tracking their own wealth portfolio. I have my way as well. Some years ago I created this Google Spreadsheet called Stock Portfolio Tracker which allows you to track your own stock portfolio by transactions.  I put my own portfolio out here as a demo of its capabilities. Did I tell you the Google Spreadsheet is FREE with no strings attached? You can get the spreadsheet through that link above. One of the beauty of the Stock Portfolio Tracker is that it allows you to update the stock price automatically.   In my stock...

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If a Singaporean eats out Everyday for A Year, He could spend $17,000. Zhun Bo!

Shopback conducted a poll on Singaporean’s spending habits over the past 3 months (Oct 8) and concluded that Singaporeans spent the most on food and beverages. Singaporean’s spent more on food then children’s tuition, their vehicle and their home? Are you really sure about that? The survey polled 700 Singaporeans, different age groups, different monthly income brackets. The poll was made up of 65% female to 35% male. 27% earned less than $3000/mth. 38% earned $4000 – $5000/mth. 35% earned more than $5,000/mth. Or is it that Shopback’s sample is not representative of all Singaporeans? And they made the...

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A Recurring Cash Flow Gift of $28,000/yr Showed Us Financial Security in Action

Imagine you are 38 year old. You hate your job. You been working in this industry for the past 14 years. Having been in this industry for some time, you realize that you have hit a plateau in your scope of work. If you move on to another job, you be subjected to the same stress, just that the amount of work, responsibilities would be slightly different. If you stay in the current company, 6 months down the road, the management will make the decision on where the regional technical office will be: Singapore or Malaysia. You tell your wife...

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Asian Pay Television Trust (APTT) Dividend Yield Cut from 20% to 3.8%

I always had one eye on Asian Pay Television Trust (APTT). So did some of my friends. It is the ultimate Financial Independence Porn Stock. Why is this so? To find out how much you need for financial security, or financial independence or retirement, you can read my article here to determine your number. From the article we get the following formula: Wealth Required for FS/FI/RET =  Annual Expense / Rate of Return of Your Wealth Machine(s) to Generate Cash Flows for FS/FI/RET APTT pays a quarterly dividend and the last guided dividend was $0.01625. Annualized the dividend is $0.065. The price...

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