Author: Theory of Constraints

CPF Balances Update – January 2020

First CPF Balances update of the new year! It is the end of January with all mandatory contributions and cash top up in for the month. MA new ceiling (Basic Healthcare Sum or BHS) is raised to $60,000 for 2020. OA to SA transfer for the month of January is also completed. SA balance currently stands at $96,990.09, slightly more than half of 2020 FRS or 53.6% of the journey. So for 2020, I raised the bar in my approach to take advantage of the 5% interest rate for the first $60,000 on my child’s combined SA and MA...

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Investing and the future of your CPF in 2020

I was invited as a panelist on 20 January by Samuel Rhee, Founding partner and CIO, and Sheng Shi Chiam, Personal Finance Lead for Endowus, on investing and the future of your CPF in 2020. This is the first step and kickoff of 2020 for TOC in the quest of engaging the masses on raising the level of financial literacy in Singapore. Much more is in the works in upcoming months. The auditorium for this evening was in full attendance, and the crowd was highly enthusiastic in understanding the different ways available to maximise their CPF returns and leverage...

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Regular Savings Plan Update – January 2020

Monthly Allocation for 20 January 2020 as follows , with a $1000 investment amount Counter Quantity Price Investment Amount OCBC Bank (O39) 62 $11.177 $692.95 SIA (C6L) 34 $9.025 $306.85 Total $999.80 Average Price of existing Portfolio counters Counter Total Shares Avg Price OCBC Bank (O39) 246 $11.1347 SIA (C6L) 404...

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ETFs: Fact vs Fiction

Sebastian Sieber, partner for Syfe, reached out to me at Distrii Singapore to hook up with Mun Fai Cheong on “SPDR x Syfe ETFs: Fact vs Fiction” on 14 Jan. Mun Fai by the way, is Vice-President at State Street Global Advisors, for SPDR Exchange Traded Funds (ETFs). State Street Corporation for that matters, is responsible for 10% of the world’s assets and the third largest global manager of ETFs (approximately $715 billion in total global ETF assets). If we can’t visualise what that numbers mean, just know that it is massively HUGE. In recent years, increasingly there is...

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Investment spending to increase by 14% for 2020

Not all “spending” are bad. What I am essentially doing is knowingly forcing to “pay-myself-first” more at the start of salary collection. When I first started out, I mentioned how I took control of every dollar flow out of my Monthly Salary. This was how it looked like for 2019: DetailsPercentage of take-homeSavings fund10%Investment fund30%Child RSP10%CPF Cash topup2%Child CPF Cash topup2%Total54% I’m pretty comfortable with my spending in 2019. In fact, I am upping the ante by challenging myself with an increased allocation in my investment. What it will look like from Jan 2020 onwards. Details20192020Savings fund10%10%Investment fund30%40%Child RSP10%10%CPF Cash...

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A glimpse into TOC’s 2020 plans

To my readers, I assure you that TOC is beyond being alive. In fact, 2020 is getting a little more exciting with the expansion of scope of what is to come. Personally, I have been busy piecing together a few pieces of the puzzles together and map out the direction that TOC is heading in 2020. Some quick updates to keep us hot on our toes. 1. Panel interviews The first one will be this coming 20 January 2020. A special shout-out to Endowus, the host for this event — it will be held at SGX Auditorium. Currently 300+...

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What every personal investor needs to know

For many of the personal investors out there, does it sometimes feel like you are travelling in a dark, winding tunnel or have lost your way? Honestly, I face that at times too. The feeling of losing your purpose is not a good one. However, there are some fundamentals that I have instilled in me, to serve as the safety net or base. 1. Create your personal investment plan. Smart investment has a clear purpose or goal. Do not invest in stocks that does not fit in the plan. 2. Only invest in investment instruments whose risk do not...

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*Update* to CPF Interests Update – For 2019

Being too eager to post the results for the year, some readers were right to point out that the MA cap up to 31 Dec 2019 was $57,200. Revision for MA cap to $60,000 begins on 01 Jan 2020. Therefore, the interests earned for MA account for 2019 would overflow to SA. I checked back today on the 04 Jan 2020 and yes, the overflow has been rightfully corrected. Thanks for pointing this out! MA has $2,264.11 more to go towards BHS. CPF Account transactions and...

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Listen to the Guru

We don’t have to be smarter than the rest; we just have to be more disciplined than the rest. Sounds familiar? This and hundred others come from the wisdom and life experiences of the Greats like Warren Buffet. There are many other gurus — whether it is in investment, money management, living life, philosophical outlook etc. It is pointless to just take quotes at face value. They are more than just good-feel or intellectual knowledge. We should delve deeper, understand them and relate back to ourselves. Internalise the concepts. Practise it. This was how I form my 21 Cardinal...

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Why Investing early matters

I love the Eighth wonder of the world. I adore the power of compounding interest. And as I understood it better, I started to save more of my income so that I could spend more on investment products and grow my wealth further. In mid-2019, I stopped the miles chase. By the miles chase, I was not just charging to my miles card expenses that I would have paid with cash but also spend on more than I would have done. I still charge to my cards though, the difference this time is on necessities and essentials. I wrote...

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CPF Interests Update – For 2019

Every year on this 1st Jan, 5am in the morning, the eager ones take a look at how much interest they earn from their CPF savings and contributions over the past year. A small minority. And I am no exception. I remember ending off Dec 2019 just 3 days ago at: OASAMADec 19$0 $89,763.09 $57,200.00 Interests$368.81$2,854.04$2,264.11 And the interests for 2019 stands at $5,486.96. Not a bad start. CPF Account transactions and balances I carried out the standard OA to SA transfer, and a MediSave voluntary contribution to Basic Healthcare Sum (BHS). BHS for 2020 met! SA balance currently...

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Round-up for Dec 19, Plans for 2020

December was a period of deeper learning and realising the purpose of TOC. In the round-up from Nov 19, I did mention that “more could be done to raise the Financial Literacy level in Singapore via collaboration across the industry”. Going beyond the blogosphere, TOC would be partaking in 2020, targeted engagement with the masses on FinLit education and awareness. This is the first step – it not be possible without working with and standing on the shoulders of Giants in the industry. TOC is looking forward to spend effort on the engagement portion, rather than re-inventing the wheel....

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Review of 2019 Stock Holdings

Nearing the end of the current year, it is a good time to take stock of how my stock holdings have performed for this year. 2019 was the serious start of my investing journey, whereby I strongly believe that every dollar saved could be a dollar vested for X future dollars. Delayed gratification was never a thing I believed in until I witnessed the power of compounding interests. Current portfolio value. The portfolio is modestly valued at SGD$41,928.21. It was only in the latter half of 2019, whereby the turmoil in Hong Kong enticed me to look out for...

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CPF Balances Update – December 2019

It is the end of December with all mandatory contributions and cash top up are in for the month. Last month of the year, and it is probably the month where many people who receives their end-of-year bonuses anticipate, me including. MA contribution overflow to SA continues. OA to SA transfer for the month of October is also completed. SA balance currently stands at $89,763.09. I continue to top up my child’s SA at a very modest sum of $100, something that all parents could consider for their children. SA balance currently stands at...

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Fighting the Highs and Lows

Merry Christmas, readers! So the past few days have been testing. The little one has been down with on and off fever for the past few days. As a parent, you must be willing to spend time, effort and money to both nurse and comfort. It was really tiring for both the patient and the caregiver, a combination of trust and cooperation. It made me realise a few things, both on health and personal finance. Be prepared for the unexpected. Things sometimes happen in life. You may be healthy most of the time, but when you fall sick, it...

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