2020 Wrap-up

 What a year 2020 has been. Honestly, I think this year epitomizes the meaning of trials and tribulations. It was the year my wife and I welcomed our LO into our lives and she has been a bundle of joy and energy. But the year has also been challenging with the pandemic and changes to our working arrangements and environment. We are just thankful and hopeful that as we enter into 2021, the situation around us will improve and we will progress steadily towards normalcy.

We received $1135.84 this year in dividends. As we move towards 2021, we are looking to double this amount which would mean receiving ~$200 per month. Honestly, this is just one part of our portfolio and we do not mind the slow and steady progress (as long as there is progression).

We also did some tax optimization by doing some CPF voluntary top-ups. I am grateful that my wife sees value in doing this and planning for our family's future. She has made this journey towards financial security and eventually/hopefully independence is made easier and more enjoyable.

We will be going on a staycation sometime next month and will be doing a mini family-finance retreat as part of it. I am still working on the worksheets that will be made available to everyone who is interested. I feel that as a couple, if we understand what are each other's strengths and weaknesses when it comes to financial planning and spending patterns, it will make the relationship a lot stronger.

In my next post, I will be updating on our 2021 investment direction and strategy. No we won't be going into active trading but we are looking at stocks and ETFs that will grant us some growth and overseas exposure.

Here's wishing that everyone stays safe and healthy as we usher in the New Year!

SG FI Dad, out.

Thoughts On The Recent Market Correction

 

Mr Market recently went on a correction spree and the market was filled with way too much red in the last week or so. That got me thinking, how do people react when such things happen? Do we panic and go into a selling frenzy? Or should we take a step back and try to think rationally about the initial reasons that we bought into a certain company in the first place.

Reading the thoughts of other finance bloggers and users on apps like InvestingNote really puts some things into perspective. I think it is only human to panic and feel some emotion when something that you are vested in takes a hit/plunge. But going beyond that, the fundementals of the company and the track record of its management should provide us with some assurances to tide us over this period of volatility. I am definitely not immune to being scared and have a support system of people I trust that I can turn to for their opinions and absorb alternative viewpoints so that the final decision made is as informed as possible.

Going forward into the month, I am planning on creating a worksheet for couples (married or not) to approach the topic of money and finance in Singapore's context. If you have anything you want to see in this, please holler at me or drop me a comment and I will take your suggestion into consideration.

Share with me your thoughts as we enter the last two months of 2020!

SG FI Dad, out.

ICYMI: Google Pay Promo and Upcoming 11.11 Sale!

Great news! Google Pay has extended their current promotion for new sign-ups. 

You can sign up through this link and get $5 for free! You just need your phone and download the Google Pay application. There are other offers and rewards inside. To check out a step by step guide on setting up your application, you can refer to my older post here.

In other news, 11.11 is coming up (in exactly a week's time) and this is usually when I look around for some deals for the LO and my wife. One way you can save is by using cashback applications like Shopback! By clicking on the link, you can receive $5 (with a min. spend of $20) Shopback has been one of my go-to apps because it has a really extensive list of retailers and shops and this is not limited to only online retailers. 

Share with me your other promos and tips for the upcoming 11.11 sale!

SG FI Dad, out.

Importance Of A War Chest

 

War chest is a probably slang in investing terms for cash reserves set aside or built up over time to take advantage of certain opportunities that present themselves. As a novice investor (not experienced yet lah, still got some ways to go), I think that my inexperience has led to an oversight in this area and we need to build up this capacity moving forward.

I must stress that this is my opinion, and I believe that cash has an equally important role to play in anyone's portfolio. It allows an individual  to plan out how to tackle certain situations that arise in the markets and really put your money to good use given the right opportunity for you.

In our current situation, we have used some of our available cash to apply for some of the recent preferential offerings that happened such as Frasers Centerpoint Trust. We think the FCT presents a good opportunity and good management as we move forward in this crisis. Hopefully, this moves pays off in the long run. We also hope to find more opportunities in the near future to expand our portfolio and make our money work harder.

Share with me your thoughts of having cash in your portfolio.

If you are a little kiam siap like me, check out this link to get $5 for free potentially!

SG FI Dad, out.

ICYMI: Google Pay Promo

 Just a quick heads-up to everyone who might have missed out on the Google Pay promotion. You can still get CASHBACK when you Paynow your friends or family! This promotion has been extended to 31 Oct and hopefully it continues.

You can get $5 just by signing up with your phones here! 

1. Follow the steps in the set-up guide.
2. Check that you have opted-in for Offers and Rewards when prompted; You can double check this under settings by clicking through Profile→Settings→Offers and Rewards→Toggle on Opt-In.
3. Make a payment of at least $10 through the Google Pay App.

This $10 payment can be sent to your friends and family. After you received the $5 cashback just get them to send it back to you via the App. Best of all, this is all done via Paynow and the process is very quick.

You can also receive up to two scratch card rewards for doing 2 PayNow transactions of at least $10 to two different friends/families via the Google Pay App. This scratch card may award up to $15! I have not been that lucky and received a total of a few dollars so far (free money, just take). Just repeat this process till the end of the promo (31 Oct) every week. It can be the same few friends that you transfer to. Just a quick reminder that Google's week resets on Monday at around 830am.

Remember you can sign up through this link and get $5 for free!

Share with me your other promos and tips!!

SG FI Dad, out.

StashAway Report Sep 2020

Looking forward to the last two months of the year. Typically, this signals lesser activities at the workplace and I am looking forward to this downtime to experiment and tinker with some ideas at work.

We continued our DCA strategy with StashAway. As mentioned in one of our earlier posts, we will likely increase the amount in StashAway or some other Robo-advisors in the next year to gain more exposure for 'growth' instead of pure dividends-focus.

I have been using StashAway since 2017 but the contribution has been on and off then. More recently, we have made it a critical component of our portfolio as it provides us exposure to the overseas market. We have 5 portfolios across 2 accounts as we like to set different goals with different timelines.

Statement as of 30 Sep 2020:

Our portfolio thus far is valued at $10,481.11. There was some downward movements this month ($190.08) probably due to the uncertainty/volatility in the US.

If you are interested in getting started with StashAway, you can check out my link here to sign up. We both get up to $10,000 SGD managed for free for 6 months. Win-win!

Share with me your thoughts and comments on if you have robo-advisors as part of your portfolio! Stay safe everyone!

SG FI Dad, out.

A Personal Reflection on Covid-19

I recently read a couple of articles/posts here and here detailing how some high income earners have been badly hit by Covid-19 and the subsequent retrenchment/organisational restructuring. My well wishes goes out to those who were interviewed in the TODAY article as well as anyone who maybe facing the crunch now during this pandemic. 

It is unfortunate that the aviation and travel industry are so badly hit during a black swan event, such as Covid-19. Travel restrictions have really put a dent in demand with SIA even having more than 80% of its fleet in idle at one point of time. When the demand for one's skills/expertise is reduced, it is inevitable that the organisation/business will have to restructure in order to stay viable.

This situation has really put into perspective the importance of having an emergency fund and keeping expenses manageable. One of the pilots that TODAY interviewed was earning above $14,000 but was struggling to make ends meet when there was a company-wide pay cut to $6,000. To a middle-income earner like myself, I could not comprehend their struggles initially. However, it is always important to take on the lens of those affected. Imagine yourself earning that much, it is easy to feel that you can take on the world and whatever expenses you deem fit. One may start chasing status symbols like luxury cars and goods and you might want to experience the best there is to offer. The constant need to look good and appear like you are doing well will eventually take a toll on the individual and his/her resources.

The simple solution is really to limit one's expenses and not make social affirmation one's priority. Everyone is on their own journey and there are not hard and fast rules on how someone should/should not spend their money. But contingencies should always be in place such as emergency funds, a equity portfolio and upgrading/diversifying of skills. However, situational and cultural factors are not so easy to overcome. 

I am grateful that I have had the chance to take courses throughout this period to expand my horizons and diversify my skillset. I am always looking out for courses that might be interesting and to learn something new maybe even from a different industry.

That's it for my tiny reflection. Share with me your thoughts on how one can overcome such situations and what you have done to future-proof your skills.

SG FI Dad, out.