Reflecting on 2018

As we draw closer to the start of 2019, I thought it would be nice to reflect on lessons learnt and think of how I could improve on those in the coming year.

A) Increase ongoing annual savings by 10,000 over 3 years (2018-2020)

On track . Reduced recurring expenses by about 500 per year, and if I complete the course to quit smoking, that would probably bring cost reduction to 5,000 per year.

The other part of this was to increase passive income from interests and dividends, and I think this went a little lower than what I would have liked at about 1,500 YoY.

Overall, I think I won’t change the 3 year plan but I will need to start planning out how I could obtain this goal for 2021 to 2023. My long term desire is to keep cost reduction efforts towards reducing wastage and unnecessary spending - instead the long term goal should be to grow passive income to defray expenses.

B) Preparing for rainy days

Somewhere there.

At the moment, I guess risk of retrenchment is moderate, and my sense of where the markets will go is… frankly anybody’s guess.

My hunch is the real fun will start in 2020H2, and my free funds look pretty small. Hence, I have made some switches to stash some cash and strengthen the reserve buffers.

I have tweaked my OCBC savings goals to more of an envelope budgetting system to systematically allot money for different purposes. The three main buckets are Rewards, Rations, and Reserves.

I feel more relieved and at ease now that I have some sort of plans. Even though the coffers are less than what I would have wanted, but I believe its a step in the right direction.

C) Getting better at investing?

LOL, seriously I don’t know.

At the end of H1, I was very disappointed with the returns on the SRS portfolio (I still am). I made the tough calls to exit some loss positions (I am glad I did, or the ytd returns would have been worse off by another 5%? )

I did a bit more homework since then, but I do feel its probably not enough. There was once I did quite a lot of read up on F&N and I was quite happy with the analysis I did over two hours. I would like to repeat this exercise for my investments which are than 5% of the total portfolio, before I undertake portfolio rebalancing.

On portfolio, I would still like to keep the no. of counters (other than SSBs) to 18 or less. Balancing between doing homework, and cash constraints, less counters forces me to reach for the better low hanging fruits. Where’s the bad in that?

Here’s to a great 2019!!

Read the original post here:

I personally feel it will be important to assess if you are getting closer to your investment objective. If not, it is probably time to review the strategy and/or revise the objective if the new strategy is too risky.

think i am satisfied with the ytd returns which seems to be -3.1% overall.
my main objective is to grow the dividend income till its about one to two months of salary per year, so not there yet, but i think its somewhat on track.

greed and obsession won’t get me there. slow and steady seems better.
for 2019 my focus is on slowly rebalancing the portfolio through the monthly investments, and occasional buy / sell.

although my srs returns look bad, i have another 20+ years to nuture it so I am really not that concerned. in fact, looking at my divestments for the year (Aspen, First Reit, QAF, and Accordia), I really managed to cut a lot of loss. Had I not done that, I can’t imagine…

Hi TS,
1/6 of annual income is a good start => if based on a 5% yield, you will need a capital that is 3 times your annual income. It will take a while to accumulate. So, don’t lose heart along the way, hang on and persist on your journey.
For SRS, I will be using for SSB now :slight_smile:
Now that our government has moved the limit of SSB up, it has set a precedent that it will do so if the demand from public is there. I see the limit moving up progressively every few years and thus my annual SRS will most likely to be going there in future.
Talking about those stocks … QAF, Accordia … heartache. Let’s see if the market will be kinder to them this year.