Networth Update #3 - May 2018

I started May with a networth of $123,497.26 and sadly, I ended it lower at $121,628.89 - a decrease of $1868.37 (about 1.51%)

So, a breakdown of the numbers

Robo – Advisors - $22,595.30 increased to $25,509.45

Numbers going up mainly due to the amount I put in monthly (1688 + 588 + 388), another 200+ bucks were from market gains, similar to last month

Indexes - $60,215.13 increased to $60,994.10

Gains of about 700+, about a 1.29% increase...

As mentioned previously, I buy the VWRD and VUSD on a quarterly basis so no purchase this month. 

Tentatively stopped my STI purchases as well, with STI taking about 25-30% of my indexes amount.

Cash - $40,686.83 decreased to $35,125.34

Unexpectedly my main bleed for this month even without the VWRD/VUSD purchase..

Quite a number of unexpected expenses such as Pet Veterinary expenses which was a few hundred, the MIL shopping which was on the wife's supp card.. I agreed to help the wife cover this payment using this account which amounted to almost a thousand.. Wedding ang pao for the wife's cousin.. And apparently the cruise payment and some other payments from last month wasnt completed so the wife's contribution this month was less/negative due to those deductions. Lastly, a $3000 payment/loan to our domestic helper which I won't say more. 

Quite a nightmare when I see the expenses this month *weeps quietly*

I try to perk myself up by saying a huge chunk of the $3000 will be paid back soon and the MIL shopping/Vet expense is a one-off... but there will always be unexpected expenses isnt it?! *weeps quietly again*

To a better month next month... 

For my wife - just in case something happens to me.. Choy choy!

So I was talking to my wife about how to manage my portfolio if in the event I do get into an accident or pass away suddenly (touch wood). She was not very interested to listen as usual as she's not interested to know how to manage finances and stuff.

But I was telling her that she should at least know how to manage it so that in the event something does happen to me, she can at least devote her time to our son (and other children if any) with the insurance payout that she would receive rather than still spend her time worrying about money and work.

So, instead of listening to me nag, she said:

Aiya then you post it on your blog la, if ever needed I will go to your blog and see how you manage our money - you see I so good give you inspiration for your blog

Thus, post today courtesy of my wife.

So dear wife (or kid/s), long story short, if I ever were to pass on, please use take the insurance money and pump it into the following investments:

30% into Vanguard FTSE All-World UCITS ETF (VWRD) on the London/Ireland Stock Exchange
30% into SPDR Straits Times Index ETF (ES3.SI)
40% into ABF Singapore Bond Index Fund (A35)

Once you have done the above, make sure that you re-balance the portfolio annually, meaning look at the value of all 3 funds and make the percentages into 30/30/40 again. 

In the event you really have no clue about how to do the above, please pump your money into Autowealth. Not preferred since it will most/all be in USD, but I guess it's better than not doing anything with the money. 

Once money is pumped into the investments, you can spend 4% of the total amount per year and this should last you sufficiently for the rest of your life. Of course, please be prudent and be flexible with the money if markets were to go down, to be safe I would say just use 3% of the total value per year. 

For example, if you were to get $1.5 million from insurance, you can use $60,000 per year if you use 4% and $45,000 if you just take 3%. 

I'm not currently doing exactly as I say above, but this is because we are still in the accumulation stage. If you do get my insurance money, then just go ahead and do the above yea? 

I hope you don't ever have to refer back to this post cause we always said I will need to be healthier than you and be the one to go later. But, we never know right? 

I love you! :) 

Retirement Planning is Hard!

I recently saw a video from Aviva relating to retirement planning and I'm quite shocked TBH at the things people say in the video (maybe it's staged? Or really got people so daft?).

• 57% of people in Singapore find retirement planning too complicated?
• Is it really that complicated? Just talk to financial advisors if you want to go the traditional route or research online! Personally I think it's just an excuse for people who want to YOLO and spend without a care!

• The YOLO mindset - 'I just spend whatever I have, I'm enjoying my life right now.'
• Is this even responsible adulting? Are these the people who require everyone else to help when shit hits the fan? 

• Hoping to retire from 4D and TOTO? 
• DEAR LORD, I buy lottery too occasionally, but hoping to retire from this without another plan....

• I think my husband should have? 
• What if your husband doesn't? What if your husband leaves you? What if...

• I have some savings plan which hopefully is enough
• Not as bad as the above, but do take the effort to understand more about your plans and how much you really need. 

Maybe that's why the government has to plan for greying population and implement higher minimum for CPF just to ensure there's higher monthly payouts for the older generation? If not there might be hoards of old folks in the future sleeping in the streets if this is really the situation 'out there'. I'm exagerrating but, possible no? 

I'm no expert on this retirement thing, but seriously I cannot fathom people who don't even plan for retirement or even for rainy days. I think that is just irresponsible especially if you have kids or have elderly parents.

How hard can planning for it be?

• Automate a portion of your salary to be transferred out (to an investment [robo-advisors] or even to another savings account)
• Do not touch your investment or this other savings account (not recommended to just leave money in savings account though due to inflation)
• If you cannot control, do not ever use a credit card. Use a debit card and you can spend freely as long as there is money in this 'spending' account

Tada! Very hard meh?!?! Very simplistic way of looking at it, but I guess that's how it should be right? Especially for people who find it complicated....

I'm just some random dude on the internet, so if you don't believe, fine you can read this and also this.
I think it's straightforward enough even though it's US context but I think still generally relevant.

Let's hope more people get wise with money!

Networth Update #2 - April 2018

I started April with a networth of $118,737 and I'm glad that I ended it higher at $123,497.26.

Not that it matters at this point since markets will still go up and down till the day I say bye to mandatory work (and after). But still, feels good to see the numbers go up! An increase of $4760.26 (+4.01%) to my networth to be exact.. 

So, a breakdown of the numbers

Robo – Advisors - $22,595.30

Numbers going up mainly due to the amount I put in monthly (1688 + 588 + 388), only 200+ bucks were from market gains.

Indexes - $60,215.13

Gains of about 1000+, I think mainly due to the strong month STI had.

As mentioned previously, I buy the VWRD and VUSD on a quarterly basis so no purchase this month. 

Tentatively stopped my STI purchases as well, with STI taking about 25-30% of my indexes amount.

Cash - $40,686.83

Numbers should be higher, but we spent quite a bit this month as we are going on a cruise holiday soon which we just paid. Still, its progress! Pumped up a bit by the little dividends from VWRD and VUSD.

Just started tracking my networth consistently and it does feel good and gives me something to look forward to every end of the month! Good to see that there's still progress even though expenditure this month (mainly on the cruise) has been big! 

Guess it helps to keep feeding the machine and don't think too much about it yea? Really makes me wonder about the 40k stash and if I should just pump it into the 'machine' right now...