Recent thoughts and goals

I have been reflecting lately on the different goals I have set out a few years ago after receiving a sudden awakening on financial independence back in 2017. Here are some updates, thoughts and future targets.

Initial Goals

I remember vividly the first few dividends income received which was in single or double digits and compared to what the online OG financial bloggers whom were willing to share their updates on their journey, what was ideal seemed so far. But having trudged on (at a very slow pace), whatever small targets I set internally has been achieved. The taste of victory is definitely sweet in this aspect.

Total portfolio value has crossed the target of $350k, dividends income above $20k while still being able to experience the things I consider as LIFE (ie, new countries, hiking journeys, tea, delicious food). I have to say, with the FI mindset, these are all done with cost-consciousness in mind, to prepare for the day where RE comes in and costs must be controlled.

This is the year I am intending to purchase a house and I am thankful that while portfolio value can still be maintained (barring any catastrophic collapse of the financial markets), I am able to set aside a sizable amount for initial cash outlay for the house. 

Sudden Inspiration on Lofty Goals

As someone whom enjoys a passive approach to investing, there is always this internal struggle to chase after capital and dividend growth concurrently. At this stage, dividend beats growth in my mental model when it comes to evaluating how well I have done, as it acts like a passive income that provides steady cashflow to reduce anxiety for the daily necessities life. 

Hence, this is a lofty goal.

By 2030,

- Portfolio value = $1 million

- Dividends = $50k

Recent Thoughts

I will be the first to admit I am usually more pessimistic on the future outlook and hence a financial buffer is a non-negotiable. Though there has been recent laughs with my colleagues whom are asking why I am not willing to take cab rides, subscribe to more subscription plans, buy more things, stay in expensive hotels, etc (in short, to spend more as it seems like an insignificant amount compared my income). Internally, I am always fearful of being made redundant at work and struggling thereafter to get back a similar comfortable income.

Still, it is clear, I will prioritize being prudent above splurging just because I can afford it. I look forward to the days where I can take public transport during non-working hours to visit the various local coffee shops that are famous for a particular dish. 

And with the Lofty Goals, it seems scary, just like how I felt a few years back when I had to envision how 2025 will look like. But as the saying goes, it is better to reach for the stars while and fall on the skies than not setting any at all. 

A new goal is welcome at this stage as I felt I have been stagnant in making financial targets (after hitting them last year). The only constant thing that is always on my mind is how to add more to dividend stocks. It has to be balanced with portfolio value moving forward.

It will be another surprise in life and growth stage, as now I will have to think of how to monetize my house, other side businesses?

We shall see. 

Cheers to all reading this blog and hope you are all reaching your own targets.

New Kopi Target

 With lower trading cost for both SG and US market, here is a new target. 

2024: Trading P/L = 30% of vacation expenses

Mid 2024 Update

Note taking productivity

Used to have Evernote (and I really loved the platform and features it provided for free, until the changes in policy for non-paid users). Being a self-proclaimed minimalist, I avoid subscriptions as much as possible. With that, I tried other options (Notion, Dropbox Paper, WPS document) but it was short lived.

Recently, I found another one called Obsidian. It is FREE, albeit having to store the notes on the local machine instead of on a cloud. But the cool thing is since the written notes are stored in Markdown format, it has 3 advantages. Firstly, helps me to train in using it. Secondly, it can be ported onto an online repository/folder and we are still able to launch the vault to read from those platform. Thirdly, there are many helpful plugins to elevate the experience for something that is free to make it feel premium.

Book reading

I have been very ill disciplined in reading books. But one recently stood out. Sooley, by John Grisham. It's a story about a South Sudan boy's journey into America with dreams to play in the NBA. I have always been amazed by how the author uses simple words and still captivates the reader. It brought back memories when I read A Painted House (another excellent book) as well.

Trading

Brokerage cost optimization. Use,

Vickers 

• For long term stock purchase to be stored in CDP. Approximately $14

FSMOne 

• For selling from CDP (hardly use it). Approximately $13

Moomoo

• For short term trading. Approximately $5-8 in total

IBKR

• For US market

With Moomoo, I have recently done a short trade and happy with the profit (with minimal effort) and am looking to utilize this method to earn some kopi money.

2023 Update

Time flies, and the last update here was a year ago. 

Dividends

Managed to hit the 5 figure amount for current YTD dividends received and projected to average hit $1k each month. 

It is worrying that there are uncertainties at the global scale that has sent recent share prices plunging. It is important to apply the long term view instead of activating the instant panic mood and hopefully better days will come back soon.

New aim: $1.5k each month (which is very close to the next target - $20k). Let's see when it can happen, given there will likely be a drop in dividends next year as interest rates stay high and eats into company's profits.

New Financial Habit

Will be topping up CPF for the first time this year end to reduce tax as it has reached a stage whereby the amount is getting bothersome. 

New Market

Started venturing into US market in 2nd half of this year after being enticed by the decent run up of the market on a whole. Thesis for this is that these giants will still be around in the next foreseeable decade with no let up on their market dominance. 

Memorable Experience YTD

Stepped into Chiang Mai and instantly loved the vibe of the place. It was so good that I made the trip two times there in a short span of 5 months. It is a peaceful and lovely city with lots of nature that slows time down.

Goals Achieved

1. Yolo-ed and booked a trip next year to UK. Well within the goal set by year 2025

2. 12k dividends this year instead of by 2025

Hope everyone out there has a good last 2 months for year 2023!

2022 Update

Dividends Update

The year has flashed past so quickly and soon we will enter the last quarter of the year.

On financial goals matter, I have restarted my initial dividend play to increase the passive income. It is certainly enticing to see the amount grow. An encouraging note is that the projected total amount for 2022 will cross the 6k mark, which translates into an average of 500 per month. A mini milestone to cross!

This amount is far off the goal set a couple of years back in the 'Goals by end of 2022' (10k). There is still a good 4 months. Most likely, I will miss this goal, but on the bright side I am making stock purchases and expanding the portfolio with the goal in mind to cross the 12k mark by end of next year. 

Fingers crossed, I will hit it within the next 6 months depending on the market conditions!

Current thoughts

Once the 1k per month goal is achieved (depending on how soon it is,) I have every intention to start saving up for a house purchase when I reach my mid 30s.

It will be a bonus to be able to increase the dividends payout amount (depending on how much buffer I have in saving that capital)

Assumptions

Cost of house: 500k

Down payment: 15% which is equal to 75k

Targeted amount to save for purchase: 50k cash (with remaining from CPF to settle the peripheral fees)

Any extra cash beyond this will be channeled into increasing the dividends!

Final closing

Unless there is a special bull run towards the end of the year such that the investment portfolio value goes up, there is every chance I will not hit the 300k mark. A huge part of this reason is that I have been making the effort to prioritize experiences in life ever since the covid restrictions started to loosen up.

At this stage, I am certainly enjoying this liberal lifestyle and certainly have had more adventures! It will likely not stop, especially with visiting the surrounding countries around.

So for budgeting next year, I will make adjustments for the overall final amount targeted for end of the year.

Tempting

Private or HDB?

Recently the idea of purchasing a private property came across my mind. Took the chance to read up and understand the various considerations and websites available to view house prices. 

It is really tempting to pay for the down payment and begin to think I could enjoy the facilities (pool, gym, balcony). Over time, I weighed the pros and cons of the decision and it is slightly tilted to the side of going for a HDB with the aim of keeping costs and loan premiums low. 

It is daunting (at least to me) to have to take up a loan and be stuck with it for the next 20-30 years, with so much uncertainty on what lies ahead even in 3-5 years time. I guess the mind has not been conditioned to think of accepting debt as I have been building up a sizable saving (not alot, but important thing is I am making progress to build a safety buffer for any mishaps).

Therefore, a HDB is less risky and in terms of valuation, it is way more attractive per square feet. 

Will there be a regret as I continue to wait until the right age to finally purchase the home at a more expensive price in the future?

On Finances Goal by end of 2022

I have been tracking and setting up a goal offline on the total net worth (cash + investment portfolio). There is a high chance of hitting the 300K mark and I have set it as a goal.

It is another milestone and something I could not even fathom since the beginnings this journey of personal finance and reading up all the finance blogs with bloggers having 6-7 figure portfolios. 

Fingers crossed on being able to increase the take home pay as my experience grows to build a bigger retirement nest egg :)

Hope everyone out there will have a smooth journey in the remaining months as well!

Reversal of fortunes

7th October 2021. 

It is official. 

Newcastle united has finally changed owners and exciting times lie ahead :)

Updates in life

The transition into a role as a worker with experience is something new. No more are we allowed to have the luxury of asking many questions that might appear as if we lack knowledge, but we are now judged on being able to give accurate answers to the queries posed to us as subject matter experts. The burden gets heavier as the solutions that we have to come up with needs to have that extra longevity (ie, it is not just about solving the issue at this instant moment, but effort has to be catered to think how the impact will be in 5 years time, 10 years time, etc).

It is exciting yet burdensome at the same time. Exciting because it is a new phase of growth, burdensome because of the fear that always lingers.. 'what if I screw this up?' I guess it is a by-product of our education system, whereby we are thought to give perfect 10 year series answers. Any deviation or slight mistakes will make one feel so inadequate as a person.

Part of my jobscope now entails making presentations to the seniors/manager who will critic/give opinions on the solution design. I have been spending a considerable amount of time thinking about how to make the presentation effective, so that the stakeholders can understand it and hopefully agree on it in the short amount of time we have.

Lots of effort are needed to simplify the design as well as think and justify the reason for having that development in place.

It has been a stretch. 

On finances

Crossed the milestone set for year 2022 in terms of savings. A small step :)