Count me impressed!
I mean we are just a whisker from STI 3400!!!
This is where long suffering passive "investors" into STI ETF or funds are finally getting their day in the sun!
This should make up for the years of underperforming US and HK indices...
A bit like looking your civil servant hubby in a new light.
Sure, compared to your jie-meis who married entrepreneurs or high-performing top sales, he may be a bit boring, but slow and consistent pay increases and promotions do add up! Like CPF hor?
Especially when your jie-mei's entrepreneur hubby is facing a mountain of debt in bankruptcy; or that top sales hubby of theirs is suffering a slump and "eating grass" during Wuhan virus lockdowns...
But then again, that's if you have bought the STI ETFs or funds.
I mean you can't say STI is in a bear market, right?
Yet, why is there a sea of red in your portfolio???
It's the rubber meets the road moment - do you stick with active stock picking (invest to achieve), or do you "capitulate" and agree with Warren Buffett that most people would be better off sticking with an index fund...
Ouch!
Yeah, it's the - you want ego or want money moment!
Hi SMOL
ReplyDeleteGreat minds think alike or what?
Such a coincidence that you would use the analogy of a Civil Servant and entrepreneur for the different investment instrument.
That was exactly what / how I described our three passive income generators (or minions) to my wife when she asked about the risks.
1. CPF interest income generator :- Civil Servant.
The income started low and yearly increment was low as well (albeit steady)
2. Rental Income generator :- Contract worker.
Got contract, income is secured for the year or two. Steady income when contract is in force. Income can be renegotiated in each new contract.
3. Dividend Income generator :- Sales guy / entrepreneur
This "guy's" income is commission based. I padded this income generator with bonds and Unit Trusts to give "him" a base salary. In good months (eg. in May and August) his "commission" makes us very happy.
I have nurtured (groomed) these three minions over 12 years and they have not failed us (so far). Together they brought us $1.7M over this period.
The "Civil Servant" has been "promoted in grade" and his income has now crossed over $100K a year.
The "Contract worker" has negotiated for a higher remuneration last year in line with the market trend, securing a 3 year contract for $42K a year.
The "entrepreneur" has achieved good commissions last year with total income of over $88K last year and is confident of repeating (if not better) the performance this year.
And yes, this is what passive income investors like me sign up for :- Receive regular dividend income and still see our stock prices appreciate!
Just having some fun on a Saturday morning!
mysecretinvestment,
DeleteYou lucky guy! Got wifey to ask you "Trust but Verify" questions as sounding board!!!
If we can't explain our "thesis" in laymen's language, then we probably have "over-engineered" or "over-complicated" things...
And that's usually a red flag.
Oh congratulations! You have locked-in very good rentals for whole 3 years!
That would mean its corporate rental client? Much better than dealing with individual tenants ;)
Diversification in income streams?
1. Active income.
2. Property income.
3. Equities income.
4. CPF/Bond income.
Let's just say it's a lot better than relying 100% on CPF (leaving too much money on the table), or relying 100% on dividend income (too much volatility)!
Hi Smol,
ReplyDeleteThis goes to show the dynamics of the market. It makes sense for one to have a flexible mindset to cater for such dynamics.
Wtk
WTK,
DeleteI feel better having a set of tool kits when approaching the markets.
If I had only a hammer, then its nails that all I'll see!