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Made $1.5 million investing for income. (4Q 2019 and FY 2019 passive income.)

Wednesday, January 1, 2020

Once every three months, my calculator gets more work than usual.

Yes, another three months have gone by and this is another quarterly passive income update.

As usual, I will share some of my thoughts on some of my investments before I share my passive income numbers.

So, please bear with me as I talk to myself.

Of course, I know some readers will just scroll down to see the numbers right off the bat anyway.

Go ahead if that is what you came here for.

You happy can already lah.

HAPPY NEW YEAR! :D






4Q 2019 turned out to be a good quarter in terms of passive income received from my investments.

Accordia Golf Trust scored a hole in one and came in strong.

I received a larger income distribution from Accordia Golf Trust compared to the same quarter last year partially because I increased my investment in the Trust but mostly because the Trust performed better.

Whether Accordia Golf Trust will continue to deliver in such a manner is uncertain partially because of an offer to buy all golf courses held by the Trust.

If this sounds new to you, you might want to read the following blogs:

Accordia Golf Trust: Reasonable or realistic?

Accordia Golf Trust: Cheap and cheaper.

Crossing fingers here.






Regular readers might remember that I sold a large chunk of my investment in Wilmar in 3Q 2019 to lock in gains.

It was a very significant divestment as Wilmar dropped from my list of largest investments after that.

In 4Q 2019, making use of technical analysis (TA), I increased my investment in Wilmar so that it became one of my largest investments again.

So far, it looks like I made the right move.

Wilmar's planned listing of its Chinese subsidiary will unlock value for investors.

Mr. Kuok has also promised to declare an attractive special dividend thereafter.

Based on TA, I have a target price of $4.50 or $5.00 a share here.

If you don't know what I am talking about here, read this blog:

Wilmar: Target prices.

Beware!

I am doing some prediction here which I have always said I cannot do.

Remember, we cannot predict but we can always prepare.

Note that my entry prices for Wilmar are much lower than the share price today.






So, how much passive income did AK receive in 4Q 2019?

$46,504.96

This is quite a bit more than the same quarter in 2018.

4Q 2018 saw a large contribution from APTT as I increased my investment in the Trust significantly as its unit price plunged.

That investment is, of course, no more as I decided to lock in gains as its unit price recovered in 3Q 2019.

If you don't remember, read this blog:

Sell into the rally but stay invested.







The larger passive income number in 4Q 2019 compared to 4Q 2018 was also largely due to the marriage of Ascott Residence Trust and Ascendas Hospitality Trust (AHT).

Investors in AHT receive 5.43c in cash and 0.7942 new Ascott Reit-BT unit issued at S$1.30 a unit for every unit of AHT they hold.

The cash portion of the deal is about a year's worth of income distribution.

So, my passive income received from AHT doubled in 2019.

If you are interested in this, please read this blog:

Ascendas Hospitality Trust: A bad deal?


I am mindful of the fact that this is a one off event and that it will not be repeated.

So, everything else being the same, my passive income in 2020 should be reduced.






More recently, I blogged about how much passive income per year is enough for me.

My back of the envelope calculations told me I would need about $120,000 a year.

See this blog:

How much passive income is enough?


Well, for the whole of 2019, total passive income from my investments was:

$210,254.16

All is well.






However, I am reminded that apart from the one off from AHT in 4Q 2019, there was also a very significant one off income distribution from RHT Health Trust in 1Q 2019 which would also not be repeated.

If you don't remember, see this blog:

1Q 2019 passive income.

Missing these one offs that happened in 2019, again, I will say that everything else being the same, my passive income in 2020 should be reduced.

Hopefully, it will not be reduced too drastically as my enlarged investment in IREIT Global did not distribute income in 4Q 2019 but will do so in 1Q 2020.

Yes, the effect of my much larger investment in IREIT Global will be seen in 2020.

Of course, we can never be too sure of anything.

So, let's see what happens as 2020 progresses.

See this blog:

3Q 2019: IREIT Global.






In closing, I will say that investing for income has worked well for me and I am reasonably sure it will work well for anyone who wants a more secure financial future and, eventually, to achieve financial freedom.

Some readers might remember this blog published in September 2016:

Make a million dollars by investing for income.

Well, after a bit more than 10 years, total dividends and distributions received from my investments in the stock market crossed the $1.5 million mark in December 2019.












Don't let people tell you it is impossible.

It is only impossible if you think it is impossible.

Have a plan, your own plan.

Stick to it and, over time, you will make it.

If AK can do it, so can you!






Related posts:
1. Largest investments: 4Q 2019.
2. Have a plan, your own plan.
3. Don't be a wage slave.
4. To retire early, have a plan.

18 comments:

RayNg said...

Congratulation AK

I really stun like vegetable.

You have grow your passive income from $50K in 2015 to $210 in 2019.

This is truly remarkable and inspiring.

RN

Investminds said...

AK Bro, solid 2019 performance. You are an inspiration for me. Because of your blog, i started my investment journey and transferred my OA to SA. This is my fifth year in investing and 2019 was the best performance year. CPF also doing well. autopilot and risk free. Just did a medisave top up of $2800 to max $60K.

Wishing you and yours a joyous 2020.

AK71 said...

Hi RN,

Kamsiah you plenty plenty. :D

However, I don't remember my 2015 passive income from investments being only $50K.

So, I went digging through my 2015's blogs.

See:

1. 2015 full year passive income from S-REITs.

and

2. 2015 full year passive income from non-REITs.

Hope you are not disappointed. ;p

AK71 said...

Hi Investminds,

Many people do not know what a good thing the CPF is.

A risk free and volatility free AAA rated sovereign bond that pays 2.5% to 6% per annum?

Most probably, there isn't anything like the CPF anywhere else in the world.

I am glad that my blog has been helpful.

Happy 2020! :)

GlobalPassiveIncome said...

Congratulation Ak, you are our inspiration.. Did you also include your CPF interest as well? :)

AK71 said...

Hi GPI,

Thank you. :)

The numbers here are purely dividends and distributions received from my investments in the stock market.

Interest income from CPF savings, which I will blog about another day, is not included here.

If readers are inspired by my blog to achieve financial freedom, I am glad. :)

T.H.I.R.T.E.E.N said...

Hi AK and fans...

Happy new year to all... I just started investing 2-3 years ago and AK is only 4 years older than me but already leaps and bounds in the race...
I will be the tortoise in the race and slowing reach the set destination...
Already hit MS in CPF and topped the MA for the CPF...
Concentrating on the dividend route as well as topping up for the missus as well...

Gambatte to all....

Best regards,
Thirteen

Henry said...

Hi AK, you are the envy of many. My 10Y dividend is only 10% of yours. :( I will try harder from now on.

AK71 said...

Hi Thirteen,

Well, you know the story about the tortoise and the hare?

Slow and steady wins the race.

All in good time. ;)

You are a good man to top up your wife's CPF account!

See:
Good men top up their wives' CPF accounts.

Gambatte! :D

AK71 said...

Hi Henry,

It is not my intention to make anyone envious.

Instead, I hope to inspire more people to go on their own journeys to reach financial freedom.

The journey won't be easy especially in the early days but those who persevere will more likely than not be rewarded for their effort.

It is also important to remember that all of us have different circumstances and that the journey to financial freedom is not a race.

We are all winners in the end. :)

See:
Journey to financial freedom is not a race.

"What matters is that we achieve the goal of financial freedom.

"Some might get there faster. Some might be a bit slower.

"Unless severely disadvantaged, all of us can do it." :)

Dom said...

Congratulations!!!!!
hope i can match your 210k in 4 years
thj
tks AK

Dom

AK71 said...

Hi Dom,

Thank you. :)

In the Army, we have a saying at the shooting range.

"Own time, own target."

Don't use me as a target, please. ;p

Investminds said...

Hi AK, I fully agreed with you. Many singaporeans does not appreciate the CPF system.
Many people want to eat the cake now but delayed gratification through compounding effects will see our net egg grow for our retirement.

AK71 said...

Hi Investminds,

Definitely, we cannot have our cake and eat it too. ;)

The walk down Jalan CPF is a relaxing one and it can be a rewarding one too if we do the right things. :)

Some will always be eating sour grapes.

I rather eat sweet ones. ;p

See:
"Aiyoh, some people so sour grapes to say AK how lian!

Raymond wee said...

AK,
This is remarkable, achievable for those have imvestible assets, I.e. $$$.
You could have made half a mil over these years. Congrats.
Seems that most are in equity, in time of crisis, a
20 to 30% blood shed will return all to those sharks.
Be determined for Long haul regardless of any financial climate, Not many
Can shoulder this impact of market crash and hold on for Long...

AK71 said...

Hi Raymond,

I should also say that I am not just an income investor.

I am also a trader but, in retirement, I don't trade as much as I used to.

So, I have capital gains (and losses) too.

Although not as regularly as my blogs on passive income, I blog about my trades from time to time.

I am fortunate that, overall, I have made more money than I have lost as a trader.

Of course, I also have a meaningful safety net in the form of my CPF savings which I blog about from time to time too.

You might be interested in these blogs:

1. A reader's insights into AK the investor.

2. How did AK create a 6 digits annual passive income?

WTK said...

Hi all,

Comparison is a thief of joy. Everyone's circumstance is different. What is applicable for one may not be applicable for another. The most important thing is to achieve FI at own pace and have the option to RE.

Everyone is a winner.

Ben

AK71 said...

Hi Ben,

For sure, it is never my way or the highway. ;)

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