Ever since the CPFB introduced a colorful pie chart of our CPF savings a few years ago, I would look forward to mine every year like a teena...
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First, on the personal front, I have been spending more time on other stuff in life as I have been feeling that too much time spent on social media is probably unhealthy for me unless I am doing it for a living, of course.
If it was a livelihood, then, rain or shine, I would have no choice but to do it, of course.
In my last YouTube video in the middle of June, I said I was taking the rest of June off from social media and I feel it has done me a ton of good.
I have spent so much of my time on social media since 2009 and although I have taken breaks from time to time, I always came back.
I think it is time I take a very long break or even retire from social media as it feels like an unhealthy addiction.
I know it is an unhealthy addiction because I could feel it feeding my ego and I am old enough to know I shouldn't like it.
Like I said, I am not doing this for a living and I do have a choice.
I should choose better mental health.
Staying away from social media in the last two weeks has helped to clear my mind and I know what to do now.
More details on this at the end of the blog.
Now, for an update on money matters.
For readers who have been following my blog for many years, this year thus far probably looks very atypical as I not only invested in Alibaba, I increased my investment in Alibaba substantially.
Alibaba is now approximately 6.5% of my portfolio.
Strictly speaking, it didn't start this year as my first purchase was in December last year.
Anyway, for someone who is known for investing for income, Alibaba is an odd choice since its dividend yield is around 1% only.
However, if you are following me in my YouTube channel where I have been sharing my thoughts more regularly, you would know why.
I already have a relatively large portfolio of income producing stocks.
The passive income generated exceeds what I need in life by a big margin.
There is no urgency to further grow my exposure to these stocks, logically.
I also made videos about money in my CPF account and how that is going to generate passive income for me soon.
Although we earn interest income in our CPF account, realistically, we cannot count that as passive income until we turn 55 as that is when we can withdraw the interest earned from our OA annually.
I am going for the Enhanced Retirement Sum which would generate $3,400 in monthly income for me when I turn 65.
And the rest of the money in my CPF OA would generate about $20,000 annually in interest income which I can withdraw from age 55.
I turn 55 next year.
So, making further investments for income at this stage is really not a priority for me.
With policy risk in China largely gone, investing in an undervalued and growing AI and cloud computing infrastructure company like Alibaba is attractive to me.
Of course, most of Alibaba's business is still in e-commerce but that is what generates the cash for them to invest in the fast growing cloud computing infrastructure business.
I have talked about this many times in my YouTube channel.
So, I won't rehash.
The next thing I am going to talk to myself about might shock some readers but for those with better memory, it would not be all that shocking.
I have been buying more bitcoin.
About 3 years ago, I said that I changed my mind and bought bitcoin.
I was convinced that bitcoin was digital gold after doing some research.
Just like physical gold and silver, I think having some bitcoin as insurance against flawed fiat currencies is prudent.
It is a good insurance against monetary debasement as the world print more of fiat currencies non stop.
Bitcoin is a harder money than even gold and silver.
Hard as in hard to produce versus easy money like fiat money which can be printed infinitely.
Just like Alibaba, I have shared my thoughts on bitcoin in my YouTube channel regularly.
So, if you are interested, please search "bitcoin" in my YouTube channel and you will see those videos.
In one of the videos, I said I have become more comfortable with bitcoin after doing more research and decided to increase my exposure to it.
In that video, I said I would like to increase my exposure to 5%.
However, I have since then decided it should be 10% to 15% in order for it to be adequate.
Why?
Since I look at bitcoin as insurance, the way I decided that I was "under-insured" was to see how much coverage I had in traditional insurance.
In traditional insurance, I had to die for the benefits to be paid out to my family and the amount far exceeded my exposure to bitcoin.
So, I used that as a yardstick to accumulate more bitcoin and one advantage of bitcoin as insurance is that I don't have to die to enjoy the benefits.
Not something which matters too much to me but it is a plus.
I am very far from my newly set goal.
Since my last video on bitcoin, therefore, there has been a stronger will to accumulate more bitcoin.
Ever since Russia invaded Ukraine, we have seen more violence erupting in the world.
The Israel and Iran situation was the last straw for me and I bought more bitcoin when the price dipped below US$100K per coin like I said I would in one of my videos.
Military conflicts could become international, if not more commonplace.
Economic crisis could become global.
Ray Dalio said recently that we could be looking at something worse than a global recession and more intelligent people are thinking that way.
I think that it isn't as risky investing in Alibaba and holding bitcoin today.
Policy is very supportive now of tech companies in China.
Bitcoin is the hardest form of money known to mankind and it is, in many ways, better than gold and silver.
It is harder, cheaper to transfer and more portable.
To me, there is no risk in owning some bitcoin but it could be risky not to own it if we care about the value of our money and fighting constant inflation.
To fund my purchases of Alibaba shares and bitcoin, I have been dismantling my T-bill ladder which I have talked about frequently in the last two years.
Yes, that's my war chest.
This way gives me the funds to accumulate bitcoin every two weeks as the ladder matures but it will only last for a total of 6 months.
Lacking an earned income, I would have to rely on my passive income to further grow my exposure to bitcoin.
That would be a very gradual process as I consume a large part of my passive income.
What to do?
If bitcoin's price should decline significantly for some reason, I might sell some of my loss making or underperforming investments to buy more of it to hit my new target of 15%.
These are investments which I have not sold even though they have underperformed as they look undervalued to me at the prevailing market prices.
However, like I have said many times before, undervalued can stay undervalued for a long time and redeploying some of the resources to assets I am more concerned with currently is not a bad idea to me.
The investments I have shortlisted at the moment are IREIT Global, CLCT and Wilmar International.
Of course, if you have been following me for a long time, you would know that I have not found REITs attractive in recent years and much preferred putting more money to work by investing in our banks.
So, when I think about raising cash, it shouldn't be surprising that some REITs in my portfolio are considered likely candidates.
As for Wilmar International, the recent graft case in Indonesia which caused it to give up some 60% of its annual profit is, hopefully, a one-off event which means a correspondingly lower dividend for one year.
It isn't a structural issue and it doesn't change the view that Wilmar International remains deeply undervalued but it has been undervalued for many years and could stay undervalued for many more.
So, I decided that it is also a good candidate for a partial divestment in case I need more cash.
A side benefit in doing so is that I wouldn't have as many businesses to monitor and this frees up time for me.
However, it is not a given that I would do it.
Like I have always said, we must all have a plan, our own plan.
Over time, we could make changes but we should not stray too far from the original plan, especially if it is a good one which means not touching my rather substantial investments in DBS, OCBC and UOB, for the most part.
Let our winners run is the idea.
I have my own plan which I make changes to whenever necessary, eavesdropping on myself and eating my own pudding here.
Investing for income has worked well for me over the years and it is likely to continue chugging along.
Like I said in an interview with The Fifth Person, there are always big investment themes and my portfolio has morphed over the years.
I feel that the future is going to be very different and investing for income alone might be insufficient for regular folks.
If I were to go into hibernation today and wake up 5 to 10 years later, the changes I see in the world might shock me.
I am taking steps to help ensure that the shock would not be too nasty for me in such a hypothetical situation.
AI is part of the future and will bring more changes, both good and bad.
I suspect that many people will lose their jobs within the next decade or two, both white and blue collar, or have trouble finding jobs as AI and advanced robotics take over.
They need insurance as unemployment is likely to become a bigger problem.
Some businesses will struggle and some will fail in the face of such changes.
They need insurance as the business environment becomes even more competitive.
Then, there is the cost of living crisis which will only get worse especially for the common people as inflation is not going away.
Very flawed fiat currencies devalues our time and energy which means for most people, they would have to work much harder for money and might not be better for it as everything becomes much more expensive.
Job insecurity plus cost of living crisis.
It is a double whammy.
The world has not been peaceful for some time now and it is likely to be even less peaceful in future.
It would be a mistake to think that Singapore can stay insulated.
We need insurance.
Bitcoin is a good insurance in such difficult times.
It is pretty much future proof as it is the future of money.
What about the insane price volatility of bitcoin?
Like I said in one of my videos on bitcoin, when we buy a life insurance product, it is for the long term and it is the same for me when it comes to bitcoin because I view it as insurance.
Short term price fluctuations should be ignored and price declines are simply buying opportunities.
Of course, I am going to remind myself of the importance of doing our own due diligence before making any decision.
Please remember that I am not telling people what to do.
I am just talking to myself.
OK, now, the numbers.
Passive income for 2Q 2025 came in at
S$95,974.56
This is almost 18% higher then passive income received in 2Q 2024 which came in at $81,339.05.
DBS, OCBC and UOB did most of the heavy lifting.
This year, looking ahead at 3Q and 4Q, in total, I should still receive more than enough passive income for my needs.
The higher dividends from DBS, OCBC and UOB will compensate for the reduced contribution from IREIT Global as their Berlin property is being redeveloped in the next two years.
2026 might not be as comfortable as OCBC and UOB are paying special dividends for one year only.
Take a deep breath.
I still have my CPF savings.
Always the worrier, I know.
Finally, I am announcing my semi-retirement from social media.
It is really for my mental health.
What does semi-retirement mean?
No daily, monthly or even quarterly updates.
I might produce 2 or 3 blogs and videos a year because I know that there are people who are still interested in following my journey because they find it entertaining.
I am dipping into my war chest and nibbling at OCBC and Alibaba
OCBC because I think it is still the cheapest amongst the three banks.
Annualising the regular dividend gives me a 5.5% yield.
Based on a 50% payout ratio, this is attractive to me.
Of course, there is also a special dividend on top of this but that is a bonus to me.
As for Alibaba, I have made videos on this and why I thought there was a good chance of seeing HK$160 per share again.
So, I added to my position as its price plunged to around HK$110 per share.
I will probably add if it goes to HK$100 per share as that is where I see a major support.
I always say we can never be too sure and that is why we need insurance.
A war chest is insurance.
Insurance has a cost.
In the case of a war chest, opportunity cost.
Some people don't like paying for insurance and prefer not to have it.
Well, different strokes.
As for my 1Q 2025 passive income, it amounted to $37,008.44.
This is a slight reduction from a year ago primarily because of a reduction in exposure to Sabana REIT.
Contribution from CLCT also reduced this year as China struggles to recover.
The reduction amounted to $2,000 or so which isn't a tragedy, to be sure.
However, I am aware that I will probably see a larger reduction next year as I expect lower contribution from IREIT as their Berlin property is being repositioned.
The expected higher dividends from DBS, OCBC and UOB should provide some relief as they form almost 50% of my portfolio collectively.
In closing, I apologize for not replying to comments as I do not have the mental or emotional capacity with stuff that has been going on in my life these few weeks.
I have said for many months that interest rates are likely to stay higher for longer.
Higher for longer interest rates are good for not only savers but also investors in DBS, OCBC and UOB.
In their latest results, DBS said that they expect net interest income to come in slightly higher this year due to this.
This is a change from expectation for net interest income to stay flat or weaken, year on year, as the Fed cuts interest rates.
The Fed is now expected to keep interest rate on hold and might only cut towards the end of 2025.
The number of rate cuts this year expected by Mr. Market has gone from 5 to only 2 now.
This bodes well for DBS, OCBC and UOB.
Coupled with strong growth in their wealth management business and income from fees, we could see earnings surprising to the upside.
DBS has already announced a higher final dividend of 60c per share which is about 10% higher than the 54c per share a year ago.
They are also going to introduce a 15c per share per quarter payout over the next two years.
This is a return of capital to shareholders as the bank has plenty of excess capital.
This brings the payout per quarter to 75c per share.
Mr. Market really likes this and has sent the share price of the bank higher and it is quite possible that it is going to stay higher for longer, just like interest rates.
So, people ask me when am I selling my investment in DBS?
I have said before that 2x book value was something I was looking at.
However, with the recent development, this has to change.
With an additional payout of 15c per quarter per share which increases the dividend by 25%, I would be giving up a lot in terms of passive income by selling now.
As I expect the share price to stay higher for longer, all else being equal, it could be a long wait before I get to buy again at a lower price.
While waiting, the NAV of DBS would continue to climb higher.
Some might say that a gradual return of capital over the next two years means that DBS' NAV would be impacted.
However, I would highlight that it is only 15c per share per quarter which would be more than covered by retained earnings which means the NAV of DBS would still be growing.
Just some back of the envelope calculation.
60c DPS from a 50% payout.
60c per share retained earnings.
15c per share capital reduction.
The bank is still growing by 45c per share per quarter.
This means that using NAV as a guide to sell, the target price to sell would only move higher over time.
Given the current situation, the share price has more room to move higher.
JP Morgan is now trading at 2.3x book value.
Could we see DBS trading at 2.3x book value too?
I expect UOB and OCBC to surprise to the upside to, barring unforeseen circumstances.
Investing in DBS, OCBC and UOB, increasing the size of said investments and staying invested has been most rewarding.
I have been busy with many things at home and I have not been looking at the stock market.
The last time I did anything in the stock market was in December last year when I bought some shares of Alibaba and Wilmar.
Fortunately, my investment portfolio is on "auto mode."
More or less.
It doesn't require constant attention from me.
It simply generates passive income for me regularly and all I have to do is to check my bank account on a monthly basis to see how much I have been paid.
This is still something I have to do since I don't want to overspend and I have to allocate excess capital.
In recent weeks, when it comes to excess capital, all I did was to maintain my T-bill ladder and this was something I have produced blogs and videos on.
T-bills are still a good place to park excess cash for now as I wait for better investment opportunities in the stock market.
Interest rates are likely to stay higher for longer as the Fed is no longer as interested in cutting rates as they were in the second half of last year.
This is of course good news for my relatively large position in DBS, OCBC and UOB.
All three banks are likely to continue paying meaningful dividends and they could pay more in 2025.
This is because they have plenty of excess capital.
Having said this, it is important to mention that I am not always flushed with excess capital.
There will be months when I don't receive any dividend or very little.
First and fourth quarters are usually drier.
January usually sees a drought!
I received zero dividend in January 2025!
However, my investment portfolio still generated 42% higher passive income in January, year on year.
This is all thanks to T-bills and Singapore Savings Bonds.
Fixed income.
I have been stashing more money in T-bills and SSBs.
To be sure, the passive income in dollar terms is not mind blowing.
January 2025: $1,491.93
January 2024: $1,046.20
It is an increase of some $450.
Enough to cover some of my routine expenses.
Of course, if I had mainly relied on something like this over the years, I would not have what I have today financially.
This is just part of my financial pyramid and it contributes to my portfolio's stability.
Of course, regular readers also know that I like the CPF system very much but with the CPF SA going away once we turn 55 years of age, we have to be less reliant on the CPF to fund our retirement.
Investing in the stock market is still something that every regular person should seriously consider in order to have a more comfortable retirement.
How to get it right most of the time?
I have shared my methods and philosophy here in my blog over the years and more recently in my YouTube channel.
Some have asked me if I could conduct investment courses but, of course, readers who have been following me for many years would know my answer to that.
However, it is that time of the year again and for anyone who is interested to learn how to invest for income, "Dividend Machines" is open for registration again.
"Dividend Machines" is the only course I have promoted yearly since its founding so many years ago.
It is not only well structured, it is also well priced and does not cost thousands of dollars.
It is run by my friends at The Fifth Person and some of you interacted with Victor who was the guest speaker during "Evening With AK And Friends 2025."
Anyway, if you are interested in growing streams of passive income and you should be, have a look:
During "Evening With AK And Friends 2025," something that kept popping up could be explained as such.
I said having money to invest with was not enough.
We must have the right mindset and the right framework for what we want to achieve financially.
Our methods and our motivation must match.
So, I shared the pyramid which I use to help ensure portfolio stability, and at the very least make sure it does not sink to the bottom of the ocean and is lost forever.
Having the right mindset is also very important.
Being prudent with money is the first and most important step as we need capital to invest with.
Being patient and pragmatic is useless if we don't have the capital to begin with.
Patiently waiting for opportunities.
Being pragmatic to know how much we should be investing in something.
Someone asked what gave me the courage and conviction to buy into REITs big time during the GFC.
I remember in reply to another question, I said we must know what we are buying.
If we didn't know what we were buying, then, we wouldn't know if we should buy more or if we should sell.
We could panic and sell when the price plunged instead of buying more, for example.
I used the example of Saizen REIT and said I was sure their portfolio of assets was worth more and that there was a strong demand for them.
When they sold some of the buildings to pay down debt as required by their lenders then, they were able to sell them at a big premium to book value.
Mr. Market was feeling very pessimistic about the REIT and turned a blind eye to that.
The GFC was really a credit crisis.
Some REITs like AA REIT could not get their hands on loans.
In the case of AA REIT, a white knight came along to recapitalize the REIT.
It was controversial and very ugly but it was the only practical way for the REIT to survive.
The white knight was not altruistic, for sure.
It was all about making money and with so much money involved, they would try to make sure the REIT delivered.
So, what did I do?
I got on the boat with them.
Be pragmatic.
I also mentioned Lippo REIT during the event and how I was able to get a 25% distribution yield back then.
Indonesia was one of the very few countries that did not go into a recession during the GFC and the Rupiah was relatively strong then.
Indonesia didn't rely on external trade much.
Their domestic economy was 60% of their economy if I remember correctly.
The country's urban population still went to malls and they didn't have as many big malls back then.
The malls weren't going to shut down with demand that high.
With a 25% yield, I would have gotten back my money in 4 years.
Of course, some older readers might remember I sold more than half of my investment later for a 200% capital gain when Mr Market recovered from its depression.
That was the one year I blogged about massive capital gains from investments on top of passive income.
Be pragmatic.
I also said that I had the benefit of advice from a senior investor in real estate who said to be brave.
He said the market was behaving as if the buildings were being abandoned.
Still, we must do our own research to verify which I did.
Be brave but don't be foolish.
Don't borrow money to invest with.
Silly to risk what we need for what we don't need.
Don't follow "gurus" blindly.
Don't ask barbers if we need a haircut.
Educate ourselves and trust ourselves more.
We cannot get it right all the time, for sure.
However, if we are right most of the time, we should do well enough.
In the 15 years after the GFC, people got used to low interest rates.
REITs got used to that too and many borrowed too much and were way too optimistic.
We want to avoid being too optimistic and being too pessimistic.
Be pragmatic.
When some were saying buy Suntec REIT, I produced a video on Suntec REIT on how much it has changed from the time I invested in it donkey years ago.
Therefore, contrary to what those influencers said, I said I wouldn't buy Suntec REIT.
A few years back, so many influencers were saying buy Eagle Hospitality Trust and I produced a series of blog posts on why I wouldn't touch it.
Do our own research.
Someone in the audience said my blog was hard to read and he preferred my videos.
I think the truth is more and more people don't like to read.
Maybe, this is why in a recent international study, Singaporeans scored so badly in composition and comprehension in the years after leaving formal education.
Outsourcing isn't always a good idea especially when it affects our personal development.
We can listen to what YouTubers have to say but don't start relying on them for directions.
Alamak.
Nagging again.
Primary objective of this blog is to better answer a question posed during the event.
As I grow older, my brain dulls.
It takes more time for me to recall all things I want to recall in reply to some questions.
It is quite sad when I think of how I was sharper and more articulate before.
The easiest thing for me to do is to park the surplus in T-bills and FDs while I am in this mode.
I will be back talking to myself at some point but I might not be talking about investments as much.
I must accept this move into another stage in my life. 🙊
Some people might feel disappointed but I have said many times before that blogging and YouTube are both hobbies.
I don't have paid memberships or subscriptions or paywalls like some content creators have.
I feel I have to say this because there are some people who have said I must take responsibility before and that I should not leave readers in a lurch.😱
I feel that this is an important post to publish to help manage expectations.💯
I am happiest whenever readers tell me that they are inspired to achieve financial freedom after eavesdropping on me.😊
If AK can do it, so can you.🎊
P.S. See you on 15 Jan if you are coming to the meet up. Don't worry. That is still on.
In my last blog post, I said that I have already made a $4,000 Top Up to my Medisave Account.
That would help to generate more interest income to pay for my medical insurance.
4% risk free return is really not bad and gives me peace of mind.
Then, the next thing to ask is what about the rest of the year?
Regular readers would know that for many years, I was making voluntary contributions to my CPF account.
Every year, I would make sure to hit the Annual Contribution Limit allowed by the CPF.
That was especially when interest rates were very low.
Risk free and volatility free with reasonably attractive interest rates, the CPF is a great option to help us build a safety net in retirement funding.
However, in the past 2 years, some things changed.
Bond yields moved higher and I blogged about how buying Singapore Savings Bonds might be more attractive than making voluntary contributions to the CPF for some members.
It was certainly the case for me.
With my MA maxed out, more of the money from voluntary contributions would flow into the OA which pays 2.5% p.a.
End result is an average of 3.0% p.a. interest rate for my voluntary contributions.
So, I used the money meant for my CPF to buy Singapore Savings Bonds whenever the latter offered higher than 3% p.a. in ten year average yield.
Towards the end of last year, I did make a small voluntary contribution of $8,000 to my CPF account.
Why?
With Singapore Savings Bonds seeing lower than 3% in ten year average yields, the CPF was more attractive again.
Today, I received a notice from CPF that the pie chart for my account is ready.
This,
1.2M53.
Such a mouthful.
So, with some help from higher yielding T-bills, the CPF OA money has grown faster.
Of course, the government did most of the heavy lifting to grow my CPF savings.
My CPF savings could have grown a lot more had I made a bigger and earlier voluntary contribution.
Of course, that would have been a silly thing to do as I could get higher returns from another similarly rated bond.
Why didn't I use the money for equities instead if I was attracted to higher returns?
I believe in having a meaningful allocation to risk free volatility free bonds.
Exchanging CPF savings for equities goes against this belief.
Especially for a person of my age, a meaningful risk free and volatility free component in my investment portfolio becomes even more important.
If the equities market should crash and we happen to need the money, people would appreciate this point much more.
To be fair, I have a substantial exposure to equities and do not need a greater exposure.
For people who have a much lower exposure to equities and have a lot of money in their CPF accounts, it could be different.
It is all about sizing allocation appropriately for our circumstances.
Anyway, in 2025, I am likely to resume voluntary contributions to my CPF account with Singapore Savings Bonds likely to continue the recent trend of offering lower than 3% in 10 year average yield.
So, the CPF pie would grow much bigger with both the government and myself doing some heavy lifting.
I am 53 and I will have full access to my CPF savings in 2 years from now.
3% p.a. for a 2 years AAA rated Singapore government bond is not bad at all.
Another quarter is behind us and it is time for another update.
If you are following me on YouTube, you might have seen the update I provided in my YouTube community recently:
My dad is still in hospital.
I have yet to read the comments I have received in recent days on YouTube as I am not feeling very sociable.
However, recognizing the signs of oncoming depression, I decided to do some blogging.
Blogging is therapeutic to me.
I am sure there are many readers who are very concerned for me and would ask me not to worry about updating the community.
Don't worry.
I am doing this as therapy for myself.
So, 2024 has ended and on the investment front, it has been kind to me.
The stock prices of DBS, OCBC and UOB have outperformed.
As they form more than 45% of my portfolio, this has a big positive impact on my portfolio's market value.
The gains more than make up for the losses in IREIT Global and CLCT.
Of course, all of these are just on paper.
So, just saying as I am sure some readers, whatever their reasons, would be interested to know.
All positions are still generating income for me.
Some have asked me what should they do with their investment in Centurion Corp as the share price has shot through the roof.
It would seem like I have made a mistake by selling my investment in Centurion Corp and using the money to add to my investments in the local banks so many moons ago.
Well, I cannot and don't want to give advice but the reasons I gave for selling back then are still valid.
Centurion Corp suspended dividends during the pandemic and was slow in restoring dividends even though they emerged from the pandemic with a stronger balance sheet.
However, they had no trouble with immediately rewarding their directors generously.
So, I decided to add to my investments in the local banks instead as they have a long track record of rewarding shareholders during good and bad times.
Their very strong balance sheets in comparison to Centurion Corp's help to ensure that their dividends would not be suspended if we should see another pandemic.
Our local banks have shown themselves to be more shareholder friendly too.
They are able and willing to reward shareholders fairly, if not generously.
Always revisit our reasons for investing in a certain entity and if the entity is unable to deliver anymore, it is time to let go.
So, sell, hold or buy would depend, to a large extent, on our motivations.
I thought I would end 2024 without making any purchase but I ended up buying more of Wilmar and also nibbled at Alibaba.
I talked about this in my last blog post and if you are interested in finding out more, have a read.
I made a video about this too:
Not a big deal, really.
My investment in Alibaba now forms less than 0.5% of my portfolio.
My focus is still on passive income generation and Alibaba doesn't quite fit the bill.
As a retiree who depends on dividends from his investments for a living, Alibaba is an interesting and somewhat speculative position.
Nothing more.
I talked about this my YouTube community not too long ago as well,
If Alibaba should see its stock price decline 5% to 10% from here, I would probably add to my investment but it would remain a very small investment.
In my last blog post, I identified a weak uptrend with a gently rising support line but if that were to break, Alibaba's share price could go lower.
A retest of HK$72 support level is not impossible since we could be seeing the formation of a head and shoulders pattern which would give us an eventual downside target of HK$72 or so.
My charting skills are a bit rusty.
So, beware of tetanus.
Now, the numbers:
Q4 2024: $28,734.99
FY 2024: $ 234,439.46
This is more or less the same as FY 2023 which delivered $231,495.19
Despite having sold most of my investment in Sabana REIT in 1H 2024, passive income on a portfolio level did not reduce in 2024.
DBS, OCBC and UOB really did all the heavy lifting in 2024 as they paid higher dividends.
In 2025, I expect passive income to come in lower due to a much smaller investment in Sabana REIT and also the expected 25% reduction in DPU from IREIT Global as they reposition their Berlin asset.
A 4% or 5% reduction in 2025 passive income on a portfolio level would not surprise me.
Of course, we could see higher dividends from DBS, OCBC and UOB in 2025 as they have excess capital which could be returned to shareholders.
Could be special dividends which means they are non-recurring but that would be good enough to provide some relief.
Once IREIT Global gets their Berlin asset up and running again in 2026, income generation should receive a leg up as the property has attracted 2 tenants so far offering to pay 100% higher rent than the master tenant which vacated the property.
Oh, I will also have to remember to top up my CPF MA before the end of the month.
That's $4,000 to be set aside.
Risk free return of 4% p.a. and the interest earned pays for my medical insurance.
Of course, if you have been following me for many years, you would know all about this.
Let the government pay for our insurance.
Finally, I will maintain my T-bill ladder and strengthen it whenever I have spare cash on hand.
I will only dismantle it when I see Mr. Market being overly pessimistic and offering to sell stocks of businesses I like on the cheap.
All of us can be and should be financially more secure.
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