Expenses. T-bill. SSB. DBS, UOB and OCBC.

It has been more than a week since my last blog post.

Things have settled into a new normal for me.

In this new normal, my expenses have increased by 3x or 4x.

UOB should be very pleased with me as I exceed the $500 minimum spending required on the ONE Card by a large amount to get extra interest on my savings in the ONE Account.

The increase in expenses is going to be part of the new normal and not transitional, I suspect.

Fortunately, my passive income is buffered which means I am able to absorb the current higher expenses.

Crossing fingers that things do not worsen.

I am still not sleeping well but, fortunately, I am able to take refuge in virtual worlds.

This has saved me many years ago from going into a depression and it still works for me today.

Just spending time alone and being focused on things that have nothing to do with the real world.

Escapism?

Call it what you want but it works.

In a YouTube video I made not too long ago, I said that I could feel apathy setting in when it comes to money matters.

I can say that apathy has definitely set in.

It is next to me now, watching me as I pen this blog.

Apathy says, "What are you doing?"

AK says, "Listen to me, Apathy, you are just a guest. You should try not to get too comfortable."

Brave words.

Writing is therapeutic to me and I am just talking to myself which helps to calm my mind as I try to make sense of things.

Anyway, soldiering on.

1. T-bill yield dropping.

In the last auction, T-bill yield declined to 3.34% p.a.

It could have been worse, I suppose.

Anyway, I got my non-competitive bid filled.

Using cash, 3.34% is still better than what a regular savings account pays.

Of course, if we can get 4% p.a. like we get with the UOB ONE Account, we should maximize that first to $150,000.

With T-bill yields declining and this goes for interest rates in fixed deposits too, high yield savings accounts should have priority when parking our extra money.

There is, of course, the added benefit of liquidity.

I also use my CPF OA money to buy T-bills but I might stop doing this because the break even cut-off yield for 6 months T-bill is 3.33% p.a. in case we lose another 2 months of CPF OA interest.

I would just transfer the money from CPF IA to CPF OA when the T-bills mature.

One less thing for me to juggle.

So, it isn't a tragedy.

2. Singapore Savings Bonds.

10 year average yield on Singapore Savings Bonds is also declining. 

I bought some SSB offered last month.

That had a 10 years average yield of 3.22% p.a.

This month, the offer is for an average yield of 3.1% p.a.

It is still above the 3% average interest I would get for doing voluntary contribution to my CPF account, although not by much.

I think I will give it a miss.

Another less thing for me to juggle.

Yes, again, not a tragedy.

3. DBS, UOB and OCBC.

Things seem to have settled down for the stock prices of our local banks.

They have recaptured their supports.

DBS at $35.

OCBC at $14.

UOB at $30.

Mr. Market might have come to terms with the eventual weakening of net interest income as interest rates decline.

However, like I have said many times before, our local banks have other sources of income and they are likely to continue growing as they retain about half of their earnings.

This means that even for people who paid higher prices for stocks in DBS, OCBC and UOB, eventually, their investments will become much more valuable.

For me, being paid while I wait is not a bad thing.

Still, do not throw caution to the wind.

The world is not in a good place now.

So many things have gone wrong and could get worse.

We are fortunate to be in Singapore but we are not shock proof.

Mr. Market could go into a depression suddenly, without warning.

That is when we roll out our war chests.

Remember what I always say.

Don't be overly optimistic.

Don't be overly pessimistic.

Be pragmatic.

Be prudent.

Be patient.

If AK can do it, so can you!

T-bill? DBS, OCBC and UOB crashed? When to buy?

I produced a YouTube video yesterday after someone alerted me to buy some bank stocks.

I thought the stock market had crashed.

Did not look at stocks for 2 weeks prior to the alert with all that has been going on in my life.

Anyway, if you have not seen the video, here it is:

It isn't a crash.

A steep correction but not a crash.

This blog post is more a reminder to myself what to do next because I am aware that apathy towards financial matters has set in for me.

If I don't put this down in writing, I might just let inaction take over.

1. Bank stocks.

I have said that it is a good idea to invest in our local banks because they are well run and well capitalized.

They have the ability to pay good dividends.

More importantly, they are willing to do so.

Further decline in their stock prices would be an opportunity to add to my positions.

For DBS, I am looking at $32.50 and $30.00 to add.

For UOB, I am looking at $28.00 to add.

For OCBC, I am looking at $13.00 to add.

I am already substantially invested in all three banks.

So, I will add slowly in case the unthinkable happens and prices go farther south.

2. T-bill ladder.

I will continue to maintain the ladder although the cut off yield has declined to 3.4% p.a. in the last auction.

3.4% p.a. is only slightly higher than the 3.3% p.a. I can get from a 6 months FD.

However, T-bills are backed by our government.

I don't have to worry about exceeding $100K in value.

SDIC. Remember?

The adjustment I have to make is when it comes to using CPF OA money.

Instead of placing competitive bids at 3.5%, I will be lowering it to 3.4%.

If the cut-off yield comes in lower than 3.4%, I will simply leave the money in the CPF OA.

The break even yield, if I remember correctly is 3.33%, in case we lose 2 additional months of CPF OA interest.

Nothing else for now.

Largest investments updated (mid 2024): Never run out of money in retirement.

It has been quite a while since I last blogged about my largest investments.

The last time I published such a blog was in January 2023.

So, it has been a year and a half!

Apart from being lazy, I didn't do very much to my portfolio and, hence, I did not see the need to publish any updates.

However, I think it is about time I do this even if it is just to take into account changes in market prices.

Many things have changed in the past 18 months.

Before we start, I want to share a YouTube video I produced on how not to run out of money in retirement which I feel is an important topic:

Anyway, here is the update.

$500,000 or more

1. CPF

2. OCBC

My CPF savings is a constant.

Being risk free and volatility free, it provides peace of mind.

I have not done any voluntary contributions to my CPF account in the last 18 months.

Instead, I have used that money to buy Singapore Savings Bonds and I shared the reason why here and also in my YouTube channel, of course.

I have also used money in my CPF OA to buy T-bills which grows my CPF OA savings at a faster clip.

In dollar terms, it is quite meaningful as I have quite a large amount of money in my CPF OA.

So, my CPF savings has grown in size in the last 18 months despite lacking mandatory or voluntary contributions.

Next is OCBC which is my largest investment in equities.

Since the last update on my largest investments, I added to my position in OCBC at about $12.30 a share in the middle of 2023.

The market value of my investment in OCBC has gone up significantly as its share price has also appreciated quite a bit.

This is very nice but as an investor for income, I am more interested in the passive income generation.

OCBC has become and will continue to be the most important passive income generator for me.

$350,000 to $499,999

1. AIMS APAC REIT

2. DBS

3. UOB

4. SSBs and T-bills

Unlike the top bracket, there are some changes in the second highest bracket in my portfolio.

DBS and UOB have both moved upwards to join AIMS APAC REIT in this bracket.

The spectacular increase in the share prices of DBS and UOB resulted in their promotion in my portfolio.

There is also the fact that I added to my investment in UOB in the middle of 2023 at about $27.90 per share.

I also added to my investment in DBS in November of 2023 at about $31.80 per share.

Together, OCBC, UOB and DBS account for more than 45% of my portfolio's market value.

Then, there are SSBs and T-bills.

Together, they jumped two brackets upwards from 18 months ago.

Yes, together, they were in the lowest bracket 18 months ago.

I can save money relatively quickly since my passive income exceeds my expenses rather significantly.

I have been socking away money in SSBs and T-bills in the last 18 months.

Money which would have gone into my CPF account was instead used to buy SSBs.

Excess money was used to buy 6 months T-bills, strengthening my T-bill ladder.

This provides me with more passive income without any price risk.

The money in T-bills also come back every 2 weeks which is useful if there are investment opportunities presented by Mr. Market.

$200,000 to $349,999

1. IREIT Global

For readers who have a keen eye, they would have wondered what happened to IREIT Global which was in the higher bracket 18 months ago?

The large decline in unit price since the last update means IREIT Global has fallen in its position in my portfolio.

Having declined more than 40% in the last 18 months means IREIT Global is no longer my largest investment in the REIT universe.

It briefly replaced AIMS APAC REIT as the largest REIT investment in my portfolio 18 months ago.

I made a video about IREIT Global several months ago and the decline in unit price is not unexpected.

Here is the video for anyone who might be interested:

I am still holding on to the investment and will be adding if its unit price declines further.

I find it easier to value IREIT Global because it isn't holding something amorphous.

It is deeply undervalued and more so now that Mr. Market is feeling very pessimistic about it.

In fact, I am getting a bit of that Saizen REIT vibe.

Readers who have been following my blog for many years would know what I mean.

Still, same same but different.

So, do not throw caution to the wind.

I made a video about this recently too:

$100,000 to $199,999

1. Wilmar International

2. ComfortDelgro

3. Frasers Logistics Trust

Membership in this lowest bracket of my largest investments has changed.

Wilmar dropped one rank as its share price declined significantly.

I know Mr. Kuok and Mr. George Yeo added to their investments recently.

However, I am still waiting for $3.00 per share before adding.

Wilmar is very undervalued if we look at the sum of its parts.

However, conglomerates always suffer from conglomerate discount.

So, buying with a larger margin of safety for a person of limited means like myself is not a bad idea.

Wilmar is still profitable and pays a meaningful dividend which means I am being paid while I wait.

This is true for all my investments.

ComfortDelgro and Frasers Logistics Trust are both chugging along fine.

Nothing much to say there.

Sabana REIT and CapitaLand China Trust have dropped out from this bracket.

I reduced my investment in Sabana REIT substantially not too long ago and I blogged about it too.

Don't like how the internalization process seems to be fraught with speed bumps.

Like I said in the blog, it is very different from my experience with Croesus Retail Trust.

CapitaLand China Trust has seen its unit price plunged.

Unfortunately, its fate is tied to that of the Chinese economy which is not in a good place now.

Specifically, the Chinese property sector which accounts for 30% of the economy will be a dead weight for many years to come.

So, this is the update.

Although there are a couple of investments which are underperforming, overall, the portfolio is doing well.

That is what matters to me.

Performance on a portfolio level.

Of course, all of us have different beliefs and we should all do what we feel is right for us.

If AK can talk to himself, so can you.

Related posts:
1. Sabana REIT divestment.
2. Largest investments (4Q 2022.)

AA REIT, T-bill, SSBs, CPF, UOB, OCBC.

I have been thinking of taking another long break from social media to focus on other things in life.

Tentatively, I am thinking of coming back in June.

So, this might be my last blog until then.

1. AIMS APAC REIT

This is probably my most rewarding investment for income.

I have been holding to the relatively large investments made during the Global Financial Crisis till today, enjoying a distribution yield in excess of 10% on my cost.

The price appreciation is nothing to shout about but as an investment for income, it has been very good to me.

I would liken it to a bond that has been paying me a very good coupon.

As at 31 March 2024, the REIT has a gearing level of 32.6% which is on the low side.

However, I am mindful of the fact that it has some perpetual bonds which are due for a relook next year and those would likely increase in financing cost.

This is because interest rates and yields are significantly higher now than a few years ago.

This is a good reason to stay cautious if we are thinking of plonking more money in the REIT.

Offering a 7.4% distribution yield, it isn't much higher than what our local banks offer in dividend yields.

The REIT also has to distribute all its income in order to achieve this.

I simply will continue to hold on to my investment since it is already free of cost.

I am partial to receiving "free" money.

2. T-bill

The latest 6 months T-bill auction had a cut-off yield of 3.7% p.a. which wasn't too bad.

I made a video about why CPF OA money should go into T-bills, especially those with auctions in the first half of the month.

Someone told me it was all my fault that non-competitive bids were only 80% filled this time.

OMG!

Bad AK! Bad AK!

Well, like I mentioned recently, my plan is to simply grow my exposure to T-bills unless there is another stock market crash.

This is something I have given some thought to.

I really don't have to do too much on the investment front which is what I plan to do when I turn 55.

So, this is a taste of what's to come, maybe.

I would probably be sending dividends coming in from DBS, OCBC and UOB in Q2 and Q3 into T-bills.

3. Singapore Savings Bond and CPF

This month's SSB is tempting with a 3.33% p.a. 10 year average yield.

In a blog post many months ago, I said it would make more sense for me to buy SSBs with 10 year average yield in excess of 3% p.a. than to do voluntary contributions to my CPF account.

I have already front loaded this and bought enough SSBs to replace voluntary contributions till this year.

With the bombshell dropped by Lawrence Wong on how the CPF SA will vanish once we turn 55 years old, I took a hard look at my CPF savings.

In a recent blog post, I said I would have some $800K in my CPF OA by then and I think that should be enough for me.

I could use it to buy more T-bills if yields stay high or I could simply leave the money in the CPF OA.

Use the interest generated as spending money.

By extension, I don't think I need more SSBs now.

Well, I could change my mind if the 10 year average yield goes to 4% p.a. ;p

Right now, I would rather have a stronger T-bill ladder which means a bigger war chest while waiting for the next stock market crash.

Although it is true that we can redeem SSBs, we wouldn't be able to get the higher 10 year average yield in such a case.

So, T-bills are more attractive for my purpose.

4. UOB

In my video on DBS, I said that it was clear that DBS would continue to do reasonably well even if interest rate were to decline.

DBS does not depend solely on net interest income but has other sources of income.

The same is true of UOB.

Net interest income dipped 2%, year on year.

However, fee income increased 5%.

Other non-interest income increased 3% due to record trading and investment income.

Non performing loan ratio is at 1.5% which means asset quality remains stable.

CET-1 ratio is at 13.9% which is the lowest amongst the 3 banks.

So, little chance of a special dividend from UOB. ;p

By next year, UOB will complete the integration with Citibank's Vietnam consumer banking business.

Of course, the integration with Malaysia and Indonesia was completed last year.

The integration with Thailand completed recently.

Trading at about 9x PE and 1.2x NAV, UOB is offering a dividend yield of some 5.5%, paying out 50% of its earnings to achieve this.

It doesn't look as attractive as DBS but it is attractive enough when I remind myself that DBS pays out a higher percentage of its earnings as dividends.

5. OCBC

OCBC is my largest investment in the banking sector.

Alone, it is larger than my investments in DBS and UOB combined.

I really like OCBC because I think it offers the best value for money.

Well, more accurately, it did.

With its stock price having risen quite a bit, it now trades at about 9x PE, 1.2x NAV while offering a dividend yield of some 6%.

It isn't as cheap as it was, for sure.

Paying out about 50% of its earnings as dividends, it offers a dividend yield of 6%.

So, like DBS and UOB, OCBC grows in value as an investment over time.

Like I said several times recently, there is no need to worry about OCBC's exposure to the Chinese property sector.

Non performing loan ratio is at 1.0% which is even lower than UOB's 1.5%.

Like DBS and UOB, OCBC has demonstrated its ability to generate higher non-interest income.

Net fee income increased 4% while net trading income increased 67% to a new high.

With a very high CET-1 ratio of 15.9%, I am still crossing fingers that we might see a special dividend in future.

As OCBC is the largest investment in my portfolio, it would be something to celebrate if it should happen.

This is a pretty long blog post which I hope it enough to satisfy anyone who is eavesdropping until my proposed return in June.

Until then, if AK can do it, so can you!

AK is on YouTube too:
AK71SG

More funds came in as yield hits 3.78% p.a.

The latest 6 months T-bill auction saw a cut-off yield of 3.78% p.a. 

Pretty decent although it dipped slightly from 3.8% p.a. we saw in the auction before this. 

Better than the 3.4% p.a. offer from CIMB for a 6 months fixed deposit. 

So, good enough for me. 

Around 96% of non-competitive applications, total S$2.5 billion, were allotted in the latest auction.

Fortunately, I applied for the T-bill not only with funds that came back from a matured T-bill, I topped up with fresh funds. 

So, I got to strengthen my T-bill ladder nonetheless. 

Money from the partial sale of my investment in Sabana REIT is in. 

The plan is to deploy the funds when there is a pull-back in the stock prices of our local banks. 

I will park the money in upcoming T-bills for the time being. 

Just AK talking to himself, as usual. 

If AK can do it, so can you!

Related post:
Sabana REIT: Internalization pains.

Updated plan as yield plunged on 6 months T-bill!

It could be a sign of things to come.

Cut-off yield in the latest 6 months T-bill auction was 3.54% p.a.

That is a huge decline from 3.7% p.a. seen in the prior auction.

100% of my non-competitive bid was filled.

3.54% p.a. is still decent but it is similar to what I am able to get from 6 months fixed deposits now.

I have a few fixed deposits maturing this month and I will be renewing them at 3.55% p.a. interest rate for a 6 months tenure with CIMB.

I have talked to myself about when to dismantle the T-bill ladder.

The plan is to dismantle the ladder when Mr. Market goes into a depression.

However, if the cut-off yield becomes significantly lower than what I could get from 6 months fixed deposits, then, I could dismantle the ladder too.

Place fixed deposits instead of buying T-bills.

Still laddering but with fixed deposits instead.

As for CPF OA money, I would simply leave the money undeployed if cut-off yield goes under 3.5% p.a. which is where I would place my competitive bids.

This is why I said it makes sense to transfer the funds from CPF IA to CPF OA when I did.

It is for in case I am unsuccessful in getting T-bills at the cut-off yield which is meaningful to me.

Where are things going?

So, it seems that T-bill cut-off yield is trending lower.

This is probably in response to dovish statements from the Fed and also the ECB on possible interest rate cuts this year.

Just have to roll with the punches and adapt.

If AK can roll, so can you!

Recently published:
1. $700K coming back!
2. DBS and CPF miracle!

DBS and CPF miracle! Happiness!

I don't usually blog at night but this is so exciting that I just have to talk to myself.

Yesterday, I talked about my 1 year T-bill which I purchased with CPF OA money maturing.

This was the available balance in my CPF IA then:

I also said that I transferred the funds from CPF IA back to CPF OA upon seeing the money credited at 5pm.

This was my CPF OA balance yesterday:

DBS online portal said it would take up to 3 business days for the transfer to be done.

That would mean losing another month of CPF OA interest if the money went back to the CPF OA in February.

It is what it is, I guess.

However, I decided to check my CPF account just now just to see if a miracle took place.

Well, a miracle did happen!

The money is back in my CPF OA which means I would not lose another month of CPF OA interest!

My faith in DBS bank is restored!

Yes, I know.

AK is so shallow.

Bad AK! Bad AK!

I am so happy now.

Losing an extra month of CPF OA interest is a big deal in this instance because the sum is so big.

We are looking at about $1,400 of interest income.

Huat ah!

If AK can be shallow, so can you!

Reference:
CPF account recovery: Thoughts and plan!

My plan after 3.45% p.a. 1 year T-bill.

Massive disappointment.

Many felt that when the cut-off yield came in at 3.45% for the latest 1 year T-bill auction.

I somehow got the dates messed up and I couldn't take part in the auction.

Regular readers might remember that I bought a 1 year T-bill about a year ago using CPF-OA money.

That cut-off yield was 3.87% p.a. and would mature on 30 January 2024.

So, it would not have matured in time for the recent 1 year T-bill auction.

Somehow, I kept thinking that it would.

Anyway, no loss there.

3.45% p.a.

I would not have gotten the T-bill even if the money came back in time.

I would have placed a competitive bid of 3.5% p.a.

That is minimally acceptable to me when using CPF OA money to buy T-bills.

This is because the breakeven is 3.33% p.a.

This covers the possibility of losing 8 months of CPF OA interest and not just 7 months.

So, at 3.5%, I am only getting 0.17% more than what CPF OA would pay me.

This means that for $100,000, it is a $170 difference.

For $670,000, which is the amount from my last 1 year T-bill with CPF OA money, the difference would have been about $1,140.

Nothing to write home about but still something.

Of course, getting 3.87% the last time, the difference was more significant.

Anything lower than 3.5% p.a., I would just leave the money in the CPF-OA.

Not enough meat for me to be interested.

So, what am I doing with the CPF OA money coming back?

I will try for 6 months T-bill, bidding competitively at 3.5% p.a.

If I don't get it, no big deal.

If AK can talk to himself, so can you.

Reference:
CPF account got hacked!

Reducing risk and volatility on portfolio level.

I have picked up Yu Gi Oh again!

Found that I could play it for free online.

It was something I played but only for a bit and I enjoyed the anime.

I didn't have a deck of my own as it was too expensive to build one.

I had to use a friend's deck.

It was so long ago.

Old brain.

So rusty.

It is a strategy game that really tests my ageing brain which is a good thing.

Helps to slow the onset of dementia, maybe.

Anyway, like I said in a previous blog post, I have been contemplating just buying T-bills and bonds from now on.

Of course, if the yields decline, I could always go back to making contributions to my CPF account.

Regular readers know that I treat my CPF savings as an investment grade bond component of my portfolio which pays reasonably attractive coupons.

This way, I would continue to grow the risk free component of my investment portfolio.

I must realize and embrace the fact that I don't really have to take on more risk anymore although I could still buy more stocks if Mr. Market goes into another severe depression.

Like I said several times before, that would be the time to dismantle my T-bill ladder.

Doing this, buying T-bills and bonds in the meantime, price volatility on the portfolio level would reduce over time.

The last T-bill auction saw a cut-off yield of 3.74% p.a.

Until the Fed reduce interest rate, I am expecting similar cut-off yields for the time being.

I have put in a non-competitive bid for the upcoming auction happening on this Thursday, 18th of January.

That's all for this update.

If AK can talk to himself, so can you!

Related post:
SSB, T-bills, banks and plan.

CPF savings, SSBs & T-bills in January 2024.

Last year, I published a blog post with a very eye catching title regarding my CPF savings.

"More than $1.1m in CPF savings!"

Well, this time, it is a whimper, in comparison, at less than half a million dollars. ;p

So, how much exactly?

Here is my CPF pie chart at the end of 2023:

Some readers might say that for the first time in a long time, my CPF savings look "normal." ;p

CPF OA savings less than CPF SA savings.

For people who use most of their CPF OA savings to fund a flat purchase, this is probably normal.

Of course, regular readers of my blog would know that most of the money in my CPF OA went to buying T-bills.

Two T-bills.

A one year T-bill is maturing end of this month.

A six months T-bill is maturing in the middle of March.

So, the money will come back.

I will transfer the money from the CPF IA to the CPF OA when it happens.

Then, if yields stay relatively high, I would probably buy T-bills again.

Of course, with CPF funds, I do competitive bidding.

3.5% p.a. is a reasonably sensible bid to place.

I produced a video on this topic before too and, in case some are interested, here it is:

Hope the video is helpful.

Of course, another reason why my CPF savings did not grow as quickly as before was because I did not do voluntary contributions last year.

The money earmarked for that went to buying Singapore Savings Bonds instead which offered higher than 3% p.a. in 10 year average yield.

For those who didn't know this, here is the link to the blog post:

"SSB: Mission accomplished."

I won't be doing voluntary contributions to my CPF account this year in 2024 either.

Why?

I front loaded the "contributions" last year, buying more Singapore Savings Bonds later in the year.

See this blog post:

"SSB: Missions update!"

All as well.

The latest Singapore Savings Bond is offering only 2.81% p.a. in 10 years average yield.

So, that is an easy skip for me.

In any case, I am in no hurry to buy more Singapore Savings Bonds since whatever I want to buy to replace voluntary contributions to my CPF account in 2024 was filled last year.

If the yield remains low for the rest of the year, I will go back to doing voluntary contributions to my CPF account in 2025.

Easy.

Till the next blog post, mask up and stay safe!

If AK can do it, so can you!

List for 2024! CPF BHS. T-bills. 2023 passive income.

Happy new year!

Brand new month and brand new year!

I have been busy the entire month of December and now I have to plan my January.

I have so much to do in different worlds.

Neverwinter, World of Warships and Black Desert Online.

12 to 14 hours of time spent in virtual worlds.

Of course, I must not forget things I must do in the real world too.

January looks like it is going to be another busy month too.

Oh dear.

I wish I had 25 hours a day instead of 24.

Maybe, 26 or 27 hours would be better.

Yeah, bad AK!

So many things to do in my retirement and so little time.

Anyway, as I am growing forgetful in my old age, this blog will quickly outline the stuff I am going to do when it comes to money matters.

1. Top up my CPF MA to the new BHS.

The new BHS is $71,500 in 2024.

This is up from $68,500 in 2023.

Interest earned in my CPF MA will flow into my CPF OA since my CPF SA has already hit the FRS.

So, I will be able to do a $3,000 top up to my CPF MA this month in January.

I will do it earlier than later just in case I forget later.

2. Blog about my updated CPF balance.

My CPF balance will look very "weak" in 2024.

I published a blog last year where I reacted in "horror" that my CPF account was "hacked!"

The bulk of my CPF OA money is in a 1 year T-bill with a cut-off yield of 3.87% p.a. which is why my CPF OA balance is much lower.

That T-bill is maturing at the end of the month.

So, the money is coming back.

I must remember to transfer the money back into my CPF-OA.

3. 6 months T-bills.

I got both 6 months T-bills offered in the month of December 2023.

The cut-off yields were 3.74% p.a. and 3.73% p.a.

Not too bad.

The plan is to maintain my T-bill ladder in 2024.

The yields are still relatively attractive to me.

So, I have already made a non-competitive bid for the auction taking place on 4th January 2024.

If Mr. Market should go into a depression in 2024, it would be time to dismantle the ladder.

4. 2023 full year passive income.

I have been so busy in December that I have not been keeping up with things on the investment front.

I will have to spend some time looking at numbers to account for my passive income in 2023.

I am expecting a weaker Q4 2023 since UOB and OCBC pay dividends only twice a year in May and August.

Year on year, passive income could come in weaker as the REITs I hold are generating less income for me too.

There will be some income generated by T-bills in the portfolio but that won't move the needle much, I suspect.

Hmm.

I think that is all when it comes to money matters and blogging.

Lots of other stuff I have to do but I shan't clutter this blog post.

OK, maybe just this one thing.

I shared this screen-shot of the port of Velia in Black Desert Online in my YouTube community tab on Boxing Day.

You can see my ship docked in the extreme right of the picture.

I am working on upgrading it be like the taller and larger ship with the black sails in the center of the picture.

Work in progress and I should be able to get it in a few more days.

Makes me happy thinking about it.

Will be happier once it is done!

That is all for now.

Look out for upcoming blog posts on my CPF savings and 2023 passive income update.

I will be back!

If AK can talk to himself, so can you!

SSB, T-bills, DBS and UOB. Plan for December. Easy.

This is probably going to my final blog post for 2023.

Planning on taking it easy for the rest of the month when it comes to social media.

Have been a little too active in the last few months on YouTube.

Now, going to spend more quality time with myself.

Being able to play three games everyday on my new gaming laptop makes me very happy.

That is what retirement is about.

It is about being happy.

A few things to talk about.

1. T-bills and SSB.

The Singapore Savings Bond being offered this month is offering a stunning 3.07% p.a. 10 year average yield.

Stunning for the wrong reason since last month's offer gave an attractive 3.4% p.a. 10 year average yield.

I think I will give this one a miss.

Am I veering away from my plan to keep buying Singapore Savings Bond as long as the yield is above 3% p.a. or not?

Well, the plan was to replace CPF Voluntary Contributions with Singapore Savings Bonds.

I have already done it with money meant for the CPF in 2023 and 2024.

2025 is work in progress and there is really no hurry.

In the meantime,  I will continue to strengthen my T-bill ladder.

The last T-bill auction had a cut-off yield of 3.8% p.a.

Hopefully, it stays there for the auctions happening this month too.

2. DBS and UOB.

I still want to increase my investment in the local banks.

OCBC is already a very large position.

So, the idea now is to grow my positions in DBS and UOB.

For me, the stock prices to add would be between $30 to $30.50 for DBS and closer to $26 for UOB.

3. Taking it easy.

I have been thinking of taking it easy when it comes to investing for some time.

However, after a recent recording with The Fifth Person, I have been thinking about it even more.

The decision to retire early was a big step for me.

I was always a worrier and I still am a worrier.

Still, I convinced myself that I had sufficient financial resources to retire early.

Then, in retirement, I began to question if I really did have enough.

I continued to invest for income and increase my passive income in retirement.

In recent years, I have been telling myself to take it easy and that I have enough financial resources not to have to worry.

I have had some success but something Adam said during the recording hit home.

So, I could simply just buy more Singapore Savings Bonds and T-bills from now on and still be quite comfortable.

Risk free and volatility free.

Don't have to do anything else.

This would be another phase in my life, if I should do this.

To be honest, I rather like it.

Anyway, that's all the talking to myself for now.

If AK can talk to himself, so can you!

Merry Christmas and Happy New Year!

Added to position in DBS. T-bill 3.8% p.a. cut-off yield.

Just a quick update on what I have done in recent days to my investment portfolio.

For anyone who is following me on YouTube, it is no secret that I have been looking to add to my investment in DBS.

I identified the immediate support to be at $32.00, and if that should break, then, $31.80 would be next.

I added to my position at closer to $31.80 a share but it is just a nibble.

I see longer term support for DBS at between $30.00 to $30.50 a share.

So, that is where I would like to buy more.

DBS continues to impress me with its much higher ROE of 18% to 20% when compared to UOB and OCBC which have ROE of around 14%.

So, I feel that this justifies DBS trading at a higher price to book.

There is also the fact that DBS pays dividends quarterly and as a retiree who lives off his passive income, this is also attractive to me.

Next topic is T-bills.

The auction happened yesterday and the cut-off yield was 3.8% p.a.

I estimated it to be 3.88% p.a. but 3.8% p.a. is good enough to make me happy.

What also makes me happy is that non-competitive bids were fully allotted.

T-bill ladder is intact!

Next auction is happening on 7 December.

So, nothing earth shattering happened, really.

Just sticking to my plan.

Always have a plan, your own plan.

If AK can do it, so can you!

3.75% p.a. cut-off yield for T-bill. Disappointing.

The results for the 6 months T-bill auction came out at 5pm or so.

I made a short video on this soon after.

In a nutshell, I was disappointed.

I did make a video a few days ago saying that we could see 3.88% p.a. based on the daily SGS prices and yields published by the MAS.

Of course, I didn't expect an exact match but 3.75% is even lower than the auction that took place one month ago.

That gave 3.87% p.a.

The last time it was lower was 2 months ago in September at 3.73% p.a.

Anyway, as I was using cash, I just placed a non-competitive bid.

This is so that I would get at least some of my application filled if there was a high level of interest.

Well, only 95% were allotted.

This means that if we had applied for $20K, we would get a refund of $1K.

To be fair, a cut-off yield of 3.75% p.a. is not bad.

It is still more than what most 6 months fixed deposits would pay, and if we consider the fact that the interest is paid at the start of the duration, it is actually more than 3.75% p.a.

So, disappointed I may be but not too much so.

Think positive!

Better for my mental health!

As for people using CPF-OA money, I always say to do competitive bidding because we do not want to be a victim of the unthinkable.

I have said in the past that a sensible competitive bid would be one that would not cause us to lose out on interest income in the end.

So, using CPF-OA money, the break-even is about 3.33% p.a. and since we should be aiming for more than breakeven, a competitive bid of 3.5% p.a. makes sense.

(3.33% p.a. takes into consideration the possibility of losing 8 months of CPF-OA interest.)

To be honest, unless the amount is significant, the difference in interest income is not going to be very meaningful.

I think this is not hard to understand.

So, I wouldn't be too worried if the amount of  CPF-OA money involved is, say, less than $50K.

So, until the next T-bill auction, it is back to my games.

If AK can do it, so can you!