3 local banks, 3 REITs and SIA.

This blog is actually the second reply to a reader, csky, who is interested in knowing how much have I invested in DBS, OCBC and UOB, amongst other things? 

I decided to publish this as a blog as there are probably other readers who might be interested in this. 

The question started with why didn't I channel funds I used to increase my investment in IREIT Global into Sabana REIT instead? 

In reply, I said: 

"There isn't any brilliant reason behind this. 

"It is simply timing. 

"I like what Sabana REIT's activist investors are doing but I was not sure if they would be able to block the proposed merger. 

"I only added to my investment in Sabana REIT in early December when the proposed merger was scuttled. 

"The purchase of more IREIT units at between 58c to 62c a unit happened in October and November."

I ended that reply with just one sentence on the size of my investment in the 3 local banks as a whole. 

It might have confused csky and here is my second reply to his follow up comment: 

Just to be doubly sure you got the right message, it is the combined value of my investment in the 3 banks which is bigger than the combined value of my investment in AA REIT and IREIT Global. 

As to the stuff I read to stay up to date, The EDGE is a weekly read for me and The Business Times can be interesting too.

I try to keep things simple during this crisis, avoiding speculation as much as I can, as there really isn't much clarity as to how long the COVID-19 pandemic and its deleterious effects might last. 

Although we have some vaccines ready for use now, we also have new variants of the COVID-19 virus and more countries are imposing lockdowns again.

To be safe, my strategy in 2021 will probably stay the same as my strategy in 2020.

Doing so might mean to err on the side of caution, of course. 

I mostly look at what businesses have and what they can deliver now even during a pandemic rather than what they might be able to deliver after we emerge from the pandemic. 

This made me avoid investing in SIA even as its stock price plunged, for example. 

I might be missing out on some extraordinary gains now and in the future but, like I always say, peace of mind is priceless. 

As for trying to stay up to date while actively gaming, Neverwinter's latest module is launching next month which will mean less time for blogging.  

References: 

1. 4Q 2020 Passive Income. 

2. Buying DBS, OCBC, UOB and IREIT Global.

Parents' CPF, voluntary refund to CPF and don't do silly things.

This blog was inspired by a comment from a reader.

Read SnOOpy168's comment: HERE.

Over the weekend, when I was spending time with my parents, I talked to them about their CPF savings and how they should try to put more into their RA and not leave money in their OA.

They will get bigger monthly payouts and enjoy 4% interest instead of 2.5% too.

My mom kept saying the OA money is going to us children when she passes on.

I had to keep telling her that we don't need the money. 

She and dad should not worry about us children.

I told her that if I were eyeing my parents' CPF savings as inheritance, I would be a sorry excuse for a human being.

I am not going to rehash and will do the easy (i.e. lazy) thing and share some of my old blogs here:

1. Boost elderly parents' CPF-RA or CPF-MA?

2. Improving my father's retirement adequacy.

3. CPF to help our retirement but what about our parents'?

On to the next topic which I told another reader I would touch on in my blog reply to SnOOpy168.

People don't realize what a big opportunity cost there is (i.e. the accrued interest) in the use of their CPF savings for everything they can use it for.

This is partially the government's fault for over liberalizing the rules on CPF usage.

It has also given the fake news mills plenty to scare people with.

This is a good example of the anxiety some feel about their CPF savings and the deficit caused by accrued interest for OA savings used:

Unemployed, almost 55 and worried about retirement.

In another blog, I shared that for those of us who are more conservative and who are financially able to, we could consider returning the money we used from our CPF-OA savings in the purchase of our homes to stop the accrued interest from growing:

How to stop accrued interest we owe from growing?

Not all of us are savvy investors and if statistics released by the CPFB is to be believed, most CPF members who invested with their CPF savings lost money.

They would have been better off leaving their money in their CPF accounts.

I would go for low hanging fruits first and CPF is a low hanging fruit and provides an unbeatable level of certainty.

1.  How to turn $60K into $332K?

2. An unbeatable level of certainty in wealth building.

I also shared the story of my CPF-OA because so many readers are incredulous when they see the figures and I did it also to stop the fake news mills from spinning fantasy stories about me:

How did AK amass so much money in his CPF-OA?

If we have plenty of cash sloshing around, we should invest with our cash first instead of our CPF-OA savings which earns a risk free 2.5% interest per annum which is very good especially in a low interest rate environment.

I like to think of my CPF savings as the risk free and volatility free AAA investment grade bond component of my portfolio and would like to end this segment by sharing this blog:

Don't do silly things and we can retire smart too.

I used to blog as much as I did because I really enjoyed it and probably too much.

After all, I did start the blog back in 2009 out of curiosity and boredom.

If by doing something we enjoy, we are able to do good, it is win win.

I still enjoy blogging but not as much as before.

So, blog I will but I cannot say if I will be as regular.

Related post:
Leaving a legacy and AK stops blogging.