AK is egg-static! (Inexpensive and nutritious food.)

Although ASSI is mostly a personal finance and investment blog, I really do blog about anything which I might fancy.

It might sound unbelievable but I do have a small following of readers who are always curious about what I have at mealtimes.

When did this start?





Maybe, it started from all the stuff I wrote about how we could save money by packing lunch to work. Maybe.

AK is a giamsiap fellow.

Dinner today?

Microwaved scrambled eggs with unsalted butter, garlic salt and a dusting of black pepper.

Time to prepare: 
Less than 3 minutes.

Cost:
About 50 cents.

Oishi! 

In more ways than one too.

OK, this is the last blog for the day. In case you just dropped in today, these are the links to the two other blogs published today:

http://singaporeanstocksinvestor.blogspot.sg/2017/07/blog-about-my-increasing-portfolio-value.html

http://singaporeanstocksinvestor.blogspot.sg/2017/07/do-this-to-get-higher-interest-income.html




Myth: High Cholesterol Is Caused by What You Eat
The biggest factor in cholesterol is not diet but genetics or heredity.

If you're still worried about the cholesterol in your diet, take a look at the newly released 2015 U.S. Dietary Guidelines. As recently as 2010, U.S. dietary guidelines described cholesterol-rich foods as "foods and food components to reduce."

They advised people to eat less than 300 milligrams (mg) per day, despite mounting evidence that dietary cholesterol has very little to do with cholesterol levels in your body.

The latest guidelines have finally removed this misguided suggestion, and they even added egg yolks to the list of suggested sources of protein.
Source:
https://articles.mercola.com/sites/articles/archive/2016/04/20/cholesterol-myths.aspx
---------------
Added on 12 August 2017:

Egg curry! Oishi!
--------------
Added on 14 August 2017:

In this version, I added full cream evaporated milk and some meat floss after the mixture (eggs, water, coconut oil and turmeric powder) came out of the microwave oven. Oishi!



--------------
Added on 15 Aug 17:

Sedap! (Don't always oishi lah!)
---------------------------
Added on 16 Aug 17.
Feeling lazy today.

Didn't even bother to scramble the eggs. Bad AK! Bad AK!
-------------------
Added (19 Aug 17):

Yum yum.
--------------------
Added (21 Aug 17):

I like.
-------------------------
Added (2 Sep 17):

So healthy!
-------------------------
Added (30 Sep 17):

-------------------------

Blog about my increasing portfolio value?

Reader:
Many of your stocks have risen in price. Examples are CCL, FLT, SGR, CRT, CRCT, RHT. The actual list is much longer definitely. 

In addition to your quarterly reports on your passive income, would you consider sharing the change in the value of your portfolio as well? 

I am sure many readers are interested and it would be inspiring too.

AK:
I know some investment bloggers do what you said but I won't because it doesn't gel with my motivations both as an investor and also as a blogger. 

My focus is on investing for income and price movements don't really matter to me as long as my investments continue to do what I expect them to do and one of those things is to pay a meaningful dividend. 

So, sharing my passive income numbers is something I am quite willing to do as this is what I feel would inspire readers to invest for income to help them on their journey towards financial freedom.


Do you feel the same way as the reader or do you feel the same way I do?

I think it is probably more useful to see why I invested in some of the businesses the reader highlighted and to understand my decision making process.

If you are interested, here are a few blogs to read:

Added Frasers L&I Trust and CapitaRetail China.

Added Centurion Corporation Limited.

Added Starhill Global REIT.

I assure you that this is more productive than reading about how the value of my investment portfolio has changed.

Related post:
My portfolio or my philosophy?

Do this to get higher interest income with UOB ONE?

Reader:

Understand that you have UOB One Card.

Recently, a UOB Personal Banker approaches me regarding the other usage of One Card to earn higher interest in the One Account.

Instead of spending $500, one can just save that $500 through a Prudential savings plan. This $500 will be deducted from the One Card every month for 5 years. After which, the total amount deducted will be locked for another 10 years. 

At the end of the 15 years, one can earn an effective interest p.a. of about 3.13%. The principal is guaranteed. 

In this way, one does not need to force spend every month to reach the $500 target in order to earn a higher interest on the One Account. Through this method, one can also earn higher interest as this $500 is "spent" on the savings plan, by utilizing the One Card.

What do you think of this? Appreciate if you can talk to yourself...

AK:
I will avoid an insurance cum savings (which is really insurance cum investment) product. I always say buy term and invest the rest. Instinctively, I would say 'no' to this offer.

I believe that 3.13% per annum is the potential interest rate and not guaranteed. I do not know if you would be disappointed 15 years later if you only get back your capital then (if Prudential does not go bust).

If you have trouble spending $500 on your UOB ONE Card each month, it might be better to simply forgo the UOB ONE Account. Forget it.

Doing this, you would be forgoing an additional interest income of about $800 a year (assuming you have $50,000 in the savings account which would have earned a bonus 1.6% in interest with a monthly spend of $500) but it gives you greater financial flexibility and a chance to build a bigger war chest for the next bear market.

Related posts:
1. UOB ONE Account?
2. How many $29,000 do we have?

Bought more VIVA Industrial Trust and worried.

Reader:
I learn of your blog from reading an article you wrote about Viva Industrial Trust for a magazine. 

I am very concerned now because I just bought more after reading research provided by my broker. 

The dividend is expected to increase. 

Is the land lease situation really bad?







60 years land lease from 1961.
Expiring in 2020, no extension is allowed.

AK:
I don't remember writing for any magazine or maybe I did but I just don't remember.

Whether an investment is good or not depends in part on the motivation of the investor. 

If you are invested in Viva Industrial Trust for income, you have to question not only how high the yield is, you have to question how sustainable it is going to be?





Can there be any other motivations for investing in Viva Industrial Trust? 

The belief that, perhaps, the manager could increase asset value and to sell assets to an unsuspecting (or gullible) party at a higher price before the land leases end? 

Of course, this would make the decision more a speculation than an investment.

I know what I have said does not sit well with everybody and I can even prove it. ;p

Hey, I am only a blogger and I anyhow talk to myself in my blog lah. 






Don't care me hor.

Listen to John Lim better. 

Who is John Lim? Who else?

In an interview, John Lim said there is an issue with the structure of the Singapore industrial property market. The land tenures are relatively short and valuations will fall because they are aligned to tenure. 

Not I say. 

John Lim say hor.






This is why Cache Logistics Trust is diversifying into Australia. 

Incidentally, so has AIMS AMP Capital Industrial REIT. 

Of course, we also have a new comer, Frasers Logistics and Industrial Trust which is a pure Australian play.

Related posts:
1. VIVA Industrial Trust's 9% yield.
2. AA, Soilbuild and VIVA REITs. 

AIMS AMP Capital Industrial REIT challenged.

I have said before that AA REIT is not unique in the industrial REIT space. All industrial landlords in Singapore are facing difficulties presented by over supply and weaker demand. 

From the latest results presented by AA REIT, it is obvious that the difficult environment is not letting up anytime soon.

1. New and renewed leases are at a weighted average rental decrease of 4.3%.

2. Portfolio occupancy has declined from 94.6% to 91.0%.

Things are admittedly difficult but they are far from grim.



103 Defu Lane 10.





A competent management has kept gearing manageable at 36.3% and also managed to reduce overall blended funding cost to 3.6%.

Interest cover ratio is healthy at 4.9x and NAV per unit stands at $1.39.

We tend to be a bit less cautious when the stock market is doing better but it pays to go back to the fundamentals. Just two days ago:

http://singaporeanstocksinvestor.blogspot.sg/2017/03/aims-amp-capital-industrial-reit-is.html

Remember, price is what we pay and value is what we get.

Also, try to put things in perspective. This is hardly a crisis.

http://singaporeanstocksinvestor.blogspot.sg/2017/03/aims-amp-capital-industrial-reit-levels.html

Things would probably look up when 2 development projects (51 Marsiling Road and 8 Tuas Ave 20) are completed in 2H 2017.

30 Tuas West Road. Published on 20 July 2017.
Slides presentation: HERE

HDB Lease Buyback Scheme and you.

Reader:

Parents in late 60s considering whether to go for lease buy back on their HDB flat (42 yr old flat) or leave it to children. 

Lease buy back so that parents can increase current monthly pocket money and thus lessen burden. 

Parents are more inclined to stay in flat.

Though selling entire flat can fully monetise the value of the flat, but given that it is already 42 yr old flat, waiting another 10 to 15 year likely will see a drop in property price in the current peak market condition. 

Plus Singapore is a developed n aging economy, gone are the days of more 200% price increase in property prices. 

Lease buy back or wait later to sell? 

Your very honest self talk would be much appreciated here, please. 

Watch this video on Lease Buyback Scheme.

AK:
Most old folks don't like moving house. It is quite normal.

If they need some extra pocket money, selling the tail end of their lease (30 years, perhaps) to HDB is a good idea instead of selling the flat outright and moving out.






Don't do this and keep the flat as a legacy for their children? 

Well, it would mean tightening their belts and burdening their children in the meantime. 

All for leaving behind a property with a very much shorter remaining lease?





If we are cash rich, no issues. 

If we are cash poor, cash comes first. 

Asset? That takes a back seat, especially when it is one that is suffering from accelerated lease decay.





Related post:
My HDB flat is 37 years old.

Home loses $23,000 yearly to house antiques?

Inspired by several past conversations.

From a financial perspective, should a single buy a one bedroom HDB apartment for $100,000 or a three bedroom HDB apartment for $500,000? 

The former seems less demanding financially. However, in the latter, he could rent out two bedrooms and that could conservatively net him around $15,000 a year. 

The apartment could generate $450,000 in 30 years and, in his golden years, his apartment is almost free of charge.

If we are the sociable type and do not mind dealing with tenants, then, buying the bigger apartment which has the option of income generation makes sense. 

For any income investor, having such a temperament is fortunate.

If we are not the sociable type and if we value privacy highly, the one bedroom apartment is probably sufficient unless we are an antique collector and need more room to house our collection.

If we are not prepared to rent out two bedrooms, then, we are not only losing out on $15,000 a year in rental income but we are also paying 5x more for a home. 

Spread $400,000 over 50 years (assuming that is the length of our remaining life on earth) is $8,000 a year. 

OK, if we have a pretty pricey antique collection to house, maybe paying $23,000 a year is peanuts.

If we want our very own place to call home till the day we say farewell to this world, ask how much space do we need and could the price tag be smaller?

What is the topic of this blog?

Well, it is not about affordability.

Related posts:
1. Housing and CPF.
2. A big loan and CPF not enough.
3. Affordability and value for money.

I do not believe in emergency funds.

"It will never happen to me."

What if it should happen one day?

Then, die lah.

OK lor.





Reader:
Don't believe in emergency funds. Better to put money in bank preference shares or perpetuals.

AK:
Well, let's hope you never meet with an emergency which might force you to liquidate your investments at prices not of your own choosing.

Reader:
DBS preference share, at any price, still provides a return many times that of a FD. In a situation where the preference shares cannot maintain a payout, is the FD much safer?

While it sounds logical, how often do people who actually set aside an emergency fund found it useful?

Having an emergency fund in a FD is a big opportunity cost.






AK:
I think you could say that you don't have an emergency fund but to say that you don't believe in having an emergency fund boggles the mind.

It might be a good idea to remind ourselves of the GFC and how stock prices plunged terribly. The stock market was, then, in the doldrums for many, many months. 

Many people also lost their jobs.

Imagine someone without an emergency fund who might have an emergency in those months.

Imagine him liquidating his investments at a massive loss only to see the recovery in the stock market later on. Not a pretty thought.






Similar to buying insurance and how we hope we never have to make a claim, we hope that we do not have to draw on our emergency fund.

Similar to buying insurance, there is a cost involved in maintaining an emergency fund.

Should we say we do not believe in having insurance and money paid for insurance is wasted?

"I would rather see you have money you can get at than to worry about the interest rate." 
- Suze Orman

Related posts:
1. Fixed deposits for emergency fund.
2. PMET took 30% pay cut but thankful."... as I have more than 6 months of emergency funds, I was quite relax about this and could take my time to look for a job." 

SingPost posts sinking dividends.

Reader:
I am a sad shareholder of Singpost. Final dividend is 0.5 cent. Should I continue to hold and wait for improvement?

Suspicious looking package at 

Singapore Post mail processing centre.

AK:
Those who thought they would continue to get 7c a year were delusional. I also said those who were expecting a reduced dividend per share (DPS) of 4.2c to 5.6c a year could be disappointed.

Now, we could see an annual DPS of only 2c. If you are still expecting a 5% dividend yield, it is quite depressing.

In my earlier blog on SingPost where I wondered what price I might pay to be a shareholder, I made some assumptions which gave me what I thought was a more realistic DPS of 3c.

A more than 70% reduction in DPS from 7c to 2c is a tough one to swallow for any investor for income. Imagine a retiree who has SingPost as his largest investment in his portfolio.

How much do I think is a fair price to pay for SingPost now? 

You might want to read the related post below for an idea.

Related post:
An incomplete analysis of SingPost.
"Since SingPost is going to pay at least 60% of earnings as dividend, we would get a 3% yield at $1.00 a share, using the assumption in this blog which gives us a DPS of about 3c."

You are not successful in Singapore unless you do this.

In retirement, I have become totally slothful. 

I go to bed late. I wake up late. 

I spend time getting my hands dirty in my planter and also staring into my aquarium.

Make simple meals. 

Do some housework. 

Watch some TV and do lots of online gaming. 

Of course, I still blog and interact with readers but everything is OTOT lah. 

Don't know what is OTOT? 

Ask anyone who has done NS. 

Don't know what NS is? 

Never mind.

Oh, did I say I also take a nap whenever I want in the day?

What about my social life? 

Very little because I rather prefer my own company.

It should come as no surprise that I have avoided going to large gatherings for a while.

(Did someone say Singapore's doors are always open to welcome the rich in the video?)

C:

I just moved into a bigger condo recently. 
I am going to keep my old condo for rental income.

B:
We are thinking of upgrading too.

C:
Your condo is nice and big. 
Why must upgrade?

B:
You know where I stay, right? 
We thought of moving somewhere central.

C:
Central will cost a lot more for the same size




B:

With our combined income, we can just about make it. Now, still looking.

C:
AK, what about you?

AK:
Me? 
I stay in a shoebox apartment.

C:
OMG! 
Why such a small apartment?

B:
It is OK lah. 
Can always upgrade.

AK:
I cannot because no bank would lend me any money...

When I mentioned this incident to my banker, he gave me some advice.

Banker:
Didn't you tell them you have retired?

AK:
I usually tell people I am unemployed.

Banker:
No, no. You mustn't tell people that. 
They will look down on you. 
You must always show people you are successful.

AK:
Really? How do you do that?




Banker:

They are usually impressed by how I have a luxury condo and a luxury car at such a young age. 

You must have visible signs of success and don't be afraid to flaunt it.

I have been so wrong for so long. 

Alamak.

How liddat? 

I so cham liddat.

Related post:

If we are not rich...

Standard Chartered Bank's Bonus Saver.

When I shared on Facebook why OCBC 360 has gone from the top to the bottom of my list of "jumping through hoops" savings accounts, a reader suggested Standard Chartered Bank's Bonus Saver as an alternative.




Coincidentally, my sister started a Bonus Saver account recently and I did look at it before junking it. 

Please take note that I junked it because it didn't suit me. I will share who it is good for later.

SCB announces plans to slash 15000 jobs.

The headline interest rate is always attractive:

Up to 3.88% per annum!

How to get this?

OK, start jumping through hoops.

Base interest rate (for the first $200,000 in the account) is 0.1%.

Spend $2,000 on a SCB credit card each month to get 1.78%. 

Alamak! Now, I am already struggling with spending $500 with the UOB One Card. 

How like that?




What if I spend only $500 a month? OK, I will get 0.78% per annum. 

A big difference.

Monthly salary crediting gets an extra 1% per annum. 

I don't meet this requirement, of course.

Invest or insure with SCB to get an extra 0.75% per annum. 

What do you think I will say to this?

Pay 3 bills via Giro or online banking each month to get an extra 0.25% per annum. 

This, I can do.




Bonus interest will apply to the first $100,000 in the account only.

So, let's see. What is the interest rate from SCB Bonus Saver for me?

0.1% + 0.78% + 0.25% = 1.13%. 

This is after jumping through 2 hoops.

OK, quite clearly, if I must jump through hoops to get higher interest rate on my savings, SCB Bonus Saver beats OCBC 360 which would give me a miserable 0.6% per annum. 

Read the blog on why I junked OCBC 360: 
https://singaporeanstocksinvestor.blogspot.sg/2017/03/ocbc-360-updated-and-downgraded-again.html




However, if your circumstances are like mine, UOB ONE account is still the number one choice. 

An interest rate of 2.43% beats the competition flat. 

Unfortunately, it is for the first $50,000 in the account only.

Now, most people my age are not retired like me. So, let us see what they will get if they have a salary to credit monthly:

SCB Bonus Saver: 2.13%

OCBC 360: 1.8%

UOB ONE account: 2.43%

Alamak. I am not a UOB shareholder. 

How like that? 

I am a shareholder of the giamsiap bank and, of course, another giamsiap bank which didn't even get a mention here. 




Maybe, the moral of the story is to invest in giamsiap banks. 

Aiyoh! Bad AK! Bad AK!

For who does the SCB Bonus Saver make sense?

If we have much more than $50,000 in savings and if we have a monthly salary to credit, it could make sense to migrate to SCB Bonus Saver because of the much higher cap at $100,000. 




Lower interest rate compared to UOB ONE but SCB Bonus Saver will pay more interest income in absolute dollar terms then.

Related post:
UOB ONE, OCBC 360, CIMB Starsaver and BOC Smart Saver.

Should invest (more) in SPH now?

Reader:
Hi ak, I like to hear your view on SPH. 

I have hold the stocks which I bought few years ago avg price 4.1. 

With this recent big drop, do u think it make sense to buy more to avg down the cost? 

The business seems to cutting more div in coming future 😟





AK:
Whenever you are thinking of investing more, ask yourself if you were not already an investor, would you invest now. 

You will have your answer. 

Quite simple. 😉

Reader:
My feeling is telling me not to buy if I do not have any.. thanks

Regular readers might remember my blogs on QAF Limited and why a higher share price might not mean that the stock is more expensive. 

In actual fact, QAF Limited's stock could actually be cheaper even though the price was higher.

(For those who are new to my blog or are growing forgetful, read this:
http://singaporeanstocksinvestor.blogspot.sg/2015/04/qaf-limited-114-share-is-cheaper-than.html)





Along the same line of thought, a lower share price might not mean that a stock is cheaper. 

The stock could actually be more expensive.

It has to do with earnings.





Related posts:
1. Fate of my investment in SPH.
2. Sizing my investment in SPH.

CPF LIFE Payout Estimator and questions. (UPDATED 11 JAN 2022)

UPDATED 25 FEB 2019:

A reader sent this to me:

And he asked me:
"Shocking or expected?"

What did I tell him?
"If people don't make good use of the CPF to help plan for retirement, well, they won't get much out of it. 😉"

If AK says so, it must be so.



--------------

Ronnie Wan says...
Any advice or comments on the forum article above?

AK says...
I don't bother calling CPFB for things like that because I use the CPF LIFE Payout Estimator online.

Notice that the payout estimated falls in a range.

It is just an estimate.

The sky is not falling.







Reader:
I would like to ask you about transferring from OA to SA. 

Currently my mother is under CPF life. According to CPF board, I am able to withdraw the OA and SA. 

Is there anything I should look at before transferring OA to SA? Thanks!




AK:
OA to SA transfer is not allowed for those 55 years and older.

You qualify for CPF Life if:

Reader:
oh damnnn XD ok
the RA amount that is not deducted for CPF life, what can we do with that balance?

AK:
RA is meant to fund our retirement. 

Cannot be withdrawn unless the member passes on.

That is if there is anything left.

Reader:
but how does it fund our retirement? 

Since the CPF life's premium is alr deducted and the payout wont touch the remaining balance

AK:
All the RA money will be depleted by age 85 (under the LIFE Standard Plan).

UPDATED on 11 JAN 2022.

Use CPF LIFE Payout Estimator: HERE
Find out more: CPF LIFE.




Reader:
may I ask how will it be depleted?

AK:
It is used to fund the payouts.

Even after all the funds have been depleted at 85, CPF LIFE continues to pay until the day we die.


Reader:
I got another qn
say the FRS is 166k
A has 166k in RA and B has 180k in RA
they will deduct 166k to buy CPF life right

AK:
Will not have more than FRS in RA
Unless u opt for ERS
So, A and B will have FRS $166K in RA. 
Same same.

UPDATED on 11 JAN 2022.

Use CPF LIFE Payout Estimator: HERE
Find out more: CPF LIFE.

Latest CPF calculators: HERE.

Related posts:
1. Changes to the CPF.
2. Worry about retirement adequacy the right way.

CPF Mobile Service Centre has you covered.

I blog about the CPF quite a bit and although some might think I have all the answers, I don't.

Reader:

are you familiar with CPF LIFE?
i am worried that my dad who is 63
wondering if there is any chance i could do a VC to his account to qualify for CPF LIFE and get annuity payout?

AK:
Of course, you can top up his CPF account so that he can take part. 🙂
Give CPF Board a call and ask them how much to top up.

If you stay in Choa Chu Kang or nearby, you want to take advantage of the CPF Mobile Service Centre which is at Keat Hong CC till 31 August.

The best people to answer your questions on the CPF are from the CPF Board. 

Make the CPF a cornerstone in your retirement funding strategy.

If AK can do it, so can you!

Related post:
Cornerstone in retirement funding.

Spent $5,900 in LV boutique in 20 minutes.

Wah! Such a long queue of people waiting to buy Old Chang Kee curry puffs or maybe waiting to get into Din Tai Fung?

Nah!

Mr Andy Koh, spent $5,900 on four items, including aT-shirt and bag. He held ticket No. 3. Says the NS-man, 23: "I didn't look at the price, I just grabbed the items."

Read full article: HERE.

NS man so rich!!!

Reader WYK:
"...don't understand the mentality of teens nowadays or maybe I'm just poor😖"

Alamak.

I also don't understand! 

These shoppers are so stupid!

So expensive lah.

Most learn how to save money lah. 

Like that how can?

Let me tell you a secret.

Ready?

Must fly to Europe and buy lah. Will save more money. Even AK knows this. These shoppers so stupid.

Don't believe me? Read this:
http://singaporeanstocksinvestor.blogspot.sg/2016/05/ak-learns-to-embrace-yolo.html



The only Supremes I know:

Related post:
How to act rich?