ComfortDelgro HUAT and is SingTel next?

Reader says...
Wa!!! Your CDG HUAT AH!!!

Blog more about it lah and we can HUAT more!!!

Many thanks!!!

AK says...
I am sure I do not have any influence over prices.

Have you looked at SingTel's share price, to be fair?

As investors for income, our job is to decide if an equity is right for our purpose and if its price is attractive enough for us buy in.





For examples, in 1Q 2018, I added to my investment in ComfortDelgro at under $2.00 a share and SingTel at under $3.40 a share.

I had no idea how the prices would move.

After buying, most of the time, we simply wait while we get paid.





We only act if Mr. Market decides to continue selling cheap (i.e. at prices we would not sell at) or if Mr. Market decides to buy from us at prices we would not buy at.

Well, if you are right, now that I have mentioned SingTel in this blog, maybe, SingTel will HUAT next week. ;p






Bad AK! Bad AK!

Related post:
AHT and CDG (SBS).

Ascendas H-Trust and ComfortDelgro (SBS).

Reader says...
Thanks for talking to yourself all these times. 

You have really helped the average Singaporeans pick up good financial tips.

I have been invested in AHT and have collected good dividends. 

I noticed that prices have dropped so far and am thinking of picking up more. 





I read through their latest announcements and I don’t see anything that indicates that their fundamentals have changed. 

However, their numbers for 2 AU Pullman hotels are not that good. 

Also the exchange rate is not in their favour. 





They also look like they may be thinking of expanding beyond Asia as per their change in mandate. 


Try as I could, I can’t figure out whether these factors would be good or bad for AHT. 

Am I missing something?







I also noticed that even though you are picking up shares in CDG, you are not doing it for SBS? 

Since CDG taxi biz is at risk, how about just their bus biz?

AK says...
AHT is in hospitality. 

There will be seasonal changes in fortunes. 

Since I am staying invested for income, as long as AHT is well managed, the bumps will smoothen out over time. 

Having more assets in different parts of the world could be a good thing because it reduces concentration risk and reliance on the A$. 

Will have to wait and see.





I find SBS' valuation a bit rich compared to ComfortDelgro. 

SBS is 75% owned by CDG. 

I think SBS will be worth more in future but in the meantime, can we accept its richer valuation and also the much lower dividend yield (~ 2%)?





In years to come, SBS could increase dividend payout to shareholders. 

Of course, then, CDG would be a major beneficiary.





Related posts:
1. Ascendas Hospitality Trust.
2. ComfortDelgro Analysis.

EC World REIT.

Reader says...
What do you think of EC World REIT?

AK says...
EC World REIT, I looked at it and was in the process of blogging about it but, somehow, it joined the ranks of half finished blogs. I have about 400 of these. Terrible, I know.

Looking at that half finished blog, I remember I was concerned about the relatively short land leases, similar to most Singapore industrial land leases and the relatively low distribution yield.





The yield was 7% or so and this was because it was bolstered by the sponsor as well. Without the sponsor's support, the yield would have been much lower. Less than 6%.

Still, the sponsor accounted for two thirds of the REIT's income. Real concentration risk.

There was also something about having debt denominated in S$ which I didn't like. I would have liked for all the debt to be in RMB which would give them a natural currency hedge.





Also, I didn't like that a port was such a substantial part of the the REIT's portfolio. Quite the opposite of e-commerce.

It just didn't seem rewarding enough for the risks we must bear.

I would demand a much higher yield for something like this.






Just being promising is not good enough. Whether I am being compensated sufficiently is more important and this brings to mind my PCRT story.

This is just me talking to myself, of course. 😉

Related post:
PCRT: Full divestment.

Investment philosophy is timeless and so is ASSI.

Reader says...
Thanks for your reply. I am aware of (the investment courses available).

I was actually more interested in the tea time talk and session with you.

Are you planning for anything similar in the near future please?


AK says...
Oh, "Evening with AK"? 

Maybe towards the end of the year. :)

Reader says...
Wah... so long beyond towards end of this year?? Please do consider slightly earlier maybe in early 3Q 2018? ;)

Actually, I have been following your blog since early 2016, maybe 2 to 3 years ago, and also the other financial bloggers too like "XXXX". She recommended me to your blog because I was enquiring about REITs and wa-la.... I was following it since then.





I fancy visiting ASSI more maybe because it has all the archives and comments from past years. I also find your thought processes and thinking very logical and mature regarding investing. 

I think it takes lots of guts, perseverance and years of experience to build such solid foundation like yours. I like your website over the other bloggers e.g. XXX, XXXX, XXXXX, XXXXXX, XXXXXXX, XXXXXXXXXX etc.. but I'm very inspired by their investing stories and passion in investing to generate passive income!!


But I have an issue with not knowing how to put up a comment or question to the post directly to your blog. I only know how to send you an email.
Is it all comments comes to you via email and you will filter them and post them in your website?






AK says...
Actually, to be honest, I have been thinking of slowly fading away and might not even have another event in future. We shall see, ok? :)

However, it is receiving emails like yours from time to time that somehow still keeps me at it although I am not blogging as much as before. So, thank you very much for your kind words. Very encouraging.





As for commenting in my blog, I disabled anonymous commenting many years ago. So, you need to have an identity to comment in my blog. Either a Google account or an Open ID.

Sometimes, I do cut and paste emails or FB comments from readers which I feel are worth sharing too. :)

If you have a FB account, you can follow me using FB and, of course, you can comment on my FB wall too. :)








CONCLUSION
Although I kept saying in recent times that I am blogging less because I am spending a lot more time gaming, which is true, there are many other reasons why I am not blogging as much as before.

Long time readers might remember that I have blogged about other reasons over the years.

After all, I cannot be playing MMORPG the whole day every day, right?

OK, I know some people do that and I have also read horror stories about how some played so much that they died at their consoles. Yikes.







Availability of time aside, there are non-resource based reasons for blogging less frequently and being more selective in what I blog about too.

Anyway, the stuff that I blog about is mostly rather timeless if we just focus on the philosophy and the approach.

Everyone's circumstances are different, of course. We are likely to have different experience and beliefs too.

However, if we have the same goal, we should all be moving in the same direction.

So, no new blogs from AK? Read past blogs. 






I believe there is value in reading those older blogs and emails from readers tell me so.

I will share old blogs in my FB page too whenever I feel like it. Sometimes, old is gold. :)

See:
Get the most out of ASSI.

Related post:
Holistic approach to a secure financial future.

Buy the CPF-RA and win win!

Reader said...

Hihi, thank you for taking the time to answer my query. I was trying my luck and wasn’t really expecting a reply! Excuse me while I have a fan girl moment! 😍😍😍

The post which you recommended for my reading was the post that got me started thinking about my parents cpf! I tot it was a really brilliant idea! Would never have occurred to me 😂

We’re thinking to get the best of both worlds by converting my mom to CPF Life and ‘buying’ over my dad’s RA.

We’ll pay him the $XXXX in his RA by topping up my mom’s RA with $XXXX. And then convert my mom to CPF Life at 70 so they can get a fixed payment for the rest of my mom’s life. 

Not sure if hopefully is the right word to use in such situations, but statistically speaking, women usually outlive men, so that’s the bet we’re taking.





At the same time, we’ll top up my dad’s RA to eventually hit $30k while leaving him on the old scheme (i.e. Retirement Sum Scheme) so that we can get the 6% interest. This 6% will also be able to help us provide more for them if needed.

Would like to run it by you to see if there are any insights/ different perspective that we missed.

AK said...
You have cracked the code. Haha. 😜





It is a win win situation for the parents and for the child.

Brilliant, she is!

Related post:
CPF to help fund our retirement...

CPF to help fund our retirement but what about our parents'?

Reader says...
I am a new reader to your blog and have benefitted greatly from the nuggets of wisdom that you have shared within these first 2 weeks of reading your blog.

I have transferred money from my ordinary account to special account and managed to convince my Husband to do the same as well! Hopefully, we will be able to help the gov help us hit the minimum sum by the time we reach 55. We are in our mid 30s now : )





Because of your blog, it got us started thinking abt our parent’s cpf as well. We realised that our parents cpf balances are very dismal. Each one has less than $10,000.

We are hoping to top up their RA until it hits $30k eventually. However, they have the option of choosing between the old retirement sum scheme or the current cpflife.





The draw of the retirement sum scheme for me is that the 6% earn still belongs to my parents but under cpflife, once it is under the annuity, the 6% goes to a common pool for the gov to maintain this plan.

Could you talk to yourself and share what your through process would be in such a scenario?

AK says...
Welcome to my blog.

CPF Life is attractive because it pays us a monthly income for as long as we live but it is an insurance product and, so, it is about sharing risk.

Some people think they won't have a long life and brush aside CPF Life but, statistically, people are living longer.

How like that? ;p





You might also be interested in this blog:
How younger CPF members get 6% a year?

Related post:
When to get a private annuity?

1Q 2018 passive income from non-REITs.

I feel that I should mention a non-REIT here which might not be considered an investment by most people.

I should mention it because, logically, it should be considered a part of my portfolio.

Of course, I am talking about the CPF.

If we would include bonds in our portfolio, then, we should also include money in our CPF accounts in our portfolio which I have said before is like a AAA rated sovereign bond.

I have also mentioned that, lacking mandatory contributions, I would voluntarily contribute to my CPF account and that was what I did in January.

The CPF is a risk free and volatility free component of my portfolio which pays a reasonably good coupon and to promote peace of mind, I would like for it to stay a meaningful size.

Regular readers might remember that I talked about it before but if you don't, you might want to read the blog: The AK passive income strategy after making $1 million.

Related to this, I also bought some Singapore Savings Bonds.

If you are interested in the reason why, read the blog: HERE.

As for investments in equities, what did I do in 1Q 2018?

I added to my investment in SingTel at under $3.40 a share.

I added to my investment in Wilmar at under $3.00 a share.

I added to my investment in ComfortDelgro at under $2.00 a share.

1Q 2018 passive income from non-REITs:

$ 10,871.45

Or about $3,623.00 per month.

Enough or not?

Enough for me but I don't know if it is enough for you.

Related posts:
1. 1Q 2018 income from S-REITs.
2. Largest investments updated.

UBER and GRAB why you so like that?

Reader says...
Hi Ak! I'm sure you'll be getting this a lot now. What do you make of the news that uber is giving up sea? What does this mean for cdg should the purchase of lcr go through or not?

Seems like there will be less promos from grab, but they will also have larger market share than cdg post merger.

Can't seem to decide if it's positive or negative!!

AK says...
The move to purchase a stake in LCR was not even a consideration when I decided to invest in ComfortDelgro.

I looked at the numbers and decided that the dividend was sustainable.

Of course, what I did suit my purpose.

It probably does not suit everybody and, I am willing to hazard a guess, the speculators. :p

(I try to keep things simple because I am not a very smart guy.)

Bad AK! Bad AK! ;p





Related post:
Analysis of ComfortDelgro.

1Q 2018 passive income from S-REITs.

If you have read my last blog on S-REITs, you would know where I stand when it comes to the issue of whether they are still relevant investments for income. 

If you cannot remember the blog, you might want to read it: HERE.

In 4Q 2017, my S-REIT portfolio grew a little and if you cannot remember why, read the blog: HERE.

What about 1Q 2018?

If you are a regular reader of my blog, you shouldn't have to worry about making a guess.

Yes, the size of my S-REIT portfolio shrank in 1Q 2018 and if you have followed the links above to read my past blogs, you would know that it isn't because I have lost faith in S-REITs as a class of investments for income.

Specifically, in 1Q 2018, I sold my investments in Soilbuild REIT (HERE) and ESR REIT (HERE).

The top 3 contributors in 1Q 2018 are:

AIMS AMP Cap. Ind. REIT

FIRST REIT

IREIT Global

Regular readers and even newer readers would be quite familiar with my narrative on the first two.

If you are a newer reader or if you are forgetful (like me) and cannot remember why I invested in IREIT Global, you might want to read a blog: HERE.

How much did I receive in 1Q 2018?

$19,461.07

Or $6,487.00 per month.

There will be different reactions to this number but, remember, everyone's circumstances are different. 

Some might find that what I have is still insufficient and some might think it is more than enough.

To achieve financial freedom, how much passive income do you need?

Don't look to me for the answer.

The answer is within you.

Related post:
Largest investments updated.

Dumping all my investments in REITs.

Reader says...
I recently started buying REITs and following online blogs online.

I do my own diligence which I think is sound but cannot help but be worried when I see negative things about REITs being posted.

Classic consumer economics behaviour from me cos scared Liao lol.







Anyway, I know there is a difference between Traders and investors.

There is one particular trader that says REITs and dividend stocks will suffer soon.

Should I be concerned? Because my investment strategy is buy and hold.

AK says...
It depends on what you are looking for and if your investments can deliver.

In an inflationary environment, (interest rates should go up and, naturally,) bonds will suffer but we should not mix up bonds and REITs. They are not the same thing.

Bond holders get paid a coupon and that is fixed. 

As interest rates rise, bond prices will fall (as Mr. Market expects a higher yield to buy those bonds and as the coupons are fixed, the bond prices must fall to give a higher yield).







Businesses and REITs have the ability to raise prices and that is what they usually do in an inflationary environment.

Invest in what we understand and disregard the noise.

When we buy bonds, we are money lenders. We charge interest for lending money.

When we invest in a business, we are partners and we share the ups and downs.








REITs remain a relevant tool for income investors but, to be fair, not all REITs are good investments.

Regular readers know that I have reduced my exposure to REITs but it is not for as simplistic a reason as interest rates are rising.


Rising interest rates alone is not strong enough a reason for me to sell down REITs.

Try not to be overly pessimistic nor overly optimistic. Try to be pragmatic.








Related posts:
1. Why bonds and which ones?
2. Largest investments updated.

Get paid for (or get dividends from) blogging?

Someone asked me if I get paid for blogging?

More specifically, he asked if I get paid for promoting "Dividend Machines".

My answer?

Yes, of course, I get paid.





The blog on "Dividend Machines" was labelled "Advertorial".

Anytime you see a blog labelled "Advertorial", it means the blogger will receive a fee.

OK, not all bloggers would do this but honest bloggers would.

I was prepared for some nasty remarks from him as I know there are people who are unhappy with bloggers being paid to blog. 






I really don't want to go into a debate on the subject.

It isn't a productive use of my time.

What?

Spending hours each day in the virtual world of an MMORPG is a productive use of time?

Ahem. Weather today nice right?

Bad AK! Bad AK!





So, you can probably understand that I was pleasantly surprised when, instead, he asked why am I not blogging more regularly if I get paid to blog?

Apparently, he is thinking about becoming a blogger to make a living and is trying to learn from my experience.

I told him quite bluntly don't learn from AK.

Why?


I did not give him the usual "AK is lazy" type of reply because something like this should be addressed seriously.





AK is a hobbyist blogger which means blogging is a hobby and if I do make some money blogging, it is a bonus.

There are bloggers who blog for a living and he should learn from these bloggers instead if he wants to make money as a blogger.

Who are these bloggers?

Don't ask me lah. I blur.





Having said this, I believe that blogging in itself is not a good way to make money but it can help someone with products or services to sell.

AK has no products or services to sell.

AK is, however, helping to promote "Dividend Machines".

Yes, I get paid for doing this but, frankly, I believe in this product and the people behind it so much that I would do it even if I were not paid to do so.





Since I am on the topic, for those who are interested, the 2018 intake for "Dividend Machines" will end 2 days from now on the 18th.

If you are clueless about investing for income or would like to polish your skills, the sooner you learn more, the faster you would achieve your goals.

Everyone should work because they want to and not because they have to.

Investing in income generating assets will go a long way to help achieve this.

I know this for sure because I have done it and, for sure, so can you.

My blog on "Dividend Machines":
Create Dividend Machines in 2018.

Sign up: HERE.

Pay less income tax in future.

It is that time of the year again.

Remember to file your income tax.

Ouch.





Taxes are a necessary evil because a country's revenue is from taxes and a country like any modern day entity needs revenue to be viable.

So, if we have to pay some taxes, we are contributing to nation building.

Not a bad thing, really.






However, if it is possible for us to pay less income tax, why not?

I am talking about doing it legally, of course.

As I don't have any significant earned income anymore, I don't pay any income tax.

When was the last time I paid income tax?

You might want to read it: HERE.


Investing for income has helped me to increase my income but not my income tax and you can do it too by creating dividend machines: HERE.





Related post:
Income tax payable.

Creating Dividend Machines in 2018!

I have not been blogging much as I have been spending a lot more time on another hobby.

I know many people are envious of me.

"Wah! Can spend so much time playing games online! So jelly!"

Well, I believe anyone who is not severely disadvantaged could do it too.

It doesn't have to be playing games online per se, of course.

All of us could free up time to do things we enjoy instead of exchanging our time for money working.  

Of course, regular readers know one very important reason why I am able to do this is because I invest for income.

Many readers have asked me to teach them how to invest for income and some specifically asked me to teach them how to invest in REITs.

I would tell them that I do not think I am good teacher material.

OK lah. I admit lah. AK is lazy lah.

Anyway, many readers don't seem to learn very well through self study.

For them, to learn effectively, it seems that they need a structure.

So, thank goodness, structured learning is available!

Also, thank goodness it is available at a very affordable price.

Yes, not everyone is charging an arm and a leg to impart investment knowledge.

Want to learn how to invest in REITs and non-REITs for income?

DIVIDEND MACHINES.

If your answer is "yes", sign up for this year's Dividend Machines: HERE.

Limited places available, as usual.

So, fastest fingers first.

Do you want financial freedom?

Of course, you do!

Remember, if AK can do it, so can you! Believe it!

Create Dividend Machines: HERE.

Chinese New Year of the Dog (2018).

This is going to be a quick blog post before I head back to my parents' place for dinner.

It is time for Reunion Dinner again.





Mom:
"Ah boy, come back earlier for dinner, OK?"

AK:
"(Playing Neverwinter) Yes, mom."

Mom:
"Er, you sharing any 4D in your blog? Any zhen zhi?"

AK:
"(Busy killing cyclops) No inspiration this year wor."




Now, I wonder what was my mom's primary reason for calling?

Yes, I know.

Bad AK! Bad AK!

Anyway, I know I haven't been blogging much but I really don't have anything new to say anyway.

Mr. Market seems to be in a slightly depressed state and I have used the opportunity to buy some SingTel and Wilmar from him.





Of course, I do not know if prices could go lower.

I only know there is a lot more value after a 10% correction in their prices.

I invest mainly in relatively strong companies for income and I know that they will pay me.

That is what really matters to me.







I have received some emails from readers who are concerned about prices falling and I will tell anyone feeling the same way that if they do not have the stomach for volatility, stocks might be a bad place for their money.

We are all wired differently and if we want peace of mind, we must know ourselves.

Having said that, take a break and have a happy Chinese New Year!

Woof! Woof! Wang! Wang!

As we grow our wealth, always remember that there are more important things in life than money.

Still, GONG XI FA CAI!
Related posts:
1. Don't have to be smart. Be rich.
2. What to do when prices fall?

We must pay a premium for "best" healthcare.

Reader says...
I would like to ask you regarding H&S insurance. I have spoken to a few agents to understand more about the H&S products that they are offering.

They would frequently mention “Do you want to stay in private for the best healthcare?” “With riders, you don’t have to worry about co-insurances or deductibles..”






Sounds enticing but I got a shock when I looked at the premiums I have to paid in the long term run and also, I am wondering how am I be able to pay for the premiums once I stopped working in the future. Premiums are highly likely to increase in the future.

So, I asked myself do I really need the ‘best’ healthcare? I am quite contended with decent healthcare that has government subsidies.

As such, I thinking of getting a H&S + rider that has coverage for B1 and below.





The reasons being:
• The premiums paid in the long run is still within my range

• I don’t want to be slapped with a huge bill that cannot be claimed and end up worrying about it

• I hope to have affordable out-patient treatments as a subsidised patient. As some illness need permanent follow ups and not everything can be claimed. 






For Ward B2 and below, one will be considered as subsidised patient. The rest will be considered as private

Can I ask for an unbiased third party view? I am ok with staying in B1 and below + decent healthcare from the public hospital. 

Do think the coverage is sufficient for my requirements? Or am I missing something? Thanks for talking to yourself again.

AK says...
If you are OK with staying in B2 or C ward, then, you only need Medishield Life.

If you wish to stay in B1 or better ward, then, you need a private shield plan.

I am inclined to believe that a higher class ward will provide a more comfortable stay which could help promote recovery.





However, whichever class we are warded in, I believe that we would have access to the same quality of healthcare. :)


Related post:
Is my insurance agent scaring me?