Coronavirus in Singapore means no milk and cheese for AK.

AK enjoys visits to the supermarkets.

See this blog, for example:

My food bill grew but my weight reduced.

Having meals at home is one way to keep cost of living low in Singapore.

It seems that more Singaporeans are latching on to this idea of having meals at home now.

However, it is probably not to save money.

Yesterday, AK went to the supermarket to get some milk and cheese.

Guess what happened?

OMG!

Never before.

It was madness.

The lines snaked all the way into unimaginable places of the supermarket for lines to form.

Now, since we are supposed to avoid crowded places, I decided that waiting in line for possibly an hour or more was probably not a good idea.

People have gone mad in Singapore.

Mad with fear of the Wuhan coronavirus.

Is the situation so deadly now?



This is taken from Ministry of Health.

We are at DORSCON Orange.

What does DORSCON stand for?


Disease Outbreak Response System Condition.


DORSCON Orange isn't all that dire as the situation is contained.

Prime Minister Lee Hsien Loong urged calm, saying Singapore had "ample supplies" and there was no need for people to stock up with items such as instant noodles or toilet paper.

"Fear can do more harm than the virus itself," he said in a statement.

Source: Reuters.





While it is understandable that the current situation is causing concern, please do not panic.

Please do not go crazy hoarding essentials.

Please do not deprive AK of milk and cheese.
------------------------
(Added at 7.45PM)

I just saw a video on shopping in a supermarket in Wuhan and would like to share it here in ASSI:







This video was shared on YouTube yesterday.

Things are pretty grim but life goes on.

Wuhan is the epicenter of the current coronavirus crisis.

If Wuhan can stay calm, so can we!
-------------------------------
PM Lee Hsien Loong's remarks on the Novel Coronavirus (nCoV) Situation in Singapore on 8 February 2020:





Related posts:
1. Wuhan coronavirus and our REIT investments.
2. Wuhan coronavirus is war and are we ready?

Wuhan coronavirus and our REIT investments.

Regular readers might remember a blog from 2018 when I shared a message from a reader:

"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."

Of course, AK ignored the noise and did his own thing.

If you are new to my blog or cannot remember, read this:
Dumping all my investments in REITs.




More recently, a reader left this comment in my blog:

"Are you still holding this China mall REIT? CRCT?

"Seems to catch a big flu virus.

"Would you be adding to this sick REIT?"

See the comments section of this blog:
Wuhan coronavirus is war and are we ready?




Always ask if a situation that is affecting our investment is permanent or temporary.

Then, we will know what to do.

I have sold a few of my investments in REITs before.

They were always because I thought things could go bad for them and that it would be pretty permanent.

Read this blog where I mentioned Lippo Malls and Sabana REIT:
Cutting losses in S-REITs?




What about the Wuhan coronavirus situation?

It looks like things could possibly get worse before they get better.

Just like how optimism could overshoot on the upside, Mr. Market's pessimism could overshoot on the downside.

Some readers might remember how I accumulated large positions in some REITs during the Global Financial Crisis (GFC).

For example, in a blog back in 2012, I said:

"Off the top of my head, my investments in AIMS AMP Capital Industrial REIT and First REIT appreciated some 40 to 75% in value in the last 3 years.

"This is on top of annual distribution yields of 13 to 17%."

We might not see such numbers again for a very long time unless we expect the Wuhan coronavirus to have the same effect on Mr. Market as the GFC had.





AK is just talking to himself here in ASSI.

AK will not tell anyone when to buy or when to sell.

AK will say that if we are interested in investing for income, REITs are not only relevant but can also be very good investments for us.

See:
Man collects rent from his boss.




You might also be interested in these blogs:
1. Sold Soilbuild REIT.
2. Sold First REIT.

Wuhan coronavirus is war and are we ready?

For those of us who remember SARS, the Wuhan coronavirus is a case of deja vu.

SARS was absolutely horrible.

I am praying hard that this is not going to be as bad as SARS was.

For those who are interested in finding out more, see this short video clip from South China Morning Post:






As a preventive measure, all China passport holders not residing in Singapore are barred from entering or transiting through Singapore.

The same applies to all new visitors with recent travel history to mainland China within the last 14 days.

I believe that this is the sensible thing to do to set our minds at ease so that life can go on as normally as possible for us in Singapore.

After all, deaths from the coronavirus have hit record daily highs.

See:






Mr. Market has not been spared.

While it is unlikely that Mr. Market will be killed by the Wuhan coronavirus, Mr. Market can certainly become quite ill from it.

From a high of 3280 on 20 January 2020, the STI index has retreated to around 3120 which represents a correction of around 5%.

What this means is that Mr. Market has caught the sniffles but isn't bad enough a case of the sniffles to be hospitalised.

If the STI index should retreat to around 2950, we would be in bear market territory which usually means a retreat of at least 10% to 20% from the high.







If we have invested in good businesses with strong numbers, we should not have to worry.

Any big decline in stock prices would be an opportunity to increase our investments in these businesses.

For me, the only thing I have put more money into this year is a AAA investment grade sovereign bond.

Of course, regular readers know that I am referring to the CPF here and the voluntary contributions I have made to max out the CPF annual contribution limit for 2020.

It is during times like this that there might be a greater appreciation of the CPF which is risk free and volatility free.

See:
My 2019 CPF savings.
and
Voluntary contributions to CPF in January 2020.

As for equities, I have yet to deploy my war chest.

Yes, the Wuhan coronavirus is war and I am ready in case the war escalates.

If Mr. Market is sent to the ICU, I will unlock my war chest.

The businesses which are the largest investments in my portfolio (see the related post at the end of this blog) will probably get the most attention.

If we have been building up our war chests, we will be ready to pounce when opportunity knocks.

Having said this, let us all pray for the victims of the Wuhan coronavirus and their families.

"We will ultimately be judged by how we react in times of trouble." - Howard Dean





Related post:
Largest investments updated (4Q 2019).

AK told to remove blog and it has to do with insurance again.

As a blogger, I have poetic license.

This license is something I use frequently as I talk to myself here in ASSI.

What is poetic license?

"The act by a writer or poet of changing facts or rules to make a story or poem more interesting or effective."
Source: Cambridge Dictionary.

In fact, without poetic license, I wouldn't enjoy blogging as much.

If you enjoy my blogs as much as I enjoy blogging, I am glad.

There will be people who don't enjoy my blogs but that doesn't make me sad.

The world is what it is.

My blog is what it is.

This is my blog.

This is my style.

These are my stories.

Please don't expect me to change anything.

I thought about it for a bit and decided that there is a need for this blog so that people who eavesdrop on me talking to myself are in the know.

Someone recently told me to retract a statement I made in my blog about getting free H&S insurance in Singapore.

In my latest reply to that person, I said:

"I have also said before that I have investments which are free and I even say that my current home is free.

"They are paid for by Mr. Market while my H&S insurance is paid for by the government.

"Must I remove all those blogs as well because you have a different take on the matter and that you disagree?

"This is my blog and there is such a thing as poetic license.

"Like I said earlier, you are entitled to your opinion, of course, and if it bothers you, ignore the blogs."






It reminded me of something that happened a few years ago when I was told to remove a blog on getting free term life policies.

I actually did take that blog down but later put it back up as many readers puzzled over my decision and some had yet to read the blog too.

I decided since that time that ASSI is my blog and it is what it is.

If people don't like what I have to say, they can choose not to read my blogs.

Which blog was it and when did that happen?

Interested in the story?

See:
Free investment linked policies or term life policies?






I later added a side story at the top of the blog hinting as to why the blog was removed shortly after posting.

That blog has tens of comments from readers and that doesn't include the many comments in Facebook.

Poetic license was obviously employed in the blog but readers' comments were mostly supportive.

Most, if not all, thought that the blog was excellent.

AK was just talking to himself about a strategy.

It was pretty mathematical but I suppose it was pretty poetic too.

People who choose to read financial blogs like ASSI are probably smart enough to tell the parts which are mathematical from the parts which are poetic.

While effort has been made to make ASSI light reading, it can be pretty heavy at times, I guess.

OK, please pardon me as I might be giving myself too much credit here.

Pat on the back or slap on the back?

Whatever. ;p





Remember that AK is just talking to himself in his little corner of cyberspace.

AK is not seeking agreement from anyone and, most definitely, he is not seeking approval from anyone on how he should talk to himself.

Remember, eavesdrop on AK at your own risk.

Why AK says that?

Well, it could drive you crazy.

However, please don't push self talking AK to the brink as well.

Thank you very much.

Related posts:
1. How to get free medical insurance in our old age?
2. How to get free medical insurance in Singapore?

Recently published:
2019 CPF savings in a pie (chart).

2019 CPF savings in a pie. (Alamak! Showing off again!)

In a recent blog on the CPF, to those who would like to see my CPF numbers, I appealed for patience.

I was waiting for the pie (chart).

Well, the pie is fresh out of the (CPF) oven!

Lacking mandatory contributions, I have been maxing out the CPF Annual Contribution Limit by doing only voluntary contributions since I retired from active employment 4 years ago.

I was 45 years old that year.

So, at the ripe old age of 49, what do I have to show for my efforts?

I know some can't wait to eat their CPF pie.

Don't believe me?

Remember the "Return our CPF" rally in Hong Lim Park?

Well, we must remember that some things cannot be rushed.

Some things just need time.

While we wait, the CPF pie is becoming more delicious over time.

Don't believe me?

See my CPF pie from last year and compare it to the CPF pie from the year before.

The answer is in the pie.

Is growing our CPF savings worth the effort?

Definitely!

Like depositing coins in a piggy bank when we were kids, every contribution to our CPF savings, big or small, adds up.

If something is worth doing, it is worth doing well.

Ensuring that we achieve retirement funding adequacy is surely worth doing.

So, we should do it well!

Now, we see the pie.

One day, we will get to eat it too.

Want to have our pie and eat it too?

Want our dreams to come true?

With a bit of help, our dreams can come true!




The CPF is here to help us with our retirement funding adequacy.

The CPF helps us as we help ourselves.

Be prudent.

Be pragmatic.

Be patient.

Prudence, pragmatism and patience will be rewarded in due time.

After all, a good pie needs time to prepare and to bake to perfection.

A good pie is surely worth waiting for.

Delicious!

If AK can do it, so can you!





Related posts:
1. Have your pie and eat it too.
2. CPF interest earned in 2019.
3. CPF can be our best friend.
4. This guy has $800K in his CPF.

Chinese New Year of the Rat 2020. (Of rats and races.)

In a few days from now, my year will be over.

We will be going from year of the "oink, oink" to year of the "squeak, squeak".

Good bye to Piggy.

Welcome to Ratty!

Yes, AK is not a rat.

AK is a pig.

Unless we are Chinese, saying that we are a rat or a pig would probably sound rather strange or even offensive.

However, if are familiar with the phrase "rat race", then, all adults would have been a rat at one time or another.

"The origin of the expression is from laboratory experiments where two rats are trying to outrun each other in order to get a piece of cheese."

Source: Quora.

Interesting bit of trivia but rather depressing when we think about it as an analogy.






What?

Mr. XYZ is the number one rat in the race?

I don't care?

I am not a rat anymore.

Mr. XYZ and his friends can be rats and they can race each other all they want.

Take a break and have a Kit Kat?

Sorry, if Mr. XYZ and his friends take a break, there is no Kit Kat and they might not get that piece of cheese either.

Having said this, I do understand that we are all wired differently.






Although I think that there is nothing wrong with people who would like to achieve financial freedom and to stop working, there will be people who think that such people are just lazy.

Some might even think that AK is being irresponsible and should be ashamed of himself.

See:
Financially free AK ashamed?

AK, on the other hand, doesn't have anything mean to say about people who are gainfully employed.

See?

AK is such a nice guy.

The fact that AK doesn't like being a rat doesn't mean that others should feel the same way.

However, to those who enjoy being rats, the question to ask is this:

"Can I be a rat and not be in the race?"

Work not because we need the money from working and we would be such a rat.

Simple.

See:
9 wealth building blogs.






That piece of moldy cheese?

Other rats can have it.

I don't need it.

No more hunger and no more suffering.

Nirvana in Buddhism leads to the release from the cycle of birth and death.

Nirvana for rats leads to the release from the rat race.

We can still be rats but we don't have to take part in the racing.

Hope this is food for thought for some and, no, I am not referring to a piece of cheese.

Sincerely,
Not a rat AK.

Wishing all readers 

a happy and prosperous 

Chinese New Year!

Published recently:
Investors eat crusty bread with ink slowly for peace of mind.

Related post:
Scolded by wife for thinking about financial freedom.

Investors eat crusty bread with ink slowly for peace of mind.

Older readers will remember an older blog of mine which asked

"How to have peace of mind as an investor?"

In that blog, I suggested that we should

"Eat bread with ink slowly."

Using mnemonics, it stood for:

1. Emergency fund.

2. Borrowings.

3. War chest.

4. Income.

5. Sizing.

If you cannot remember the details or if you are new to my blog, you might want to read the blog: HERE.





Actually, there is something missing from the list and I have been thinking of doing an update for a while but long time readers of my blog know that I have such a busy life.

This week, in fact, I have spent tens of hours adventuring in a new world.

Yes, a new world.

It is likely that I will spend hundreds of hours in this new world in the coming months.

It is an ARPG this time which is quite different from the MMORPGs like Neverwinter and Guild Wars 2.

ARPG stands for action role-playing game.

The name of this ARPG?

Path of Exile.







Once Mod 18 in Neverwinter goes live on 21 January, I will be busy adventuring in Avernus, the first layer of the Nine Hells of Baator.

Path of Exile and Guild Wars 2 will provide me with alternative worlds to adventure in each time I wait for new Mods from Neverwinter.

I can never be bored in retirement as I enjoy adventuring in such fantastic worlds.

The amazing thing is that I don't have to pay a single cent (and I don't) in order to enjoy these larger than life adventures.

Some people say:

"Aiyah, you can do this because you are rich mah."

This might sound a little sour but, to be honest, they are right.





We want to be financially free so that we do not have to exchange the most precious resource we have (i.e. time) for money anymore.

Why do many average income workers find this impossible?

Do you believe me if I were to say it is not because they make an average income?

If you are a new reader or if you don't remember, read this blog:

Average income workers have a choice to be rich.






To be richer, learn to be better savers first.

This brings me to the crux of the blog or in this case, the "crust".

"Eat crusty bread with ink slowly."

Using mnemonics again.

The letter "C" in the word "crusty" stands for CPF.

I have said in many blogs before that having a rather significant safety net allows me to invest the way I invest with peace of mind.

My CPF savings is a very big part of this rather significant safety net.

In fact, I said that the CPF would continue to be an important part of my passive income strategy even after I had made $1 million in dividends from my many investments in equities and trusts.

Now, when was this?

This was back in October 2016.

See:
The AK passive income strategy after making $1 million.

So, to have peace of mind as an investor, not only do I eat bread with ink slowly, I choose to eat crusty bread with ink slowly.

1. Emergency fund.

2. CPF.

3. Borrowings.

4. War chest.

5. Income.

6. Sizing.






I rather like this update.

Definitely sounds complete now.

Sounds a bit more yummy too.

Sedap!

Don't you think so?

Related post:
CPF is all we need unless we are very rich.

CPF fake news and financial prudence.

When we use our CPF-OA money to purchase a property, we must be aware of the opportunity cost that comes with the decision.

When we use our CPF-OA money to purchase a property, we are losing out on interest payments made by the government to us.

Despite what some people say, we are not paying interest to the CPF for using our CPF savings in the purchase at all if we should sell the property with a capital gain.

We are, in fact, paying ourselves interest (to our CPF account) for the CPF savings we have utilised in the purchase of the said property.





Now, what if we made a loss from selling the said property?

Would we have to top up our CPF account to make up for the capital loss?

Alamak!

Real or Not?

Don't listen to hearsay!

Beware the fake news!

Watch this video for the answer:







As property prices have risen a lot in the last 10 years, some people find it hard to believe that there is a possibility that property investments could go horribly wrong in Singapore.

Well, they have gone horribly wrong before in the past and they could go horribly wrong again in the future.

The possibility exists.

We have to remember that not everyone has the ability to handle such a possibility even if they have the willingness to do so.

Those who have been swept away by euphoria and paid prices too high should beware.

Buying and thinking that property prices can only go up is speculation.

With the enormous price tags of private real estate here in Singapore, it is not an overstatement to say that it is speculation on a relatively large scale.






People rarely make money buying real estate in a market euphoria but they usually make money buying when Mr. Market is depressed.

Also, people do lose their jobs and for those who are financially leveraged to the max, it could be hell on earth.

Unless we have deep pockets, it is best not to participate as just one mistake could sink us.

Remember not to ask barbers if we need a haircut.

For sure, no one cares more about our money than we do.






For most of us, unless we are very rich already, our CPF money is our ultimate safety net in retirement funding.

The fact that we don't have to top up our CPF savings if we make a loss in the sale of our property doesn't mean we should just anyhow use our CPF savings to anyhow buy a property or, indeed, multiple properties.

This is not "masak masak".

Don't "suka suka".

Financial prudence might not make us rich fast but it will ensure we avoid painful falls, some of which we might never ever recover from.






1. Everyone needs to learn financial management skills.

2. Everyone wants a higher standard of living.

3. Everyone needs to think of all the bad things that could happen to them.

If you find this unfamiliar to you, you are probably rather new to my blog.

If you are interested to find out more, read the story:

From rich to broke?





Related posts:
1. Buy property in Iskandar, Johor.
2. $500,000 in bad property investment.

Voluntary contributions to CPF in January 2020.

Remember the blog I published two years ago in January 2018?

Which blog?

This blog:

8 years AAA bond with 2.5% and 4% coupon!

I was referring to a AAA rated sovereign bond.

Know where to find such a bond?

Pause.

Pause.

Pause.

Regular readers will know that I was talking about the CPF, of course.

Guess what?

This "bond" is even more attractive to me now!

Why?

It is more attractive to me now because the tenor has shortened by 2 years and the coupons are still 2.5% and 4%!






Get the same coupons from the same bond but for a shorter tenor?

What an attractive deal!

You know what people say about Singaporeans loving to queue for deals?

Willing to join long queues to spend money on things like stuffed toys (think Hello Kitty) or mobile phones (think Huawei Y6 Pro)?

OMG!

These people are crazy!

Overnight queue for BTS Singapore concert merchandise?


Madness!







So, is AK saying we should queue to do voluntary contributions to our CPF instead?

Alamak, you don't know?

We don't even have to queue!

Just do everything online!

Amazing or what?

OK, I know.

I say you crazy.

You say I crazy.

Now, why not ask if you would rather be 

crazy and poor 

or would you rather be 

crazy and rich?


See:
Do online contribution to CPF?

Wait.

What?

You don't know why it is a more attractive deal for me now?

Basically, the closer we are to 55 years old, the more attractive the "coupons" become as the waiting time is shorter.

Chop, chop!

M.T.L.

Yes, I have made voluntary contributions (VC) to my CPF accounts (OA, SA and MA) this month.

The CPF Annual Limit for 2020 remains at:

$37,740.

So, a $2,800 VC to my MA.

Then, a $34,940 VC to my OA and SA.

Yes, AK bought a 

"6 years AAA rated sovereign bond with coupons of 2.5% and 4%" 

this month!






Why make maximum VC this month?

The idea is pretty simple to the economically inactive AK.

Hit the CPF annual contribution limit in January each year to get the most interest income possible.

Remind myself again to think of it as having bought AAA investment grade sovereign bonds that pay 2.5% (OA) and 4% (SA and MA) coupons!

"Spend less than you make; always be saving something.

"Put it into a tax-deferred account.

"Over time, it will begin to amount to something.

"This is such a no-brainer."

- Charlie Munger






I plan to keep doing what I have been doing with my CPF because I want it to "amount to something" by the time I am 55.

I know some readers want me to show my CPF numbers.

Patience.

Look out for an upcoming blog on what my CPF savings has amounted to so far.

This will happen probably before the end of this month.

Yes, soon, it will be time to see our pies. ;)

If you are absolutely clueless, please read the blog I hyperlinked at the intro of this blog for a more detailed reasoning as I do not want to repeat myself (too often) lah.








Related posts:
1. How to grow our CPF savings!
2. 4 ways to boost our CPF savings.
3. VC to CPF-MA in 2020.