DBS, OCBC and UOB to pay well! Q3 2023 passive income to be higher! T-bill auction with free money from AA REIT!

Whenever I could find some free time, I would go out to sea in the last few days.

It is my latest hobby!

Well, in a sense, anyway.

Look at my latest ship!

Look at those cannons!

If you are interested in some naval warfare too, this is my latest free to play find.

Absolutely free to play and perfect if you feel like destroying stuff to feel better after a rough day.

Use my referral link for the Asian server and both of us will get some freebies in the game:

World of Warships. (AK's referral link.)

Anyway, now that the serious stuff is out of the way, let's look at other stuff.

In my last blog, I talked to myself about the bumper interim dividend from UOB.

Up by 40%, it made me giddy with joy!

I expect OCBC and DBS to pay higher dividends too.

This means they should at least match their dividends in the last quarter.

If nothing goes wrong, my passive income for Q3 2023 should be somewhat higher than for Q3 2022.

If this pans out, it would be quite a feat since 2Q 2022 passive income generated by my investment portfolio increased by an impressive 42% compared to 2Q 2021 (mostly because the banks were still paying lower dividends in 2Q 2021.)

Whether passive income in Q3 2023 would be higher than Q2 2023 is less certain and, for that, I would wait and see.

On to another happy discovery.

When I checked my bank account, I found a few thousand dollars deposited by my old friend, AIMS APAC REIT (AA REIT.)

With my war chest largely depleted by IREIT Global's rights issue, getting some free money from AA REIT makes me love the REIT more.

As there will be quite a bit more dividend to be received from UOB and probably OCBC and DBS too next month, I decided to increase the quantum in my application for the upcoming 6 months T-bill with some of the money.

It is now open for application and the auction is happening on 3 August.

I will be going for non-competitive bid, as usual.

There is no need to agonize over a competitive bid since whatever the cut-off yield might be, it would most likely be higher than whatever interest rate the banks are offering for a 6 months fixed deposit.

So, the exercise to strengthen the fixed income component of my investment portfolio continues.

It gives my portfolio greater stability.

It gives me greater peace of mind to know that if I need more money, I have a T-bill ladder I can rely on.

This means I would not have to sell my stocks at prices not of my own choosing if some things should go terribly wrong in life.

Being forced to do something, not having control over our lives is not a good feeling.

With the yield curve still inverted, 6 months T-bills are going to remain rewarding.

So, they help to keep me sane and happy at the same time.

If AK can do it, so can you!

Related posts:
1. 2Q 2023 passive income.
2. 2Q 2022 passive income.
3. T-bill ladder is attractive.

UOB: Interim dividend 85c per share! Huat ah!

During "Evening with AK and friends 2023", I said that UOB would continue to grow its earnings very strongly. 

This is thanks in a large part to its acquisition of Citibank's consumer business in 4 South East Asian countries.

UOB has delivered and in terms of dividends, it has exceeded my expectation.

85 cents interim dividend per share has been declared.

Huat ah!

Source: UOB.

Although I only started investing in UOB during the COVID-19 pandemic, it grew into one of my largest investments within a few weeks.

"When it's raining gold, reach for a bucket, not a thimble."

Warren Buffett said this, not me.

Since then, I have been adding to my investment in UOB, most notably when the price of its common stock languished at around $26 a share for a while last year.

This enlarged investment in UOB is going to bring home a larger portion of bacon.

I remind myself that UOB retains 50% of its earnings which means that it is growing more valuable over time.

If the constant buying back of shares by UOB is anything to go by, this is probably going to be the case for some time to come.

Investing in UOB is not just investing for income, it is also investing for growth.

We can have our cake and eat it too.

If AK can do it, so can you!

Related post:
Banks: Even higher dividends?

IREIT excess rights 100%! T-bill only 3.85% p.a.

I checked my CDP account this morning and found that my excess rights application for IREIT Global was fully filled.

A pleasant surprise!

So, no refund.

That meant no fresh funds for my T-bill application.

Simply recycling money from matured T-bill into the new one.

My enlarged investment in IREIT Global should continue to generate meaningful income for me.

If you are interested in finding out why I emptied my war chest to back IREIT Global's recent rights issue, read the following blog.

Ignoring one and buying another.

If you are interested in other readers' experience with the rights issue, read the comments sections of the following blogs too.

IREIT and plan for refund.

IREIT's rights issue 134.7% subscribed.

As for the latest 6 months T-bill auction results, not too bad.

The cut-off yield is 3.85% per annum.

Still don't understand why some people are bidding below 2% per annum which we can gather from an average yield of 2.88% per annum in the auction results.

I stop face palming liao.

Give up.

My non-competitive bid was 100% filled, fortunately.

Waiting for the next 6 months T-bill as I keep my T-bill ladder intact.

Next auction happening on 3 August.

That's all for this update.

If AK can do it, so can you!

Reference:
T-bill ladder is still attractive.

Recently published:
Are all Singaporeans rich?

Are all Singaporeans rich? Be richer in 3 years!

While watching some YouTube videos regarding the economy, a video titled "Are All Singaporeans Rich?" popped up in the right sidebar.

I am usually not interested in videos like this but since I blogged about Singaporeans being obsessed with salaries not too long ago, I decided to give it a go.

Fortunately, the video had timestamps which allowed me to watch the segments I was more interested in.

It is interesting to see that the people interviewed in the streets of Singapore mostly agreed that everything was expensive in Singapore.

Most of them had earned income of $5K a month or more.

Personally, I think I can be quite comfortable with a salary of $5K a month today.

Apart from cars and private housing, I don't think Singapore is expensive.

Why do many Singaporeans think that a salary of $5K a month is insufficient?

Watching the video produced so many "Alamak, AK!" moments.

Someone said he would buy lattes regularly, paying $8 a cup!

Then, there is pubbing on weekends and taking taxis!

(OK, as a ComfortDelgro shareholder, I think taking taxis is a good idea. Please continue.)

Then, some talk about fine dining and how expensive wine is in Singapore!

Hey, we have choices.

If we overpay for coffee and if we choose to take taxis instead of buses and trains, of course, it would lead to a higher cost of living.

If we choose to get our nutrition in fancy restaurants, definitely, it would be costlier.

Such a lifestyle in any country would be more expensive than more humble alternatives in the same country.

Am I right to say that?

So easy to blame others for bad results even when it was our choices that led to those results.

Don't say Singapore is expensive when we make expensive choices.

Wake up.

A lady said that she had to work harder to earn more money.

I don't think that is a bad thing per se.

If she worked harder and put some of the money to work in order to generate passive income, her financial health can only improve over time.

If we do the right things, we don't have to worry too much about our financial future.

If I were 30 years old today and drew a salary of $5K a month, if I were truly prudent, I could probably save 50% of that money each month.

If I were to invest $2K per month in good income generating businesses, with a dividend yield of say 4% to 5%, I would be able to generate a few thousand dollars per year in passive income by the end of the third year.

Yes, it would take only 3 years to see meaningful results!

Over time, if we make more money, we could put more money to work if we stay financially prudent.

I remind myself that it is not how much money we make but how much money we save that will tell us if we are growing richer.

Then, be a pragmatic and patient investor for income and we can only become richer.

Not all Singaporeans are rich but all Singaporeans can be richer.

If AK can do it, so can you!

Related posts:
1. Why obsess with salaries?
2. Passive income as much as earned income?

IREIT and plan for refunded money.

I don't think my application for excess rights would be fully filled.

So, I am waiting for some money to be refunded.

I have also received some money from a 6 months T-bill which has matured.

The next 6 months T-bill will see its auction happening on 20 July or next Thursday.

Instead of simply recycling money from the matured T-bill, I plan to increase the quantum by using some of the money I expect to be refunded from my application for excess rights.

Judging by the increased interest in non-competitive bidding in the last 6 months T-bill auction, it is possible that my non-competitive bids would only be partially filled in future auctions.

So, given this consideration, increasing the application quantum in future makes sense too.

With interest rates offered by the banks for 6 months fixed deposits having declined pretty significantly, it is only natural that interest in 6 months T-bills should pick up.

Adding exposure to 6 months T-bills while the front end of the yield curve remains elevated will generate relatively attractive passive income for me safely.

It would also help to strengthen the fixed income component of my portfolio which is something I have been doing for quite a while now.

The money in my T-bill ladder can also be deployed in the next significant stock market correction which might happen if the much talked about economic recession takes place.

Just talking to myself, as usual.

If AK can do it, so can you!

Recently published:
IREIT's rights issue oversubscribed.
(Read the comments section too.)

IREIT's rights issue 134.7% subscribed.

Results are out.

As expected, the rights issue was oversubscribed.

At 40.8c per rights unit, it was just too cheap to ignore.

With DPU expected to be at 2.31 Euro cents, we are looking at 3.42 Singapore cents using the prevailing exchange rate.

At the moment, 1 Euro = S$1.48.

This gives a distribution yield of almost 8.4%.

This is very attractive to me, especially when I remind myself that IREIT Global retains 10% of its distributable income.

There is also the fact that IREIT Global's gearing ratio is only 33% and that almost 100% of its debt is fixed until 2026.

This gives me peace of mind.

Although its Berlin asset will see its Master Lease expiring middle of next year, I am not too worried.

This is because the office market in Berlin is relatively resilient with vacancy rate at only around 5%.

There is also the fact that IREIT Global's Berlin asset is significantly under rented and I believe it should not have great difficulty getting the lease renewed or, failing that, getting new tenants.

IREIT Global's unit price closed at 42.5c today.

At this price, the distribution yield is 8.05% which is still very attractive.

Looking at the chart, I see the declining 200 days moving average at 50 cents.

This should be the resistance to watch.

Having said that, as an investor for income, I am more interested in receiving passive income.

Although with the rights issue oversubscribed, I do not expect my application for excess rights to be fully filled, I still expect IREIT Global to continue generating meaningful income for me.

As IREIT Global was already one of my largest investments, this rights issue has served to further enlarge my investment. 

This should have an outsized impact on my passive income in future, all else being equal.

If AK can do it, so can you!

Related post:
T-bills, DBS, OCBC and IREIT.

T-bill 3.99% yield. Buying OCBC and UOB.

Latest 6 months T-bill auction had a cut-off yield of 3.99% per annum.

That is the good news.

The not so good news is that more people are now in the non-competitive bid camp.

Still, having 94% of my application filled is not too bad.

As the front end of the yield curve is still elevated, 6 months T-bills will remain rewarding.

This is especially when the banks have toned down in their fight for deposits.

The reason seems to be that the growth in loans has slowed while deposits have increased.

So, the banks don't need more deposits.

Given this situation, I could divert funds from maturing fixed deposits into T-bills in the coming weeks.

As for equities, I am still interested in adding to my investments in OCBC and UOB.

OCBC has broken its trend line support.

It could retest support at $12.00.

If $12.00 fails to hold, we could see supports at $11.50 or $11.00 a share tested in the coming months.

I hope I would have the funds to buy more in such instances.

As for UOB, it could test support at $27.00 and if that were to break, a much stronger support is at $26.00 a share.

Again, I hope to buy some at those levels.

If AK can talk to himself, so can you!

Recently published:
2Q 2023 passive income.

2Q 2023 passive income: Stronger again!

Before I start doing other stuff today, I decided that I would quickly talk to myself about my 2Q 2023 passive income, and also what I plan on doing for the rest of the year in the investment space.

When I talked to myself about my 2Q 2022 passive income, I titled it "Stronger with changes." 

In 2Q 2022, total passive income received was about S$63,980.

It was an impressive 42% year on year increase.

Since then, I have continued to re-allocate resources although on a smaller scale.

This exercise has proven to be fruitful as 2Q 2023 passive income came in at $79,774.61.

This is an almost 25% year on year increase.

Hence, the unimaginative title for this blog.

"Stronger again!"

Higher dividends from the following entities did most of the heavy lifting:

1. DBS

2. OCBC

3. UOB

4. Wilmar

5. ComfortDelgro

6. AIMS APAC REIT

These are some of my largest investments. 

So, the higher dividends from them have an outsized impact which more than compensated for the reduced dividends from some of my smaller investments for income such as Ho Bee Land and VICOM.

To be fair, not all of my smaller investments for income reduced dividends.

Raffles Medical Group and Hock Lian Seng paid higher dividends, for examples.

Passive income in 2Q 2023 also benefitted from contributions by Singapore Savings Bonds and T-bills.

These were missing in 2Q 2022.

I will continue to re-allocate resources in my investment portfolio for the rest of the year.

This means moving funds into investments which I feel would generate meaningful income for me while maintaining relatively strong balance sheets.

I would also inject fresh funds into my portfolio whenever circumstances permit.

While re-allocation of funds is for increasing my investments in businesses like OCBC and UOB, the injection of fresh funds is probably going to the strengthening of my T-bill ladder.

This strategy will help to ensure that I maintain a more meaningful exposure to quality fixed income which is relevant to a person with circumstances like mine.

I am more interested in having a stronger base for my investment portfolio which ensures stability.

If I have should have more excess funds to deploy, I would increase exposure to Wilmar if its common stock should decline to $3.50 or even $3.00 a share.

The same goes for ComfortDelgro if it should ever decline to $1 a share or lower, all else being equal.

As I did not participate in AIMS APAC REIT's recent rights issue, I must expect a reduction of approximately 10% in my passive income from the REIT in future.

Even if I did participate in the rights issue, I would still experience a reduction in my passive income from the REIT unless I applied for more excess rights so that the total number of rights units was 3x that of my entitlement.

Of course, I would have to be successful in getting those excess rights as well.

I have instead decided to channel more funds to IREIT Global's rights issue to apply for more excess rights which would generate more passive income for me.

To be realistic, I am unlikely to get all that I have applied for.

Even if I should be unsuccessful in getting any excess rights, as IREIT Global's fund raising exercise does not have a private placement component which I am not invited to, I would not see any dilution which would lead to a lower DPU.

If I should be successful in getting even some excess rights, it would mean having a bigger share in some attractive properties which are already generating income.

Having said this, any injection of fresh funds is likely to be a slow trickle as I have limited excess funds after taking into consideration my commitments.

I think that is all for now.

Until the next time I talk to myself, remember this.

If we are interested in achieving financial freedom, investing in bona fide income producing assets can only be a good thing.

If AK can do it, so can you!

Related post:
2Q 2022 passive income.

I am so sorry.

In my last blog, I said that I might not be blogging for a while but I would be checking the comments section daily like I would do usually.

However, I was too tired both physically and mentally to do it.

A thousand apologies.

I am very sorry that I have not been checking the comments section daily.

This might have made some of you worried.

Please forgive me.

This is just a quick blog to say sorry and to say I am OK.

I have been enjoying (virtual) life a lot in the last few years.

What happened was a reminder that real life can be brutal.

Things can go very wrong from time to time.

It could be a lot worse than just getting lemons.

It could take a while before things settle down.

Time will heal.

I must believe this.

Know that we are here for each other. 

Life will not be the same but life will go on.

I want to thank everybody for their kindness and encouragement.

I promise I will read and reply to all your comments soon.

Please don't worry. 

If AK can still talk to himself, he is OK!

Death in the family.

In a recent blog, I said that the COVID-19 pandemic changed my views on many things.

Life is so fragile and it could end quite unexpectedly.

Although I feel that everyone should try to achieve financial freedom, I understand that it isn't everybody's cup of tea.

So, live and let live.

This is something I have been saying for many years.

Nothing is more important to appreciate than this.

We have only one life to live.

We have a responsibility to ourselves to be happy.

We also have a responsibility to others, especially to those who matter to us, that even as we celebrate our right to happiness, we do not compromise theirs.

Of course, we cannot always be happy.

It is even harder to ensure that people around us are always happy.

There will be good days.

There will be bad days.

This is true for all of us.

We are only human and can be unkind to people when we are unhappy.

We lash out at people closest to us as they are the ones we are most likely to take for granted.

Of course, this is wrong.

Try to make amends later and try to be a better person in future.

Our wealth can grow if we do the right things.

However, our time on earth is limited.

We don't want to learn that we had a good thing in life only after we have lost it.

Of course, we get angry sometimes.

With people we care about, we might get even angrier.

Be angry but don't stay angry for too long.

Always think of the good that is in that person.

Think of past kindness received.

We are all unique individuals.

Even twins are not 100% alike.

Things are rarely perfect in life.

No one is perfect.

Everybody makes mistakes.

Be more forgiving.

We might not be selfless but we can try to be less selfish.

If you think that I am not feeling 100% now, you are right, but I am still OK.

I always like to say "all in good time".

It will take time for things to get better.

I remind myself that life has to go on.

However, there is a chance I might stop blogging or replying to comments for a while.

Of course, this wouldn't be the first time but it would be for a different reason.

So, it is important that I talk to myself about this.

Still, I will try to check the comments section daily.

If AK is still talking to himself, do not worry. :)

3.89% T-bill. DBS and OCBC fined. IREIT Global.

I have been busy gaming in the last few days as Neverwinter celebrates its 10th birthday.

Time really flies and I have been adventuring in virtual worlds for 8 years.

Of course, I have been retired from gainful employment for just as long.

I remember saying that CPF is a pie we would all get to eat one day if we did the right things.

Well, in another 3 years, I would get to eat the pie.

It is both a happy and depressing thought.

Anyway, like I shared in my last blog, I ignored AA REIT's rights issue.

It meant accepting an 11% reduction in income from the REIT in future.

I am staying invested in AA REIT but as a retiree without plenty of excess funds, I am less willing to deploy money into any venture that does not add to my income in the very near future.

Even if I were to take up my rights entitlement, unless I am willing to apply for a lot more in excess rights, I would still suffer some income reduction from the REIT.

Much better to put the money in T-bills in my case.

This provides a nice segue into the next topic.

My non-competitive bid for the recent 6 months T-bill was 100% filled.

3.89% p.a. huat ah!

Could have been higher but it is obvious that many kiasu people were placing very low bids of possibly under 2% p.a. in order to secure their T-bills.

Proof is in the pudding with average yield at a paltry 3.07% p.a.

I saw that and it was a face palm "Alamak AK!" moment.

I have no words.

Speechless.

OK, I stop.

Another "Alamak AK!" moment was DBS and OCBC being fined $2.6 million and $600,000 respectively by the Monetary Authority of Singapore.

It is a ton of money to AK but it is probably like being stung by a mosquito for the banks.

I am staying invested in DBS and OCBC, of course.

Still looking to add to my investment in OCBC and UOB at supports.

Hint: OCBC tested immediate support which has risen to $12.30 a share just now.

Longer term support for OCBC is still around $12 a share.

I would add to my investment in DBS too but its stock price would have to decline much more for it to be attractive to me.

Nothing to see here, move on.

I am gathering my funds to take part in IREIT Global's rights issue now.

Must pay by 11 July.

If I am successful in getting all the excess rights I aim to get as well, IREIT Global could become an investment as big as my investment in OCBC.

Yes, I am emptying my war chest for this.

This is an exciting thought but also a scary one.

I might have to do some rebalancing of my portfolio later on.

For now, I just like the idea of increasing my income from IREIT Global by at least 16%.

That's all for now.

If AK can talk to himself, so can you!

Related posts:

1. Ignore one and buy the other.

2. Rights issues and my parents.

Ignoring one rights issue and buying more of another.

Recently, I talked to myself about helping my parents to pay for their rights entitlement for both AIMS APAC REIT and IREIT Global.

This will take a chunk of money.

As these two REITs are also two of my largest investments, I have to set aside a relatively large amount of money to pay for my own rights entitlement too.

After much thought, I made the decision to forgo my own rights entitlement for AIMS APAC REIT for the following reasons.

1. The money raised is not for any activity that would immediately generate more income.

Of course, I might see DPU increasing again in future if they use the money prudently for AEIs and redevelopment.

However, I won't see any return on the proposed additional investment right away.

2. My investment in the REIT is already free of cost.

All income generated by the REIT is really free money for me.

I don't have to add to my investment to have a good outcome even if I should take an 11% reduction in income from the REIT in the meantime.

Readers who have been following my recent blogs and the comments sections might remember that I talked to myself  about these.

Now, hot from the press, we have firm details on IREIT Global's rights issue.

161 for 1000 units at 40.8c a unit.

IREIT Global initially used an illustrative rights unit price of 45c when they announced the proposed acquisition of retail parks in France.

That sent their unit price tumbling down to 44.5c at one point.

When readers asked if that was a good price to buy, I said that it appeared attractive to me with a potential 8% distribution yield.

However, I was waiting to buy at 42c because that was where the chart showed stronger support.

I also said in another reply that we must remember that 45c was only an illustrative price.

With IREIT Global already trading at 45c a unit, the rights issue would have to be at a lower price to be attractive.

So, I would wait.

Now, priced at 40.8c a unit, it is very attractive to me.

I wish I had more money in the war chest to apply for more excess rights.

At a unit price of 40.8c, I am looking at a potential 8.8% distribution yield from mostly freehold assets.

This is also on the back of a relatively strong balance sheet with gearing ratio at 33%, post rights issue.

With interest rates likely to stay higher for longer, I keep saying it would be business entities with stronger balance sheets that would see the light at the end of the tunnel.

The Fed chair has already hinted that a lowering of interest rates would not happen until 2 years later which means sometime in 2025.

Fortunately, IREIT Global has almost 100% of its debt on low interest rates fixed till late in 2026.

It is always darkest before the dawn.

I am quite happy to be paid while I wait.

If AK can talk to himself, so can you!

Related posts:
1. Rigths issues and parents.
2. T-bills and REITs: My plan.

F.I.R.E. AK still needs $136K p.a. Growing richer or poorer?

This blog is just a bit longer than the video because I had a bit of problem with the voice recording.
----------------------

I have been asked many times before if I was ever bored in my early retirement.

To be quite honest, I find that question boring.

It was never something I was worried about because I was never married to my job.

I had many things I wanted to do but just didn't have the time for them.

So, I tell people that I am as busy now in my early retirement as when I was gainfully employed.

What I did worry about was whether I would have enough funds to retire early?

I was worried if I planned it right as I didn't fancy the possibility of rejoining the workforce.

That was during a time when I didn't know what was LEAN F.I.R.E.

Of course, if you have been following my blogs, you know what I think of that idea.

Having said this, all of us have different circumstances and, to be fair, LEAN F.I.R.E. could work for some people.



However, for people like me who have aged parents and for those who have children, if we want to retire early, it is financially more demanding.

We cannot afford to be too optimistic that things will work out on their own somehow.

There is only so much belt tightening we can do if things do go wrong.

For people who have dependents, early retirement is more demanding as we have to ensure our financial resources are sufficient to support more people.

Although my passive income seems massive to some people, once we take into consideration my expenses, it doesn't leave much room for error.

I don't track or blog about my expenses in detail, but I have blogged about my budget in whole numbers before.

In an earlier blog in 2019, I said I would need around $120,000 in passive income to cover my own expenses, parental support and CPF contribution.

$40,000 per item.

Then, in another blog sometime later, I said that given the higher inflation we were seeing, I would increase by 20% the money for my own expenses and parental support.

That would bring total passive income required yearly to $136,000.

Fortunately, passive income generated by my investment portfolio, excluding interest earned in my CPF account, has been able to cover this.



Of course, regular readers know that I will not be making any voluntary contribution to my CPF account in 2023 and 2024.

This is because money earmarked for this purpose has been used to buy Singapore Savings Bonds when they offered 10-year average yields of more than 3% p.a.

My plan is still to continue saving money in my CPF account or buying Singapore Savings Bonds till I turn 55.

When I turn 55, I could continue with this plan, or I could decide to enjoy life a little more.

I was more inclined towards continuing to save more money in the past, but the COVID-19 pandemic got me thinking.

Life could be cut short quite unexpectedly.



Yes, the COVID-19 pandemic changed the way I look at many things, including investments.

So, there is a high chance that in another few years from now, I would only need $96,000 a year in passive income as I stop earmarking money for CPF contributions.

Just need money to cover my own expenses and parental support.

Of course, we don't live forever.

Although I wish my parents would be around for a long, long time, I am not sure they want to outlive me.

The day I become an orphan, I would only need $48,000 in passive income per year, all else being equal.

When I think of this, melancholy sets in.

It is bittersweet.

OK, I shan't be maudlin about it.

I am just going to talk about finance here.

Well, it seems that, over time, I will become richer than I ever was without having to do anything differently from what I am doing now.

My investment portfolio should still be generating passive income and even if that doesn't grow, over time, my wealth could grow as my expenses shrink.



I don't think I would ever need to draw on my CPF savings.

So, over time, just from compound interest, that should grow too.

Anyway, what is the message here?

Early retirement is definitely financially more demanding for people with dependents.

However, if we are able to achieve this, we are likely to do better financially over time even when we become aged.

Just remember that we cannot be too adventurous, and we should be able to avoid financially catastrophic mistakes which might force us to rejoin the workforce.

Anyway, this is just me talking to myself about my experience and perspective.

If you have made it this far, you could be just as mental as me.

If AK can talk to himself, so can you!

Related posts:
1. How much passive income is enough?
2. Inflation, passive income and my budget.
3. Retirement drawdown strategy.
4. Retirement adequacy for late bloomers.
5. 59% want F.I.R.E.
6. LEAN F.I.R.E.

UPDATES. Time and money. Rights issues and parents.

First update is on the subject of "time".

In recent weeks, I settled into a routine of producing videos and then publishing the transcripts here. 

Both the video and the blog would be released within minutes of each other.

I kept doing that because I had an inkling that most people who "eavesdrop" on AK don't really enjoy eavesdropping.

They really enjoy reading AK's diaries.

Tsk, tsk.

Terrible.

Anyway, looking at the viewership and readership numbers, it is quite apparent.

As I am a hobbyist YouTuber just like I am a hobbyist blogger, this isn't a tragedy.

In fact, it could be a blessing in disguise.

Although I still enjoy making YouTube videos as a hobby and I have produced videos almost daily for more than a year, I might do it less often as it is more time consuming.

So, in future, there might be more blogs like this where there would not be a corresponding video.

I need more than 24 hours a day to do all the things I want to do in retirement! 

I really have quite a bit of catching up to do in the online games I am still playing, for example.

Second update is on the subject of "money".

Some readers might know that my retiree parents are invested in AIMS APAC REIT and IREIT Global too.

Apart from their CPF and SRS savings, the two old folks have rental income from a shoe box apartment and dividends from some stocks.

As I am paying the property tax and maintenance of their rental property, they are able to enjoy the rental income in full.

Being retirees, they are living off passive income as they should.

However, total passive income they get in a year is only about half of what their total yearly income was before they retired a few years ago.

I remind myself of the following.

If not for us children, for sure, they would have been able to save a lot more money for their retirement.

There is also the fact that their CPF and SRS savings would be depleted in their mid 80s which is only another few years from now.

For readers who have been following my blogs on the topic of providing financial support for my parents, this probably throws more light on why I have significantly increased the quantum in recent years.

Since I do not expect my own expenses to grow significantly in future, I am ready to provide even more financial support to my parents if required.

This is so that they would not have to make too many changes to their lifestyle in retirement or compromise on their standard of living in their old age.

Alamak!

This is supposed to be a quick update and I just went rambling off.

A thousand apologies!

Back to AIMS APAC REIT and IREIT Global.

I have decided to help my parents pay for their rights units.

Of course, consistent with what I have said before, I will keep an eye on the current unit prices as well.

Mr. Market seems to be feeling rather pessimistic and if I should be offered prices which are much lower, I would buy from the open market.

In such an instance, I would be leaving the sponsors of the REITs to pick up my rights entitlement in the form of excess rights for them instead.

In fact, I have overnight BUY orders to buy more units in AIMS APAC REIT at $1.16 a unit and IREIT Global at $0.42 a unit as, technically, these look like strong supports to me.

To be honest, it would be a pleasant surprise if my orders are filled but I know never to say never.

Of course, helping my parents to increase their investments in the REITs this way would mean that I would have less money to add to investments in my own portfolio. 

However, trying to make more money for myself really hasn't been a priority for me for quite a while now.

Why do I say this?

Is having more money no longer important to me?

Am I OK with growing poorer over time?

Hmm.

I really don't want this to be a long blog.

So, I might blog about this topic a bit more later in the week.

Let me end this update here for now.

If AK can talk to himself, so can you!

Related post:
Do we give our parents enough money?

Own a house and become poor? No passive income?

This is the transcript of a YouTube video I produced recently.
-----------------------
In 2017, I published a rather controversial blog which shared the story of a couple who chose financial freedom over home ownership.

OMG!

What did I just say?

Isn't home ownership part and parcel of financial freedom?

Well, it depends.

Anyway, some readers didn't like the blog.

It could have hurt their vested interests, if you know what I mean.

So, if you are one with vested interests, you might want to stop listening or reading now.

I don't want to upset anyone.

I might have upset some people before but it was never my intention.



Still here?

OK, since you are still interested to find out more, just take this as another perspective on how to achieve financial freedom.

So, back to this couple who chose financial freedom over home ownership.

They are in their thirties and, well, they are retired.

They can work from anywhere in the world that has good internet access.

They are able to move to anywhere in the world where housing is relatively cheap to rent.

Footloose, they move to any country with an attractive standard of living, while having a relatively low cost of living.

This lifestyle must sound pretty attractive to many people, including Singaporeans.

This is probably because it is attractive.

It is probably why many Singaporeans are thinking of moving to Johor in Malaysia to live.



Not being bogged down by high costs of living especially the high housing costs in Singapore, they could possibly fast forward their journey to financial freedom.

What about people who want to stay in Singapore?

Singapore is relatively more expensive but there are many things to like about Singapore.

Well, for those of us who choose to stay in Singapore, we could become financially free faster if we avoid over consumption in housing.

Very often, people over consume when it comes to housing.

Not surprisingly, they might also be the people who find financial freedom out of reach.

This could be even though they might be enjoying higher than average earned incomes.

Often, it has to do with peer pressure.

Keeping up appearances is more than just financially destructive.



Do you believe me when I say that when I tell people I downsized from a two-bedroom apartment to a one-bedroom apartment, most of the time I would get a negative response?

When I told my banker that I bought a small car, he said the same thing my dad said, that he would not buy a small car unless he could not afford a bigger one.

When we think about it, it really has to do with peer pressure and keeping up appearances, but it is also how we deal with it.

In a recent survey, results showed that homeowners generally scored lower on retirement readiness than those who live in rental homes.

Nearly 30 per cent of homeowners surveyed saved less than 10 per cent of their salary, and their median retirement readiness score was placed at the “very low” level.



“These results suggest that homeownership does not guarantee retirement security, especially if an individual is not saving enough for retirement.

While a property is usually considered a financial asset in the long term, it is essentially still a liability until its mortgage is paid off.

“An individual with most of their retirement savings tied up in property assets could be facing a less-than-ideal retirement, since this property wealth does not contribute to retirement income.”

So, subscribing to this idea that our homes are investments could be misguided.

In order for this to be a good idea, we must be willing to monetize our homes in one way or another.

We must be willing to rent out the spare room or rooms, if available.

We must be willing to downsize or downgrade to unlock value, if any.

This means going to for a smaller apartment or to move from a private apartment to a public flat later on.



It doesn't hurt to have some advantages in life but unless severely disadvantaged, all of us can be financially free.

Know ourselves.

Know our circumstances.

We especially do not want to do something to keep up appearances.

If we want to be financially free, focus on cash flow.

Don't end up being asset rich but cash poor.

If you want an example of this, just think of AK spending his early retirement playing computer games!

I am not going to say if AK can do it, so can you.

You might not like computer games.

However, we can definitely spend some time talking to ourselves to come up with a plan.

If AK can talk to himself, so can you!

Reference:
More passive income than "rich" friends.