Which types of stocks and REITs to invest in?

Good morning AK,

How are you today?  Hope you are doing well =)

Firstly- THANK YOU for sharing the post on CPF interest accrual on funds used for housing! I was wondering why my accrued interest portion kept growing- almost S$6K per year! I am considering some voluntary refund on principal amount to reduce the funds owing to CPF.

I have a new query to get your views- do you plan specifically which categories of stocks and reits to invest in?

As you may recall- I am trying to re-balance my portfolio to release some stocks at the right time and buy some new ones- aim is to increase my income yield from 4% to slightly higher. Look forward to any thoughts that you have...

L

Hi L,

Glad to know you found the blog post useful. Yup. People are usually very surprised when they find out how much they are losing by using their CPF money to fund the purchase of their homes.

Doing voluntary refund since you can afford to will help you to build wealth in a meaningful and risk free manner.

I do not tell myself I must have so many % in stocks and so many % in REITs although I have been trying to build up my non-REIT portfolio due to future interest rates risk.

I invest when offers make sense to me.

When it comes to investing for income, in today's environment, if I can get 8% or higher from well run REITs and business trusts, that's not bad.

For stocks, if it is cash rich, a 3% yield based on a 50% payout or less is not bad but I would prefer 4% or higher.

Each of us will have to find out what is acceptable for us. :)

Best wishes,
AK
 

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