Sigh! With FY 20 dividend income all declared in Uncle8888 investment portfolio for 2021 and expecting interim dividends in 2021 may NOT vary much!
He will need to get more trading income or deploy more War Chest or doing both to avoid 2021 hitting a new Low! Less passive and more active! Tough 10 months ahead!
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Hi Uncle8888,
ReplyDeleteCombined with CPF interest + upcoming RSS payouts, should still be enough bah?
With the ongoing re-opening of businesses & economies, no surprise if companies' dividend announcements surprise on the upside in the 2nd half of the year.
Anyway when it comes to short term trading, I've discovered I'm lousy if I have to do it seriously i.e. trade for a living. I do better when I trade for fun using play money. LOL.
Oh, M'sia just declared annual dividend for their EPF on Saturday. It's 5.2% ... much better than during GFC or dotcom bust/SARS.
So it's either you take risk & go for potentially higher yield, or stick to S'pore CPF fixed rate approach.
Curious to see Temasek and GIC performance when they announce in July. Should be better than Buffett's 2.4% in 2020 bah!
Sigh ... no wonder people like Davey Day Trader are calling Buffet "washed up"...
Trading for fun on play money. No stress! Trading to reach FI using leverage very siong!
DeleteIndeed. 2021 is looking to be like another tough year for passive income investors like myself.
ReplyDelete2020 and 2021 will provide important data points for me to model our passive income scenarios in crisis years.
At 60 this year, both my wife and I are looking to our passive income sources for our retirement sustenance. We have been building up the three sources for some time already, namely dividends, rental and interests from our CPF savings.
As I am still working, I have been buying more dividend paying stocks every month throughout the years. Even as I add more stocks, the dividend income is not improving by much. Hoping that it will pay off when the economy fully recovers!
For the first 2 months of 2021
Jan 2021
Dividend : $3,974
Rental :$2,900
CPF Interest: $7,750 (Estimated monthly interest based on our principal amount as of 1 Jan 2021)
Feb 2021
Dividend : $4,456
Rental : $2,900
CPF Interest : $7,750
And based on the dividends announced so far:
Mar 2021
Dividend : $4,541
Rental : $2,900 (tenancy agreement expiring in Jun 21)
CPF Interest : $7,750
My takeaway :- Investing for dividends and rental income is hard, “investing” for CPF interests is easier.
From our own personal experience in the market, it is more realistic and practical retirement income for life strategy consisting significantly fixed income and variable dividend income across economic cycles. Investing for dividend income for FIRE or retirement is not we commonly hear from Gurus preaching dividend income portfolio strategy. Such strategy is not sustainable across economic crises
DeleteWith no minimum commission; we can also play dividend yielding stocks for kopi/meals money in the market or take Panadols on paper losses and wait till neck long long. Fun play while boring wait on core holding.
DeletePanadols, kopi, lunches and dinners!
Poems2.0 cash plus.
DeleteHi Uncle8888,
ReplyDeleteThink the conclusion is that investing in retirement is tough! Flavour of the year come & goes!
1996: properties & property counters
1999: dotcom
2002/2003: value investing
2006/2007: growth & contra (hehehe)
2011: oil & commodities
2016: REITs
2020: growth & tech (again)
2021+: ???
2020 was huge for growth stocks & capital gains. My entire liquid networth increased by 49%, while dividends collected were about 20% less than in 2019. That 49% is basically almost 6 years of compounded gains (if based on 7% CAGR KPI target). My past lessons & practice of harvesting a few % here & there, especially whenever my charts went parabolic, stood me in good stead.
I guess the important thing is to get comfortable & build insight (i.e. instincts) in investing styles that are more in-tune with your personal psychology .... while at the same time being open to continuously learning, adapting, experimenting with small amounts etc.
My gut feel is that we're maybe 60%-70% thru this secular bull that started in 2009.
Remember though, that even though we MAY be in a secular bull, -20% declines still happen every 2-3 years on average and recessions can still occur (as Covid has reminded us).
10% yield per year - I thought that is quite good
ReplyDeleteFor retirees looking for stable, regular incomes & not windfall capital gains, probably the safest strategy is to practise what insurance companies & pension funds do, invest using the Nobel Prize winning Modern Portfolio Theory (multiple asset allocation). Dividends from my non-reit equities suffer big cuts in 2020, but dividends from my reits & buisness trust portfolio not so bad (dividends of some such as Keppel DC, ParkwayLife, Mapletree Logistics, NETLink etc have actually increased). Distributions from my bonds portfolio, especially High Yield, were also steady. Of course, CPF is the ultimate safety net
ReplyDelete