Monday, 12 September 2022
Wah! Santa Rally in STI?
A new ATH from 188%, 189%, 191%, 193%, 196%, 198% ,199% , 201% , 202% , 204% , 207%, 208%, 211% , 212% , 214% , 215% and 216%!
Panda is back to dancing and smiling again in local SGX! Shiok!
Posts
IFC weighs $40m investment in Chinese consumer finance firm BON BNPP
-
BON BNPP is jointly managed by the Bank of Nanjing and BNP Paribas Personal
Finance. Read More
38 minutes ago
Hi CW,
ReplyDeleteIts really wonderful isnt it? Collect dividends and still see your stock portfolio grow in value. This is why we do dividend investing. Dividend for 2022 : $88K
Same goes for landlords. They collect rents and see their property values go up. This is why we are landlord. Rental income 2022 : $40K
What about CPF savers? Wait for 1 Jan 2023 and when you see the interests credited, another big smile. Thats why we are big on CPF savings. Its a more secure source of passive income without the roller coaster ride of emotions and anxiety. Expected 2022 Interests : $99K
Total passive income for 2022 : $226K. We are not complaining.
Without re- investing through compounding magic, the growth in portfolio if any will be very slow.
DeleteHi CW,
Delete"Without re- investing through compounding magic, the growth in portfolio if any will be very slow". You hit the nail on the head.
That's why I always tell young bloggers - dont FIRE! Keep working when they hit FI, because their salary income will enable them to continue reinvesting their dividends, plus from their salary.
When they FIRE, they will be spending their dividends instead.
Anyway, its their lives and their choice.
CW and mysecretinvestment,
DeleteWe are pretty much on the same page.
The MAJOR compounding effect is from the yearly capital injections from our Earned Income.
Since I'm on sabbatical from full time work since age 44, I cannot depend on Earned Income to either bail me out from losses; or add to winners.
I've to depend on REALISED capital gains to GROW my dividends.
Money or capital It's same, same.
No matter whether we call it salary, trading profits, dividends, or interests!
Reinvested dividends & interests do act as propellant and accelerant to a large ending amount, but it takes time & realistically can only be done with a structure that's a combination of traditional pension + cpf i.e. investment in financial assets like pension, but no supporting of one generation by another like the old CPF. ;)
ReplyDeleteSomeone who started with DCA of $2k a month in a 60/40 portfolio when he started work 40 yrs ago & retired today will have a pension pot of $7.7m. This period included the 2000s lost decade which gave nominal returns worse than the 1970s lost decade.
At initial inflation-adjusted 3% withdrawal, there's 98% chance of the portfolio lasting the next 40 years.
If that person had started in 1972 & retired 40 yrs later in 2012, his pension pot would be $10.6m. This period included both the 1970s stagflation & the 2000s lost decade.
The only issue as mentioned at the start is that very few people can sustain this over 40+40 yrs on discretionary & voluntary basis. :)
Spur,
DeleteEverything looks fine and interesting until the last sentence...
"very few people"... Cheh!
LOL!