On the personal finances front, this was a really lousy month. Here’s the quick lowdown from Point 1 to 3.
1. Portfolio dropped a massive 4% ($8K dip)
If I was a true-blue market timer, I would probably be broke by now. In September 2014, I was getting jittery with the volatility in the market and promptly sold my STI ETFs which I held through the Philip Capital ShareBuilders Plan.
The market then rebounded. Argh.
Just last month, I was postulating what to do when the STI goes past the 4,000 mark. After all, my portfolio gained a massive $7K just in that month alone and STI breached the 3,500 level. With the momentum, it seemed just a matter of time.
Since then, I have lost all those gains and more. Argggh.
A letter to myself:
Dear Long-Term Investor,
Once your portfolio starts becoming meaningful (~$200K), it’s inevitable that you will experience monthly market swings that matters more than your monthly income. It’s foolish to be exuberant when market climbs and useless to be despondent when the market tanks. That’s how Mr Market behaves and if you really want to do well in your investments, you should behave the opposite.
Point taken. But still, it kinda sucks that you’re 8K poorer within a month.
2. No more DINK status (again)
After just 4 months, we are back to SINK status again. Yeah, the Mrs chose to take a breather and left her high-paying jet-setting marketing role. (Perhaps a blow-by-blow account in an upcoming guest post? 😉 )
Instead of saving >50% of our household income, it’s probably back to 10-20%. Yeah, the stash that is recorded in this monthly updated will probably grow much slower compared to the first year. Similar to the 2nd half of 2014 when yours truly took a 6 month sabbatical.
Having f*** you money, we seem to have grown some backbones over the past year and are less likely to tolerate corporate shit, especially when that shit hits the fan.
The trade-off? A slower but more scenic journey towards FIRE (Financial Independence, Retire Early).
3. Less interest from OCBC 360 Account starting this month
With the Mrs forgoing her monthly paycheck, there’s 1.2% less interest on her OCBC 360 Account. Coupled with the recent changes, we are going back to one account real soon.
Enough said on this matter already.
Outcome: Drop in passive income from now till we purchase some bonds.
Dividends received in April 15: $430
Dairy Farm: $192
Dividends received YTD: $1127.20
Details of my updated portfolio are shown below.
Stocks (As at 19th May 2015)
|Stock||Share Amt||Share Price||Valuation||Dividend||Est. Income|
Others (As at 19th May 2015)
|OCBC 360 Account A||$40,000||$400|
|OCBC 360 Account B||$60,000||$1,020|
Total Valuation = $290,039
Total Est. Annual Income = $8,833.40
Signalling for Help: RSS Graffiti has stopped their services and is there another free service that automatically uploads newly published posts onto the My 15HWW Facebook page? Would appreciate any help as uploading it manually is a last resort for this ZERO-revenue hobby of mine.