1. I sold all my SG stocks - POEMS Share Builder Plan & REITs portfolio, as well as 1 HK stock I bought via FSMOne. It was a gradual liquidation over 8 months. I've moved into the US & AU market.
Although I initially had the intention to open an account with TDA only, waiting for the application approval was so long (1.5 months) that I went with IB instead. I thought IB would be difficult for a newbie like me, but the portal is surprisingly easy to use, and the Trader Workstation software is also ok.
Oftentimes, I only buy and hold, and rarely do I sell, except for one time which I sold away JD in IB (I realised I didn't understand and like the company as much to follow their earnings call and I felt there's always this unknown which is the regulatory risk from the Chinese govt.)
2. I also closed the unit trust funds which I invested via my advisor, as I want more exposure in stocks. I still have decades to go before I retire. Bonds are not the kind to grow wealth exponentially over time.
3. I've terminated my AIA ILP.
4. I looked to reduce my expenses, esp. those that I think are overkill for my needs e.g. my monthly subscription to my financial advisor. Now I just rely on MoneyOwl. This year, I did the Comprehensive Financial Planning review and applied for the Aviva CareShield Life supplement.
5. The CPF-OA investment via Endowus has exceeded my expectations. Today's exactly 1 year since I put a lump sum to work.
YTD TWR: 6.84% - effectively beating the CPF-OA 2.5%
If you're wondering about that massive drop in the chart, I increased my allocation to stock from 60% to 80% so they have to sell away some bonds to put into stocks and the overall portfolio dipped before recovering.
Hence, now it's 80% stocks 20% bonds.
I know the stock market goes up over the decades, but psychologically I still wasn't able to do a 100% stock allocation. Knowing is one thing, doing it with eyes wide open is another matter.
Nevertheless, I'm celebrating because this is a major improvement from the old me, who would only think of where's-the-best-fixed-deposit-rate in town.
I persuaded one of my close galpals to invest her CPF-OA, and even though it's not a huge sum, I'm happy for her because it's a step forward.
Everyone has to get past and sort out his or her psychological part in investing and no one can do that for another. What we can do for one another is to encourage and offer help in the journey.
I hope to put out a blog post on my investment thesis for some of the companies I hold. I know if I were to do it privately, I probably won't do a proper job. Having it published publicly will help me crystalise my research and views.
Target: 31 Jul 2021
Let's do this!
As ladies, we don't invest enough like the men because of our lower risk appetite. I think it also has to do with our biological makeup.
Men will go out to hunt and bring back game meat for the family, risking life and death. Meanwhile, women will take care of the family and nurture the children.
Hope by chronicling my investing journey here, it will inspire more women to take the first step.
What made me step out of my comfort zone was some frustration with my financial advisor.
Once, I thought my colleague, a Finance Manager, gave better advice than he did on housing matters.
In the end, I figured that even I have an advisor on retainer, but ultimately, I need to learn more about finance and investing and do it myself.
Another reason I wanted to do this is to force myself to take stock of my long-term investment thesis. When you put it out in the public, it ensures ownership and accountability on my part.
Here's what I did
1) Mar 2017
Monthly DCA into Singtel and STI-ETF with POEMS Share Builder Plan. I'm thinking about whether to stop DCA - CSO said can. Because 3 years already and it's not doing as well as my REITs / Trusts portfolio. In time to come, I will terminate it when the loss gap is smaller.
10 Jun 2020:
Portfolio return -14% (Incl. dividends reinvested)
XIRR: -5.7%
2) Jul 2019
Invested in these 4 unit trust funds via my advisor ($395 went to his commission)
Eastspring Investments Fd - Monthly Income Plan Fd A SGD (Mainly USD & Asian Bonds)
United SGD Fund CL A (Acc) SGD (Short Duration Bonds)
Funds with monthly dividends reinvested
PIMCO Income Fund E SGD Hedged (Income Generating Bonds)
United Emerging Markets Bond Fund A Dis SGD (Emerging Markets Bonds)
10 Jun 2020:
Portfolio return -5%
I didn't do monthly DCA. All are in bonds since I'm quite exposed to equities.
3) Oct 2019
I attended a REITs course. It was paid via monthly installments. I built a portfolio of 11 counters which is my first foray into DIY investing. I sold off First Reit on 3 Jun 2020 because I had enough of their drama. I want a good night's sleep. Luckily, I only have a small position. Lost $300. I plan to deploy this elsewhere.
Lesson learned: Do not buy anything that is by Lippo Kawaraci.
10 Jun 2020:
Portfolio return -5%
XIRR: -6%
If I include Mapletree Industrial Trust and Lendlease Reit, which I got them during their IPO:
Portfolio return +14%
XIRR: 12%
Future Plans
1) I have an AIA ILP that I will discontinue so that I can recycle this sum of money elsewhere. I held it for 12 years, coming to 13 years.
Portfolio return 6% but XIRR is a miserable 0.86%
I feel like almost 13 years of my opportunity cost gone with this ILP.
2) I have set up my CPF-OA to invest with Endowus. Pending them to confirm.
Every month, I see my mortgage loan deducted. I need a higher interest rate for the rest of the investable money which will come with a bit of risk.
Balanced portfolio: 60% stocks 40% bonds
I didn't do monthly DCA.
3) Investing in US equities. I plan to go with TD Ameritrade to set up a portfolio of growth stocks. 25 free trade promotion (till Dec 2020) for min. US$10K is very tempting.
No custodian fees. According to a guy on Seedly who has used TD Ameritrade, there don't seem to have fees on corporate actions or dividend handling.
