Saturday, October 24, 2020

Capital Allocation - Oct 20 vs May 20


Share investment (25% and CPF (25%) have replaced Warchest (20%) as main category in term of capital allocation.

This is align with plan to increase investment (dividend income) & long-term savings (CPF) which earn higher income vs existing HDB bank loan 1.8%.

Shares 25% (vs 16% in May 20)

With multiple investments made (Gilead, UOB, DBS, Comfort) during past 5 months, shares increases by 9%.

Total shares includes share investment using SRS fund (OCBC).

YTD dividend received ~$8k.

CPF 25% (vs 23% in May 20) 

OA balance can cover 18 months HDB loan installment.

CPF housing loan refund being transferred to SA account to enjoy higher interest.

I have also contributed $7k in SA account for tax saving purpose.

Warchest 20% (vs 29% in May 20)

Decreases mainly due to increasing investments and CPF housing loan refund.

Warchest to Shares ratio - 47:53. 

Warchest is earning min interest (1 - 2%%) thorugh insurance saving plans in Singlife and Etiqa (Elastiq, Singtel dash & Gigantiq) resulted in interest loss vs HDB bank loan (1.8%).

Plan to further reduce warchest to 10% in 2020/ 2021.

Property  16% (vs 15% in May 20)

Sightly increase with monthly installment made.

Currently I'm paying ~$900 interest on HDB loan per month 

Emergency fund 12% (vs 13% in May 20)

Earning interest ~ 2%.
Can cover > 2 years living costs if something go wrong. This should be furthered reduced to 1 year.

SRS 2% (vs 4% in May 20)

Contributed $15.3k in 2020 for tax saving purpose

Used additional contribution in share investments (OCBC) and categorized under Shares, thus SRS ratio decreases by 2%.

Remaining SRS balance mainly Singapore saving bond with min interest earned (~1%).