Saturday, May 23, 2020

Capital Allocation - May 20



Share 16% 
My US portfolio is performing better than SG portfolio. This reaffirms my direction - focus capital gain from US stocks, cash flow from SG stocks.

- Sold Uber with small capital gain. 

Warchest 29%
Warchest to Shares ratio - 66:34. 

Warchest is earning min interest (avg 1.2%), resulted in interest loss vs bank loan (1.8% - 1.2%) and imply I do not maximize my cash on hand. 

How can I better deploy my Warchest to reduce/ eliminate interest loss? 

Actions taken in May
- Signed up for Singlife insurance - with 1st $10k earns 2.5%.
- Partial refund $10k to CPF OA for cash used for property. 

Plan:
- Increase my SG share investment - target: DBS, OCBC & UOB.

SRS 4% 
Invested in Singapore saving bond with min interest earned (~1%). 

Plan to invest in shares - DSB, OCBC & UOB .

CPF 23% 
OA balance can cover 22 months loan installment.

Emergency fund 13%
Earning interest ~ 2%.
Can cover > 2 years living costs if something go wrong. This should be furthered reduced to 1 year.


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