Thursday, April 2, 2020

Mar 2020- Monthly Finance Update-Damage report and preparing for the worst

Mar 2020 will be remembered as the worst month when my networth drop >12 % due to the Corona Virus Crisis which caused the fastest stock market correction in history.
Current investment portfolio is sitting on a -23% paper loss. I have ytd realized loss of -15K (at -7% loss) after selling almost 203K of stocks and bonds in Q1 2020 . Thinking about it, if I have not sold those investment, I could be sitting on a higher paper loss end of March. I was too slow to sell some of my REIT and MLP which are Oil & Gas related. I think both industries will suffer huge impact with prolong CV crisis. Some of these counters will be cutting dividend or even going into bankruptcy.

After selling off some of my investment in Mar, I am currently sitting on 693K cash and 148K investment grade bonds which contribute about 50% and 10% respectively of my liquid networth. I feel more comfortable with this current risk assessment of holding more cash. With the remaining 40% still in various Stock/reit/non-investment grade bonds. The passive income is still projected to generate about 60kSGD but I am also expecting companies to reduce dividend throughout 2020/21. With that in mind, I will be lowering my expected  passive income to 30K per annum (a whoppong 50% reduction!!).   Given the unprecedented economy impact from Corona Virus, I will be in no hurry to go back into the market as I feel this crisis will drag on till 2021. I reckon I have to push back my retirement. With my current job generating bulk of my income, I am confident of boosting my cash saving back to 1 million in 3 years before reassessing retirement.

Dividends received in Mar2020 from Foreign Investment: USD $2028
Interest received in Mar2020 from Foreign Investment (bond): USD $360
Interest received in Mar2020 from banks interest/FD/others in US: USD $383
Realized gain/loss : USD: -$13200
Dividends received in Mar2020 from SGX:SGD$3002
Interest received in Mar2020 from banks interest/FD/others in Spore: SGD $231
SGX Realized gain/loss SGD: -$560
Total dividend and interest from my investment portfolio + bank/money market account + trading gain/loss generated in Mar2020 SGD -$11403
YTD Passive income earned from investment only: SGD $16480
Dividend/Interest received from investment portfolio:


Liquid Networth distribution:



Monthly Dividend/Interest earned Y-to-Y changes from 2017 to 2020:

 

Tuesday, March 3, 2020

Feb 2020- Monthly Finance Update-Great dividend/interest incomes received but suffer huge paper loss

Feb 2020 is probably remember as the worst month for my portfolio which drop 6 % due to the Corona Virus Crisis which caused the fastest stock market correction in history.  Despite the doom and gloom in Feb, the only silver lining is that I am still receiving good dividend/interest incomes of about 6k while I wait out this storm.

I did trim down about 47k SGD of some of my retail reits SGX counter and another 11k USD of US reit to minimize the impact on the portfolio early Feb. However, I was too slow to sell some of my MLP which are Oil & Gas related. I think the O&G industry will suffer huge impact like reit and travel stocks which could drag out for a year. I will probably put a hold on selling of any MLP since most of these are preferred stocks which generate great dividend. I will pace out my buying throughout the next few month to avoid catching a falling knife and not knowing when the bottom will hit. It will probably be a good opportunity to add high quality dividend stocks instead of relying on too many reits in my portfolio to generate income.

Dividends received in Feb2020 from Foreign Investment: USD $1605
Interest received in
Feb2020 from Foreign Investment (bond): USD $1071
Interest received in
Feb2020 from banks interest/FD/others in US: USD $365
Realized gain/loss : USD: $168

Dividends received in
Feb2020 from SGX:SGD$2028
Interest received in
Feb2020 from banks interest/FD/others in Spore: SGD $210
SGX Realized gain/loss SGD: -$456

Total dividend and interest from my investment portfolio + bank/money market account + trading gain/loss generated in Jan2020 SGD$6115

YTD Passive income earned from investment only: SGD $10014
Dividend/Interest received from investment portfolio:

 

Liquid Networth distribution:

Risk assessment- My liquid net worth is around 1.6 million with about 530K  in cash and 515k in bonds. I believe my portfolio is conservative enough to weather the storm.



Monthly Dividend/Interest earned Y-to-Y changes from 2017 to 2020: