Thursday, May 14, 2020

April 2020- Monthly Finance Update-Passive income collected 5.7k and portfolio re-balancing

In the month of Apr 2020 , the good news is that my passive income collected is around $5.7k and my liquid networth recovered by 6% after a sharp drop >12 % in March due to the Corona Virus Crisis selloff which caused the fastest stock market correction in history. Despite the stock market rally in April, I did not benefit much from the rally as my portfolio is in net selloff after clearing most of my risky MLP and reit positions. I believe both industries will suffer huge impact with prolong CV crisis. Some of these counters will be cutting/suspending dividend or even going into bankruptcy. I also write off my entire Eagle Hreit stake which result in a whopping total realized loss of 70K for year 2020.  Current investment portfolio is still sitting on a -13% paper loss end of April.

I initiated a new position in IS ASIA bond etf which will give me a stable 4% yield and cover loss in passive income from dividend cut or suspension. Comparing my portfolio distribution between Feb and April, I have increased my cash and investment grade bond significantly to 62% . With the huge re-balancing of my portfolio in the last 2 month, I am currently holding about 725K cash and 150K investment grade bonds which contribute about 50% and 12% respectively of my liquid networth. I will remain prudent for the remaining of the year with mainly bond purchase or stock that can still pay their dividends.


Portfolio distribution Feb2020


Portfolio distribution April 2020

The passive income from dividend/interest is projected to generate about 60kSGD in 2020. When I started my blog, I have set a target of 100k passive income for fatFIRE and I have been chasing yield. After some hard thought , I analyze that my expense has been much lower than 50K pa , there is really no need to take excessive risk. This prompted some change in my retirement strategy to be as conservative as long as I have achieved a passive income that is more than my expense.


Dividends received in Apr2020 from Foreign Investment: USD $2708
Interest received in Apr2020 from Foreign Investment (bond): USD $1310
Interest received in Apr2020 from banks interest/FD/others in US: USD $393
Realized gain/loss : USD: -$7679
Dividends received in Apr2020 from SGX:SGD$0
Interest received in Apr2020 from banks interest/FD/others in Spore: SGD $252
SGX Realized gain/loss SGD: -$8540
Total dividend and interest from my investment portfolio + bank/money market account + trading gain/loss generated in Apr2020 SGD -$12699
YTD Passive income earned from investment only: SGD $22141
Dividend/Interest received from investment portfolio in Apr2020 :



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5 comments:

  1. Mr LlamaMay 15, 2020 at 12:46 AM

    Hi GI50!

    Can i ask, how do you deal with the withholding tax from us investments?

    ReplyDelete
    Replies
    1. GlobalPassiveIncomeMay 15, 2020 at 9:16 AM

      There is WHT for US stocks.. However, you do not need to pay WHT tax for US bond, US ETD , non-US domiciled stock, UK ADR.. bulk of my investment belong to those categories. I do have some US stock and preferred about 60K USD in a IRA account when I was working in the US..but those are small amount of leftover balance that I did not withdraw when I left US

      Delete
  2. CoryMay 18, 2020 at 10:26 PM

    thanks for the tip on IS ASIA BND S$D . Add you to my site fav !

    ReplyDelete
  3. ncOctober 17, 2021 at 10:32 PM

    Hi bro,so according to traditional wisdom (stock + bond) bond should move inversely with stock so as to provide some hedge. However during the C19 market turmoil I found everything was a sold, even gold at the first few days (as well as crypto). It seems your "fixed income" profolio has also suffered some 12% draw back, while the DJIA had dropped some 30+% within a week or so. As a retrospect, do you think the bond still provides protection during bear market?

    ReplyDelete

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