$$$ KPO and CZM $$$: 2018 Mid Year Review

Friday, July 20, 2018

2018 Mid Year Review

Hi everyone! CZM was telling me that it has been a while since I blogged, mostly due to the World Cup among other things. As a result, this post has been in draft mode for the longest time!

One of Our Goals is to have a one million dollar portfolio with a 5% dividend yield before 40 and I have a spreadsheet that forecasts how fast we will be able to meet that goal in a perfect/ideal scenario such as the market does not crash, we continue to invest with positive returns, etc. When I first made the spreadsheet, the forecasted age was 37 (we are currently 28 years old). However, over the last 2 years, we have invested aggressively (more than the forecasted amount) + increased in salary, the latest forecasted age is 35 years old (7 more years).

These are the assumptions which we are using to forecast our investment journey:
1. Salary increment (assumed 5% per year)
2. Percentage of your salary invested (conservative percentage but we are putting in > 70%)
3. Investment return (assumed 7% per year including 5% dividend return that is reinvested)
4. Dividend return (assumed 5%)

I have blogged about this and shared the spreadsheet, you can refer to this post for more information - When can I be a Millionaire?


At the end of 2017, I did a Portfolio Performance review and it turns out that we did much better than what was forecasted - Our target for 2017 was $217,340 and we had $293,858 by the end of the year. For 2018, our target is $357,268 which can be achieved by investing $42,840 + 7% return on $293,858. So how did we do so far?


Our XIRR for 2018 is -9.70%. Our portfolio which is property/REITs heavy took a hit when the cooling measure was announced  >.<" As you can see, the capital flow for this year is $57,557. Capital flow is the amount of capital that is being injected or withdrawn from your portfolio and dividends collected are considered as capital withdrawn. In addition, some of the money ($6,000 to be exact, not included in the capital flow) was invested into StashAway instead of our SGX portfolio.


The current value of our portfolio is $336,141. Although we have met and even exceeded the required capital injection, we are nowhere near our target for the year :'( On the bright side, we still have another half a year to go!


On a side note, congratulations to the Wheelock Properties shareholders! Although the offer is way below book value, the return should be quite decent (depending on your entry price). We were looking at it on 3rd May 2018 but decided not to buy in the end. In hindsight, based on our May purchases (Portfolio - May 2018), it seems like Wheelock Properties would have been the better deal. KPO jelly now. lol.

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8 comments:

  1. you are doing very well. I am in my 30s already and yet I am far from 300k portfolio!

    You can do it!

    ReplyDelete
    Replies
    1. Thanks! We certainly hope so! Our portfolio is a combined effort, if we divide it by 2, about the same as your portfolio. So give yourself more credit, you are doing great too! Hahaha.

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  2. Replies
    1. Thanks! I just went to your blog and is just as amazed as well!

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  3. Hi, how do you have projected nominal portfolio when just started in 2014? How do you calculate?

    ReplyDelete
    Replies
    1. The initial projected portfolio value can be any amount you are comfortable with. We started investing since 2014 and I only did the projection in 2016, hence I just put a larger projection at $150k.

      The subsequent projections are based on your capital injection + the expected return from your previous year portfolio value. So the previous projection doesn't matter as much because they will be static.

      Hope this clarifies :)

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    2. Is capital growth refer to share capital gains or your own capital growth?

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    3. Share capital gains (paper profits)

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