StashAway - March 2021

As mentioned previously, after reviewing CZM's latest NOA and forecasting her taxes for next year, we have decided that she no longer needs to contribute to SRS. That is because she is now eligible for Working Mother’s Child Relief which reduces her tax significantly (15% of earned income)! Given that we are not contributing to her SRS portfolio anymore, we have decided to increase the risk index from 14% to 22% so that it will continue to grow (more) by itself.

By the time we are 62 years old in 2052, there's a 50% probability that the 6k will become 100k. lol. This portfolio will be interesting because we will not be injecting new capital and one can observe if it will continue to grow while the management fees continue to be deducted. I am guessing I will probably start seeing some sell transactions or USD being converted to SGD for the management fees.

Investment for this month:
KPO and CZM Cash - StashAway Risk Index 22% - $1,000
Baby Ong Cash - StashAway Risk Index 36% - $100

KPO SRS - StashAway Risk Index 36% - $638

Total: $1,738

1. PORTFOLIO SUMMARY (as of the last day of the month)

KPO

CZM

Based on the statement (31 March 2021), our total investment is ‭$64,759.72! KPO gains $50.66 and CZM lost $25.66 for the month.

As of 6 April 2021, these are our portfolio performance:

KPO and CZM Cash - StashAway Risk Index 22%: $‭43,137.36 (42.32% - Capital: $34,500)

Baby Ong Cash - StashAway Risk Index 36%: $199.60 (-2.32% - Capital: $200)

KPO SRS - StashAway Risk Index 36%: $15,858.19 (46.79% - Capital: $13,064)

CZM SRS - StashAway Risk Index 22%: $6,496.91 (24.74% - Capital: $6,000)

2. PORTFOLIO DETAILS 
Note that these are reported in USD.

KPO and CZM Cash - StashAway Risk Index 22%

Baby Ong Cash - StashAway Risk Index 36%

KPO SRS - StashAway Risk Index 36%

CZM SRS - StashAway Risk Index 22%

3. FEE CALCULATIONS

The fee stated is based on the monthly-average assets SGD ($25,000.00 x 0.8% + $25,000.00 x 0.7% + $6,875.64 x 0.6%) / 365 days * 31 days = $35.35.

The fee stated is based on the monthly-average assets SGD $6,432.22 x 0.8% / 365 days * 31 days = $4.37. 

StocksCafe

Evan (founder of StocksCafe) made an improvement where one can now benchmark their portfolio against multiple indexes/ETFs. Looking at the time-weighted return (4.89%) for the year 2021, we can see that StashAway Risk Index 22% is underperforming all of our benchmarks.

If we compare across the years, StashAway's portfolio is winning by a huge margin (43.95%) except losing to SPY (67.01%) and IWDA (55.91%). In addition, it has the lowest volatility and max drawdown. This is what StashAway meant by reducing risk and maximizing the return. 

The annualized return/XIRR of the portfolio is very impressive too at 13.51%. Using the Rule of 72, it means that the StashAway portfolio will double our money in 72 / 13.51 ~ 5.33 years. In comparison, the same money if left in the bank account at 2% interest rate will take 72 / 2 ~ 36 years to double.

As for StashAway Risk Index 36%, the portfolio currently has a higher time-weighted return (48.50%) when compared against all the indexes (STI, SPY, and IWDA) but it is also clear that it is riskier in the sense that both its volatility/max drawdown are much higher when you compare against the benchmark and StashAway Risk Index 22% portfolio. The XIRR is 25.77%. Using the same rule, our money will double in 72 / 25.77 ~ 2.79 years.

Which is the best? Only time will tell :)

Anyway, if you are interested in signing up for StashAway, do use our referral link - KPO and CZM Referral Link. You will get $10,000 free management fees for 6 months and we will get $16!

If you want to extract those transactions information from StashAway, do take a look at this article - StashAway Transactions Parser.

If you are interested in the smart portfolio tracker (StocksCafe) which I am using as shown above, sign up using my link for a longer trial period :) Refer to our Referrals page for more information.

On a side note, Futu's moomoo app attractive sign-up bonus (one free Apple Share besides other benefits) has been extended to 30th April 2021 (1500hr SGT)! Take a look at our review here.

You might be interested in previous months update too:

- StashAway Withholding Tax Reimbursement FY 2019

- StashAway - December 2020 - $56,721.26

- StashAway - January 2021 - $59,991.38

- StashAway - February 2021 - $61,608.72

- StashAway - March 2021 - $64,759.72

Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
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3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right --> Unfortunately, you can't see it on mobile.)