$$$ KPO and CZM $$$

Wednesday, February 16, 2022

Portfolio - January 2022

Happy CNY and Valentine's Day to everyone!

The monthly update took much longer because Baby Ong fell really sick and I was thinking of taking a break from blogging. She started having running nose and fever the night before the eve of CNY. We ART-ed her the next morning (fortunately it was negative/less headache) and quickly brought her to see a PD before the PHs. She kept waking up in the middle of the night and we barely had much sleep. When she was recovering, it spread to both of us and we fell sick too >.<"

As for myself, I feel that I am constantly not having enough time and our portfolio has grown so much that it might no longer be realistic/motivating for our readers. Anyway, I will be changing the format slightly to focus more on our passive income given that CZM has tendered and will be retiring early. lol.


With the success of our crypto portfolio, we decided to off-ramp some crypto profits and have taken back our initial capital (whatever remaining are just profits!). The plan was to buy some branded stuff for our parents and CZM but no one wanted it -.-" In the end, we just gave our parents a much bigger than usual red packet, insisted and bought CZM an LV bag and bought lots of REITs. If you are wondering how to off-ramp, you can either send UST to Kucoin/Binance then swap to either USDC/BUSD and send them to FTX and withdraw as USD fiat to DBS (I tried to send USD to Standard Chartered but was unsuccessful).

Portfolio


Total: $2,307,446
Leverage/Debt: $350,245
Gearing: 17.90%

Our Passive Income - Dividends


Dividends for this month: $1,630.42
Total dividends collected for 2022: $1,630.42
Average dividends per month for 2022: $1,630.42

Our Passive Income - Anchor Earn


Interest for this month: US$3,598 (~SSG$4,840)
Total interest collected for 2022: $4,840
Average interest per month for 2022: $4,840

Total passive income for this month: $6,470.42
Total passive income collected for 2022: $6,470.42
Average passive income per month for 2022: $6,470.42

Stocks
We bought CICT, MCT, MLT, MIT, Ascendas REIT and iShares HK Tech ETF last month which was worth ~300k in total. ~200k from crypto profit and ~100k from leverage/borrowing. With that, our stocks portfolio is now worth ~1.3m in total or ~1m without leverage. Interestingly, the debt we incurred from buying stocks is now more than our HDB mortgage/debt. An indirect way of owning second property!

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.

Endowus


Capital: $49,240.00
Current: $53,783.48

I decided to invest my CPF OA a few months back and blog about it here - Investing CPF OA Through Endowus. I moved my SRS investment that was with StashAway to Endowus and invested another $10k from CPF OA given that it is a new year and the market was red.

If you are interested in Endowus, do use our referral link for our readers! You will get S$10,000 managed free for 6 months ($20 equivalent) and we will get $20 too! This access fee has no expiry date.

Crypto
Last month has been quite crazy as LUNA price fell around 50% since reaching its all-time high last year. If you are wondering, we are no longer crypto millionaires for the month of January. So short-lived. lol. As LUNA price fell, I was at risk of liquidation on multiple occasions and Kevin/Turtle Investor even messaged me on Twitter.


I guess that's the benefit of having our address public? Lots of people were monitoring for us. Hahaha. Anyway, we were almost liquidated twice on Anchor and I had to "borrow" CZM's retirement fund from Anchor to lower my liquidation price. It just happened that I opened a leverage position (with a capital of US$7k) on FTX for LUNA a few days before and that got liquidated. The annoying thing was that I thought my collateral was just USD but it turns out that my RUNE was also included and now I own 0 RUNE. CZM had a nightmare that night >.<" I guess I will cut down on my borrow for her to sleep better in the future. I also promised her to never leverage on exchange ever again.

On the bright side, January gave us an opportunity to accumulate a lot more LUNA. We now have slightly over 10k LUNA and I am secretly hoping this will propel us to the next milestone we never thought was possible before investing in crypto - an 8 digits portfolio. I have also decided to diversify out of Terra and bought some ATOM (600+) and OSMO (2.2k+).

Anyway, you can refer to our Terra portfolio on Ape Board below for a more detailed breakdown:

Anyway, I have blogged about different ways to leverage crypto to build wealth for people with different risk appetites:

If you are interested in the platform I am using, do sign up using our referral links for some bonus :)
BlockFi: Deposits US$100 or more into your BlockFi Interest Account (BIA), you will earn US$10 in BTC and we will earn US$10 in BTC too.
Celsius Network: Earn US$50 in BTC with your first transfer of US$400 or more and we will earn US$50 in BTC too.
CakeDeFi - Deposits US$50 or more into your CakeDeFi account, you will earn US$30 in DFI and we will earn US$10 in DFI too.
Gemini: We will both receive US$10 of bitcoin after you buy or sell US$100.
Crypto.com: Sign up using our link, stake SG$500 worth of CRO and we both get US$25 in CRO
FTX: We will receive 25.00% of your trading fees and you will receive a 5.00% fee discount on all of your trades.


On a side note, Futu's moomoo app free AAPL share sign-up promotion is back for this month. In addition, you will get another SG$50 cash coupon for using our referral link which is exclusively for our readers! Do read the T&C here for more information. If you have yet to open an account, you can do so using our referral link :)

Accidentally clicked on the annoying ads? Let me thank you in advance as you are indirectly doing good as we will be Donating 100% Ads Revenue Going Forward!

You might be interested in these blog posts too:
- 2021 Net Worth
- Our CPF 2021
- Portfolio - December 2021 - $2,100,909
- Portfolio - January 2021 - $2,307,446

Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
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.)
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Thursday, January 20, 2022

2021 Net Worth

We dabbled in crypto in early 2021 with the plan to allocate just a tiny 1% of our net worth into it. However, I fell deep into the rabbit hole, discovered LUNA/Terra and eventually persuaded/convinced CZM to screw/ignore the 1% allocation. lol. Now it is taking up close to 50% of our net worth.

Our WhatsApp group chat

In addition, I started exploring DeFi with my friends (some of you can probably tell why it was named that way. Hint: BSC. lol) and eventually we started a crypto business with just US$3k capital. It is currently generating conservatively a few thousand dollars of passive income monthly (probably not that passive for my friends because they are doing the heavy lifting/coding. lol). It is a crazy amount for us because this was achieved in months as compared to our dividends portfolio which we spent years building.

Besides crypto, another factor that contributed to the growth of our wealth is the use of leverage.

Debt/leverage breakdown:
Stocks - SG$271,199
Crypto - US$75,269 (~SG$101,433)
House - SG$350,538

Total: ~SG$723,170

I believe the amount of debt we have taken might make some of you sleepless but it isn't really that much. If you think about it, anyone buying a private property without investing would have taken on much more debt but grow their wealth much slower (just my opinion). Anyway, we borrowed ~SG$372k to invest and it has exceeded our mortgage of ~SG$350k. Once again, leverage isn't for everyone and most importantly, never put yourself in a position where there is a high chance of being liquidated/margin call.

Let me introduce the concept of net worth and its importance once again for the new readers.

Net worth can be calculated by taking all the assets and subtracting away all the debts/liabilities. This is the classic comic where everyone is actually poorer than the beggar who has a net worth of $2.73. Your friends/colleagues may be living in a huge condominium, driving some fancy car but it could all be financed by debts. There is absolutely nothing wrong with that as long as their income allows so but anything can happen! Do not be the The "Poor" Pilot With Multiple Properties. You can refer to the following article on the importance of net worth by InvestmentMoats - Don’t Track Your Expenses or Budget First. Plot Your Net Worth Instead. 

Cash
This is all the money we have in our savings accounts. Regular readers will know we are investing aggressively that we hardly keep/hold onto cash. No emergency fund as well which I do not recommend since it is personal finance 101. We felt that there's no need for it at the moment, will probably work start saving when CZM retires?

Our Cash: ~ $25,000

CPF
Every month, I will try to show CZM her net worth in order to motivate her to work harder towards financial freedom. However, she would always say I inflate her net worth because I included CPF. lol. I am sure some of you may have the same mentality but like I always tell her, CPF is our money and should be included as our retirement planning.

Our CPF: ~ $380,000 (OA + SA + MA)

Investment - Stocks/TradFi
The return through the use of leverage is not being captured and should be higher. Anyway, our overall time-weighted return is 18.01% and XIRR is 6.99%. The majority of our portfolio is tracked using StocksCafe except for Endowus which is about 35k and we have about 271k of leverage/debt. You can refer to Portfolio - December 2021 for the detailed breakdown.

The screenshot was taken after 2021 so numbers will not tally

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.

Our Investment: ~$756,000

Investment - Crypto/DeFi


The majority of our crypto investments are in Terra. You can refer to Portfolio - December 2021 for the detailed breakdown.

What's excluded:
- Crypto Business


I minted/purchased our first NFTs last year September. It costs about 3 LUNA or US$123 then. I sold one for 118 LUNA (~US$4,838 then or ~US$9k now) and kept the remaining 2. One of them (#10902) has a silver crown with a floor price of 250 LUNA or ~US$20k and the other (#9868) is a top 5% glitch punk. Both of them are much rarer than what the floor is trading at but conservatively, they could be sold/valued at a minimum of ~US$40k in total. Of course, the most conservative valuation is 0 which is why they were excluded :)

Our Investment: ~$1,073,000

Property
I believe that property should be included in the computation of net worth. If one excludes the value of the property, the money (cash/CPF) you use to pay for the loan/mortgage will be no different as disappearing into the thin air or throwing it into the sea. Hence, I will be valuing the property based on the total payment (interest + renovation cost) till date. This ensures that our money will not "disappear" and act as a floor/minimum amount (total payment + remaining loan + markup/profit) to sell in the future.

I can imagine people selling their house at market value + markup, thinking that they made money from the sale but it is totally possible that market price + markup < total payment + remaining loan. Does this make sense or is it too confusing? lol.

Anyway, the cost of our HDB + the payment made so far is ~520k and the current outstanding loan is 351k.

Our Property: ~$168,000

Total


Our Net Worth: ~$2,404,000

Here you go! Our net worth pie chart, it looks pretty yummy to me :) 


Oh, we also have about 465k miles which are just as valuable/useful as our NFTs at the moment and are valued at 0 dollars as well. lol.

Are you tracking your net worth?


On a side note, Futu's moomoo app free AAPL share sign-up promotion is back for this month. Do read the T&C here for more information. If you have yet to open an account, you can do so using our referral link :)

Accidentally clicked on the annoying ads? Let me thank you in advance as you are indirectly doing good as we will be Donating 100% Ads Revenue Going Forward!

You might be interested in these blog posts too:
- 2017 Net Worth: ~$510,000
- 2018 Net Worth: ~$640,000
- 2019 Net Worth: ~$886,000
- 2020 Net Worth: ~$1,107,000
- 2021 Net Worth: ~$2,404,000

Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
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.)
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Monday, January 17, 2022

Our CPF 2021

This is a slightly overdue post for a couple of reasons. Besides Baby Ong sleeping much later and staying awake much longer which translate to lesser me/blogging time, the honest truth is CPF yearly interest no longer excites me. lol. Anchor pays out much higher interest (~19%) per block (~6 seconds) vs once a year -.- You can take a look at our last article on how we are using Anchor to semi-retire :)

CPF plays a crucial role in retirement planning (probably not so much for us but might still be applicable to you) and should be managed accordingly. Our plan remains to max out MA (which will then overflow to SA/OA), then follow by SA (meeting the FRS) and let compounding take over to ensure that we will always be able to meet the new minimum sum in the respective accounts. Our CPF update will be done annually together with the interests that are being paid out. 

KPO's CPF

Age 31, Total CPF ~$179k

I was transferring OA to SA for higher interest once I started working and blogged about it here - CPF Milestone ($40k in Special Account) and The Power of Compound Interest. I stopped transferring and began to build up OA to prepare for our BTO HDB downpayment in 2018. There was a change in policy (HDB 想通了/achieved enlightenment. lol) and we can now keep up to $20,000 in OA. You can read about why we do not wish to wipe our OA here - Chiong Housing Loan or Take It Slow?

In 2019, we paid the remaining downpayment for our BTO, hence you can see a drop in OA. The plan now is to keep at least $20k in OA as a buffer in the event if we lose our job/income, we can still continue to pay off the housing loan for the next 2-3 years without any worry.

2 years back, we chose to refinance our HDB housing loan to a bank loan for a saving of ~$200 per month. You can read more about it here - My Experience with Mortgage Brokers - Redbrick and iCompareLoan. I also did CPF RSTU (7k to CPF SA) and Voluntary Contribution (VC) to CPF MA for tax optimization.


Interest received:
OA - $844.11
SA - $4,029.60
MA - $1,583.28

Total: $6,456.99

CZM's CPF

Age 31, Total CPF ~$201k

As we have been planning for CZM to retire early, we made sure that she has as much money as possible in her OA to contribute to the monthly mortgage. Based on our current mortgage of SG$1.5k, that's going to last us about 5 years once she stops working.


Interest received:
OA - $1,022.99
SA - $4,512.56
MA - $1,800.49

Total: $7,336.04

Together, the interest received are $13,793.03 :)


I have a spreadsheet that attempts to forecast CPF minimum sum and tracks how close/far are we to meeting/hitting the minimum sum. This is computed by adding OA and SA together (which forms RA when we hit 55). As of 2021, I have only met 70.85% based on the current minimum sum of $186,000 while CZM is at 81.56%. More than half the journey done to meeting FRS!


Something I like to do, assuming that CZM stopped working now and there will be $0 contribution to her CPF, will she be able to hit the minimum retirement sum? Using a finance calculator and her current SA of $104,887, the future value when we are 55 is $258,516. Pretty close to the lower bound of the estimation ($238,000 which is compounding the minimum sum at 1%). Regardless, I am pretty sure she will hit the minimum retirement sum even if she stops working this year as I will probably top-up her CPF using crypto profits. lol.


On a side note, Futu's moomoo app free AAPL share sign-up promotion is back for this month. Do read the T&C here for more information. If you have yet to open an account, you can do so using our referral link :)

Accidentally clicked on the annoying ads? Let me thank you in advance as you are indirectly doing good as we will be Donating 100% Ads Revenue Going Forward!

You might be interested in these blog posts too:
- 2017 Net Worth
- Our CPF 2021

Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
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.)
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