Sunday 19 May 2019

Is investing aggressively during your 20s right?

Recently, while watching this Youtube video on how to invest in your 20s to be wealthy in your 30s.

It was mentioned in the video



"If you’re in your 20’s…INVEST EVERYTHING, IMMEDIATELY because $1 invested at 20 years old at a 7% return will be worth $21 at the age of 65. However…if you wait, and invest that same $1 at 30 years old, it’ll only be worth $10.68 at the age of 65."
This got me thinking especially since I am in my 20s. Should I be putting more of my money into my investments?

Since I have started in 2017, my investments is still in a loss overall but the dividends that I have received is pretty substantial.

With that, I definitely hope to invest more to increase my dividend yield however, with different situations popping out in my life, holding on to more cash does make me feel more at ease.




So I would be holding on to a portion of cash before I start investing. 

Another thing that was mentioned in the video was that saving 10% of your income is a good start but definitely not enough so he recommends living like you are broke when you are in your 20s.

I do agree to a certain extent on that a higher percentage of your income should be saved because the more you save means the more you have to allocate for investing.

And of course, having a high saving rate means that you are able to live more simply without spending much of your income every month.

On the other hand, being in your 20s means that you are full of energy and this is the time when we can explore the world and new experiences.




And all this requires money, I do believe that having more experiences and improve your communication skills and also how you interact with others.

Overall, I feel that it is true to a certain extent to invest your money early but of course, what you invest in can affect the returns you get.

You can watch the video below if you like to. 

Friday 17 May 2019

Progress towards my first $100K

We all have goals and from my previous post about my total assets being over $10 000. My next goal will be to reach $100 000.

Read more: Portfolio review - Breaks $10 000! and dividends received in March 2019



$100 000 is a rather huge sum and it definitely is substantial to make a difference in your life.

Read more: My Financial Goals - Is $100 000 in 7 years possible?

For now, I would say that I am on track to this goal of $100 000 by the time I am 30 years old.

Currently,
  • Cash on hand: ~$12 000
  • Investments (stocks): ~$10 000
  • Savings plan (NTUC income - Revosecure): ~$7000
Total: ~$29 000



Read more: Savings plan - Yes or No

With reference to my goals, I am on target but of course, for Revosecure, which I bought from NTUC income would only be able to cash out when I am 31 years old.

But I still consider it as part of my savings. Anything can happen over the next few years and it can help me reach my goal faster or it might disrupt it too.




I realised that I am not really maximizing my cash on hand but with the recent market instability due to the trade wars, I am hoping to get a chance to deploy my cash into the market for it.

My income is not high so my savings rate though is quite high but the building up is slow. Hope to be able to increase my income in the near future.

But of course, I got to learn all I can in my current job first.

Have a great rest over the long weekend everyone!

Sunday 5 May 2019

April 2019 Portfolio Review and Dividends Received

April was a pretty good month, my portfolio is still in the red but the losses has reduced.

My portfolio currently has a loss of about 7.5% excluding dividends.



I have a RSP set up with $200 buying G3B. For this month, 58 units of G3B was added to my portfolio. 

No dividends received this month. For the month of May, dividends would be coming from Tai Sin Electric, SGX and First REIT.


2019
Month Dividends Collected
January52.87
February64.5
March51.81
April0
May
June
July
August
September
October
November
December
--> Current portfolio has a value of about $11,019.56 Total dividends received till date: $616.13 Time flies, we are almost at the mid point of 2019. Hope to build up my cash/ warchest for purchases to build my portfolio up.