In December last year, I received a letter from Oxley WorldBridge, the property developer for The Bridge. In the letter, it was mentioned that my Cambodia property is completing ahead of time and they attached a payment notice for final payment.
That means it’s time for me to pay up the remaining 50% of the property purchase price before the end of January. As I did not take any bank loan for this purchase, everything is paid with cash.
It’s been such a long time in the making because if you’ve been following my blog, I made the purchase in 2014 and since then, I’ve been diligently saving a significant portion of my monthly salary to pay for this property.
Here’s a photo from Oxley WorldBridge’s website showing the status of construction of The Bridge in November 2017.
To be frank, I was expecting The Bridge to complete in June 2018 so I planned to set aside a portion of my monthly saving to have the final payment sum ready by June. For the property to complete ahead of schedule meant I had to make some adjustments to come up with the cash needed.
Firstly, I sold off my STI ETF and ABF Bond ETF portfolio that was accumulated monthly through my POSB Invest-Saver regular savings plan. Fortunately, the market was performing well and I netted around 3.3% gain after selling it.
Lastly, I liquidated my remaining bullion gold coins to top up the remainder of the final payment. The sale price did not yield me much gain as the gold rush was long over and I’ve made my profits a long time ago. In fact, I did not even record these gold coins in my portfolio as they were that insignificant.
What worked in my favour was the fact that the currency exchange rate between US Dollars and Singapore Dollars was down to $1.32 from a high of $1.37 in October 2017. Lucky me!
While I didn’t like the fact that I had to liquidate my POSB Invest-Saver regular savings plan to finance the purchase, I’m grateful to be able to lock in the profits and pay off the property purchase at the start of 2018. I see this as an opportunity to revamp my investment portfolio. I have some ideas in mind to reduce my portfolio’s dependence on Singapore’s economy and instead, focus on global economies. But that’s another blog post for another time.
I wasn’t totally sure about where Cambodia property investments are headed when I made the deposit for a SOHO unit in The Bridge in 2014 and to be frank, I’m not 100% sure that I made the right call in this purchase today. We’ll probably find out in another 5-10 years time.
I’ve receive a few comments and emails about this investment and my advice remains the same. Go in with both eyes open, read everything twice, and only invest with money you can afford to lose.
As of now, I’m committed to paying off the full purchase price of the property (in fact, I’ve already done that before this article was posted) and I’m definitely in it for the long run. Let’s see how the property investment performs in 5-10 years time.
A few ideas that comes to mind right now are:
The possibilities are endless and anything can happen. I’m going to keep my options open and see where life takes me.
Joshua Fields Millburn & Ryan Nicodemus from The Minimalists created this game called the 30-Day Minimalism Game that helped thousands of people worldwide declutter their homes.
The game is a way of getting rid of the excess, the stuff that no longer adds value to one’s life.
Here’s how it works.
On the first day of the month, you get rid of 1 thing. On the second day of the month, you get rid of 2 things. You get the picture. Anything can go! Clothes, furniture, electronics, tools, etc. By the end of the month, you will have gotten rid of 465 items (in a 30-day month).
There are a few ways to get rid of things. You can choose to donate, sell, or trash them. Whatever you do, each material possession must be out of your house and out of your life within 24 hours.
It’s an easy game at first, but it will start getting challenging by week 2 when you’re throwing away more than a dozen items each day.
I’m going to set aside 3 boxes to separate items for sale, donation or trash and items will be sorted accordingly.
While the game calls for things to be out of the house by midnight, I’m tweaking the rules slightly, by giving myself:
My strategy is to spend 10 mins to an hour on this and not procrastinate because the number of items to get rid of can pile up really quickly as the days go by.
I’ll write another post to update everyone on my progress with the game.
Let’s declutter our homes!
A number of robo-advisory startups have sprouted in Singapore in the last 2 years. They provide financial advice or portfolio management online with moderate to minimal human intervention in exchange for lower management fees. Most of the decision making is based on mathematical rules or algorithms.
I’ve been monitoring startups like AutoWealth, StashAway and Smartly who are competing in this space since they started and now, they have all obtained their respective MAS licences to operate (except Smartly who collaborated with VCG Partners Pte. Ltd. a MAS licensed fund manager in Singapore to manage your money).
With the right regulations in place, it’s a good opportunity to consider using robo-advisors to manage my investments.
If you’ve been following my blog, you would know that I’m a passive investor. I prefer to automate my investment workflow and have the investment portion of my monthly income go into investment without my involvement.
Unlike many others who like to monitor the stock market and read about global news, I prefer to focus on what I’m good at (my day job and side hustles) and grow my income.
While, I’m going to incur some expenses using robo-advisors, I’ve grown accustomed to the reality that if I will have to spend some money in order to save some time.
The most cost-effective way to invest is to purchase stocks and ETFs off the stock market on my own. By doing so, I can pay a one-time transaction fee that costs between $10-$40, and hold on to my investments for as long as I want. I only have to pay a final round of transaction fee when I decide to sell.
The most expensive way to depend on investment professionals like Financial Advisers and Investment Bankers to invest on your behalf because they will charge you at least 2-3% annual management fees each year to manage your portfolio.
Robo-advisors have a sweet spot in the middle where you pay for a small 0.2-1% Asset Under Management (AUM) fee each year to manage your portfolio. You get to enjoy that cost saving because robo-advisors have automated most of the investment activities and performs trades on your behalf based on mathematical rules or algorithms.
With a growing number of robo-advisory startups in Singapore, I went through all the websites of the key players in Singapore, namely Stashaway, Smartly and AutoWealth before making the decision to invest through AutoWealth’s robo-advisor platform.
In the end, I decided to start my robo-advisor investment journey with AutoWealth. Here’s why.
I intend to start investing through robo-advisors with a small investment capital ($5,000) and make monthly fund injections over the next few years, In my research, AutoWealth offered the lowest AUM fee (0.5% AUM + US$18 per year) among all the key players for my small investment portfolio.
If I were to invest a cool $100,000, the AUM fees of all the key players would be pretty much on par with one another.
For me, AutoWealth definitely wins this round easily!
This is going to be a long one so please bear with me here.
Both AutoWealth and Smartly have a investment quiz on their website that allows me to generate an investment portfolio by answering some questions.
Here’s the investment portfolio that AutoWealth recommended me when I opted for an aggressive retirement investment strategy.
When it comes to ETFs outside of Singapore, I consider myself as a rookie and I had to google to understand what the 6 ETFs were about. What I liked about AutoWealth’s portfolio recommendation is that they kept things really simple for rookies like me to understand by recommending just one ETF for each region.
For equities we have:
As for bonds, it’s just:
I completed a similar quiz on Smartly’s website with the same answers I used for AutoWealth and here’s the investment portfolio they recommended me.
Off the bat, I noticed that 1% of the money remains as cash. I presume that’s used to paid the 1% AUM fees. Okay, I can bear with that.
For equities, we have:
For bonds, it’s only:
I couldn’t find a similar investment quiz on Stashaway, so here’s a list of ETFs Stashaway have selected to invest for their clients. Because there wasn’t any investment portfolio recommendation that I could generate, I’m not going to comment much on Stashway in this article.
In a nutshell, we can see that:
Update: There were some typos in this article. I was referring to Smartly that was too concentrated in US and does not have exposure on emerging markets and China and not Stashaway.
Personally, I’m leaning towards AutoWealth in this aspect because I like clarity in what I’m investing in and I’d like some exposure to emerging markets.
I may be slightly biased here because I’ve only spoken to the folks from AutoWealth when I signed up for an account.
I was told that on top of getting the login details to my AutoWealth account, I would also receive login information to access my view-only Saxo Capital account. In a nutshell, AutoWealth is just the Money Manager and all the trading action takes place through Saxo Capital.
With my view-only account, I will also be able to see all the transactions that take place in my investment portfolio for that extra assurance. Therefore when AutoWealth tells me they invested my money into a specific portfolio, I can verify that it really did take place.
I’m not sure about you but I’m very comfortable with the level of transparency that AutoWealth is providing me with.
At this time of writing, I’ve already signed on the dotted line to open my account with AutoWealth and will be depositing my starting capital of $5,000 to start the account. I also intend to make regular monthly deposits into the account to continue to grow the portfolio.
The objective of this portfolio is to be able to provide long term care to my family in future. I’m going with a less aggressive 60-40 asset allocation for this portfolio and hopefully it will grow into a decent portfolio when I need to use the money.
To be honest, this new automated way of investing is quite refreshing because it takes another piece of investment task (rebalancing) away from my hands.
What do you think? I’d love to hear your thoughts in the comment section below.