Skip to main content

Reflections on building my own 6 digits stocks portfolio



In this current economic crisis, the stock market offers attractive picks. As you know, I had $300k cash, but in a span of 2 months, I've held lesser cash and pumped in ~$50k into the stock markets - particularly in HK and US markets.

The thing is, I only had a ~$50k portfolio value for the past 6 years (from 2014-Jul 2020). 

So what made me daringly pumped $50k into the stock market in a span of 2 months?

  • Entrance of Tiger Broker 

I'm not paid to say this, but Tiger Brokers opened my eyes to look beyond local shores. I've always been thinking about investing in foreign market. But I've only been thinking. 🤔

I was set back by the commissions and fees charged to buy and hold foreign stocks and has been procrastinating. When Tiger Brokers entered the market, it took me some time* i.e in Aug (see my link for the beginner's guide), before I jumped onto the bandwagon. I was attracted by the ease of sign-up and the low fees. The app was also pretty user-friendly, making buying and selling stocks an ease. I feel that I've miss out on quite a bit by not investing aggressively for the past 6 years. 

And hence, when the current stock prices are at decently attractive value (though not as low as March), I began buying in.

  • To escape work

*The main impetus was this. I wanted to escape work.

I don't know if it's age and/or hormonal imbalance, but I've been easily triggered by selfish colleagues words and their attitude. 

I could mull the whole day repeating what they said. It's unhealthy and harmful for my blood pressure but I can't help my overthinking brain and sensitive nature.

It's times like this that I really wish I have passive income that is on par with my current salary; so that I can f it. My husband even said that if I can have a $3k/mth passive income, I can quit; otherwise, NO.

Alas, my main source of income is still via employment. 

  • No better place to park my cash

Since graduation till now, I've been a disciplined saver. It took me 3 years to grow $100k to $200k and then 2 years for another $100k

Besides saving, I had other instruments to earn passive income. But stock dividends was just one of the sources, not a main one.

I've blogged about parking my money to low-risk savings account such as Singlife (referral for $10 will end on 1 Nov), to 2.02% Etiqa (referral in link, still valid), to SSBs. I've also shared small money earning tips like socash and google pay (referrals in link too)

BUT the dwindling interest rates are "wasting" my cash. 

  • I believe markets will recover

I believe we will get through this; it's a matter of time. And yes, it is likely in bad scenario that we will only recover 1-2 years down, but I'm prepared to wait.

Which is why, setting aside emergency cash (people advocate at least 6-9 months of your expenses) as  is important. I'm glad I can stomach more risks because of my decently huge cash savings and I aim to keep $100k cash for emergency.

It may seem high for most, but since I do not know whether the stock market will dip further, a $100k cash buffer gives me some room to deploy more funds to average down.

In any case, stocks I've nibbled on are generally blue-chip and REITS. 

----

Time will tell if my plan is right. 

If in the unfortunate event that I lose my full portfolio, at least I can take heart that I've earned a low 4-digits dividends for the past few years 😂choy.

Comments

Popular posts from this blog

I finally cross $700k networth, after 1 year 4 months

I wondered how I should kickstart this post - should I be positive or negative about this? After 1 year 4 months, I finally crossed $700k in networth - returning back to where I've been at, back in Dec 2021.  I am disappointed.  For the past many years, I've always been growing my networth, at around $100-$150k/year. I had big plans to hit a net worth of $850k by December 2022, but the universe had other plans for me. Instead, I only managed to reach $646k, leaving me with a $204k gap to my target.  Ever since I became more aggressive in my "investment" portfolio in 2021, being sucked by greed to deploy most of my cash into stocks and crypto, I fell heavily, along with the crashes. Crypto wiped out 5 digits savings, so did the stock market.  To be honest, ever since the crashes and a bad hit to my net worth, I actually didn't do anything special to improve. I didn't make drastic spending cuts, I didn't stop my holidays, I didn't continue investing (no

First CPF top up in Jan 2023 and tax relief concerns

Detailing my yearly CPF top-up and thoughts.  This is my 8th year of top-up. 1. Top-up $2.5k to Medisave via Paynow Did a $2,500 top up to my Medisave, bringing it to 2023 MA ceiling of $68,500. Done the same for my husband as well. 2. On hold - To top up $5.5k to SA or no? Contrary to the past where I top-up at the start of the year, I have decided to hold off the top-up. A) Running out of cash Firstly, I'm running out of cash. I'm berating myself for degrading to the past where I look forward to my monthly income for cashflow. So I can build up my $100k capital in savings account again, given the current high interest environment.  B) Hitting FRS soon = no tax relief Secondly, I'm concerned about reaching FRS too soon.  The FRS this year is $198,800. I'm now sitting on ~$157k SA which means $41,800 away from reaching this ceiling.  I know some people encouraged maxing this out ASAP. But, as I've crossed 6 digits annual income, maxing FRS soon meant lower tax relie

What the luck? DBS and OCBC banking tokens died!

What luck. My ibanking tokens went dead one after another. OCBC Token First was my OCBC token. It said "low battery", but I ignored it. And when I finally need to use it, it was dead. Granted that I could use SMS OTP, I had to make a big transfer to other banks and it was over the withdrawal limits. And to do that, I needed the ibanking token. And serve me right for not activating the onetoken. In the end, I had to call in to OCBC call centre for a replacement. 7 working days, they said. What a long wait. In the midst of it, I needed to make my interbank transfers. I even went down to OCBC bank and explored a stupid manual way i.e to withdraw cash and deposit into the other bank. But the moment they told me they ran out of big notes, I got scared. While waiting for the token to arrive, I figured I could actually do transfers in smaller amounts, but had to bear with a daily cap. Sigh. And, one week later, my OCBC token arrived. How efficient. DBS token