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Achieving $600k net worth at 30, and reaching CPF BHS of $63k 🎉



I blogged about crossing half a million net worth in Dec 2020 at $550k.

Half a year later, I'm proud to announce that I am at $618k net worth.

This is the following breakdown:
These are the accounts I have:

1. CPF - OA, MA, SA

  • MA - hit BHS of $63k🎉
  • SA - 40% more to FRS
  • OA - wondering if I should transfer excess of $20k to SA, but am also thinking of growing it for 2nd property. Thoughts from experts?

2. Stocks

  • CDP - bleeding money
  • Tiger Brokers - paper gain of $4k USD

3. Cash savings

  • DBS Multiplier
  • Standard Chartered Bonus$aver
  • Singlife

4. Fixed Deposits

  • Singapore Saving Bonds
  • Etiqa Elastiq

5. Crypto

  • Gemini - also bleeding money lol

Net worth does not include insurance or flat value. 

I kinda regret wiping my OA (kept $20k though) for my flat and making a lump sum cash payment for our mortgage. But what's done is done. 

I may have been able to hit $186k FRS by end this year, and could have more cash on hand, but I doubt I will invest aggressively to get higher gains.

Actions moving forth:

  • Reduce proportion of cash savings and invest more in stocks and crypto

    • I will no longer aim to save $600k cash by 35. With interest rates low, and inflation rates growing, my cash would devalue as time goes. Rather, I will invest more.
    • TBH, this sounds counterintuitive as I should be investing aggressively in my 20s. 
    • However, since I've no kids yet, I have more leeway.

  • Continue to top up $7k cash saving to CPF SA 
    • Other than getting the income tax relief, my thinking is once I hit FRS, I need not worry much about my retirement income at 65?
    • Proponents of CPF may call this crazy since $ is being locked up till 62++ and who knows if we'll live till then, but we ought to make plans right?
  • Set up SRS account
    • as my income grows, I need more ways to reduce my taxable income. 
    • Again, SRS is also being locked up till 62, so I suppose my retirement life is probably set, right?
  • If I can uphold $50k growth in net worth every half a year, I am aiming to hit $1m net worth by 35.  
Let's go.

Comments

  1. Congrats! Fantastic numbers!
    - kevin/turtleinvestor

    ReplyDelete
  2. Congrats! Read your post with interest, I also like to invest and stop working asap. Ha, maybe another asset you can consider is bonds, since I noticed you have fixed deposits (which pay literally nothing) and cash. While quantum for bonds normally is larger (250k), I started off mine with leverage, which at the start may be abit scary (because Im borrowing 175k), but if you are confident in the Group's financials and ability to repay, you may end up getting leveraged yield (because you earn yield on your 75k equity on the bond, and the extra yield you get above the 175k that you borrow normally at about ~2%)- can get potentially up to about 4-7%. I bought a new one recently, lendlease reit bond - think leveraged yield got about 7%.

    Lets get rich together!!

    ReplyDelete
    Replies
    1. Thanks for the support and encouragement! Yes! May many more reach financial freedom soon!

      Delete

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