Sunday, 10 December 2017

2017 in review - Finance

We are now in December of 2017. How time flies. With all the dividends and coupons in at this time of the year, it would be nice to make a wrap- up of my finances for the year.

This is the year where I started to be more active in stocks, and be more vested in them. Some sales and purchases were made, and Genting which I have been holding and staying in the red for a period of time, was sold once it was profitable. 

These transaction exercises simply highlighted my "kiasuism", being so afriad to lose. Realize that I have been selling the counters once they are profitable, but on the contrary, and then holding on to those that are in the red. Well, for now, though I still have no urge to sell those counters that are in red (Kingsmen Creative, PEC and M1). 

Nonetheless, in terms of performance, dividends is at $1843.10 (as compared to $310 in 2016, of course this is mainly due to more money in the stocks market this year), with a current stock market value of $40,290.

Realized gains for this year is $2,050.85. You'll realize all counters in red are not sold, so there is only realized gains (excluding dividends). Paper losses stand at $2163.04 (excluding dividends). 

Dividend - $1,843.10; 
Current Market Value - $40,290
Realized Gains - $2,050.85
Paper Losses - $2,163.04

2. Bond Investing

This is the year where the first retail bond, CMA 3.8% I ever bought was redeemed. Total bond holdings actually dropped for 2017, compared to 2016. Some of the cash from this redemption was then channeled to stocks. Of course, with this redemption, the coupon received for 2017 fell to $4805.22, compared to $5048.61 in 2016.

I also bought some bonds, all Singapore government bonds, with $3,000 of 5- year government bonds, and $2000 of Singapore Saving Bonds (SSB) being bought. The decision to put in some money into these bonds was simply to earn the interest rates, as at this point in time. My OCBC 360 and UOB One has reached their maximum, and putting in extras here will only help in liquidity.

The foray into the SGS bonds was also to experience how the system works, though many will argue that you can just read online to find out how it works. As usual, our Singapore system, is transparent, efficient and seamless. You subscribe for the SGS bonds, and to know the results, simply check your CDP account (I have an online account, so this is simple). When the time comes to get the coupon, it gets automatically debited into your bank account. Totally like stocks when you buy them in Singapore.

Coupon Received - $4,805.22; 
Redemption Value - $130,000
(market value not considered, as there are no plans to sell them before redemption date for the time being).

3. Endowment Plan

No endowment plans bought this year. I am still holding on to my Maxsave and Maxgrowth. This year just involves paying the premiums for the Maxgrowth policy. I'm very glad the Maxsave premiums have been fully paid. The amount right now stays at $64,197.70 (by taking sum assured - premiums outstanding).

Assumed value - $64,197.70

4. Debt

My current debt will be the mortgage for my resale flat. To calculate net debt, the formula is used:
(outstanding amount - CPF OA savings of me and partner)/2

This is divided by 2 since my partner and I are responsible for the monthly repayment.We manage our finances totally separately.

Net Debt - $90,000