Portfolio allocation as of August ’23:

August was a decent month for adding to my existing positions. I bought more of 2800HK amid the China real estate fears and added to my Syfe Reit+ portfolio multiple times. In my previous posts, I have shared my asset allocation target as 50% Singapore, 30% rest of the world, and 20% China. However, recent events have led me to rethink this allocation, and I have made the following adjustments to my allocation targets:

Previous Target | New Target
STI ETF 10% | 20%
SG Stocks 20% | 15%
S-Reits 20% | 15%
HSI ETF 20% | 15%
Global ETF 30% | 35%

Reasons for the change:

1. I want the portfolio to be even more passive, so actively managed SG Stocks will be reduced to 15%.
2. I want to reduce single-country risk, so I increased my weightage towards global stocks (35%) compared to China exposure via HSI (15%).
3. S-Reits are under pressure recently due to higher rates, and I believe there’s a significant principal-agent conflict of interest when it comes to the structure of Reits. Thus, I have reduced my allocation to 15%.

FIRE Musings:

Last month’s post on “what is work” was well-received. In this post, I will continue along those lines, dispelling the notion that “working” should be the default for everyone and eliminating the fear of (early) retirement through dividend investing.

Why is work the default? When someone expresses a desire to retire early and engage in volunteer work, pro-work individuals often ask, “why can’t you volunteer while working?” This question is absurd. Why should “work” be the default? Is it because society tells us so? At some level of wealth, work becomes optional. If someone wants to retire early and volunteer twice a week, that should be celebrated. We should not question why they can’t fit volunteering into their current busy schedule.

Eliminating the fear of (early) retirement:

Many people fear early retirement because it is uncommon. There is even a fear of traditional retirement because people’s jobs become their identities. Articles that fear-monger about losing “purpose” and “structure” are hilarious. Sharing the lifestyle of an early retired couple would be beneficial to those aspiring to achieve the same dream.

Criticism of dividend stocks:

It is peculiar to see people questioning why Singaporeans prefer dividend stocks or cashflow-based instruments over investing for “growth”. From a dividend investor’s perspective, it would be fantastic if these naysayers choose to shun dividend stocks. Less demand for dividend stocks would result in higher yields. I am more than happy to perpetuate the preference for dividend stocks on this blog.

In summary, I would rather be unemployed with $5k/month of passive income than be employed and earning a $5k/month salary. The former is (almost) permanent, while the latter is not.