Recently, I read several posts on asset allocations by other financial writers. In the recent bloggers’ financial seminar, the speakers also shared on how they are positioning their money in the various asset classes. I like the buzz generated from the posts as there were many interesting discussions. So I have decided to show where I have placed my funds. Hopefully, this post can also generate some learning points, giving me good food for thought.
So here it goes:
Just like LP (BULLy the BEAR) and Derek’s blog posts, here are some details on my asset allocation:
Equities: These are the shares I hold in my CDP and SRS accounts. There are mostly blue chip dividend stocks and ETFs.
Bonds: These are my NTUC shares, surrender values of insurance policies, and my CPF OA/SA funds, which can be withdrawn starting from age 55.
Cash: These are my liquid cash, held in high yield bank accounts. I like SCB (currently at 1.35%pa), but I switch between banks like UOB (about 1.25%) and OCBC (2.5%). The cash goes where interest is highest for the month.
The cash fund pays for everything: bills, emergencies, and acts as my warchest. It includes a separate low yield but liquid bank account, that pays for daily expenses. I keep about 2 months’ worth of expenses there.
Metals: I hold physical gold in my portfolio, held in a safe deposit box.
Forex: I also hold part of my investable funds in a forex trading account.
I do not count my fully financed HDB in my assets, as it does not generate any yield. But it is a high floor unit in a mature estate, near a mrt station. One day if I should liquidate it, hopefully it will fetch a good price to add substantially to my assets.
I have no debts. My lifestyle is simple, and I do not own a car or eat often at expensive restaurants. I spend my time with my loved ones, on my hobbies and at work. I have no children.
I am holding a high percentage of my portfolio in cash as I can’t find cheap assets to buy. Despite inflation, I am ok with keeping cash, as my salary is more than enough to fund my lifestyle. I am patient to wait for opportune times to buy.
So dear readers, any constructive comments?
Cheers.
My Money and Me 
Hello an9elfire,
Nice meeting you at the seminar 😉
1) Constructive feedback? I hope you are not teaching English grammar… LOL!
But then, my england not exactly pristine too…. Understooded can oredi lah!
2) Cash is wonderful when the right opportunity comes. I always remind myself of that song:
Yes, its sad to belong to someone when the right one comes along…
Cheers mate!
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Hi Jared
the opportunity to deploy cash will come, matter of time. I just need to be patient and wait. Meanwhile, I must learn to enjoy the journey, and hopefully be a man of leisure like you in time to come.
🙂
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Hi an9elfire,
Glad that you caught the asset allocation bug. Another portfolio with almost 50% in investment and the first with an allocation into Gold.
I am curious on your cash portion. You mention that you switch between accounts that offer the highest interest rate. Do you do that as soon as you find a higher interest rate account?
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Hi Derek,
I have accounts with the few banks. I check their interest rate regularly and switch my funds on the 1st of each month to the highest rate account. Usually, the difference in rates are substantial. For eg, I am having 1.35% this month with SCB, and prob switching over to UOB next month. The accounts are all liquid in nature, no FDs for me. Hope this helps.
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Hi an9elfire,
Thanks. I think cash is too vague. If I may suggest, a better term should be “DIY Money Market Fund”. 😉
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Hi an9elfire,
I’ve some constructive feedback!
Do you know the exact amt of your warchest because it seems that your cash and expenses are all mixed into one big category? Will you ever over-invest, thinking that you have this big amt of cash but it actually have several uses, like paying for a insurance next month, bills payment, impending big purchases etc etc?
Maybe you didn’t put it in. But if you really don’t have a clear segregation, maybe you should roughly know 🙂 Just a suggestion 🙂
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Hello LP,
thank you for your constructive feedback 🙂 appreciate it.
Actually, all my bills and expenses are already paid by my passive income. So my cash fund is really just a war chest, except for the low yield liquid account I keep for expenses. The cash fund generates a decent monthly interest, but I have to shift the cash around to seek the best yield.
Thank you. I read your blog earlier and were inspired to write this post on asset allocation 🙂
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Looks like you’ve covered practically all investment vehicle that I can think of. Fully diversified! Just curious, which vehicle will be most likely invest your war chest next? equity?
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Hello Richard,
To be honest I am open to anything, except gold scams or MLM scams of cos. I pity the victims in the recent cases.
For me, I am always looking at equities and property. But never say never to anything 🙂 cheers
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