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Bonds: These are my NTUC shares, surrender values of insurance policies, and my CPF OA/SA funds, which can be withdrawn starting from age 55.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?