Investment Webinars 2021

Investment Webinars 2021

After the CPF webinar on April 2021, some of you have been asking if there would be more this year. As 2021 has been an interesting year, I wanted to consolidate all the lessons during this period of time and it took longer than expected. It is already September and in less than 24 days, we will be in our final quarter of the year.

Investment Webinars 2021

Investment Webinars 2021

There will be 3 upcoming webinars on various topics. These are suitable for new and experienced investors who wants to compound their money by investing in the stock market. Dates are to be confirmed for now. You can consider joining our Telegram Chat for the latest updates on the webinar.

#1: How to strategically invest for the long term?

In my other article on “Why Buy Term and Invest The Rest is Bad advice“, I uncovered shocking statistics.

Although most people says that they are a long term investor, the truth as shown by statistics is that not many people are like that. My observation is that most investors especially on YouTube tends to have a shorter horizon in nature.

I believe that investment in the long run is as important as taking care of your health in the long run. The focus on the webinar is on the following.

  • Letting market volatility be in your favor. 

The market has been volatile recently and it will continue to be like that in future. However, this keeps people from investing as they are always afraid of market crash and correction. Research has again shown that not fully invested will have disastrous effects in the long run. Just missing the five best days when you’re otherwise fully invested drops your overall return by 35%! We will explore how to let market volatility be in our favor.

  • Investment Styles

Value Investing has been made popular by Warren Buffett across the decades. However, there is a new investment style called Growth Investing. This has been making rounds across Facebook due to the huge momentum that happened in 2021. Active investment is also back in trend as volatility often invites more players into the market. We will seek to explore the pros and cons of each style and how to potentially combine them together.

  • What is my End Game?

It is equally important to know when you can live on your investment portfolio. The transformation of the investment portfolio to serve as an income source for retirement. This is the reason why people start to invest in the first place. We will seek how it all make sense in the grand scheme of things so that you know what’s your end game.

#2: Investment as an income

There are many ways to create income from your investment. There are dividends, bonds, derivatives etc. Seminar #2 is more straightforward than seminar #1. We will explore the following.

  1. The instruments that are available to create income from your investment
  2. What kind of instrument might be more suitable for you?
  3. The AUM (asset under management) needed to have a comfortable income.

This webinar will follow shortly after seminar 1.

#3: How to use SRS as an investment

This is one of my favourite topics and I have wrote extensively on the use of SRS. I have written a guide and here are some links that you should read before attending this workshop.

We will be focusing on what SRS is and how you can use it to investment and retire.

Final Thoughts

It will be a busy one month moving forward as I prepare for the 3 webinars. If you have any feedback, feel free to write to me and I look forward to seeing you for the next webinar.

Take care.

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.

My SRS Portfolio June 2021

My SRS Portfolio and Thoughts [June 2021]

My SRS Portfolio June 2021

My SRS Portfolio June 2021

It is scary how time flies. It was 3 months since the last updates. Here are some of my thoughts on the SRS portfolio.

The Standard Disclaimer: This is not and should not be taken as a buy/sell recommendation.

Before looking into using SRS to invest, these are some links you should read first before continuing.

Start Here: The $1 SRS Strategy

Basic Knowledge: 5 things you need to know about SRS when you are 40 and older

Your SRS Overseas Retirement Guide: 3 things you need to know about SRS if you plan to leave Singapore

For 40s and above: 10 SRS Investments to Consider Especially if you are 40 and older

Income Tax and SRS: How Much Is My Income Taxes [2021 Edition]

SRS Portfolio March 2021.

 

My Thoughts and Consideration

My SRS Portfolio June 2021 Data

My SRS Portfolio June 2021 Data

The price for SGX: HST is an ETF which tracks the biggest technology stocks in China seems to be under pressure possibly due to the USA-China trade tensions and also regulatory risk in China. However, business fundamentals have not change. This will remain as a core position in the portfolio. Unfortunately, the portfolio is lagging the US market due to a heavy exposure into this ETF.

Manulife REITS BTOU Q12021 Highlights

Manulife REITS BTOU Q12021 Highlights

SGX: BTOU fundamental numbers to be be quite stable. In the AGM, the management mentioned that tenants are gradually bringing their employees back to office, with the physical occupancy of 13% in Jan 2021 to 20% as of May 2021. Management are also opened to reviewing potential acquisitions across sectors. This could be good news for shareholders if the property is yield accretive. This will continue to be a core position in the portfolio.

New injections into my SRS might happen at the end of 2021. The injection depends on the potential taxable income in 2021. I’m currently looking into a product that is offered by an insurance company. The investment engine sounds great as it focus on value and growth companies which is the objective of my SRS portfolio.

 

Final Thoughts

Disclaimer: this is not and should not be taken as a buy/sell recommendation. Like what Charlie Munger famously said: the big money is not in the buying or selling.. but in the waiting.

Are you investing your SRS well?

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.

CapitaLand Restructuring Is it good or bad

CapitaLand Restructuring: Is it good or bad?

CapitaLand Restructuring Is it good or bad

CapitaLand Restructuring Is it good or bad

CapitaLand shares was halted on Monday morning (22nd March 2021). Along with it, Ascott Residence Trust, Capitaland Integrated Commercial Trust, Ascendas Reit, CapitaLand China Trust and Ascendas India Trust, was also halted pending a released of an announcement.

On the same day, we got an answer. CapitaLand Limited (SGX: C31)is going to be restructured. In this article, we are going to figure out what is happening and also what is the good or bad about this restructuring. Should it be part of our wealth management journey or in our SRS portfolio?

Disclaimer: This is not a buy/sell recommendation. I do not hold any SGX:C31 shares.

 

Brief Information About CapitaLand Limited

CapitaLand owns 1090 properties in 242 cities spanning over 35 countries (as of 23 March 2021). It is the 3rd largest listed global REIM and Asia’s largest REIM.

They own a stable collection of REITs and business trusts comprising of CapitaLand Integrated Commercial Trust, Ascendas Real Estate Investment Trust, Ascott Residence Trust, CapitaLand China Trust, Ascendas India Trust and CapitaLand Malaysia Mall Trust.

CapitaLand Restructuring Top Real Estate Investment Managers

CapitaLand Restructuring Top Real Estate Investment Managers

That being said, the share price trend has been extremely disappointing over the long horizon. Most investors probably bought into CapitaLand for it’s dividend yields.

CapitaLand Restructuring Share Prices History

CapitaLand Restructuring Share Prices History

 

Summary of Restructuring: The Development Arm is going to be Privatized

CapitaLand Restructuring Development Arm Privatized

CapitaLand Restructuring Development Arm Privatized

Shareholders will now see the development part of the business privatized. They will be “compensated” with a combination of $0.951 cash, 1x CLIM (CapitaLand Investment Management) shares and also 0.155x CICT (CapitaLand Integrated Commercial Trust) shares. It does sounds like a very good deal.

(The assumption here is that CLIM trades at a fair value of 1x NAV. I’m trying to find data to share how CapitaLand has traded on NAV over the years. Do let me know if you can find the source for this.)

CapitaLand Restructuring Proposed Offer

CapitaLand Restructuring Proposed Offer

According to the Chairman of CLA Real Estate Holding response in the news release, the privatization will provide flexibility for the development business to pursue longer gestation and capital-intensive projects.

This is where I felt a bit uncomfortable with the restructuring which I will explain below.

 

The Good Part About The Restructuring

Firstly, I believe that the restructuring is excellent if you think about the conglomerate discount that CapitaLand may be facing. Conglomerates often trade at a discount versus companies that are more focused on their core products and services.

Mr Lee Chee Koon, Group CEO of CapitaLand Group says the same thing but in another way. As listed REIMs generally trade at a premium to their NAVs in the capital markets, we are confident that CLIM will be able to drive returns for our shareholders given its scale, capabilities and a strong ecosystem.” (Developers are usually traded at a discount).

Secondly, for those that feel that the development part of the business is hard to analyze or “risky”, this new structure becomes a “cleaner” and easier to analyze. There is more certainty in CLIM and probably that’s what local investors want. They will be paid a mixture of cash and CICT stocks for the development part of the business.

 

The Not So Good Part About The Restructuring

The growth driver of the company (CLIM) is now gone and the price CLA is paying is cheap (in my own opinion). I personally feel that the $1.279 (cash + CICT shares) are a cheap price to pay for the development arm of CapitaLand. Effectively, if CapitaLand were to grow in future, they have to then acquire new development property from (guess who) the CLA. I have no figures to back any statement down below so treat the following opinion with caution.

At this moment, the price for the development arm is not priced in or in fact, unknown to a retail investor.

I’m certain in the distant future that CLA will sell and offload some of the properties that they are developing now back to CapitaLand. According to FY2020 CapitaLand results, the development arm is pivoting towards ‘new economy’ asset classes. S$3.4 billion of new investments were made in business park, logistics etc. There are mentions of investing in Japan’s logistics sector (completing in 4Q 2022), Korea Data Centre Fund 1 (invest in an offmarket data centre development project near Seoul in South Korea), Two Class A tech office properties in San Francisco, etc. I believe these are interesting developments which may be sold back to CapitaLand in future.

Since the development arm is privatised, we will no longer have a visuals or information on properties/land that are developed. It might be difficult to see if the cost are justifiable or not.

There is also no more vested interest for CLA to give CLIM a good price for those properties. This means that properties that are acquired by CLIM moving forward may be more richly valued and CLIM may need to fund these properties using issuing of new shares.

 

Final Thoughts By Wealthdojo

On a business point of view, I personally feel that CLIM may not be as attractive as before.

On a share price point of view, I believe if people value CLIM differently moving forward, we may see the share price performing better.

If you do have any other views, whether it is similar or contrasting, I would love to hear from you in the comments below.

Invest safe.

 

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.

My SRS Portfolio March 2021

My SRS Portfolio and Thoughts [March 2021]

My SRS Portfolio March 2021

My SRS Portfolio March 2021

After a series of SRS related articles in 2020, there are some readers from investingnote and my telegram channel that asked me to be transparent with my SRS investments. After some discussion with some of my readers, I will be doing regular updates on my thought process of investing using my SRS and the reasons why I invest in some of these funds or products.

The Standard Disclaimer: This is not and should not be taken as a buy/sell recommendation.

Before looking into using SRS to invest, these are some links you should read first before continuing.

Start Here: The $1 SRS Strategy

Basic Knowledge: 5 things you need to know about SRS when you are 40 and older

Your SRS Overseas Retirement Guide: 3 things you need to know about SRS if you plan to leave Singapore

For 40s and above: 10 SRS Investments to Consider Especially if you are 40 and older

Income Tax and SRS: How Much Is My Income Taxes [2021 Edition]

 

SRS Objective

To invest in sectors that are growing and balance it with reits exposure.

 

My Considerations

There are 3 instruments that I personally think is interesting and of investing value at this moment of time.

Lion-OCBC Securities Hang Seng TECH ETF (HST.SI)

This ETF is investing into the 30 largest TECH-themed companies listed in Hong Kong. It is diversified across 30 companies ranging from Alibaba to ZTO. While it is undeniable that there may be regulatory risk associated with this ETF, I believe that companies such as Tencent, Alibaba, JD, SMIC is going to propel China’s economy into the future. I’m not going in depth into the reason of investing in this article. Currently, I’m already vested into this ETF.

LGI HST ETF

LGI HST ETF

 

Manulife US Reits (SGX:BTOU)

Manulife US Reits is one that I have been eyeing for a look time. The reits is exposed to income-producing office real estate in key markets in the United States. I personally like the WALE by NLA and also occupancy rates of this reits.

Manulife US Reits Portfolio

Manulife US Reits Portfolio

Let me address one common question about COVID-19 affecting office real estates in USA. USA has been adopting working from home for a long time. Beyond the financials, it is important for the company to have a good working culture. The synergy fortunately is created from social interactions in office.

From the corporate presentation in March 2021, only 5% of companies mentioned that there will no longer be a need for an office. Around 70% of bosses expected employees to working from office at least 3 days a week. Similarly, around 70% of bosses expect that they would need more space due to rising headcount and also social distancing needs. Manulife reits rents to a well diversified tenant base ranging from Legal (21% of gross rental income), Finance and Insurance (18.1% of gross rental income), retail trade (13.8% of gross rental income) and so on. Personally, I’m comfortable with this even with the new norms that we might be experiencing. Currently, I’m vested into this reit.

Manulife US Reits Portfolio Work From Home

Manulife US Reits Portfolio Work From Home

 

Exposure to Institutional Investors (Ballie Gifford, Blackrock, Wellington)

Currently, I’m not invested into this yet because my SRS funds are insufficient to purchase into them yet. As I’m a representative from AIA Singapore, I would not be able to write the product. Feel free to reach out to me for more details regarding this.

The reason why I think it would make an great investment thesis is because of the expertise of the 3 companies. Wellington is famous for their exposure in the value investing companies. Ballie Gifford is well known for investing in growth companies (such as Tesla). Blackrock is famous for their fixed income. Depending on your intended risk profile, the 3 funds will be allocated accordingly.

I am planning to contribute to SRS in 2021 again for tax purposes. That will be the moment of time where I will be investing into this instrument.

 

Final Thoughts By Wealthdojo

I reckon my positions will not be changing much. The next change will probably be after the addition of new funds into my SRS to purchase the plan that give me exposure to the institutional investors. Wishing everyone the best in their investment journey.

Do reach out to me if you wish to explore your SRS options.

My SRS Portfolio

My SRS Portfolio

 

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.

There were only two things certain in life Death and Taxes

How Much Is My Income Taxes [2021 Edition]

It is the tax season for 2021. If you had an income in 2020, filing of your income tax starts 1st March 2021. You will NEED to file it by 18 April 2021 (e-filing) or 15 April 2021 (paper filing). If you don’t, it could lead to a fine or even a court summon. Don’t say you have not been warned.

We don’t really talk about taxes in 6 Levels Wealth Karate Methodology. In a simple gist, taxes are bittersweet to me. On one hand, I don’t like to pay taxes as it is an expenses to me. On the other hand, if I pay higher taxes, it would mean that my income is higher! I’m just glad that in Singapore, we have a really attractive tax program and we pay significantly lesser taxes as compared to people in other countries. Without going too deep into that, here’s how how much to pay for your income taxes in 2021.

 

Do you need to pay taxes or not?

Yes. You only pay income taxes if your chargeable income is greater than $20,000. Some income are chargeable and some are not. Fun fact: your winning from your TOTO/4D is not a chargeable income. Check out the full list here.

If your chargeable income in 2020 is above $20,000, you will be taxed with the progressive income tax system. Singapore follows a progressive income tax system. This means that the higher your income, the more you pay in taxes. The resident tax rates are as follows.

How To Reduce My Income Taxes Resident Tax Rates

How To Reduce My Income Taxes Resident Tax Rates

However, this does not show the effective income taxes for your income. When I first saw this table, I thought that if I earn $80,000, my tax bracket would be 7% or $5,600. This is untrue.

How To Reduce My Income Taxes Effective Income Tax Rates

How To Reduce My Income Taxes Effective Income Tax Rates

If you are earning $80,000, you will be paying $3,350 in taxes which means my effective income tax rates are 4.19%. Personally, I think it is quite fair. With the same $80,000, you would be paying $23,571 or 29.46% effective income taxes in USA.

 

Is it automatic?

If you received a letter/SMS/form that tells you to file your income tax, you will have to log in and file it yourself. This sms below is one that I received from IRAS. Typically, most of my income have already be pre-filed as I’m a self-employed working with AIA.

Income Tax 2021 Filing

Income Tax 2021 Filing

 

If you received a letter/SMS/form that tells you NOT to file your income tax, you don’t have to do it. But please verify if your information is correct and accurate.

If you didn’t receive anything from IRAS, you will still need to file a tax return if your:

  • annual net business income exceeded $6,000, OR
  • annual income (inclusive of rental income) was more than $22,000 last year

 

Tax Deductibles

Since 2020 is over, you can’t really do much changes into your deductibles. You can start planning for 2021 instead. In Singapore, we have a list of deductibles given to encourage social and economic objectives such as filial piety, family formation and the advancement of skills.

Income – Deductibles = Chargeable Income

As mentioned above, you will pay taxes on your chargeable income. This means that deductibles will play a big role in the taxes you are paying.

IRAS has created a personal income relief checker to see how much deductible you are allowed. These deductible includes SRS Top Ups, CPF cash Top Ups, just to mention a few. There is a maximum of $80,000 tax reliefs.

 

Final thoughts by Wealthdojo

There were only two things certain in life Death and Taxes

There were only two things certain in life Death and Taxes

Co-incidentally, these two can be well managed by proper financial planning or using insurance tools to achieve your financial goals. This article is meant to be a general article on how to pay taxes in Singapore. If you would like to know more, just comment on this post or contact me and I would love to have a conversation with you on the above.

Stay healthy. Stay Safe and pay your taxes.

Thank you for your contribution to nation building.

 

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.