Eyes On Retirement

Trade wars, Hong Kong riots

2019-08-19T19:45:00.001+08:00

Be greedy in times of fear. That's the investment mantra I live by.

Recently there's been a huge spat on trade wars and the Hong Kong riots, which took a toll on the stock markets. This was a great opportunity to load up on my existing positions as their prices have come down to more favorable levels. There no reason to explore other stocks unless a super attractive opportunity arises, like hongkongland. That counter was hit extremely hard by the riots, since they derive 50% of their revenues from HK. Other than such events where opportunities present itself, I prefer to average up or down into my existing positions... No need to perform the due diligence again, unless fundamentals have changed.

I'm enjoying the opportunities that the markets are presenting in the past few months. Simply keep calm and aim to collect more dividends by increasing your stake when frivolous sentiment changes.

Market entry is a psychological battle against yourself. Another post on this later.

Trade wars and buying banks

2019-06-06T19:23:00.001+08:00

The recent trade wars have caused the markets to be extremely volatile, one week down 5%, the next week back up 5% and we can see sector rotations playing out on the STI.

Currently am at 60/40 invested vs cash and am selling some of my small caps positions that don't have alot of price buffer, in order to rotate them into stronger blue chips like DBS, Capitaland (now Asia's largest property company after the merger with Ascendas).

REIT prices have gone through the roof and investors seek safer havens in this turbulent times, which prices out any entry point. Best to wait for dips in the local banks, especially if the price to book ratio is close to crisis levels. Anyway my investment horizon is 20 years, so I'll be buying at every half integer level.

The saying "Sell in May and go away" really doesn't apply for me. It's more like "Buy in May. Dips are you friends".

It's funny, every year I notice that DBS offers 15% trading commission rebates around the May/June period. I guess it's to drive trading volume in low volume period, which I'll gladly take.

Hotel Review: Le Meridien Kuala Lumpur

2019-06-01T21:00:00.000+08:00

As I travel quite often for work, I’m going to keep a record of all the hotels I’ve stayed in, to serve as a reminder of what works and what doesn’t. It’ll make future bookings much easier.

Location: Connected right to the KL Sentral main station, with easy access to the KLIA. There's a NU Sentral mall on the other side of the station.

Room: It's modern and tastefully decorated like most Le Meridiens. The bed is really comfortable and offers great back support. I really like the chair near the window as it's like a reading corner that overlooks the mountains and expressway. The room gives me a sense of tranquility, which is great after a long work day.

Breakfast: The spread is massive! The food is comparable to the Athenee Bangkok standards but the spread is much much wider. I can eat here all morning, and then hit gym/pool all afternoon.

Gym: This gym is massive! Have you seen 2 sets of everything in a hotel gym before? I think there are also enough ellipticals to hold a class. You can spend hours here... then jump into the pool.

Pool: Is long and windy and beautiful. Enough said.

Will I return? A definite yes. I wouldn't stay anywhere else.

Your circle of friends

2019-05-15T21:00:00.000+08:00

I group my friends into 3 categories.

Family: Those who are dearest to your heart. They will always come first.

True friends: Those who you can always count on, no matter the distance or the time spent apart. They will always be there for you, to lend a listening ear, to share your feelings, to guide you through life. They may have different interests and lifestyles, but you share an unbreakable bond.

Lifestyle friends: People whom you hang out with for certain type of activities, and discussions and banter will be limited to those activities. Conversations will probably center around your common activities. Lifestyles change, hence this group of friends will also change.

When you're dead, people won't remember you.

Celebrate people's presence when they're alive. Appreciate them and spend time with them. There's no point in throwing a bigass funeral to commemorate a life. It's over anyway. You should had made your impact where and when you had wanted to. I dislike attending funerals because people attend with a solemn face and mourn - whatever for? I only want to know if the person lived well, was happy, and died peacefully. I'd prefer to remember the moments I spent with the person.

Hotel Review: Fairmont Raffles Manila

2019-05-01T21:00:00.000+08:00

As I travel quite often for work, I’m going to keep a record of all the hotels I’ve stayed in, to serve as a reminder of what works and what doesn’t. It’ll make future bookings much easier.

Location: In downtown Makati opposite Greenbelt 4 Shopping Area and Glorietta mall. Great for food and shopping options. Easy access to Museum cafe!

Room: Renovated in 2014. Decently sized rooms, although the carpets are beginning to smell and my room had a musky smell. Bed is soft yet supportive of my back, so I sleep decently well here.

Gym: The treadmills and ellipticals overlook the Greenbelt shopping area There are so many weight machines here, upper and lower and core. Free weights as well. Huge open space to do yoga, circuits, etc. The perfect gym.

Breakfast: The spread is wide, but I don't fancy what they offer. It's either too sweet or too salty. So I only eat their omelette and bread, with fresh juice. I'd rather eat at Starbucks.

Would I return? Only for the gym and the great hotel location. This hotel has joined the Accor group on July 1st 2018, so member benefits will apply (but I have none!). Although there are other similar hotels nearby, such as New World Hotel. Maybe I will stay there next time.

I increased term + critical illness coverage further with Manulife

2019-04-15T21:00:00.000+08:00

I recently increased my term and critical illness coverage by another $1M and $300k respectively.

I checked around with many providers and ended up with Manulife as it's what I need, without all the bells and whistles. AIA offered total coverage for recurrent illnesses, but I figure if I get the same cancer twice, I'd probably be dead by then. So there's no need to pay a premium for that type of policy. Sometimes plain vanilla is the best.

I also considered disability insurance where they pay you an amount on a monthly basis. While this sounds like a great idea, the insurers will make it difficult for you to claim this, with strange delay clauses and exclusions. It's much cleaner to receive a large lump sum payment and manage it from there.

Why these figures for critical illness? I based it on annual family expenses. Most insurance agents will tell you like 5-10x of your salary, just to get you to buy a bigger policy. An agent that looks out for you will tell you to look at it from an expenses point of view (my agent is a good agent). For example if my annual family expenditure is $100k, then this policy takes care of 3yrs of no pay leave or me not working.

On the term portion, the premium delta between $500k and $1M was $400/yr and it was pretty negligible in the grand scheme of things, so I opted for the higher figure.

Disregarding the SAF group policy, since that's a group term one, I have about $1.4M coverage for death and tpd, $720k for CI of which $150k is ECI. I think this is sufficient for the rest of my working life. I plan for most of the insurance coverage to end by age 65 anyway, as I plan to be financially free and dependant free by then. The integrated shield plans will be enough to cover my medical bills from then onwards.

Hotel Review: Westin Jakarta

2019-04-01T21:00:00.000+08:00

As I travel quite often for work, I’m going to keep a record of all the hotels I’ve stayed in, to serve as a reminder of what works and what doesn’t. It’ll make future bookings much easier.

Location: Although located in Kuningan, getting to the office is relatively quick by car. Door to door transport time is shorter. It's a better option than the shangrila. Offices surround the hotel so don't expect to go anywhere once you return.

Room: Corner room. New and modern with a huge bathroom. The bed is heavenly. Westin never fails.

Gym: The treadmills and ellipticals overlook the sky (pollution rather). What I really like about Westin gym's is that they have the TRX system and sufficient weight machines. Small space for free weights.

Breakfast: The place is so big that I got lost trying to find various counters. The spread is wide, with lots of fried food options (not ideal for breakfast) and the usual omellete and bread station. If you pick carefully, there are healthy options but you have to be diligent about your selections. I like to sit by the fresh juice station so it's easy access to refills.

I selected their healthier options.

Notable items: Henshin, Japanese food on the 67th floor. I'll be back for this again.
Beef short ribs

Henshin roll with prawn, foie gras, unagi.

#Omnomnom

Would I return? Yes. Maybe just for Henshin and the comfortable room. Westin never fails in Asia.

I increased my term + accident insurance policy with Aviva

2019-03-15T21:00:00.000+08:00

I recently maxed out the SAF Aviva group term insurance on both term life plan for $1M and accident plans for $600k, which costs me $47.42 and $77.37 per month respectively. This is on top of my existing whole life plans. I did this to ensure adequate insurance coverage in times of need. The only downside of this is that Aviva pays out a maximum of $20M per event, and it's prorated accordingly, so don't bet your house on this and have some other backup.

Term covers up to age 65-70 (your income generating years), and whole life covers your whole life (including your retirement years). In general whole life plans are alot more expensive per $ of coverage, compared to term plans, so you have to utilize both to get adequate coverage at a reasonable cost.

In Singapore where voluntary death isn't an option, it could really bankrupt a family.

Some say to purchase a $1M term plan that covers you up to age 99. That means you can't live past 99, but such plans are expensive, in the range of $3k/year. Let me explain why such policies are a big scam.

Starting at age 35, using a discount rate of 2.5% (CPF rate) for 64 years, the PV of the $1M portfolio is $206k. Which means if I had $206k today and put it into the risk free CPF account, I'd have $1M when I'm 99 years old. In this method, my funds will outlive me and will not goto a zero value if I live past 99yo. Why would anyone purchase such a term policy? Perhaps it's the allure of paying the $206k in installments and whatever story the insurance agent tells you, but the numbers above tell the tale.

Don't fall prey to such policies. Stick to the regular term insurance that'll cover you during the years your family depends on you, and critical illness coverage that's sufficient to not bankrupt your family when your health fails.

Optimizing your CPF account

2019-02-15T21:00:00.000+08:00

Your CPF account consists of 3 accounts: Ordinary Account (OA), Special Account (SA), and your Medisave Account (MA). The OA is primarily used for providing housing, while SA is used for retirement. MA is used to pay for healthcare.

The interest rate on your OA is 2.5%, while the interest rates on SA and MA are 4%. There is an extra 1% interest upon reaching the first $60,000, combined across all three (with at least $20,000 in your OA).

In order to optimize your CPF account, the key is to move the lower interest OA money into your SA, to take advantage of the compounding effect of that extra 1% per year.

Once you begin working, transfer your OA account into your SA account only a monthly basis, as CPF interest is calculated monthly. This is an irreversible process, but it forms 1 part of your retirement portfolio. There's no need to inject extra cash into CPF.

Once you hit the SA maximum of $171k (based on 2018 figures) the funds will automatically be channeled to your OA account. I didn't do this early on, and I regret doing so, but I'll hit the SA maximum in 5 years from now at age 39, and will have a fully paid property in 2 years time.
For example at the age of 25, you transfer $20k from your OA to SA, you would have a guaranteed $22,917 more at the age of 55 compared to the default scenario of doing nothing and leaving it all in the OA. This is the beauty of compound interest.

The interest rate and SA maximum will likely change, but the principle to optimize your CPF still holds. If you need funds to buy a property before you've hit the SA maximum, that's where your cash stash will come in, and I hope you've been building that up.

Hotel Review: Sheraton Grande Sukhumvit, a Luxury Collection Hotel, Bangkok

2019-02-01T20:46:00.000+08:00

As I travel quite often for work, I’m going to keep a record of all the hotels I’ve stayed in, to serve as a reminder of what works and what doesn’t. It’ll make future bookings much easier.

Location: Right at the Asok BTS, across from Terminal 21 and the Westin. I think traffic in this area is too jammed, and will likely avoid in the future.

Room: The bed is very comfortable, but the decor is quite old school. The room feels like parts of it has been modernized, but parts of it are still the same as when the hotel was built. The whole scheme doesn't gel.

The bathroom is also dated and in need of upgrade. Who uses small tiles like this in bathrooms nowadays? This is so 1990s.
Gym: It has a couple ellipticals and a couple treadmills. Not much selection of weight machines and the space is rather crammed. The decor is seriously old school 1990s, but I think all Sheratons are like this.

Breakfast: The selection was actually quite poor. Other than the egg station, and fruits, I didn't eat anything else. Seriously, Sheraton? I expect better of you.

Would I return: No, as there are better and cheaper options nearby. The only plus point in this hotel is their bedroom slippers. They are sooo comfy! Haven't found them in the other luxury collections yet, but I will.

Voluntary CPF-SA contribution before end Jan

2019-01-29T20:29:00.003+08:00

I topped up the full $7k into my SA today, before the end of Jan. CPF calculates interest on a monthly basis, so anytime before Jan 31 is fine. Haven't any other use for the money, so I'd park it here for 4% at the beginning of the year to maximize the interests.

Do remember to do yours!

Max out your Medisave account in Jan

2019-01-15T09:00:00.000+08:00

Effective Jan 1, 2019 the Basic Healthcare Sum (BHS) has increased from S$54,500 to S$57,200. Funds in the Medisave Account (MA) and Special Account (SA) earns 4% p.a, while funds in the Ordinary Account (OA) earns 2.5% p.a.

Assuming you have hit the $54,500 limit in 2018, we can take the opportunity to top up $2700 to our Medisave Account by this month using cash to leverage on the following benefits:

Tax deductions if you use cash to top up your MA. Note the $7000 annual cap on CPF deductions, so the SA top up in FY2019 will be $4300.
When your MA has been maxed out, your monthly CPF contribution from your salary and employer will flow over to your SA. This account also earns you an interest of 5% p.a. Once your SA has met the met the Full Retirement Sum (FRS), the funds will flow over to your Ordinary Account, which earns you a 3.5% interest rate p.a.

In summary, whenever the government increases the Basic Healthcare Sum, quickly max out your MA in Jan, then the SA before the end of the year.

Topping Up $7,000 into my CPF Special Account (SA) for tax deductions

2019-01-07T23:07:00.000+08:00

Last month, I decided to top up my CPF Special Account since that account gives me 4% yield risk free. My calculations show that I can reduce my tax bill by $7k x 15% = $1050, without even taking into account future 4% yield benefits i'm to receive.

It's definitely worth the top up from an ROI point of view, since it's tough to guarantee this kind of return in today's market.

There is a maximum cap for cash top-up relief per Year of Assessment (YA) which is $14,000 (Self $7,000 and family members $7,000), but at least max it out for yourself if you have the spare cash. This way you can quickly hit the CPF SA ceiling sooner, maximizing the 4% risk free yield early on.

Will do it again for FY2019.

A time for 2019 plans

2019-01-01T13:20:00.001+08:00

I've never really believed in the whole new year resolutions concepts, and I'd rather view it as a time to set plans for the year. So here are my top 5 plans for the year.

1. Actively manage my family's retirement plans and portfolios.

2. Learn something from YouTube and apply it in real life.

3. Remain off alcohol for 365 days in 2019. I've been alcohol free since June 1 2018.

4. Dote on Mrs EOR more, because she's the most valuable person to me.

5. Spend more time with my parents.

Happy new year everyone!

Food review: Al Forno + geylang Lor 29 hokkien Mee

2018-12-22T12:47:00.003+08:00

It was Mrs EOR's birthday a few days ago and we went out for dinner, something that we rarely do nowadays. We decided on Italian as it was awhile since we last had this cuisine.

Venue: Al Forno @ 400 East coast road

We read reviews on this place and ordered their diavola pizza and lobster pasta. Boy were they terrible! The pizza was overly runny with red sauce and tasted extremely bland (I'm already quite sensitive to salty food). The pasta sauce was just so so, something I could likely whip up at home. The lobster wasn't even peeled and cracked and it felt like we're eating at jumbo seafood. The only saving grace was that the pasta was done a perfect aldente.

The decor is like what you see in Italy and I get that their trying to keep to their roots, but it makes the place extremely loud. It's like going to a club minus the music - definitely quieter to sit outside.

Would I return: No. I'd visit only Etna @ Duxton. No more experimenting with Italian restaurants in Singapore.

Through the evening we were intrigued at the opposite hawker center, as it looked very new and had a whole bunch of deliveroo and food panda guys standing around the Hokkien Mee store. Since dinner sucked, I told Mrs EOR that I'm gonna check out the hawker center. Lo and behold I decided to get a plate of Hokkien Mee.

Venue: Geylang lor 29 Hokkien Mee @ 396 East coast road

At $6 for the smallest plate , you get a solid amount of seafood and a heaping pile of noodles. The noodles was the wet kind of Hokkien Mee and had this wok hei taste with pork lard.

Operating hours: Daily 1145am - 9pm. Closed on Mondays.

Would I return: Yes most definitely!

Be Rich, Not Famous: Living Low-profile

2018-12-15T20:43:00.000+08:00

You are not under the watchful eyes of the public.
Famous people are being followed by paparazzi, get interviewed on TV, have their entire lives scrutinized and even made into reality shows. Imagine you walk into a hawker center in your slippers and PJs, and people start pointing commenting and maybe some even take photos of you. Unless the work you do is truly meaningful - i.e. Jane Goodall, and you're not a public servant (work in the government), pictures of you with fans are meaningless and fleeting.

When you're dead, people will only remember the day you died, or not at all.
Assuming someone famous passed away. My typical reaction for 30sec would be "oh my, oh no, lets google it to find out more." And then I'd forget it and move on with life. Is it worth it to live a life in constant public scrutiny, just for these 30 sec when you die? Unless you're someone really famous like Ghandi, or Donald Trump, nobody will really care because you won't have made such a great impact to the world. Save your efforts, and live a private life.

Only the closest people matter to you, because they make life meaningful.

You can live your life in peace, doing what you want to do.
When you're rich and famous, most people will want something from you. Either your time or your money, or both. You'd have to spend precious time entertaining these clowns, or risk having your reputation tarnished for being an uppity ass. If you were just rich, and people don't know that you are, they won't come knocking, and you'd have all the time to yourself! Then you can really spend time with people you love, with you doing the things you enjoy. Life should be filled with happiness, with laughter every day.

There are no expectations of you
You don't have to be prim and proper all the time. You don't have to live up to anyone's name or expectations. Assuming your father ran a listed multi-million dollar corporation, and now he's handed everything to you. You can't fail, or you will remember as the one who sank the empire! Wouldn't it be better to be able to surpass expectations instead of constantly trying to meet them? Being a nobody sets the bar way lower, and you'd get better payoffs for exceeding it.

Your children can be themselves
The children of celebrities are not spared from public scrutiny. It's quite sad for them, as they weren't given a choice. Shield them from the evil public, until they're old enough to tell and create their own story.
We attend a weekend playgroup with our 1yo daughter and Mrs EOR once whispered to me "Hey there's a local celebrity in the same class". My first reaction was "I don't care as I don't know any local celebrities" and second was "that sucks for her because everyone will be watching her and her kid". Then people may make comments and comparisons with her kid, and it goes downhill from there. The Singapore parenting kiasuness will come out. Please spare the innocent 1-2yo children, as they're just there to play!
December is the happiest month of the year, as it's Xmas and New Years. Happy December everyone!

Living an alcohol free life

2018-12-07T21:00:00.000+08:00

There are 3 major expensive vices in Singapore. Alcohol, Smoking, Gambling. I do not smoke nor gamble and I stopped alcohol intake since June 1 2018 and have never felt better! I have the same amount of energy the next day on less hours of sleep, I exercise more, and most importantly my cholesterol has dropped from 220 to 200.

A glass of wine or hard liquor costs about $17-20 in Singapore due to the alcohol tax, and I used to hang out for drinks every weekend. So on average I diverted about $400-500 in monthly alcohol expenses to another category.

For me, the positives in being alcohol free outweigh the negatives. I don't care what all the medical research says about a glass of wine a day being good for health - I don't sleep well after I drink and sleep is of utmost priority. You never know if the publisher/doctors behind the article are secretly funded by alcohol companies. Listen to your body, that's the best health advice.

Hotel Review: Pan Pacific Hanoi

2018-12-01T21:25:00.000+08:00

As I travel quite often for work, I’m going to keep a record of all the hotels I’ve stayed in, to serve as a reminder of what works and what doesn’t. It’ll make future bookings much easier. The Sheraton Hanoi is extremely old, so I decided on the Pan Pacific.

Location: Overlooking a lake, the location is quite alright, although not downtown. The downtown hotels are old.

Room: Abit dated, but still alright. There are many strange corners in the room, and it's weird to walk in. It doesn't really flow. Perhaps it's because I was given the room adjacent to the suite.

Gym: It's split into 2 areas, weights and cardio. They have all the equipment you need and alot of treadmills and bikes. The pool is also a good 25m lap pool.

Breakfast: The selection is decent with an omelette station and the usual western fare. This place is flooded with Korean, Chinese, Taiwanese tourists, so you have to jostle with them for food. Go late if you aren't in a rush. Overall, alright but not near the SPG standards.

Rooftop bar: Nice place to hang out and chat with friends. Lots of well dressed locals here along with foreigners probably from the hotel. I had the burger and its terrible, please skip it.

Would I return? There aren't many high end choices in Hanoi. I'd probably try the Intercontinental down the road the next time, but if not, then the Pan Pacific works.

Baby Bonus, Child Development Account (CDA), CPF

2018-11-15T20:34:00.000+08:00

"When I'm old and my memory fails me, this post serves as a reminder on what to do."

Every child born as a Singapore citizen is given a Child Development Account (CDA), with the government having the intent of cushioning expenses related to raising a child. The CDA funds can be used for certain items like paying for childcare and kindergartens, child related medical expenses, medisave approved integrated shield plans. I use this account for a different purpose, to build my daughters wealth.

The only thing that interested me was the Government's Dollar for Dollar match, up to $6k for the 1st and 2nd child. Baby bonus gave us $3k, I topped up $3k , government matched $3k, and the account began with $9k opening balance. Since I can't withdraw these funds for cash, I'll treat this as a CPF account and optimize every dollar.

The CPF website has a nice illustration on what happens with the account through time:

https://www.areyouready.sg/YourInfoHub/Pages/News-A-look-at-how-your-childs-CDA-savings-provide-for-his-changing-needs.aspx

Since we won't be withdrawing any amount from this account, by the time she's 30, based on an opening balance of $9k and the interest rates above, the amount that'll be transferred to CPF OA will be $17,489.19.

What To Do:

Once this sum hits your CPF OA, please shift it into your CPF SA, as you get a higher interest rate there. If you have spare cash in your CPF OA and still have positive inflows into the CPF OA, it is prudent to shift it to your SA to plan for your own retirement. Another post on this.

You stand to gain $24,814.72 more in interest by age 65, by investing this $17,489.19 at a 1% higher interest rate. Your housing loan does not need this $17,489.19 assistance. If it does, then you probably have made the wrong purchase, hence find a way to unwind it.

Hotel Review: Novotel Halong Bay

2018-11-13T21:24:00.000+08:00

As I travel quite often for work, I’m going to keep a record of all the hotels I’ve stayed in, to serve as a reminder of what works and what doesn’t. It’ll make future bookings much easier. Unfortunately there was no SPG/Marriott hotel in Halong Bay area, so i ended up with Novotel.

Location: Along the western side of Halong, right across some ongoing construction.

Room: Decor is dark wooden, taking a spin on modern Chinese. Wood flooring and a huge king size bed that's abit hard and uncomfortable. I like the decor though.

Gym: This has got to be the saddest hotel gym i've ever seen. I decided to run outside instead.

Breakfast: The selection is so limited, and it's not even that good. Nice decor though.

Would I return? Definitely not to this 4 star hotel. Thankfully I was only here for 1 night. Although the place is filled with Korean tourists, you can eat some basic Korean breakfast here, but that's not my preference.

Renewing rental property contracts

2018-10-15T21:00:00.001+08:00

Every 2 years, I have to renegotiate the property lease with the tenant. If the tenant was good, I usually extend their lease - it's pretty much a no brainer, unless they're lowballing me.
Costs to factor in when you switch tenants:

Lost rental due to vacant property. It takes about 1 month (0.5 months if you're lucky) to successfully market the unit and about 2 weeks for the tenant to move in and start paying rent. So it's about 1-1.5 months in lost rental income.
Time spent passing keys to housing agents to market your place. Do not use an exclusive agent, as it ties you down with someone with a finite network. They will always try to sell you the idea of exclusivity (being focused, they can control the rent offers, blablabla), and it's in their interest to, not in yours. What happens after 1 month of exclusivity and they still can't find a tenant? You fire them, they walk away with no penalty. It's your lost rental income. Do not use an exclusive agent. You have to understand the market, manage the 3-4 agents yourself, and make the final decision. No-one else should make the decision for you. See below for the rental contract value calculation.
Agents commission which is 1 month rental for a 2 year contract, or 0.5 month rental for a 1 year contract. So another month of rent lost here.
Staging costs: repainting the place, cleaning up, polishing the floor, washing the curtains. This will cost about SGD1.5-2k. Any new furniture that the previous tenant damaged (you may not be able to claim it back from them as it's classified under wear and tear) that you need to make the place look comfortable, and the costs begin to add up.

It's better to continue with same tenant, as long as they didn't trash/damage the place. It potentially saves you 2-2.5 months of loss rental income, your time, and any extra furnishing/cleaning costs.
I would look at the total rental contract value like this:

Assuming the current rental contract is 4k/month, hence 96k over the 2 year period. I'd subtract 8k (2 months) from 96k, which is now 88k and divide this over 24 months to get your baseline rental figure of 3.6k for the full 2 year extension. If they want a shorter extension, prorate the calculation accordingly. Use this figure as your walk away target (in a falling rental market) to negotiate with your tenant. In a rising rental market, just take the market rate.

The property rental income serves as a stable base to the portfolio, a very stable hedge. The yield is never supposed to be high in Singapore, probably around 2-3% at best after subtracting management fees, property taxes, and any touch ups to the property.

Market factors to look out for in order of importance:

Supply and prices of similar and newer properties nearby, and their proximity to MRT.
General expatriate workforce strength and economy health
Updated demographics of the condo

It takes practice and a good understanding of the property market to execute this well. The best way to understand a city is to understand its property market.

Hotel Review: JW Marriott Phuket

2018-10-07T07:08:00.006+08:00

As I travel quite often for work, I’m going to keep a record of all the hotels I’ve stayed in, to serve as a reminder of what works and what doesn’t. It’ll make future bookings much easier.
Location: Situated on Mai Khao beach within the luxury resort cluster, about 20min drive North of the airport. It's a great location if you plan to spend majority of your time in the resort, as the cluster is self sufficient. Not a good place if you want to explore phuket town as it's quite far away. It's located next to Mrs EOR's favorite resort, Sala Phuket & spa.

Room: Has this old school Thai decor, heavy in Cherry wood tone and the floor is tiled. I prefer carpets as it provides a plusher feel and better sound dampening. The bed is firm and comfortable to sleep on, although the aircon smells musty even though I turned the temperature lower. Furniture in the room is dated, I'd say about 15-20yo, but this was probably the in thing when the place was built.

Gym: There's a good number of treadmills and ellipticals here, however they look extremely dated, like first generation stuff. They are rusty and squeaky so I didn't use them for long. The rest of the equipment is pretty standard with free weights and a wide range of machines.

The decor is wooden again, which has poor sound dampening, making the gym very loud with just a 1-2 people on the treadmills.
Breakfast: Kids friendly as I see mini portions for them and even kids plates. Offering is pretty standard with 2 omelette stations and 2 rows of hot food. Although not the best selection, it's sufficient but they served the exact same food during my 2 night stay.

Pool: Looks very old school and there's a small kids slide structure.

Activities: This is a kids friendly resort and there's a huge kids play area, with a daily activity list.

Would I return: Not likely as I don't like the hotel style and the place is dated, but it is a family friendly resort. I'd have to visit another similar resort to make a comparison.

BCIP: Banks in a rising interest rate environment, US-China trade wars

2018-09-15T21:00:00.001+08:00

I started building my child's college fund when she was 6 months old. All her 红包's are channeled straight into this OCBC account, and I registered for their Blue Chip Investment Plan (BCIP). It's a monthly investment scheme into a blue chip stock of choice. Both Ms EOR and myself contribute monthly to this BCIP account, which is an excellent way to force us to invest. The rule is, do not sell anything from this account.

In a rising interest rate environment, defensive stocks and REITs are to be de-prioritized. In such an environment, the spread between interest rates and dividend yields narrows, causing selling pressure on such asset classes. Banking stocks do well in rising interest rate environments, so now is the time double down and load up.

Current sector allocation. It's time to add financials in.

DBS
The biggest and strongest bank in Singapore. They are leading the pack in digitization and building a digital bank presence. Just read their recent earnings release here.

"DBS first-quarter net profit up 26% to record SGD 1.52 billion, return on equity rises to 13%, highest in decade".

Yet their stock price still dropped about 3% over 2 days, because it missed analysts' expectations. Um ok... can't dispute the bold headline above, so it's time to load up for the remainder of 2018. With the recent ABSD announcement, I'd expect mortgage loan sales to take a hit, and also the US/China trade wars are battering the banks shares. There should be good buying opportunities for the remainder of 2018.

The beauty of dollar cost averaging is that time is on your side. You don't have to time the market so precisely. Let time work for you.

Read the previous article on BCIP here.

I'll review this portfolio every year, unless the environment changes.

Hotel Review: The Athenee Hotel Bangkok, a Luxury Collection

2018-09-12T21:05:00.000+08:00

As I travel quite often for work, I’m going to keep a record of all the hotels I’ve stayed in, to serve as a reminder of what works and what doesn’t. It’ll make future bookings much easier. I forgot to take photos, so i've taken some of them from their website http://www.starwoodhotels.com/luxury/property/photos/index.html?propertyID=1846.

Location: Near Ploenchit BTS station downtown, about a 5min unsheltered walk away.

Room: New and plush room, although the decor makes the room abit dim. The bed is soft and comfortable, although i prefer the Westin bed.

Gym: The treadmills and ellipticals overlook a beautiful pool. There are so many weight machines here, upper and lower and core. Free weights as well. The perfect gym.

Breakfast: This has the widest spread and has got to be one of the best hotel breakfasts I've ever had.They have a local spin on omelettes, hot soy milk (oh yes!), pancakes/waffles, local flair and Chinese food, a wide selection of cheeses, freshly made fruit juice, pastries, bread... they are all so enticing! I once ate here for 2hrs, and will probably do it again.

Would I return? Definitely as I love the gym and the breakfast. And if Mrs EOR wants to spend all her time around the Central World area. They are connecting the skyway between Ploenchit and Chidlom soon, I can see the works and will be looking forward to that. #spglife

Hotel Review: Aloft Kuala Lumpur Sentral

2018-09-09T20:37:00.001+08:00

As I travel quite often for work, I'm going to keep a record of all the hotels I've stayed in, to serve as a reminder of what works and what doesn't. It'll make future bookings much easier. Forgot to take photos of the place, so I took them from their website. http://www.aloftkualalumpursentral.com/en/gallery/guest

Location: Connected right to the KL Sentral main station, with easy access to the KLIA. There's a NU Sentral mall also connected with the hotel.

Room: Deluxe room is a very basic room with a small work desk. There's a cool walk in waredrobe that's integrated with the shower and sink area. The decor is hip but I find the overall ambiance abit too dim. I'd prefer something brighter. Although faint, you can hear the road noise through the windows. The bed is so so, although I didn't have a very good sleep here.

Gym: Small but functional, like a condo gym. Freeweights, treadmills, ellipticals, limited weight machines.

Breakfast: Very limited spread, will give it a miss in the future. I'd rather eat at the Starbucks downstairs than here.

Other note worthy amenities: There's a rooftop bar that overlooks the pool and other office buildings, a nice place for happy hour.

Would I return? No, unless i'm seriously budget constrained. I'd rather stay at the Le Meridien which is connected at the other side of KL Sentral station.