I started this year with the ambitions to achieve the following:
- Increase Net Worth
- Maintain Passive Income Yield
- Reduce Debt
- Improve Diversification of Portfolio
- Reduce Trading and Focus on Invest
- More Self Learning and Improvement
- Do More Exercise
- Reduce Weight
Reflecting on what I have done and achieved this year, I realised the results was a mixed bag – I succeeded on some but also failed badly on several.
From the angle of achieving financial freedom, I failed to increase my net worth after a year of intense investment efforts.
This is extremely disappointing to say the least.
With STI submerged underwater for almost the whole year and losing 13% at the end and having most of my holdings in Singapore stocks, perhaps it should not have come as a surprise. However, when I tallied up the numbers and saw the drop in net worth, I couldn’t help feeling crestfallen.
Passive income yield came close to target.
Good efforts in passive income yield is my consolation.
Despite COVID, I was still able to get reasonable amount of dividends. I hope as things improve in the new year, the dividend distribution will also increase. It should then help me reach my target of 5.0%.
The other bright spot this year is that I used the COVID triggered crisis to “high-grade” my portfolio.
I got rid of several lousy stocks and accumulated quality companies at a reasonable shares price. I believe the portfolio is now stronger and more resilient. It should be more capable to generate sustainable dividend income in years to come.
Debt reduced and Diversification Improved
I managed to reduce my debt this year successfully.
The COVID event and the uncertainty around my active job made me more nervous to maintain high level of debt. Hence, I started a strong drive to reduce my liabilities.
Some of you may feel that I am rather silly as the interest rate is low. I don’t disagree but with so much uncertainty around, I feel I need to up the security level in order to sleep more soundly and be responsible to my family.
I also reduced the risk of my portfolio by further diversifying my portfolio.
- My overseas holdings in US and HK increased (reduce Singapore country risk)
- The % of the value of my Top10 holding over total portfolio has dropped (reduce company concentration risk)
- The value of my index portfolio has increased at the expense of my equity portfolio. (reduce my trading risk)
This is a trend that I wish to continue in 2021
For those things that I felt that I have control over, I failed miserably.
I did not reduce the number of trading transactions this year. Perhaps I could use COVID as an excuse but I think it is a weak one. I did not exercise enough control of my trading habits.
I also did not exercise as much as I should and thus did not lose weight. OMG – can I blame it on WFH? I really should buck up here.
Last but not least, I wanted to improve myself in terms of my character, spiritual and personality. I wanted to learn something new and become wiser but I don’t think I have succeeded. I will have to try harder in 2021.
Folks, this sums up my blog journey for 2020
Regretfully, I did not make a major step forward in my FIRE aspiration.
But I think I have used the opportunity this year to make my portfolio more resilient and futureproof in providing passive income for me. Hence, I hope it would bear fruits in the coming years. Only time will tell.
On the personal front, I disappointed my own self. I should and need to do better in the new year. I need to have more disciplined.
The other thing I would need myself to improve this new year is adaptability.
I expect significant changes in my job and my company. The impact to me is unknown yet but it could be very great. I need to be mentally prepared that by the end of 2021, my employment status and conditions could be very different. I am telling myself to be mentally ready but can one really be ready for it when it comes?
As I thought about the plan for the new year, what came to my mind is
HARP – Healthy/Happiness, Adaptable, Resilient and Profitable
They should be the themes for me in the new year.
Wishing everyone a Happy New Year.