Portfolio Update
I have sold one of my main holdings in Fischer Tech at 0.90. It has been a wonderful company which I discovered two years back. While the wonderful management has remained, the outlook of the automotive industry Fischer is so dependent on has not. China automobile inventories are building up and this may lead to lower orders.
While Fischer is debt free and will survive the downturn, the prospect of declining share price due to declining revenue is why I have opted to cash out.
My DIY Challenge
Readers will be aware of my love for the "buy term invest the rest" concept vis a vis the whole life products offered by insurance companies. Blogged here
To actualize it, I will be starting a hypothetical insurance. It will be a whole life plan where one pays the premiums for 20 years. The sum assured is $100,000 and annual premiums are $2153.60. $153.60 will be for a term coverage of $100,000, while $1000 will be each channeled into the SPDR STI ETF and CPF SA. CPF SA will act as the "bond component". For queries on what happens to money when it enters the CPF SA, please read here. (under "100% of what is saved equally into STI ETF and CPF")
Let's see how I will stand against the titans of the industry over the long run. For those who have just bought whole life policies, feel free to compare your returns against it. It can be found under my "Challenge" Tab. Results will be updated yearly as long as this blog lives.
i like your philosophical look at things and experimenting.
ReplyDeleteHi there CY! Thanks for your insightful posts!
ReplyDeleteThanks for the compliment! Hope it can inspire Singaporeans to achieve a higher level of financial resilience
DeleteI also cashed out Fischer Tech at 0.9 today. Let's see how it goes ��
ReplyDeleteHi, think you should at least include a critical illness rider if you want others to compare? I believe only very few people who bought life insurance policies excludes CI rider.
ReplyDeleteHi RK,
DeleteI am not really a fan of critical illness riders because most of the medical expenses for such critical illness is likely to be covered by Medishield Life or your private medical insurance coverage. Furthermore, making a critical illness claim is not often, probably less than 5%. However, if you wish to add the critical illness rider. The premium for $100,000 CI coverage is about $10/month.
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