Author: Investment Moats

Lessons from a Discussion of the Net Lease Corporate Real Estate ETF

Ben Carlson and Michael Batnick’s Animal Spirits have become a great podcast to listen to. If you are the sort that wants a short 30 minute entertaining take on what are some of the best financial data points out there, and discussion on some of the latest articles that they have read (they read a lot), this is the one.  They have introduced a Talk your book segment where they bring on some interesting financial products that they find, could have a role in your portfolio, and ask the people behind it to talk about it. You will appreciate...

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GoalsMapper helps the Adviser take Financial Planning to the Next Level

One of the key challenges for advisers is that they have to juggle communicating with their clients, yet not boring them with too much of the financial planning details.  Communicating with clients is just as important with the financial figures behind. If you do not do well with the former, you do not get the business. If the plan, which constitute of the figures, is not fundamentally sound, then over the long run, your clients will one day see the lack of sophistication in engaging you to help plan their finances. Recently, someone from Goalsmapper ed me to review...

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The Astrea V Structured PE Bond – 3.85% Yield for Class A-1 available for Retail Investors

Last year around the same time, in early June, Azalea Capital issued their Astrea IV bond. What was significant was that this was the first bond that Azalea Capital open a specific tranche that retail investors are able to purchase with smaller denomination. The reception for Azalea IV was very good. And so now, 1 year later, Azalea Capital decide to release the Astrea V. Currently, the Astrea V bond is in the order book building stage. It is kind of crazy this time round. As of now, I heard it is greater than US$4.3 billion! This means the...

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Generating Perpetual Passive Income – Contrasting the American and British Way of Measuring Wealth

There are two ways of measuring wealth. I didn’t realize this explicitly. I did note this implicitly.  The American Method of Measuring Wealth The first way is the American method. In United States, when they refer to wealth, you tend to hear someone say, “He has a net worth of $1,500,000.”  What she means is that if this person in question sold her assets, settled all her debts and deposited the remainder of her money into a checking account in a particular bank. This method of measuring wealth grew in popularity during the rise of Rockefeller and Carnegie.  We...

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On “Unorthodox Methods” to Grow and Staying True

It is the mid week, a holiday and my willpower is weak. Work has been rather busy recently, and would get more busy. Now I finally understand what some of my readers are feeling when they say it is difficult to put in the work to learn stock investing. You come home and you do not feel like doing something.  So that is why I will tell those young ones… cherish the strong mind and freedom in time when you are a young adult and learn these things before you need them. Next time it will be quite tough. ...

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Singapore Savings Bonds SSB July 2019 Issue Yields 2.16% for 10 Year and 1.93% for 1 Year

Here is a higher yielding, safe way to save your money that you have no idea when you will need to use it, or your emergency fund. The July 2019’s SSB bonds yield an interest rate of 2.16%/yr for the next 10 years. You can apply through ATM or Internet Banking via the three banks (UOB,OCBC, DBS) However, if you only hold the SSB bonds for 1 year, with 2 semi-annual payments, your interest rate is 1.93%/yr. $10,000 will grow to $12,172 in 10 years. This bond is backed by the Singapore Government and its available to Singaporeans. A single...

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The Minimum Basic Standard of Living for Older Singaporeans Report was Useful for Me

A week ago, a team of researchers from Lee Kuan Yew School of Public Policy released their research on working with a few focus group to determine the household budgets necessary for older people to meet their living needs. This was developed based on their Minimum Income Standards (MIS) methodology. So we see this share out a lot. But I wonder actually how many read what the report entails. For sure, the headline sounds good and it makes us wonder how that is derived. The report is not a secret and if you Google it at LKYSPP you should...

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Passive Income Greater than Your Burn – This is How You Get Peace and Dignity

Scott Galloway is out with his new book, and in a smashing podcast, he brings up a tale about his father and his close friend:   What is the definition of rich? When your Passive Income is Greater than Your Burn. Those of you who are ages younger than 40 to 50 years old, you should be focusing on “the Top line“. You would want this figure to be bigger and bigger. Scott has a close friend who is a partner at the investment bank. He manages 200 investment bankers. He makes roughly $5 to $7 mil a year....

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The Permanent Portfolio Might Do Worse in Retirement than the Traditional Equity Bond Portfolio

When it comes to wealth accumulation, many are a fan of Harry Browne’s Permanent Portfolio. Recently I wrote about it here.  One of the main take away from my article yesterday on how do you make $500,000 last for 60 years by withdrawing an initial amount of 5% of the portfolio was that high volatility is not very desirable when it comes to spending down our wealth. So naturally, the permanent portfolio comes to mind a portfolio that is made up of components very uncorrelated that reduce the overall volatility. If we revisit the table of portfolios recommended by...

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Making a Portfolio of $500,000 last 60 years on a 5% Initial Withdrawal Rate

In 2014, as my wealth approaches $500,000, I started exploring whether it is possible to spend $24,000 a year and have that $500,000 last for a long time. If you divided $24,000 by $500,000, that is a withdrawal rate of 4.8% in the initial year.  If I adjust that $24,000 every year by inflation (e.g the inflation last year is 6%, so next year you spend $25,440 and if the inflation is 4.5% this year, you increase your spending from $25,440/yr to $26,584/yr), I realize spending a 4.8% in the initial year and then constantly adjusting it by inflation...

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Lendlease to list its Global Commercial REIT Portfolio in Singapore

We have a few potential REIT listings from the USA. And perhaps one coming from Australia. Lendlease is a integrated construction, engineering and property company listed on the Australia stock exchange (ASX).  They have a local presence here in their partial ownership of Jem, 313 Somerset, Parkway Parade and their construction of Paya Lebar Quarter. This REIT listing could be worth A$1 billion in assets.  They are tapping Citigroup and DBS to handle the listing for the REIT. The preliminary assets will involve: some of their Australian shopping centers a major Singapore mall (suspect it would be 313 Somerset a...

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Eagle Hospitality Trust (EHT) IPO Analysis

We have a few US REITs that is coming over to list in Singapore. ARA Hospitality Trust was the first one with lukewarm response. And this time round we have Eagle Hospitality Trust (EHT).  The former is more well known to Singapore investors since ARA was listed here and then delisted.  I think SGX and DBS are really actively courting these REITs from overseas to list in Singapore and I am not sure this is always a good thing.  I shall not say too much but do a quick take of this IPO. I have not much value add...

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IREIT Global Evolving with CDL’s Involvement – My Take on this 7.4% Yielder

At the end of April, City REIT Management, a subsidiary of City Development Ltd (CDL) purchase 50% of IREIT’s manager. City Strategic, also a subsidiary of CDL, purchase a substantial stake in IREIT itself. In November 2016, Tikehau Capital purchased a 80% stake in IReit’s manager. The rest of the stake is held by Chinese Tycoon Tong Jinquan and Soilbuild founder Lim Chap Huat. Tong Jinquan owns 297 mil units (47%), Chap Huat owns 33 mil units (5.2%), Tikehau Capital owns 52.6 mil (8.3%). In this deal, Tikehau Investment Asia Pacific bought back Tong’s stake in the manager. They then...

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What if We all Shared how Much Debt we paid OFF every Year on Facebook?

Charles SCHWAB did this annual survey with a seriously good name: 2019 Modern Wealth Survey And the main highlight of the survey focus on how much Americans were influenced by what their friends shared on social media. Respondents blame social media platforms, NOT the people as the bad influence when it comes to how they manage their money, while they put friends and family among their good influences. Personally, I like the first one where they wonder how their friends can afford expensive experiences posted on social media. The survey zoomed in on the Millennials and Gen Z and...

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What if You Replace Some Gold with REITs in the Permanent Portfolio

This post is more of a look at REITs as a general sector.  I came across an interesting part 2 post of a post on Permanent Portfolio. I will talk about part 1 perhaps sometime later. That post have enough interesting things that we should ponder about.  7 years ago, I wrote a post about exploring the permanent portfolio. And we explore whether that is the holy grail of what we are looking for in investments: We want a decent long term expected return We do not want too high of a volatility  So a permanent portfolio, which is...

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