This month, I decided to log in my Singpass account and update the value of my CPF accounts to better reflect the current values.
I realised that the CPF SA actually serves as an excellent replacement for the Bond component of my portfolio, as it gives an almost risk-free 4% yield, and an additional 1% for the first $60k.
Since I have almost hit the minimum sum, I will be treating it like a 25-year bond which matures at 55.
This is quite an interesting topic, and I will be doing a separate post to summarise all my CPF research and optimization strategy.
For my current allocation, cash and real estate (allocation budget) still remains the bulk of my portfolio, at 29% and 35% respectively. Fixed income consists of 13%, which is very close to the target allocation of 15%. I also added some Gold (2%) to hedge my portfolio, since Gold looks poised for a strong move up.
The biggest disparity at the moment between my current and target allocation is the amount of Stocks & REITs holdings, which I have not aggressively accumulated, as I still think that the prices of these assets can fall further. Patience is key at this time, and I will continue to grow my warchest using my trading capital while biding my time.
REVEALED: FULL PORTFOLIO HOLDINGS!
Here are my current holdings as at the end of July 2016:
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For more insights into my portfolio construction, and how you can create your own customized portfolio, I will be touching more on it during my “Trading Foundation Workshop”, where I will cover all the essentials to kickstart your trading & investing journey. Check availability: http://synapsetrading.com/trading-foundation-workshop/
Good luck! 😀Cheers