My Own Financial Investment Strategy II

More details after this post "My Own Financial Investment Strategy".

a) Cash
Mixture of long term holdings (for both Capital Growth & regular Dividend Gain), short term holdings (for Capital Growth) and Contra trades
- My main source of cash comes from my monthly salary and annual bonus etc and of course the capital & dividend gain from my stocks. Besides making purchases of stocks via the Singapore Exchange, I also make regular monthly purchases via the PSBP (Phillip Share Builders Plan) =>more details about the PSBP in another post soon.
- Another diversification I made in the recent few months is via Land Banking by Walton. An ex-colleague left his job to join Walton and introduced me to this concept. I'm pretty convinced by it and thus decided to invest in 1 unit which costs USD10,000 (the particular project which I'm invested in has a target timeframe of about 2 to 4 years). One of the major cons of Land Banking is that these are not regulated by MAS (Monetary Authority of Singapore) or any other authority in Singapore yet. But so what if stocks/listed firms are regulated? Some still delist at a much lower price than their IPO price or much lower than the high price at which many bought during the boom; most recent example being Chartered Semi-Conductor. Thus, I treat my investment into Land Banking as a form of diversification in terms of geographical as well as sector aspects.
- I'm aiming to achieve a minimum of 10% pa (per annum) via dividend and/or capital gain.


b) SRS (Supplementary Retirement Scheme)
Mixture of long term holdings (for both Capital Growth & regular Dividend Gain), short term holdings (for Capital Growth)
- I target to deposit an average of $5,000 into my SRS account per annum.
Since the cash in the SRS account couldn't be withdrawn till retirement age(unless one is willing to pay the penalty fees or on medical grounds etc), I will be investing the deposits in this account on stocks rather than earning the little interest by the bank.
- I'm aiming to achieve a minimum of 10% pa (per annum) via dividend and/or capital gain.
- Most of my friends/colleagues/financial planner to whom I mentioned that I making regular annual contributions to my SRS account are quite surprised that I started to do so from age of 28. I'll touch more upon the details of SRS and why I chose to start it off much earlier than most.


c) CPFOAIS (CPF Ordinary Account Investment Scheme)
Mixture of long term holdings (for both Capital Growth & regular Dividend Gain), short term holdings (for Capital Growth)
- Since the CPF OA funds (beside those used for housing payments) will be locked in the CPF OA till retirement age or till the CPF Minimum Sum is reached, I'm using the spare CPF OA funds to purchase mainly Dividend counters, aiming to achieve a minimum of 8% pa (per annum) via dividend and/or capital gain.


My timeframe for short term holdings ranges from 1 week to 6 months and timeframe for long term holdings will be more than 6 months. At this moment, personally I'll not bring in the "medium term" tagging yet as I feel that if I can and choose to ride out the ups & downs of any counter (i.e. not selling for profit taking or cut-loss), most probably I'll continue to hold on to that counter for quite sometime.