JC Financial Freedom Fund Report Card

28th December 2018 – I will stop publishing net worth on monthly basis as it serves (to bruise) my ego. This year has taught me a humbling lesson (drawdown till date 18%) and I need to focus more on doing the right things.

Comments on August 2018 – All time low in terms of net worth for this year. Since Tun M terminated the HSR project, I had discounted the book value of the property by 10%. This quarter earning reports for my portfolio are not good which means some of their moats are deteriorating. Trying to find time to review the portfolio. Meanwhile, continue to stay calm and accumulate good businesses.

Comments on September 2018 – Feeling shitty. If September was bad, October is worse off.

Our JC Financial Freedom Fund which is the key driver to propel us into Financial Freedom consists of two key pillars. The main pillar consists of equities from companies from Singapore, Hong Kong, Thailand, London and United States. The other pillar consists of using options to generate income.

This journey is a game which I am learning everyday. I am trying to understand the rules and boundaries of the game and to outsmart the market is always a challenge.  I wish you all the best in your journey towards financial freedom. Stay foolishly invested!

Crossover Point 

JC Project Freedom Crossover Point

Dividend income is at about SGD 65k which is at about 5% dividend yield based on portfolio (net cash). We have a margin account of about 7% of total amount in the portfolio. The margin is to be used during the crisis which will help to increase dividend income.

Other than the margin, we do not have any outstanding debt as the HDB is fully paid for. It is depreciating to 0 as the clock is ticking, yes, something we need to decide whether we need to sell or continue to stay in this house.

I do not think the family has achieved Financial Freedom yet as we observed an upward trend in terms of family expenses. The rate of increase in family expenses is at a much faster rate than passive income growth. Furthermore, if companies are not doing well during a recession, there will be hairline cut to dividend which may result in 10-20% reduction. Hence, I forecast in 2019 for the worst case scenario will experience dividend income at around SGD 52k.