Financial Freedom Status

Net worth

Just a reminder – Net Worth is not your Self Worth

94% – Target Net Worth

Option Income

JC Options Fund

Looking at the options trades journal, I understand why I lose money in the past. I gave up on options for a very long period in 2019, I did a trade-in in early 2020, and that cause me more grief.

August 2021 – $3,144
July 2021 – $944
June 2021 – $503
May 2021 – $4,394
April 2021 – $2,335
March 2021 – $4,168
February 2021 – $388
January 2021 – $1138

December 2020 – $685
January 2020 – $2020


December 2018 – $775
November 2018 – $985
September 2018 – $74
July 2018 – $314
May 2018 – $323
April 2018 – $447
March 2018 – $211
February 2018 – ($18872)
January 2018 – $10605

December 2017 $3,334
November 2017 – ($11304)
October 2017 – $7,774
September 2017 – $1,941
August 2017 – $1,096
July 2017 – $1,585
June 2017 – $139

December 2020 Dividend Status

Dividend Income – S$46k
Property Management Income – S$1.95k
Total Expenses – S$84k

You can read the update here on the dividend income. The dividend was reduced drastically in 2020 due to pandemics.

December 2019 Update

Dividend Income – S$45k
Property Management Income – S$3.75k
Total Expenses – S$84.6k

Firstly, I will update our Total Passive Income vs Total Expenses. Refer to the below table and chart.

Total Passive Income vs Total Expenses (2014 – 2019)

Total Passive Income/ Total Expenses Ratio is dropping since 2017 by 193% to 90% in 2018 and to 58% in 2019. The ratio decreased means that I am further away from achieving Financial Freedom. In 2019, Total Expenses have increased to S$84,660.93 which sees a steady increase from 2017. I think it is about trying to achieve a balance in life. I still believe in being stingy about myself and provide for the family. However, Total Passive Income is decreasing to S$45,394/yr and the dividend yield of the portfolio has dropped to 3.5%. In short, I feel that my finances are deteriorating although net worth wise is increasing because Free Cash Flow is decreasing and the quality of assets in the Hong Kong portfolio is getting from bad to worse. You can read more about Review on 2019 here.

December 2018 Update

Dividend Income – S$65k for 2018

28th December 2018 – I will stop publishing net worth on a 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 is 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 that I am learning every day. I am trying to understand the rules and boundaries of the game and outsmarting the market is always a challenge.  I wish you all the best in your journey towards financial freedom. Stay foolishly invested!

Crossover Point 

Dividend income is at about SGD 65k which is at about a 5% dividend yield based on the portfolio (net cash). We have a margin account of about 7% of the 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 a hairline cut to a dividend which may result in a 10-20% reduction. Hence, I forecast in 2019 for the worst-case scenario will experience dividend income at around SGD 52k.