My goal is to save at least $10k from my primary income yearly. Although, as of now, I had already contributed $7,300 into my saving plan. Most of the savings come from my bonus in March 2016. I will not be expecting any bonus from now till the end of the year. So in a way, I had to rely on my monthly income saving in hoping to add up to $10k. It look certain that I won't be able to achieve this goal again by end of the year. Unless, there is a promotion for me and a good salary review plus increment next month.
The good side of my next goal is to achieve a compound saving of $22,149.00 based on my calculation of 7% dividend yield by investing on equities. As of now, my compound saving for this year had already achieved $21,723.62 which translated to 7.44% yield currently. Based on this set of result, I will definitely achieved this goal to have a compound saving of $22,149.00 by end of the year.
Dividend collected and capital gain as of now stands at $1,504.75. This was partly due to my recent divestment of Keppel Corp at $5.88 per share. After my divestment, Keppel Corp had been falling to $5.32 per share on today closing. STI had also been dropping because of the Brexit syndrome, as well as the falling of oil price below US$50. I will be looking to buy back Keppel Corp again when the price is more attractive for long term investment.
| Year | Age | Proposed Yearly 10k Saving | 7% Dividend Based on Compound Saving | Actual Saving | Compound Saving |
| 2015 | 37 | $10,000 | $10,700.00 | $8,800 | $12,918.46 |
| 2016 | 38 | $20,000 | $22,149.00 | $7,300 | $21,723.62 |
| 2017 | 39 | $30,000 | $34,399.43 | - | - |
| 2018 | 40 | $40,000 | $47,507.39 | - | - |
| 2019 | 41 | $50,000 | $61,532.91 | - | - |
| 2020 | 42 | $60,000 | $76,540.21 | - | - |
| 2021 | 43 | $70,000 | $92,598.03 | - | - |
| 2022 | 44 | $80,000 | $109,779.89 | - | - |
| 2023 | 45 | $90,000 | $128,164.48 | - | - |
| 2024 | 46 | $100,000 | $147,835.99 | - | - |
| 2025 | 47 | $110,000 | $168,884.51 | - | - |
| 2026 | 48 | $120,000 | $191,406.43 | - | - |
| 2027 | 49 | $130,000 | $215,504.88 | - | - |
| 2028 | 50 | $140,000 | $241,290.22 | - | - |
| 2029 | 51 | $150,000 | $268,880.54 | - | - |
| 2030 | 52 | $160,000 | $298,402.17 | - | - |
| 2031 | 53 | $170,000 | $329,990.33 | - | - |
| 2032 | 54 | $180,000 | $363,789.65 | - | - |
| 2033 | 55 | $190,000 | $399,954.92 | - | - |
Hi Eric,
ReplyDeleteDon't understand what you mean by compound savings. Is that the marked to market value of your sg portfolio?
I think is referring to his dividends+interest that he earned via the shares. But the table is a bit confusing, it took me sometime to decipher how the table works.
DeleteBut this also shows that it is a good way to see the compounding effect. Just to check how much do you allocate to shares per year? Cause I will be starting the same saving allocation in mid 2017. So would like to know more about how you do the allocation.
Compound savings refer to dividend received plus the actual savings to be reinvested into the investment. There is no such term for this so I name it as compound savings.
DeleteHi James,
DeleteIf you based on my table, per year allocation of shares would be worth $10,000 plus the dividend collected yearly. That is assuming you did not sell any of your shares at all since Day 1.