Seventy Five Percent Invested, Twenty Five Percent Cash

Seventy Five Percent Invested, Twenty Five Percent Cash

Recently, I have added more of Mapletree Commercial Trust and CapitaMall Trust to my stock portfolio. As such, cash on hand has decreased. I have also been performing Supplementary Retirement Scheme (SRS) top up over the past few months to reduce the income tax amount I have to pay next year. My current cash on hand versus my total investment in stocks is 25 percent versus 75 percent respectively.

I am expecting my cash to increase next month as just like Kevin from Turtle Investor, I am expecting to receive my annual wage supplement in the month of December.

Here are some of the options I am expecting to do with my AWS:

  1. Invest them into my stock portfolio
  2. Top up my Supplementary Retirement Scheme account
  3. Perform voluntary contribution to my Ordinary Account, Special Account
  4. Pay off 1 year of my children’s tuition fee

I am most likely to perform option 4 and option 2. The reason is that if I pay off one year in advance my children’s tuition fee, I get around 5% discount which I think is pretty worth it.

The announcement by Prime Minister Lee in today’s news about the possibility of increasing income tax next year has further affirm my decision to top up more of my Supplementary Retirement Scheme account. This is to reduce the amount of income tax I have to pay next year.

The rest of my AWS after the above will go into my war chest (means cash) while I look for companies to invest in.

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