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[k1976]

35 with No Savings: How to Retire a Stock Market Millionaire​

Royston Yang
Fri, 6 September 2024 at 3:00 pm SGT5-min read

Save, Invest, Money
Singapore has always been labelled as an expensive country, with the city being ranked as the most expensive one for the ninth time in 11 years.

Hence, it is no surprise that many people’s salaries go towards servicing debts, purchasing necessities, or spending on wants.

And with costs going up because of rampant inflation, more and more people may end up with little left to save after paying their bills.

Major life events such as getting married, buying a house, or having a child may also drain your finances, leaving you with less than you had.

If you are in your 30s, there is also the need to care for ageing parents, hence this generation is also known as the “sandwiched” one.

Precious little savings​

Many people in their 30s are faced with mounting bills and have multiple financial commitments, causing them to end up with little to no savings.

If you are close to 35 and have seen your savings depleted, it’s time to take action.

It is possible to turn the situation around if you adopt a disciplined and determined mindset.

Precious little savings​

Many people in their 30s are faced with mounting bills and have multiple financial commitments, causing them to end up with little to no savings.

If you are close to 35 and have seen your savings depleted, it’s time to take action.

It is possible to turn the situation around if you adopt a disciplined and determined mindset.

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You need to couple this with patience and a willingness to accept risks.

Are you ready to learn how you can transition from having little savings to becoming a stock market millionaire?

Then read on.

Saving and investing​

The first step is to take a hard look at your income and expenses to see how you can increase your savings rate.

The idea is to slowly rebuild your savings and then deploy it into the stock market for growth and better returns.

Try to cut out unnecessary spending and focus on cheaper options such as public transport rather than ride-hailing, for instance.

Ensure that you can sock away at least several hundred a month that you will allocate to a separate bank account to prevent yourself from spending it away.

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If we assume that you can save at least S$500 a month, that’s a cool S$6,000 a year in savings.

As you receive bonuses and/or increments for your work, you can, hopefully, increase the amount that you save gradually.

Once you have a nice pot of money sitting in your account and have set aside at least six months of expenses for emergencies, it’s time to think about investing some of this money.

You should start by investing your money in reliable, blue-chip stocks that give you peace of mind.

Ideally, these stocks should also pay out dividends that can provide you with a stream of additional income to supplement your earned income.

 

[k1976]

You should start by investing your money in reliable, blue-chip stocks that give you peace of mind.

Ideally, these stocks should also pay out dividends that can provide you with a stream of additional income to supplement your earned income.


Some examples include stalwarts such as DBS Group (SGX: D05) and Singapore Exchange (SGX: S68).

You can also consider solid, well-known names such as Singtel (SGX: Z74) and Keppel Ltd (SGX: BN4).

You can also consider the REIT sector as REITs are mandated to pay out a consistent stream of dividends.

Examples of REITs with solid sponsors and great track records include Mapletree Industrial Trust (SGX: ME8U), CapitaLand Integrated Commercial Trust (SGX: C38U), and Parkway Life REIT (SGX: C2PU).

 

[k1976]

Receiving dividends and reinvesting them​

The next step is to slowly purchase shares in these blue-chip stocks and REITs and then sit back and receive dividends.

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Over time, as you allocate more money to these stocks, your investment portfolio should also grow in size.

As the business does well, the share price should steadily rise, giving you attractive capital gains.

The dividends you receive will also increase as the business performs well and pays out more.

Coupled with more shares of the stock, you can then enjoy a higher payout the next time dividends are declared.

Armed with these dividends, you can choose to reinvest them in the same stocks that paid them out.

The magic of compounding​

This process of receiving dividends and then reinvesting them is called “compounding”.


Compounding, if practised over the years, can truly be magical as it multiplies your wealth and provides you with an ever-increasing stream of dividends.

As you invest more of your savings into stocks and receive more dividends, it becomes a virtuous cycle to rinse and repeat this process.

With more dividends, you end up buying more stocks and can receive more dividends, thus kick-starting the compounding cycle that can lift your portfolio to greater heights.

If you keep up this process for years and decades, you can end up with a million-dollar portfolio that you can comfortably retire on.

 

[k1976]

Get Smart: Time, effort and patience​

As the saying goes – Rome wasn’t built in a day.

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The process above may sound tedious, but with effort and patience, it’s entirely achievable.

It does, however, take time for compounding to work its magic and for your portfolio to grow.

But if done right, you can be assured that you can retire a millionaire with a solid stream of passive income.

 

[k1976]

3 Singapore Stocks That Raised Their Dividends: Should They Be in Your Investment Portfolio?​

Royston Yang
Fri, 6 September 2024 at 7:30 am SGT4-min read

Tiong Woon
If you are a dividend investor, you’re in luck.
The Singapore market is filled with reliable dividend payers that can provide you with a steady stream of passive income.
Remember that dividends do not attract personal taxes, unlike rental income from properties that need to be declared when you report your taxes.
Other than searching for stocks that dish out dividends, you should also keep an eye out for those that manage to increase their payouts.

We shine the spotlight on three stocks that upped their dividends during the recent earnings season.

Tiong Woon Corporation (SGX: BQM)​

Tiong Woon is a leading integrated heavy lift specialist and service provider that supports the oil and gas, petrochemical, infrastructure, and construction sectors.

The group purchases and operates its own heavy lifting and haulage equipment, tug boats, and barges.

Tiong Woon announced a strong set of earnings for its fiscal 2024 (FY2024) ending 30 June 2024.

Revenue increased by 5% year on year to S$143.1 million with gross profit improving by 9% year on year to S$59 million.

Civmec Limited (SGX: P9D)​

Civmec is an Australian company and is an integrated and multi-disciplinary construction and engineering services provider to the energy, resources, infrastructure, and marine & defence sectors.

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The group’s core capabilities include heavy engineering, shipbuilding, modularisation, site civil works, and industrial insulation, among others.

Like Tiong Woon, Civmec also turned in an impressive report card for FY2024.

Revenue climbed 24.4% year on year to A$1 billion while net profit increased by 11.6% year on year to A$64.4 million.

StarHub Ltd (SGX: CC3)​

StarHub is one of the three major telecommunication companies (telcos) in Singapore and offers a comprehensive range of mobile, broadband, and pay-TV services.

The group released an encouraging set of earnings for the first half of 2024 (1H 2024).

Total revenue (excluding D’Crypt) inched up 1% year on year to S$1.1 billion with service revenue increasing by 2.4% year on year to S$939.2 million.

Net profit excluding D’Crypt shot up 8.7% year on year to S$83.3 million.

 

[k1976]

World’s second-tallest tower tests Malaysia’s skyscraper appetite amid property demand doubts​

Kuala Lumpur’s Merdeka 118 has a spire that helped it edge out Shanghai Tower to become the second-tallest building in the world. PHOTO: ST FILE
Updated

Sep 06, 2024, 06:33 PM

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KUALA LUMPUR – A quarter-century after the Petronas Twin Towers became the world’s tallest buildings and reshaped Kuala Lumpur’s skyline, Malaysia’s capital is continuing to add new skyscrapers despite growing doubts over the level of demand for property.
Kuala Lumpur already has more super-tall buildings than all but seven cities, and recently it has added another – the 678.9m-tall Merdeka 118, which will fully open to the public later in 2024. A long spire helped it edge out Shanghai Tower to become the second-tallest building in the world after Dubai’s Burj Khalifa.

 

[k1976]

The Commercial Real Estate Crash Is Battering Even the Safest Bonds​

For the first time since the great financial crisis, buyers of top-rated commercial mortgage-backed securities are suffering losses.


By Carmen Arroyo, Natalie Wong, Aaron Gordon, andChristopher Cannon
29 October 2024 at 5:00 AM SGT




1407 Broadway was, as far as the financiers of Wall Street could tell, as rock-solid an asset as could possibly exist. Located in the heart of Manhattan’s storied Garment District, its entrance cut from white marble flecked with a soft bronze terrazzo motif, the 43-floor tower was a money-minting machine with a never-ending roster of well-heeled corporate tenants.

So when the owners floated a $350 million bondbacked by the building’s rental income in 2019, the bulk of the debt was stamped with a AAA credit rating, the highest grade awarded by ratings firms.

Not even US Treasury bonds, the North Star for global financial markets, are deemed that safe. But 1407 Broadway, the thinking went, was so impervious to the vagaries of economic cycles that a default was unfathomable — nothing more than a once-in-5,000 years kind of freak event.

 

[k1976]

Lai Lai Lai, 买定离手​

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OUE REIT ready for growth after emerging stronger from rate hike cycle​

Felicia Tan Published on Thu, Sep 05, 2024 / 06:01 PM GMT+08 / Updated 1 week ago

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OUE REIT is in the plum position of owning nearly all Singapore-based assets, with just a single building in Huaihai Zhong Road, Shanghai. Its revenue is almost evenly split between office (50.2%) and hospitality and retail (49.8%). This diversified portfolio of high-quality assets has enabled the REIT to provide income resiliency and attractive return.

More than that, timely capital management initiatives during the interest rate cycle have helped OUE REIT TS0U minimise the impact of rising interest rates. The initiatives also bolster the REIT’s capital structure, providing opportunities for distribution per unit (DPU) improvement in a potential interest rate-cut environment and positioning it favourably to embark on its next phase of growth.

Click here to learn more insights about REITs from the REITs Reiterated series.
Given that capital management is the backbone of any REIT, it is no surprise that one of the first things Han Khim Siew did when he joined OUE REIT’s manager as CEO in February 2022 was to strengthen OUE REIT’s balance sheet and lock in attractive rates with extended debt tenor to provide stability to distributable income. These measures included issuing Singapore’s first bond with a coupon step-down feature, obtaining the largest sustainability-linked loan (SLL) among Singapore REITs to date in 2022, and completing its third SLL in 2023.

With its assets largely unencumbered, alongside continued improvement in asset performance, the REIT was assigned an investment-grade credit rating from S&P Global in 2023, allowing it to obtain cheaper financing.

To further enhance OUE REIT’s access to more diverse and competitive sources of funding, the REIT successfully increased its proportion of unsecured debt with the completion of a $600 million SLL in May this year.