With the new year coming, Mrs Budget and myself have started to plan and budget out our finances for the upcoming new year. 

One of the spreadsheet that we have is that we have a portfolio projection sheet on our personal finance sheet. This is probably one of the most important spreadsheet for us as it serves as a guiding principle as to how much we will have at the end of every year, and with that amount, we are able to plan for our future life milestones.

It looks something like this:

To arrive at this table, what we did was to create individual projection tables for each of our asset classes.

For example, for our Singapore portfolio, every year we project to have a capital injection and gain of S$30,000, along with a 5% dividend yield. With those assumptions, we are able to project our annual future value for our Singapore portfolio. 

We then do the same for our US portfolio along with our CPF funds, and when you add up the individual line items, you will be able to see your projected annual net worth. 

Of course, these are just guidelines and when we do our annual reconciliation, we will see if we can hit the targets which we set out for ourselves. 

So for 2020, what we’ve set as target for ourselves is to:

1. Capital injection / capital gain of S$30,000 into Mr Budget’s Singapore portfolio, with a 5% dividend yield
2. Capital injection / capital gain of S$10,000 into Mrs Budget’s Singapore portfolio, with a 5% dividend yield
3. Capital injection / capital gain of S$20,000 into Mr Budget’s US portfolio
4. Capital injection / capital gain of S$10,000 into Mrs Budget’s US portfolio
5. Continue our annual S$7,000 CPF contribution for tax relief and retirement purpose

The sources of these capital injection and our CPF contribution will of course be from our monthly salary. If we follow the plan, we will be able to hit our mid term goal of having a S$300,000 joint equity portfolio by 2021. 

However, as previously noted, for Mr Budget, his cash holdings is a bit on the low side for now, and that for next year, he might just be holding on to his cash and put it into a high yield savings account. 

For Mrs Budget, hopefully we are able to add more quality REITs or Trust as well as US stocks in her portfolio to balance out the portfolio composition.

While we have earmarked a certain % of investment cash ready to be deployed in the new year, whether or not we will hit our portfolio targets will largely depend on whether are there any attractive opportunities in the market.

So what’s our investment goals for 2020?

1. Keep our eyes peeled for investment opportunities. Here are our criteria:
   • High dividend stocks
   • Companies with increasing yoy annual revenue, profit
   • Companies with net asset > current liabilities + high cash reserves
   • Companies in high growth industries 
2. Replenish and stock up our cash holdings
3. Keep our savings rate up since the only big ticket item soon will be when we are ready to have our Budget Baby
4. Be a more sophisticated investor and to start looking into bonds and individual companies in a deeper level.

With our wedding soon to be over, hopefully we will be able to hit our financial targets we set for ourselves in 2020. 🙂

What are your 2020 investment goals?

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