Portfolio Update Q2 2025
This month marks the end of the 2nd quarter of 2025. Thus it's definitely a good time for me to record the performance of my portfolio to track how it has been.
To recap, I started my SG Dividends Portfolio in late 2017, and I began tracking the dividends and all reinvestment done starting 2018. To date, my SG Dividends Portfolio consist of banks, REITs and defense technology. On the other hand, I only started the US Growth Portfolio in late December 2021. Currently, my US Growth Portfolio consist of mainly big tech names, bank and exchange traded funds (ETFs).
Being a relatively conservative investor, I prefer to dollar cost average (DCA) into the market to slowly build up my portfolio. The advantages of using Interactive Brokers to buy the US shares via DCA are undoubtedly the low fees and ability to buy fractional shares of mega-cap technology shares like Alphabet and Tesla. This month is marked by many events which heightened the volatility of the markets. Most notably is the Israel–Iran conflict. The escalation began with Israeli airstrikes on Iran’s nuclear facilities, prompting a sharp 7–11% jump in crude oil prices, hitting one month highs and fueling global volatility. Investors fretted that prolonged conflict could push oil to USD 130 per barrel, spiking inflation, and thwart anticipated Fed rate cuts. Matters were made worse with US joining in the air strike on Iran over the weekend. However surprisingly, the war tentatively did not further escalate, and stock markets were higher on the following Monday. This shows the importance of not timing the market and the need to resist reactions to every single news. Time in the market will allow us to capture every recovery and uptrend, especially when we least expect it to happen.
In the latest FED meeting this month, FED chair Jerome Powell has once again reaffirmed that FED is not intending to cut rates anytime soon, citing possible persistent inflation risks due to tariffs and war/ tensions. However towards the end of the month, some FED members also signal the possibility of rate cuts as early as July. How this will actually turn out is once again out of my control. Therefore I shall ignore the noises and just invest as usual. If rate cuts do materialize as soon as July, it will be a bonus for my REITs portfolio, hopefully.
In the US Markets, S&P 500 is going sideways, hovering around the highs but individual stocks like JP Morgan and Microsoft are hitting new highs, while Apple and Google and languishing around near term lows. This counter-movements made my US Growth Portfolio relatively stable throughout the month. I think I will just do nothing to it for now.
Closer to home in my SG Dividend Portfolio, REITs are still languishing at the lows (or even lower), and persistent downward pressures remain due to the uncertainty of the timing for rate cuts as mentioned above. Being a self-proclaimed dividend income investor, I shall remain calm and just sit and wait for dividends to arrive. I have confidence in the REITs I hold in my portfolio, especially with my existing allocation towards REITs within my portfolio. Though I am confident, I will still keep a look out in their performance when they release their financial reports every quarterly or semi-annually, to ensure there are no further red flags on any metrics that I need to be wary of. I shall continue to hold on to them the way they are for now.
On a happier note, despite the fluctuations in portfolio value, dividends collected in the second quarter has been remarkable, at SGD 12,126.03 from quarterly dividends from Mapletree Family REITs, Development Bank of Singapore (DBS) and Singapore Technologies Engineering (STE), Aims Apac REIT (AAR) and Riverstone (RVS), and semi-annual dividends from Oversea-Chinese Banking Corporation (OCBC), Hong Leong Finance (HLF), United Overseas Bank (UOB) Frasers Logistics and Commercial Trust (FLCT) and ComfortDelgro (CDG). This amount is about 30.7% higher than the amount of dividends collected in the second quarter of 2024, due to new contributions from added shares, and special dividends from various companies. Combining with the dividends collected in the 1st quarter, the total amount is more than SGD 15K, or 51.6% of the total annual dividends I hope to receive for 2025. Hopefully the diversification will help to make my future dividends more stable and predictable, especially as I slowly progress towards the first phase of my Barista FIRE path in time to come.
For this month, the total portfolio market value hit a new high of approximately SGD 684k this quarter, including a capital injection of about SGD 5K, which is a slight increase of about 0.7%. With about SGD 4K outstanding for deployment into SG stocks from the sale proceeds early last month, the total portfolio value could be regarded as SGD 688K, indicating a possible 1.3% increase in portfolio value compared to previous month. I will continue to remain patient with where to deploy the cash, to continuing diversifying and stabilizing my portfolio. Regardless, I am looking forward to the upcoming quarterly reporting, to continue to collect the dividends from my portfolio in the third quarter of 2025. Barista FIRE, here I come...!
SG Dividends Portfolio
US Growth Portfolio
Total Portfolio Value: SGD 681,185.35 (USD 1 : SGD 1.2714)
Hi bro, congrats for your new high. This is the result of your years of the discipline. What's the first phase of barista Fire?
ReplyDeleteHi kk pang,
DeleteThank you for your encouragement. Currently my plan is to split my Barista FIRE into 3 progressive stages. The first year, I plan to only use part of my dividend income to cover about 30% of my expenses, so the rest can be reinvested. The second year, the dividend income will be used to cover 60% of my expenses, with the rest reinvested. By the third year, I hope my dividends can cover 90% of my expenses, and gradually my active income becomes a want and not a need.
Just a plan for now, may change when I begin implementation. Hope it works out fine!
Hi Bfire, i think this is totally makes sense by taking gradual stepping down approach. That's resonate with me too. I think you can implement more easily because you decide how many students you going to take per weekend eventually. When are you going to start the phase 1? Separately, interested to know how do you factor in the HDB and CPF into your retirement journey
DeleteHi kkpang
DeleteYup, I think progressive is good because I can slowly estimate how effective and stable my Barista FIRE plan is going to be. I am intending to begin the first phase on January 2026, so it will be a year by year progress. I do not have HDB, staying in 1-room apartment. Nothing much I can do. Will just continue paying down my mortgage. However, when I begin my Barista FIRE journey, the only change is I will start paying my mortgage instalment fully by cash, and continue to let my CPF OA accumulate by itself.
For now, I will not consider CPF within my plan, because it is still very long while before I can access it, so just keeping it out of my considerations for now.
Oh ya, forgot that you are PR, so unable to buy HDB on single name. Sorry about that. So the mortgage will be part of your ongoing expenses unless you decided to sell it permanently and find a place to rent, so this can part of your portfolio pool. In such cases, your investment pool actually is more than $650+k. And you yet to take into consideration CPF, which is quite a large chunk evene you are self-employed.
DeleteOne thing I notice is living in JB doesn't mean cheaper than living in SG, depending on the spending style too.
Looking forward to hearing on your first phase of barista FIRE.
Hi kk pang
DeleteYup I am PR, so no HDB. I am looking forward to my first phase of Barista FIRE too! A little excited and a little jittery, haha.
Yeah, I can feel you as I am also planning to scale back my working hours, but not as flexible as you as the tutor, that you can decide the number of hours you want to work.
DeleteWould you mind to share how much the one room apartment cost? I estimate maybe closer to 2-3 rooms BTO? Leasehold or freehold? Do you need to pay condo maintenance fee?
Would you write an article about your different phase of Barista Fire?
Curious with more free time, what do you intend to do to fill in the time.
Currently my unit is valued at about SGD 700K. When I bought it, it was closer to SGD 600K. Its those boutique freehold apartment, that's why it's freehold but not yet at the millions. Yes I do need to pay maintenance.
DeleteOf course, I will definitely write about the different phases of my Barista FIRE journey when I go through it, together with my expenses, income and all.
The free time that I gain, I will probably go back to JB more frequently, but it also depends on where I am staying at that point in time. Spend more time with my mum, and more time exercising lol. Still got to cut down the excess weight.
Wow, didn't expect 1 room apartment is so expensive, I can imagine this forms bulk of your expenses. Looking forward to your article.
DeleteHaha no choice, just need a place to stay but yet I do not want to pay rental anymore. Just got to push ahead. Thank you for your support!
Delete