Wealth Machines aka Streams of Income

Really have neglected this part of the net for a long time. Been busy with work as usual, but also finding time to hone my skills and build something new for myself.

September 2016 came and gone, and that’s when I turned a fork in my trading journey. Something new, something slow compared to what I was doing 5 years ago, but surely getting there. 11 months now, and so far I’m hitting about 26+% returns based on my initial investment. Bankrolled my account further recently, and will be hoping to breakthrough and bury the ghosts of the last 5 years through this “wealth machine”. If things go according to plan, bankrolling 5 grand annually and I manage 30% p.a., things will be rather comfortable come the end of year 15 and I start drawing down the account. Viola, my own annuity plan created from scratch.

Also started on another “wealth machine” recently through Maybank Kim Eng’s Monthly Investment Plan, where I’m directing a fixed amount to purchase stock on the local exchange. Fees are relatively low at 1%, and fractional shares can be purchased this way. Currently purchasing shares from Asian Pay Television Trust, where I’m aiming at the dividend yield (approximately 11% based on current pricing). May do a switch to another counter, depending how the share works out as it’s also buried in debt. Not too concerned about it now, since Temasek is the largest shareholder at around 8%. Work in progress at the moment. Depending on how my finances hold up, will be looking to increase the amount in the coming months.

Decided to squeeze my ILP further with the lowering of the sum assured and shifting to focus on the Asian high yield bond fund I mentioned previously, paying out approximately 7.2% p.a. Trying to get it up to the minimum $40 monthly dividend so that it can be paid out instead of being reinvested at the moment. Currently at less than half that thanks to fees and what not. Another work in progress. Don’t think low fees won’t kill. Over time it’ll eat up a big chunk of the returns, not to mention managed funds are bound to suffer from negative annual returns from time to time. And fees are also due no matter the direction the fund goes. Hence my growing distrust of unit trusts. ETFs on the other hand, are much better. Another topic for another day.

Inspiration to call these my wealth machines came from Investment Moats, a local financial blog. Link can be found here if you’d like to find out more. My portfolio is very very modest at the moment. Looking to build it up and aim for an earlier retirement. Started out later than some of my peers and already wasted so many years, but better late than never.

Talk to me if you are keen to find out more about what I’m doing above, especially if you’d like to build your own annuity. Will take about 2 grand USD to start (excluding a fixed cost for a one year mentoring programme to learn how to do it), and certainly may be lower than off the shelf products available in the marketplace now. Trade off is, you’ll need to manage the fund on your own, but hey. Why leave your hard earned money in the hands of others? The odds are you’ll be able to retire sooner rather than later this way.

Let’s go.

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2 thoughts on “Wealth Machines aka Streams of Income

  1. Hi, hope you understand the wealth machines concept. It looks like you have 3 forms of wealth machines, your forex, futures and options trading, a share endeavor you are starting and then your passive funds.

    I suggest perhaps you can use a normal custodian account and wait for the commission to be more efficient. For the stocks, be aware of the cash flow nature of the companies you invest in.

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    1. Thanks for visiting my page and for your advice. Will certainly be looking into the points raised.

      Your site is awesome btw. Still trying to digest the information you have put up over the years. Thank you for helping to spread some literacy out into your fellow investors and aspiring ones

      Like

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