Happy new year! A decade has passed by us. Time and tide indeed wait for no man.
My favorite activity during this period is to check on my CPF interest for the previous year. Although interest is calculated on a daily basis, the final interest earned on the year before is only revealed in the first few days of the new year. As you know, I am a hard core believer in CPF as a pillar of retirement – I use cash for my mortgage and I contribute in full to the SA/MS limit applicable for each year.
On a balance of about $500,000, I have earned more than $16,000 in interest for 2019. This is over 3%. I am glad I have allocated about 50% of my net worth to this CPF portfolio. Almost $1,400 in interest every month! I salivate at the thought. All this riches for effectively no work at all other than the topping up of my SA/MA at the start of the year. None of my other portfolios give so much for so little.
My goal is to keep this going as long as I work. Compounding interest is indeed a miracle if it works for you. I can understand how hellish it would be if you are on the other side. I hope to deploy more of my resources this year to increase my passive income, whether it be ETFs, REITs, tactical allocation etc.
I wish everyone a happy, healthy and prosperous decade ahead!