2016 JC Fund Dividend Income Report Card

I called my personal fund JC Fund. It is a time of reporting my dividend income. 

It has been a very volatile year. I remember that I was at a family event in August 2016 when I met my cousin, he told me that he had sold all his US shares. He felt that there was limited upside and the presidential election is making him nervous. I asked whether he is invested elsewhere, his reply is "no". Looking on a hindsight, it is easy to comment that he had made a mistake. The US shares continue to rise with its Trump-rally. I have witnessed Investment Banks' shares rise by more than 20% within a month! Unfortunately, I was not invested in them. The lesson here is always stay invested. I strongly believe in keeping most of my wealth in shares unless all the stocks in your portfolio are already overpriced. In addition, there is no other shares to hold and the general overview of the market is overly bullish. Then I will sell down half of the holding and keep them in cash, ready to ride with the reversal of tide, shorting the market. It is always easy to comment on a hindsight. The process is psychologically challenging and not meant for the undisciplined and faint hearts.

I am pleased to inform that JC Fund dividend income has increased from S$17,492.99 in 2015 to S$ 28,590.68 in 2016. I compared JC Fund's performance to STI Index, STI Index at the start of 2016 to the end of 2016 is a mere -0.03% change, JC Fund has increased close to 25% less the money and dividend income pumped in. I thought the dividend income can be higher but one of the counter's dividend will only be paid in February 2017. Hence, it is not accounted for this year dividend.

Overall, I am pleased that JC Fund is doing well and I am on route to allow my wife to retire in 5 years time. I always emphasize to my friends to invest earlier because the compounding effect will be very significant when we are close to our retirement age. Not a lot of them understands this or does not have the option to invest due to their circumstances. I conducted free financial planning for a close friend to help him understand his financial status. I hope everyone can gain financial knowledge as it is a very important life skill. It is not taught in school and it should be a core subject.

I hope that in 2017, I will still continue to have my job so that I can continuously invest more money in more stocks. I also need to monitor our property developers' balance sheet for this year, just in the event they default on their bonds, it will be a double whammy to SG economy.