Post by Fletchsmile on Jan 29, 2016 10:33:35 GMT 7
2015 wasn't a particularly great year globally for investments, and I haven't been in a rush to make new investments at the start of this year either given the state of the markets. Setting some objectives though helps focus, and if you fail to plan then you might as well plan to fail as they say. Each year I set some specific financial targets in monetary amounts, type of investments, time frames etc.
Good to write them down too. And here's as good a place as any, so I don't lose them
Overall, still looking more for wealth protection for me and the wife, plus building money for the kids' future. A lot similar to last year. So here's my objectives for 2016:
1. Maximise LTF investments for tax benefit. Always a main priority. A great investment, with the government kindly giving you money back since 2004. each THB 100k can effectively cost as little as THB 65k net, depending on your tax rate. So a 50%+ gain, for tying it away for 5 calendar years, and a cushion against market falls. THB assets are important living here, and equities should grow long term to exceed inflation.
No new money though. Just recycling old ones to buy new ones. I've enough Thai equity exposure, having been doing this since 2004, and other ordinary Thai funds before that
2. Maximise RMFs for tax benefits. Again largely not new money. Mainly just sell existing funds, and buy similar ones. Same tax relief as LTFs just tied up for a bit longer. Last year I split equally between: Thai equities, Asian equities, Global Fixed Income and Gold. Simply selling a normal fund and buying a similar RMF version.
This year I'll add the TMB Property Income Fund RMF to diversify a bit further among RMFs. Similar to the "income paying" normal fund, but because it's in an RMF this version it can't pay out dividends, as RMFs are supposed to be tied up until at least age 55.
3. Streamline my investments - continue doing this. I hold in 3 main places: UK, Thailand, and Singapore. Where I came from (in case need to go back)+ where I am + offshore. I plan on continuing with all 3, just I want to simplify them. While I can manage them, they do take up time, plus doing for other family members. Plus if anything happened to me, it wouldn't be easy for the wife to manage. So needs some work
At the end of last year I did open an account with TMB so I could buy/sell funds online in Thailand. I plan on adding to that in 2016. StanChart my previous main Thailand source is still useful, but no online facility for several things. Online is easier, and could be managed if we move in the future.
4. Spend less time on investments and money. More time with the family. There's a good chance I'm past the half way stage in life
5. Look more into legacy planning. Last year we redid our wills with 3 separate country wills: Singapore, UK and Thailand. This year I want to look more at things like single premium policies which guarantee a lump sum, and can be financed via low interest rate loan. I'm not a big fan of mixing life insurance and investment, but an extra cash lump might address my wife's gaps in managing money. Given the markets these days, things seem more complicated.
6. Possibly increase our exposure to fixed interest/ bonds. Still only around 10%. I expect this to be a challenge to find the right investments giving the interest rate markets, so won't be doing for the sake of it.
7. Maintain our weighting on Thai equities. If the market rallies, watch our overall weighting doesn't increase too much. I still want a reasonable exposure here. The issue is we already have that exposure so don't need to build it or add more, partly as a result of good returns in Thai equities since 1998. Cash rates are poor. THB bonds still unattractive. Although I'm not that bullish on the Thai equity market, it's one of the better options long term for THB assets, and living here THB assets are important.
8. Try and identify a few more income yielding assets in Thailand.
Like the TMB property income fund last year. A nice addition to diversify (although dividend streams have been a bit uncertain for it)
9. Buy more of the Krungrsi Global Income/ JPM Global Income fund in the wife's name, as well as the kids. It's well diversified across major asset classes, and it's the type of thing she could hold for 30 years+ even if something happened to me. It proved quite defensive last year in tough markets and yields 4%+. A good solid, simple core holding to add to.
10. Keep putting away some money each month for the kids future - mainly equity funds, to hold until they're at least 18, but also in case they need earlier. Krungsri Global Income is again useful here in addition to pure equity funds, in case some of the money was needed earlier than expected.
11. Continue to build more cash. Don't see any big purchases this year, but will need deposits if we switch schools and/or move house next year. Continue to spread the money across different family member names in different banks given a possible lowering of deposit protection in August.
StanChart's eSaver, TMB's ME accounts and TMB No-fixed have been consistent decent rate accounts. I can't be bothered keep chopping and changing, so these will help form a core. Will see if we can open new ME acounts for the girls (only available to Thais), given the youngest will get her Thai ID card this year
Cheers
Fletch
Good to write them down too. And here's as good a place as any, so I don't lose them
Overall, still looking more for wealth protection for me and the wife, plus building money for the kids' future. A lot similar to last year. So here's my objectives for 2016:
1. Maximise LTF investments for tax benefit. Always a main priority. A great investment, with the government kindly giving you money back since 2004. each THB 100k can effectively cost as little as THB 65k net, depending on your tax rate. So a 50%+ gain, for tying it away for 5 calendar years, and a cushion against market falls. THB assets are important living here, and equities should grow long term to exceed inflation.
No new money though. Just recycling old ones to buy new ones. I've enough Thai equity exposure, having been doing this since 2004, and other ordinary Thai funds before that
2. Maximise RMFs for tax benefits. Again largely not new money. Mainly just sell existing funds, and buy similar ones. Same tax relief as LTFs just tied up for a bit longer. Last year I split equally between: Thai equities, Asian equities, Global Fixed Income and Gold. Simply selling a normal fund and buying a similar RMF version.
This year I'll add the TMB Property Income Fund RMF to diversify a bit further among RMFs. Similar to the "income paying" normal fund, but because it's in an RMF this version it can't pay out dividends, as RMFs are supposed to be tied up until at least age 55.
3. Streamline my investments - continue doing this. I hold in 3 main places: UK, Thailand, and Singapore. Where I came from (in case need to go back)+ where I am + offshore. I plan on continuing with all 3, just I want to simplify them. While I can manage them, they do take up time, plus doing for other family members. Plus if anything happened to me, it wouldn't be easy for the wife to manage. So needs some work
At the end of last year I did open an account with TMB so I could buy/sell funds online in Thailand. I plan on adding to that in 2016. StanChart my previous main Thailand source is still useful, but no online facility for several things. Online is easier, and could be managed if we move in the future.
4. Spend less time on investments and money. More time with the family. There's a good chance I'm past the half way stage in life
5. Look more into legacy planning. Last year we redid our wills with 3 separate country wills: Singapore, UK and Thailand. This year I want to look more at things like single premium policies which guarantee a lump sum, and can be financed via low interest rate loan. I'm not a big fan of mixing life insurance and investment, but an extra cash lump might address my wife's gaps in managing money. Given the markets these days, things seem more complicated.
6. Possibly increase our exposure to fixed interest/ bonds. Still only around 10%. I expect this to be a challenge to find the right investments giving the interest rate markets, so won't be doing for the sake of it.
7. Maintain our weighting on Thai equities. If the market rallies, watch our overall weighting doesn't increase too much. I still want a reasonable exposure here. The issue is we already have that exposure so don't need to build it or add more, partly as a result of good returns in Thai equities since 1998. Cash rates are poor. THB bonds still unattractive. Although I'm not that bullish on the Thai equity market, it's one of the better options long term for THB assets, and living here THB assets are important.
8. Try and identify a few more income yielding assets in Thailand.
Like the TMB property income fund last year. A nice addition to diversify (although dividend streams have been a bit uncertain for it)
9. Buy more of the Krungrsi Global Income/ JPM Global Income fund in the wife's name, as well as the kids. It's well diversified across major asset classes, and it's the type of thing she could hold for 30 years+ even if something happened to me. It proved quite defensive last year in tough markets and yields 4%+. A good solid, simple core holding to add to.
10. Keep putting away some money each month for the kids future - mainly equity funds, to hold until they're at least 18, but also in case they need earlier. Krungsri Global Income is again useful here in addition to pure equity funds, in case some of the money was needed earlier than expected.
11. Continue to build more cash. Don't see any big purchases this year, but will need deposits if we switch schools and/or move house next year. Continue to spread the money across different family member names in different banks given a possible lowering of deposit protection in August.
StanChart's eSaver, TMB's ME accounts and TMB No-fixed have been consistent decent rate accounts. I can't be bothered keep chopping and changing, so these will help form a core. Will see if we can open new ME acounts for the girls (only available to Thais), given the youngest will get her Thai ID card this year
Cheers
Fletch
