April 2022 – Personal Wealth Life Cycle Management (PWLCM)

Guide to MediSave Grant for Newborns (MGN), Child Development Account (CDA) & Post-Secondary Education Account (PSEA)

Refer to the list of acronyms on CPF in the following blog posts:
https://pwlcm.wordpress.com/2022/01/06/acronym-cpf/

I am a CPF Volunteer. If you find this blog post providing useful information about CPF matters and it leads you to using CPF online services, you may fill in my full name “Tan Choong Hwee” in the “Referrer Name” field in some selected CPF online services.

There are a few schemes where the government is putting money directly or indirectly into your CPF Accounts when you are young.

MediSave Grant for Newborns (MGN)

All Singapore Citizen newborns are credited with a $4,000 MediSave Grant for Newborns (MSN) in their CPF MediSave Account (MA):
https://www.madeforfamilies.gov.sg/support-measures/raising-your-child/healthcare/medisave-grant-for-newborns

Child Development Account (CDA)

As part of the Baby Bonus Scheme, all Singapore Citizen newborns would have a special savings account known as Child Development Account (CDA) opened and credited with the CDA First Step Grant of $3,000:
https://www.msf.gov.sg/policies/Strong-and-Stable-Families/Supporting-Families/Pages/Baby-Bonus-Scheme.aspx#CDA

After that, your parents can deposit money in your CDA, and there would be dollar-for-dollar Government Co-Matching for each dollar deposited, up to the stipulated caps according to your birth order:

Post-Secondary Education Account (PSEA)

When you turn 12 years old, your CDA would be closed and any unused CDA balance would be transferred to another account known as Post-Secondary Education Account (PSEA):
https://www.moe.gov.sg/financial-matters/psea

The PSEA balance will earn interest pegged to the CPF OA, which is currently 2.5% p.a., but the extra 1% interest on the first $20,000 in the CPF OA will not apply to the PSEA.

When you turn 31 years old, your PSEA would be closed and any unused PSEA balance would be transferred to your CPF OA.

Reference Links

My Series of Blog Posts on Robo War Experiment

This blog post serves as a content page for a series of blog posts published here on my Robo War Experiment (RWE). I would update the list as I add more RWE posts to the blog.

Robo War Experiment (RWE) Update – March 2022

This is a performance update to my Robo War Experiment (RWE) posted here:
https://pwlcm.wordpress.com/2022/03/03/robo-war-experiment-rwe-update-february-2022/

Disclaimer: This post is just for educational sharing purposes. Please do your own due diligence on any products mentioned in this post.

Performance Update

Here is the March 2022 Performance Update:

It is worth noting that StashAway was the only robo advisor that suffered a loss in March, while the other 2 robo advisors and the benchmark indices staged a decent recovery.

On 14 March 2022, I received a notification email from StashAway that they are re-optimizing the SRI 36% portfolio. The key change was the reduction of exposure to China equities, citing the risk of secondary sanctions on China due to its close relationship and continued dealings with Russia amidst its invasion of Ukraine:

As seen in the above changes in SRI 36% portfolio, the China equities (represented by KWEB) exposure is cut to 0% allocation Let us see what was the price movement of KWEB from 14 to 31 March 2022:

KWEB staged an impressive 34.54% recovery from $21.19 to $28.51 during this period. With KWEB previous allocation ranging from 16%~24%, it could have been a 5.53% to 8.29% impact on the SRI 36% portfolio respectively. That alone could improve the March return from -3.45% to the range of +1.89% to +4.55% respectively.

To be fair, StashAway had taken the appropriate action cutting allocation in China equities with respect to risk management. It is just that they were unlucky with their timing, where they sold KWEB near the recent swing low and missed the recovery to end March. It goes to show how difficult it is to time the market.

At the moment, KWEB chart remained bearish as the price is below the Ichimoku Cloud. It may still turn down further and justify StashAway re-optimization action.

Key Observations

Both Endowus and Syfe recovered and turned into positive territory for March, inline with the recovery of the benchmark indices.
StashAway suffered a loss in March due to the ill-timed portfolio re-optimization that cut their China equities and missed the recovery of KWEB from mid March.
Till date, Endowus is the best performer among the 3 robo advisors. StashAway is falling behind by a great margin, it is going to take a long time for them to catch up with the rest.

Referral Links/Codes

Endowus: https://endowus.com/invite?code=J6YV3
Syfe: SRPTRJTFQ
StashAway: https://www.stashaway.sg/referrals/choonght43

My Series of Blog Posts on Crypto Investment

This blog post serves as a content page for a series of blog posts published here on my crypto investment. I would update the list as I add more crypto investment posts to the blog.

Crypto Investment Update – March 2022

This is a performance update to my crypto portfolio posted here:
https://pwlcm.wordpress.com/2022/03/01/crypto-investment-update-february-2022/

Disclaimer: This post is just for educational sharing purposes. Please do your own due diligence on any products mentioned in this post.

Performance Update

The crypto market continued the recovery in March:

LUNA remained the best performing coins, which in fact had broken new high in March. BTC, ETH and even the laggard SOL broke above the Ichimoku Cloud.

Here is the performance update as of end March 2022:

My crypto portfolio allocation had increased from 6.49% to 7.34%, with SOL the only coins in the red and its loss was reduced.

Referral Links

Tokenize Exchange: https://tokenize.exchange/topic/invited/?invite_code=Vn58M