Securing my 2028 expenses this year was entirely unexpected.
Unlike the previous two years when my portfolio returned about 15%, I am anticipating a negative return this year. Hence, I was planning to ride through with my cash buffer, without any portfolio drawdown.
However, a recent review of my REITs positions sparked an idea: I could switch from my cash-funded individual REITs to a CPF-funded REITs ETF!
I was so taken with the idea that I put it into motion right away, and the image below shows the stocks I bought and sold yesterday.
With theses moves, my portfolio’s exposure to the three Mapletree REITs is now solely through my CPF investment in NikkoAM-StraitsTrading Asia ex Japan REIT ETF (SGX : CFA).
In other words, I am left with two individual REITs in my portfolio — Frasers Centrepoint Trust (SGX: J69U) and Parkway Life REIT (SGX: C2PU). Combined with CFA, REITs now make up about 24% of my portfolio.
This strategic move works well for me, as it not only secured my expenses for 2028, but largely maintained my REIT exposure in my portfolio. While I wish I’d thought of it earlier, I’m not dwelling on that; in fact, I’m feeling quite grateful about this new development.
Let me share the context.
Three years ago, as I considered leaving my regular job, one of the two key considerations was not to deplete my funds before my CPF becomes accessible in 2029. Hence, yesterday’s action makes it highly probable that I’ll hit this milestone!
As for the second consideration, it was not to run out of money by age 90. Thus far, in spite of the pressure from the global turmoil and market uncertainties, it remains on track. But of course it’s still early days and I will continue to monitor and make adjustments accordingly as things unfold.
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