Is US stock going into correction?

Uncle tracks my asset valuations once a month. There is a non-trivial decline comparing Feb to Jan 2025. This isn't pleasant for someone who doesn't have income from work, and depends on cashflow from investments, as well as capital preservation from investments. Yes, these are paper value, not realize losses. But it still bothers me. Some fat dividends are coming in Mar and May to cushion this fortunately. Still, it's both refreshing and alarming to go through this experience...the experience of not working and seeing investments value drop. It can be depressing.

But I must step back and see the bigger picture. Things can do down/up in market in short term, key is to have a cash buffer to ride it out and to also invest wisely and diversify accordingly.

Wish me good luck and fortune!

Maybe I will strike TOTO!! that would solve my problems!! hahaha

Comments

CPF balances 24 July 2024

I think for SA, my balance is considered "self-sustaining" as the 4% pa for SA could ensure my balance will continue to meet the FRS requirement every year until I reach 55. from CPF website, my SA balance already exceeds FRS for 2024. Every year, the FRS increases a little for inflation. E.g. the FRS for 2025 is 3.4% increase compared to 2024. But SA interest rate is 4%, so as long as you already reach FRS amount for current year, you will be fine I think, even if you stopped working (i.e. SA stops having contribution)

Income tax for YA2024

Lesser than previous years due to lower stock prices during vest date. Got lucky. Interest-free instalment for paying income tax spread over 12 months...about $5k per month. Quite a lot of cash outflow per month just to pay tax, but I think this is already low compared to most other countries

Getting comfortable without a salary from working

Not sure if I am there yet. Basically I am effectively drawing down my cash each month, primarily due to 2 things : mortgage and income tax mortgage (after CPF) is about $9k per month income tax is about $5k per month My investment cashflow covers all my other expenses, including utilities, groceries, handphone/internet bills, insurance, property taxes, condo maintenance fees, personal spending. With some input from wife who is still working, I am still out of pocket by almost $11k per month. She will continue to be able to save a decent sum per month and I'll let her grow that and managed it for her via safe investments. Am I comfortable? Not really. I will if I am not out of pocket per month. If I really stop working for good, the income tax amount will go to $0 after 2025. So only mortgage left We can pay off the mortgage but I think I said before, it doesn't make sense since it's our home and we will be locking the money up with little leeway to do other things. So I ...

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