Passive Earnings. Alibaba. CPF. Bitcoin. Semi-retirement.

Alibaba is now roughly 6.5% of my portfolio.

Strictly talking, it did not begin this 12 months as my first buy was in December final 12 months.

Anyway, for somebody who is thought for investing for earnings, Alibaba is an odd alternative since its dividend yield is round 1% solely.

Nonetheless, in case you are following me in my YouTube channel the place I’ve been sharing my ideas extra often, you’d know why.

I have already got a comparatively giant portfolio of earnings producing shares.

The passive earnings generated exceeds what I want in life by a giant margin.

There isn’t a urgency to additional develop my publicity to those shares, logically.

I additionally made movies about cash in my CPF account and the way that’s going to generate passive earnings for me quickly.

Though we earn curiosity earnings in our CPF account, realistically, we can not rely that as passive earnings till we flip 55 as that’s once we can withdraw the curiosity earned from our OA yearly.

I’m going for the Enhanced Retirement Sum which might generate $3,400 in month-to-month earnings for me once I flip 65.

And the remainder of the cash in my CPF OA would generate about $20,000 yearly in curiosity earnings which I can withdraw from age 55.

I flip 55 subsequent 12 months.

So, making additional investments for earnings at this stage is absolutely not a precedence for me.

With coverage threat in China largely gone, investing in an undervalued and rising AI and cloud computing infrastructure firm like Alibaba is enticing to me.

In fact, most of Alibaba’s enterprise continues to be in e-commerce however that’s what generates the money for them to spend money on the quick rising cloud computing infrastructure enterprise.

I’ve talked about this many occasions in my YouTube channel.

So, I will not rehash.

The following factor I’m going to speak to myself about may shock some readers however for these with higher reminiscence, it will not be all that surprising.

I’ve been shopping for extra bitcoin.

About 3 years in the past, I stated that I modified my thoughts and acquired bitcoin.

I used to be satisfied that bitcoin was digital gold after performing some analysis.

Similar to bodily gold and silver, I feel having some bitcoin as insurance coverage in opposition to flawed fiat currencies is prudent.

It’s a good insurance coverage in opposition to financial debasement because the world print extra of fiat currencies non cease.

Bitcoin is a more durable cash than even gold and silver.

Onerous as in laborious to provide versus straightforward cash like fiat cash which will be printed infinitely.

Similar to Alibaba, I’ve shared my ideas on bitcoin in my YouTube channel often.

So, in case you are , please search “bitcoin” in my YouTube channel and you will note these movies.

In one of many movies, I stated I’ve turn out to be extra snug with bitcoin after doing extra analysis and determined to extend my publicity to it.

In that video, I stated I want to enhance my publicity to five%.

Nonetheless, I’ve since then determined it needs to be 10% to fifteen% to ensure that it to be enough.

Why?

Since I have a look at bitcoin as insurance coverage, the way in which I made a decision that I used to be “under-insured” was to see how a lot protection I had in conventional insurance coverage.

In conventional insurance coverage, I needed to die for the advantages to be paid out to my household and the quantity far exceeded my publicity to bitcoin.

So, I used that as a yardstick to build up extra bitcoin and one benefit of bitcoin as insurance coverage is that I haven’t got to die to take pleasure in the advantages.

Not one thing which issues an excessive amount of to me however it’s a plus.

I’m very removed from my newly set aim.

Since my final video on bitcoin, subsequently, there was a stronger will to build up extra bitcoin.

Ever since Russia invaded Ukraine, we have now seen extra violence erupting on the planet.

The Israel and Iran scenario was the final straw for me and I purchased extra bitcoin when the value dipped beneath US$100K per coin like I stated I might in one among my movies.

Navy conflicts might turn out to be worldwide, if no more commonplace.

Financial disaster might turn out to be world.

Ray Dalio stated just lately that we may very well be taking a look at one thing worse than a world recession and extra clever persons are pondering that means.

I feel that it is not as dangerous investing in Alibaba and holding bitcoin in the present day.

Coverage may be very supportive now of tech firms in China.

Bitcoin is the toughest type of cash identified to mankind and it’s, in some ways, higher than gold and silver.

It’s more durable, cheaper to switch and extra transportable.

To me, there isn’t any threat in proudly owning some bitcoin however it may very well be dangerous to not personal it if we care concerning the worth of our cash and preventing fixed inflation.

To fund my purchases of Alibaba shares and bitcoin, I’ve been dismantling my T-bill ladder which I’ve talked about regularly within the final two years.

Sure, that is my warfare chest.

This fashion provides me the funds to build up bitcoin each two weeks because the ladder matures however it should solely final for a complete of 6 months.

Missing an earned earnings, I must depend on my passive earnings to additional develop my publicity to bitcoin.

That will be a really gradual course of as I eat a big a part of my passive earnings.

What to do?

If bitcoin’s value ought to decline considerably for some motive, I would promote a few of my loss making or underperforming investments to purchase extra of it to hit my new goal of 15%.

These are investments which I’ve not bought although they’ve underperformed as they appear undervalued to me on the prevailing market costs.

Nonetheless, like I’ve stated many occasions earlier than, undervalued can keep undervalued for a very long time and redeploying a number of the assets to property I’m extra involved with at the moment isn’t a foul thought to me.

The investments I’ve shortlisted for the time being are IREIT World, CLCT and Wilmar Worldwide.

In fact, when you’ve got been following me for a very long time, you’d know that I’ve not discovered REITs enticing in recent times and far most popular placing more cash to work by investing in our banks.

So, once I take into consideration elevating money, it should not be shocking that some REITs in my portfolio are thought of probably candidates.

As for Wilmar Worldwide, the latest graft case in Indonesia which brought on it to surrender some 60% of its annual revenue is, hopefully, a one-off occasion which suggests a correspondingly decrease dividend for one 12 months.

It is not a structural situation and it does not change the view that Wilmar Worldwide stays deeply undervalued however it has been undervalued for a few years and will keep undervalued for a lot of extra.

So, I made a decision that it is usually an excellent candidate for a partial divestment in case I want extra cash.

A facet profit in doing so is that I would not have as many companies to observe and this frees up time for me.

Nonetheless, it’s not a provided that I might do it.

Like I’ve at all times stated, we should all have a plan, our personal plan.

Over time, we might make adjustments however we must always not stray too removed from the unique plan, particularly if it’s a good one which suggests not touching my fairly substantial investments in DBS, OCBC and UOB, for probably the most half.

Let our winners run is the thought.

I’ve my very own plan which I make adjustments to every time needed, eavesdropping on myself and consuming my very own pudding right here.

Investing for earnings has labored effectively for me through the years and it’s prone to proceed chugging alongside.

Like I stated in an interview with The Fifth Individual, there are at all times huge funding themes and my portfolio has morphed through the years.

I really feel that the longer term goes to be very completely different and investing for earnings alone is perhaps inadequate for normal people.

If I have been to enter hibernation in the present day and get up 5 to 10 years later, the adjustments I see on the planet may shock me.

I’m taking steps to assist be sure that the shock wouldn’t be too nasty for me in such a hypothetical scenario.

AI is a part of the longer term and can convey extra adjustments, each good and dangerous.

I think that many individuals will lose their jobs inside the subsequent decade or two, each white and blue collar, or have hassle discovering jobs as AI and superior robotics take over.

They want insurance coverage as unemployment is prone to turn out to be a much bigger drawback.

Some companies will wrestle and a few will fail within the face of such adjustments.

They want insurance coverage because the enterprise atmosphere turns into much more aggressive.

Then, there may be the price of residing disaster which can solely worsen particularly for the frequent individuals as inflation isn’t going away.

Very flawed fiat currencies devalues our time and power which suggests for most individuals, they must work a lot more durable for cash and won’t be higher for it as all the things turns into way more costly.

Job insecurity plus price of residing disaster.

It’s a double whammy.

The world has not been peaceable for a while now and it’s prone to be even much less peaceable in future.

It could be a mistake to assume that Singapore can keep insulated.

We want insurance coverage.

Bitcoin is an efficient insurance coverage in such tough occasions.

It’s just about future proof as it’s the way forward for cash.

What concerning the insane value volatility of bitcoin?

Like I stated in one among my movies on bitcoin, once we purchase a life insurance coverage product, it’s for the long run and it’s the identical for me in relation to bitcoin as a result of I view it as insurance coverage.

Brief time period value fluctuations needs to be ignored and value declines are merely shopping for alternatives.

In fact, I’m going to remind myself of the significance of doing our personal due diligence earlier than making any resolution.

Please do not forget that I’m not telling individuals what to do.

I’m simply speaking to myself.

OK, now, the numbers.

Passive earnings for 2Q 2025 got here in at 

S$95,974.56

That is virtually 18% increased then passive earnings obtained in 2Q 2024 which got here in at $81,339.05.

DBS, OCBC and UOB did a lot of the heavy lifting.

This 12 months, wanting forward at 3Q and 4Q, in whole, I ought to nonetheless obtain greater than sufficient passive earnings for my wants.

The upper dividends from DBS, OCBC and UOB will compensate for the diminished contribution from IREIT World as their Berlin property is being redeveloped within the subsequent two years.

2026 won’t be as snug as OCBC and UOB are paying particular dividends for one 12 months solely.

Take a deep breath.

I nonetheless have my CPF financial savings.

All the time the worrier, I do know.

Lastly, I’m saying my semi-retirement from social media.

It’s actually for my psychological well being.

What does semi-retirement imply?

No every day, month-to-month and even quarterly updates.

I would produce 2 or 3 blogs and movies a 12 months as a result of I do know that there are people who find themselves nonetheless considering following my journey as a result of they discover it entertaining.

Sure, no monetary recommendation right here.

Simply leisure.

Until the subsequent one, keep protected.

If AK can speak to himself, so are you able to.