Financial Freedom

Do You Earn More Than Singapore's Median Monthly Household Income?

A frequent topic of discussion amongst people in Singapore is whether their household income is more than the median household income.

The Department of Statistics in Singapore publishes a report that is titled "Key Household Income Trends" every year. The latest report is dated 2013.

Some points to note first. The paper only highlights income from work received by all working members of the household from employment and business. This means that it does not include income from dividends, etc.

Some people often mistakenly assume that the figures are the median income of a worker employed in Singapore. It is not. It refers to the household income.

So here are the numbers:

Among resident employed households, median monthly household income increased from $7570 in 2012 to $7870 in 2013. This represents a 4.0% growth in nominal terms, or 1.6% in real terms (where the Consumer Price Index) is used as a deflator to compute real income changes.
Taking household size, median monthly household income from work per household member rose by 5.6 per cent in nominal terms, or 3.2 per cent in real terms.

I make three observations on the median monthly household income figures:

Firstly, we can see that the median household income amongst resident employed households is almost reaching $8,000. However, we also note that resident employed households does not equal to the resident households in Singapore. As many as 9.4% of the resident households in Singapore have no working persons with 6.1% of these considered as "Retiree" households. That means that the data on the median monthly household income is only representative of 90.6% of the resident households in Singapore. Granted that some of these households might be really poor, 6.1% of these households probably have accumulated more assets/wealth/passive income compared to a household that is earning $7870.

Secondly, the survey only relates to roughly 70% of the population in Singapore since the focus is only on households that are headed by Singaporeans and PRs (granted that some of the non-Singapore citizens or PRs might actually be under a household headed by a Singapore citizen or PR). This is because the analysis is only based on households headed by Singaporean and permanent resident (PR). In 2014, the total Singapore population was 5.469 million. The resident population (Singaporean and PR) was 3.87million. This means that t

Thirdly, we should also take note that the source of data is from a sample of households surveyed in the June Comprehensive Labour Force Surveys conducted by the Ministry of Manpower. Based on what I googled, it appears that 30,000 households were surveyed. So this is only a sample of survey results and might not indicate or depict the true picture of the state of affairs.

So if you think that having a household income of greater than $7870 puts you in the top 50% of the Singapore population, think again.

Dividends for October 2014

Another month has passed. Dividends collected for October 2014 was $513.

Main contributors were:
(i) distributions from bond fund
(ii) distribution from ETFs
(iii) OCBC 360 Account (which offers a neat 3%).

Besides that it was the usual from other monthly dividend paying stocks that I hold in my portfolio.

Is the bull market coming to an end?

Lately, after seeing the various stock indices hit their historical highs even amidst the news that the Fed's QE was coming to and end, I started wondering whether the bull market might possibly be coming to an end. One certain sign is the number of people who are probably interested in the stock markets again. We all know for a fact too that this bull run has gone on for some time now. So is this bull market coming to and end?

Some points I consider:

Unemployment rate in US has improved but is still worrying in Europe.
Federal Reserve stopping QE but ECB and BoJ are maintaining low interest rates.
China growth story seems intact.
Stock market still trading around historical P/E ratios.
Oil prices are low which ought to be good for businesses, no?
Investors' interest in stock market and their sentiments.
Low gold prices indicates fear of inflation or hyperinflation is probably low.
"THIS TIME IT IS DIFFERENT" syndrome has not appeared.

From a very rudimentary analysis, it will thus seem that the bull market still has some legs to go. How much longer is anybody's guess. Probably till 2015? What do you think?

Falcao's First Goal for Manchester United Against Everton

So Manchester United won 2-1 against Everton tonight even without the services of Rooney who is out on suspension. Here is Falcao's first goal scored as a Manchester United player:

Angel di Maria's first goal which gave Manchester United the lead is below:

I Didn't Know My Own Strength - Amazing X Factor Performance

Am a semi-fan of X Factor. I like how they spot raw talent. This is an amazing rendition of Whitney Houston's song by Andrea Faustini. I think he does a wonderful version of it. You can check out Whitney Houston's version in the subsequent video below. Which do you think is better?

Happy long weekends!!! (at least for my readers in Singapore)

You can check out other entertaining videos here or here:

Dividends for August and September

Since I am so far behind in my computations for the amount of dividends received, I have combined the money received over the months of August and September 2014.

For August 2014, I received $389 in dividends
For September 2014, I received $396 in dividends

I am setting a year end target of $500 in monthly dividends and hopefully I can achieve it.

There are only 3 more months to go before the year comes to a close so it is quite challenging a goal. I guess I had digress from the earlier goals that I had set out for myself.

Anyway, what strikes me lately in the newspapers is the number of property advertisements. It seems like every other page is filled with an advertisement calling out for people to own a condo either in some exclusive district in Singapore or to own a property in Bangkok/Australia/London, etc. You get the drift. Is this a sign of the times?

Check out my dividends for previous months:

Dividends for July 2014

Have been a little busy to update. Finally found some time to sit down and compile the dividends collected for the month of July 2014. Well, better late than never =)

Dividends collected was $331. Pretty normal.

I have been just too busy to find the time to sit down and write over the past few months. Hopefully, I will get more time soon.

Where I am sitting at right now, the skies are blue and a warm breeze is blowing by. There are so many dreams that remain there for the grabs. At the same time, there is a sense of contentment that I have. Not that I have accomplished much. But perhaps another door is opening and my focus on life has changed.

Please see dividends for other months compiled below: