What Happens If You Are Almost 100% Vested?

Yes. I am almost 100% vested todate and it is frustrating.

You will have thought that the vast amount of experience I gain over the years will be able to carry me through this downtrend.

But no, at this point in time, the little cash I have left with make me doubt myself at times. This is especially so, when you know US market will fall more after New York declared a state of emergency.

So what did I do?

I wrote down all on companies I have on a piece of paper and stay away from all share price information. Then I decide which company in my portfolio I will want to add, hold or sell/reduce.

I realize I tend to remember the most important points of each company during this exercise. This point will eventually be the main reason why I bought in the first place and my subsequent action.

Next, I determine the cash I have if all selling actions are completed. After that, I filter out those companies that will recover the fastest or had declared dividends that will eventually be given out.

This will eventually allow me to concentrate the little cash I have to buy these companies.

So what else will I be doing?

However, I still realize that my cash amount is still slightly insufficient. Do note that, after the initial exercise, I decided only on 2 to 3 companies.

So I decided to leverage, not via margin, but to borrow from banks as an individual at a very low interest rate (below 3.5% pa). There is currently a facility in every bank that provides this service.

Nevertheless, this amount will not be significant but sufficient for now.

The reason I did not go for margin account is because, in this downtrend, I am unable to see the bottom yet. To leverage through margin at this point in time will be foolish. However, it is also important that one gets ready a margin account if the requirement arises in the later stage.

The reason I go for a bank loan is due to the fact that I will have some cash to purchase the selected companies at the current share price, with the ability to repay the purchase through installments or in phases over a fixed period of time.

Obviously, all plans have risks. The main risk is I lose my job and the ability to repay the purchase. Thus, I must ensure that I am employed during this period of repayment.

Crazy Plan. Crazy Thoughts. Crazy Portfolio.

These information were shared with members of my Fundamental Scorecard Telegram group. If you are interested, feel free to join us. 

We talk about everything under the sun about investing with a focus on US, HK (slightly lesser) and SG companies.