Saturday, November 30, 2024

Make Investing Great Again !

 



Let's discuss the US elections objectively when things calm down. This time around, I was less keen to see a Republican victory because I thought that Trump would acquiesce to Putin and bring tremendous suffering to Ukrainian civilians. Still, after reading some analysis, I don't know if Biden's vacillation and giving Ukrainians just enough to hold back the Russians is now a good idea. According to the Economist, the latest projection is that 2025 may see fighting cease at least once, which might be suitable for preserving lives. There will be some unhappiness that Putin will get to keep 20% of Ukraine, but there's a chance Ukraine is free to join the EU. 

So this now makes me ambivalent or even rather happy with a Trump victory!

Let's first look at how investors can tilt their portfolios. This central idea is that tariffs and deporting immigrants will exacerbate inflation in the US, so interest rates may be kept higher for much longer. This would be bullish for local banks but bearish for REITs. However, to what extent can Trump implement these policies? There are still some old-school fiscal conservatives amongst the American leadership, so I don't think an all-in strategy for local banks is a good idea. There has to be a mix between banks and REITs, and I prefer REITs right now, as REITs are the less popular investment choice. My pick is to go with the REITs with the lowest betas, in case the investor might be wrong. 

Hopefully, by year-end, I can pick up some high-dividend SDRs to diversify my dividends further from my usual CDP holdings. However, I'd like to know whether these SDRs will pay dividends on the payout date. I'm still quite old school and prefer to have my more static holdings under CDP because the money arrives in the bank account even if you are in a coma in a hospital. Only some enjoy waiting for the dividends to be credited into your custodian broker account, which requires a manual step to withdraw the funds. You feel less rich this way.

At the international stage, my trend-following algorithm is performing as projected by backtests, racking close to 20% gains in about 16 months. Trending ETFs are mainly US equities, gold, and crypto, but the algorithm miscalculated and was whiplashed by China tech, although losses are minimal. 

I won't talk solely about investing in the Trump era—given how unpredictable US politics will be, I'm likely to be wrong anyway.

By now, we have a clearer idea of why Trump won. 

The first reason is that despite no recession, Americans feel poor thanks to inflation. Flat-footed economists call this a vibecession. Like in Singapore, families are dealing with larger mortgage payments and lower amounts for discretionary spending. Almost everyone is out of the country, so you can feel richer in JB or even Kyoto, Japan. I spent more than $100 on movie tickets here this week. 

The second reason is a massive backlash against the woke ideology that Kamala stands for. You can feel it here in Singapore. Almost every middle-aged guy here is unhappy with identity politics in Marvel movies and computer games. Games like Concord and Dragon Age: Veilguard angered not just white male gamers in the US. I have gamers here ranting and raving about it. 

Elon Musk knew something when he gave a speech referring to "incremental political science majors" as the target of all this hatred. This resonated with my engineer identity during my working days when any work that had to be referred to the legal department would somehow delay my project or end up doubling the workload - after a vicious dressing down from an effete but legally trained bureaucrat soy boy. You want to punch that guy's face in, but you can't, so you build up a dividends portfolio instead and then find out how this bastard was trained. 

(Marvel should do my origin story.)

So, I'm very familiar with the kind of blue-collar anger in the US. You do the hard work, maybe build up a small business. Then these tenured social science humanities types start to label you a bigot from their ivory towers, then even want your video game character to do 10 push-ups when you misgender someone. 

Yes, logically, these assholes are all different people. Still, to some blue-collar conservative workers, they are all one person -  the humanities goth-blue-haired land whale feminist Marxist scum who want to defund the police - represented by a Democrat president elect.

Wouldn't you want to vote for Trump, too?

Following the new politics is now giving us older gamers a massive pay-off.

I look forward to hearing the screams of the blue-haired land whales that pollute the RPG space in Singapore if Elon Musk buys Hasbro and owns the D&D brand.

That will make me return to regular gaming because I know the exact kind of DM that spouts unnecessary anti-PAP slogans before a game. After all, somehow, to them, PAP is neo-liberals.

I will tell him: 

Opposition is for they/them. PAP is for you!





Sunday, November 24, 2024

Hobbies Update : Thank you for reaching out guys!

 


This might be a rambling post, but I'd first like to thank the readers and old pals who connected with me over the past week; as an extrovert, the conversations kept me sane, and I could enjoy myself while my family was touring Taiwan. My social diary was so active I could not start watching the DanDaDan anime, and I could not even download a single game from Steam, so this affected my hobbies, but I generally prioritise personal connections over games.

But I want to talk about one more thing before I run down the hobbies that I have at the moment. Recently, there's been some insight into the fact that ageing occurs in bursts. We tend to age a lot when we reach 44 years old, 60 years old, and then another burst at 78 years old. The effect is that those who reach 44 will have problems with their metabolic rate and might not be able to purge caffeine as quickly as before. Another impact from other sources is that our neurons fire less frequently, so we will find that time passes faster. These insights are recent, and I would probably not go for a third degree if I knew that my mind would slow down when I graduate. But all this will affect the way I view my hobbies moving forward.

Ok, let's rundown what stays and what goes:

a) Reading

Reading is so powerful that it is the hobby most women find attractive on dating apps, but to be fair, most of the stuff I read is not friendly to women. I have read a lot about finance, business, and self-help; there is nothing for me every year at the Singapore Writer's Festival. But as I slow down, I am now more open to more profound and shorter self-reflective books. In fact, every December, I will have a moratorium on non-fiction books to mop up books on gaming history, Japanese fiction, and the latest Korean genre of healing literature. 

Reading healing fiction is weirdly practical because it addresses all the post-retirement identity issues that FIRE folks experience. 

I also have a new hobby, I'm now a book scavenger at the book drops in major regional libraries, and I'm always hunting for old books discarded by other Singaporeans. 

b) PC Gaming

I'm no longer a PC gamer. I will wake up to something like Baldur's Gate 3 that lets me experiment with weird D&D character builds, but otherwise, it will not play a role in my life anymore. But I love following the politics behind gaming, where gatekeepers are waging war against developers who are incorporating Woke and DEI values into franchises people love. I'm clearly on the side of the gatekeepers because I don't like getting lectured for having conservative values, so I sincerely enjoyed reading about the substantial business losses suffered by games like Concord and Dragon Age Veilguard.

I will be willing to get into games if I can convince my son to enjoy them with me. It's hard because he is 8, so the best he can do is assemble some simple Gunpla. I'm checking to see if I can get him into Warhammer 40k, paint some minis, and then roll some dice—anything is a lesser evil than brain rot from TikTok or YouTube. 

My peers have yet to successfully share a hobby with their kids, but I still want to try. 

c) Board, TCG and RPG gaming

Some old friends from my secondary school caught up with me, and we agreed to play the games we'd slowly collected over the past. However, we needed help finding folks to play with us. These are reasonably complicated games like Dune Boardgame, Legend of the 5 Rings LCG, and Battletech. If we can get a group of about 5, I promise to run D&D 2024 for them regularly. 

I was lucky because I doubted I could fit serious gaming into my life if I could not monetise it. But I game in my neighbourhood in Woodlands, so things might work out this time. 

Regardless of what game I play, I play the same way I play RPGs. I'm constantly on the attack and will recklessly charge someone if I know the rules. I don't believe in or engage in diplomacy. In L5R, I only play the Lion Clan. For Magic the Gathering, I only play black/red cards. In Battletech... I only know... DEATH FROM ABOVE!

I'm fun to play with because I tend to lose a lot. 

Thank goodness I don't invest like the way I game.

d) Trips to Johor

This isn't a hobby, but I might have more friends who can hit JB with me on a weekday to escape the cost of living in Singapore. Yesterday, I attempted to strike a fantastic chicken chop restaurant called It Roo near City Square. Then, I went to Aeon Tebrau to visit Tsutaya Bookstore before heading to a pasar malam at Tun Aminah. Now, I'm asking friends and relatives to devise a plan for Bukit Indah as we attempt a different crossing from Tuas.  

Sometimes, we are defined by what we don't do for hobbies. I no longer care about watching shows. If Disney produces more woke series like The Acolyte, I will cancel my subscription. I no longer buy comics for the same reason. I also watch fewer movies because Marvel is rethinking how to do superhero shows.


Saturday, November 16, 2024

Social Life Update : How to increase your happiness without using money.


It is time for another update as I reach my 50th-year milestone on Christmas Day. 

Today, I will talk about my social life, which has seen some tuning up recently. In 2024, as my energy and tolerance levels are dipping slowly, I've decided to create higher-quality engagements with a lower frequency. 

In other words, do more with less.

For many middle-aged folks, some social engagements add little value because the subject matter has stopped being attractive. Others may create a sense of negativity and unease, but we can get so used to them that we ignore them until they bring us down for days and permanently reduce our quality of life if we don't stop them. Lower energy levels mean disengaging from some lower-value-added activities and shifting the focus to more pleasant ones. 

This is the essence of decent ageing. A more tactical use of our time and attention, which we can default to our families.

The test is also quite simple: Does it feel better to engage in a new social activity? If it does not, then you should end the engagement as soon as possible. With time freed, try out engagements with friends you would not normally do without the spare time, and then test to see if the activities fit and feel better. 

Be open-minded to changes, and recycle your time somewhere else if you make the wrong move. 

One significant change is that I go to a Japanese Karaoke bar to sing for three hours nonstop once a month or so or when I get spare cash from government handouts. I will hog the entire karaoke because I tend to appear when there are no clients. Total damage is $44. I don't drink alcohol, just two bottles of Soda water. I am accompanied by friends who sing casually but generally prefer to be there to converse. I focus on my singing because I will qualify for Golden Age Talentime quite soon and don't want to get dragged into discussions about dividends, stocks, or legal matters.

Another change is that I've done some soul-searching about my D&D hobby, and I decided that my only motivation to run a game is if I'm paid to do so. For many years, the community has tolerated abusive Dungeon Masters who do it because it is a power trip—they get godlike powers over players who generally are doing better in life than they are. Still, players need to actually have a viable alternative. So, the professionalization of the Game Master is inevitable. We should pay good DMs at a reasonable rate. In support of that belief,  I've recently attended a delightful job interview to become a Professional Dungeon Master. Sadly, I did not get the job ( but it was probably the most enjoyable job interview I ever had), but I will look at this space aggressively as the skillset reinforces my work as a trainer and lecturer.  

Over the year, I have learned a few things about reducing social engagements and why it always works out for me. 

Because my media appearances always attract financially responsible people, the folks who invite me for dinner are generally okay, and I get to talk to people who have goals in life and are doing good things to improve their future. So, somehow, my social diaries always write themselves. 

Second, with the extra time, I've been spending some weeks trying to understand why some of my genuine fans / high-paying customers have yet to actually invest in the financial markets, even though they are loyal customers who sign up for every course I run. This bothers me a lot, but I have invested weeks to finally get at least two guys to have a small portfolio running. ( Two guys are occasional colleagues, so I guide them, but they also buddy each other. It's a sound system, but I gotta think about scaling this. )

The first reason is that people are human beings with shifting financial priorities; a student wants to get a house, so he can only start after he has moved into his new place. Another reason is that even though modern brokerages are easy to use, they tend to send many warning messages due to compliance requirements, which is very intimidating to beginners. You need the courage to tell IBKR not to display this message again. The third reason is that investors need to trade off diversified portfolios for trading fluency. To get someone into the markets, you have to start with 2-3 stocks that cost less than $2,000 to trade but to do this, the trainer must caveat that this is not a diversified mix of counters and is just a confidence-building exercise.  Finally, the odds of succeeding rests upon the student's digital literacy, so if you get someone above 60, make sure he's an engineer before you agree to help. 

Anyway, my family is out on a trip this upcoming week, but I'm stuck with lectures I need to conduct; we'll see if my social calendar fills out this week. Let's use random chance for blog readers -  I'm available Mondays from next Friday until next week. 

Some loyal readers have reached out to me in the past. Let me know if you are free.



Saturday, November 09, 2024

Deeper thoughts about FATFIRE

 


This weekend, I will attempt to think deeply about FATFIRE, as I suspect that over the years, many millennials have reached their 40s and are well past their FIRE objectives. I am now trying to figure out what life goals to pursue next. As most of the folks who will play with early retirement are INTJ strategists, there is a range of other MBTI types like ENTJs ( which I am borderline ). 

The aim is to go beyond a goal-shifting exercise like ENTJs are prone to. Also, I want to acknowledge that I enjoy non-toxic work and interacting with younger people and investors. 

As I've alluded to in my latest YouTube video, financial independence is resetting your working life and trading off leisure time for work to maximise personal satisfaction. The point at which the marginal tradeoff of an hour of leisure to an hour of work produces zero increase in life satisfaction differs from individual to individual. Additionally, I suspect extroverts have a much larger point of equilibrium where marginal work = marginal leisure. I'm at about 15 hours a week on average and have a capacity of perhaps up to 21 hours - but getting back to conventional employment is impractical for me these days. I wonder if INTJs have the energy to work 20+ hours a week if they never have to work. Hence, there is a tendency for more ENTJs to go after FATFIRE.

Okay, once we've established my mental model, which is familiar to many economics majors, let's discuss how FATFIRE can redefine a new financial metric more creatively than simply the safe withdrawal rate. 

a) Safe rate of withdrawal

The conventional approach is to declare a comfortable lifestyle for yourself. If this is $10,000 a month, then a safe 4% withdrawal rate can be attained at a net worth of $3,000,000. It's easy, elegant, and quite suitable for singles. Critics can argue that this was tested to last about 35 years, but in practice, you can just lower your expenditure when things become non-ideal later. 

You are still retiring with a lot.

b) Sustainable, safe rate of withdrawal

For folks uncomfortable with ratcheting up the drawdown based on inflation, my models suggest applying a safe withdrawal rate of about 2.6% every year based on the prevailing portfolio size at the year of retrieval. The caveat is that you need a balanced ETF asset mix for this to work. 

The advantage is you never have to worry about hitting zero, as portfolio losses will lead to lower withdrawals on a bad year. However, this number also maximises your utility over time as withdrawals increase faster than the inflation rate, and your portfolio tends to grow faster.

Therefore, a portfolio of $3,000,000 will generate $78,000 a year, but it can potentially grow faster than the rate of inflation. 

The disadvantage is that you will always have money, so this is best for folks with children who can pass on a nice lump sum that will sustain them in the future. 

I don't see any point in making your nieces and nephews multimillionaires after you die. 

c) Every family member can FIRE

Another way to stretch the goalposts for folks with families is to enable FIRE for every family member. For a single person to FIRE at $2,000 per month, you need $600,000. A four-person family would need $2,400,000.

The benchmark may be lower than other forms of FATFIRE, but some may question whether it is wise to gift FIRE to your kids before they can earn a single cent in the industry. There's a lot of hypocrisy here, as many parents think spending thousands on tuition is justified to delay their retirement goals. 

d) Work until every family member is a millionaire

Finally, I want to share my new financial goals. Given that I do some work and am pretty happy with my life, reinvesting substantial amounts into my real estate portfolios, a simple and relatively visceral goal is to ensure that everyone in the household can be a millionaire. 

The resulting lifestyle is manageable, and there are plenty of things to do and accomplishments for the next generation. 

It is slightly more ambitious than (c) and provides me time to create a balanced mix of work and play without resorting to crass materialism in Singapore society. 

e) Become my definition of wealthy

Finally, I want to state my definition of a rich person. 

A rich person can live with dividends arising from dividends earned in the previous year. 

To live, do that with $2000 a month. A rich person would need about $600,000 of dividends in the previous year. At 5% dividends, his portfolio needs to be $12,000,000.

I'm nowhere close, but some folks in the social media space are there. At this stage, it's safe to assume that someone is finally considered wealthy. There's no real need to pontificate about safe rates of withdrawal or career choices at this level. 

Maybe one day, I can philosophize about being rich.

To summarise, I've never thought very highly about FATFIRE or the folks who keep harping about them. As an ENTJ, I know it's some sad excuse to postpone retirement or create some kind of barrier to convince INTJs that what they aim for is inadequate. At its base, it's just the simple idea that retirement is meaningless if you get more life satisfaction by trading off some of your leisure time with work. 

Happiness always contains a bit of entering flow from deep, meaningful work or personal accomplishments; I totally get that. However, financial independence is the essential ingredient for even realising that such tradeoffs are possible by leaving a toxic workplace and creating a career that suits your inclinations and investment of time. 


Saturday, November 02, 2024

Interest in Personal Finance comes from understanding the Marshmallow Experiment

 


Given enough time, I try to transfer some of the skills and resources I have to other domains of my work to become more effective at it. The basis for doing this is to simply read aggressively - a lot of readers do not give me enough credit for the sheer volume of books I read too well in my portfolio job roles.

First, when I started teaching in a tertiary institution, I knew I had some basic public speaking skills from many years of Toastmasters work. Above all, conducting training for adults who pay thousands to attend my workshop has also thickened my skin and forced me to address every question that can possibly be contemplated over the subject matter. Paid customers deserve the best answers they can get!

So, I did not come into Adjunct Law lecturing with nothing. I come with a distinctive style adapted from the private sector. I come with software subscriptions to make training more accessible and auditable. It's a personal competitive advantage. Slide creation, rapid diagnostics, and grammatical corrections all accompany what I'm paid to do. 

So now I have to perform the reverse operation. What work do I do in the tertiary institution, and what do I bring back into my investment training?

I learned some useful stuff in my transition into teaching in public - Bloom's Taxonomy and various teaching frameworks- which can be too theoretical and not really applicable when trying to convince folks to try dividend stocks in this age dominated by US tech stocks. 

But I think everything is slowly paying off, as I'm now trusted enough to teach fundamental business law to pre-employment students or 17-year-olds.

So, I've started reading about motivating young people, which I can use for my kids.

The essence of motivating 10 to 25-year-olds is to banish the idea that teenagers are lazy and incompetent adults who lack motivation. Instead, we need to see young adults and adolescents as folks trying to jockey for a position within their hierarchy in the search for status and respect. If we can find a way to motivate them to do something to look good in front of their peers, they may be more motivated and effective than adults. The hard part for lecturers is that we must adopt a mentor mindset and set high standards while giving high personal support. Being too strict can backfire, but mollycoddling them will also not work as well. 

How does learning how to motivate teens tell us about motivating adults?

It's hard in this industry. To understand how hard this is, readers need to independently google the marshmallow experiment; the idea is that children who can distract themselves and wait for the second marshmallow tend to do better as adults when they grow up because they know how to delay gratification. The problem for experimenters is that future attempts to replicate the experiment found that folks who can resist temptation came from wealthy families who may not be too keen to eat marshmallows anyway. I got my son into NUS to run the experiment, but they offered him some KitKat, which was not a big deal. If it was a coin token for an arcade game, it would be much harder for my kids to resist.

Anyway, the experiment was done for kids who can wait, maybe 20 minutes, for another marshmallow.

Imagine what happens when you do dividends investing in SGX. 

With PEs between 12 and 13, the long-term real rate of return is about 7+%. Applying the rule of 72, we can calculate that a dividend portfolio can double itself every decade.

So this is the problem with personal finance. 

We are asking folks to give up eating a marshmallow to get two marshmallows in 10 years. And we have to tell them that the second marshmallow is not guaranteed because of market volatility. There may even be an incident when you lose that one marshmallow you've held back for a decade.

The industry has invested in many ways around the marshmallow problem. The most effective way is to cherry-pick specific investment themes that are hot with high recent returns and then maybe convince folks that their second marshmallow is just 2-3 years away. 

How can folks like me flip the script?

One way is for me to get potential clients to consider this. 

If you set aside 12 marshmallows, you can get 1 every year. With 144 marshmallows, it's a marshmallow a month. 

Follow my approach, and you will drown in marshmallows, and you will end up diabetic like me.





Sunday, October 27, 2024

Financial Update : Optimism on the horizon, but it's so hard to make things work this year

 Before I begin, here's a link to a video I made with Budget Babe. Please support her YouTube channel.



Today, I will provide a personal rundown of my financial situation, which I think is much more optimistic than my business update, which feels like Sisyphus pushing a rock up the hill. 

For folks who follow my blog, I'm one of those stubborn dividend investors who invest primarily in Singapore. We have suffered for many years as interest rates have started to increase. But even before 2022, SGX was not a dynamic place to park your money. There's even a word, "moribund," to describe it. 

For folks who understand why I'm this stubborn, I am animated by the simple idea that our cyclically adjusted PE ratio remains around 12-13, which gives me a rough estimate of long-term growth, natural growth of over 7%, the bulk of it coming from generous dividends. This 7% does not include inflation. After accounting for inflation, we can expect 10+% per year, but it takes a long time to experience such returns. Markets can experience mean reversion only if interest rates drop over the next few years and MAS starts acting on market reforms. With too many if's and but's, my technique has been a butt of jokes for many years. If it does not come from crypto bros, it will come from Chinese and AI investors. 

The critics will change, and we dividend investors will outlive them all. 

Still, the mistakes I made this year are pretty legion but tolerable:

a) Interest rates play is not as easy as it looks

Last year, I had some success putting a big chunk of my assets into local banks as I had evidence of our performance when interest rates increased. This year, I tried to move some banking assets into REITS in anticipation of lower rates, but this has been a frustration as DBS continued up and my REIT picks went down. I was cautious and only bought REITs with the lowest beta on STI, such as MINT and FCT, but I think I would do better if I sat on my hands.

This is why I hate trading. 

b) China bazooka turned out to be a damp squib

The other dumb move was minimal but very stupid. My trend-following algorithms flagged momentum on China technology stocks, so I took a mere $600 position on CQQQ; it leapt 25% and initially then dropped precipitously. It's actually negative today. I seldom act on ETFs and parked about $500 each on MPACT and CLCT to see whether there is a rebound. I was wrong on all counts, and every position is negative today. The central narrative that China is a communist country that does not respect business acumen and private property remains true today.  But let's see how this plays out over the next year.

I don't think SGX investors will see the end of jokes. If we sink lower, we'd be made fun of by folks who invest in Bursa Malaysia, which had an excellent year of IPOs. 

But what about actual numbers?

Capital gains-wise, my net worth in SGX (This includes my legacy positions and partly ERM student positions, which are up with IRR of about 3%.) dipped slightly, about 9%, over the past 6 years. Still, I've also directed my funds into SRS, CPF, and home mortgage equity to optimise my taxes over this time. My net worth never really experienced a down year - all this while we spent money as a family with large sums spent on tuition. While Singapore stocks dipped or stayed flat, real estate prices spiked, and CPF returns stayed steady with a slight appreciation of interest rates. This is a testament to the common sense of local dividends investors - most of us have homes that appreciate value and locked CPF funds. We've never been one trick ponies.

So 2024 has been shaping out to be a great year; the market portfolio is up six digits, and I doubt home prices will retreat much, even with cooling measures. I still have this crazy ambition to make every family member in my household a millionaire over the next few years. We're close, but I need just one year for the markets and my business to succeed simultaneously. 

If it's not 2025, it'd better be 2026.





Saturday, October 19, 2024

Is financial literacy considered cultural capital ?

 



I will see whether I can try to blog twice this week, as this discussion has some merit. I was told that in the mainstream press, someone said that demonstrating financial literacy is a signifier of cultural capital. In some parts of Singapore, it can be quite a "flex." I thought I would delve deeper into this issue because I'm deeply interested in alternative forms of capital, like social or cultural capital.

Looking at the surface, I was unconvinced that financial literacy is cultural capital. It is basic knowledge that every Singaporean should know, but the finance industry has cultivated a team of commissioned salespeople to gatekeep his endeavour. Furthermore, rudimentary financial knowledge may subtly hint that you might be a commissioned financial advisor - someone that polite society should avoid in, especially in shopping malls and MRT stations.

Nevertheless, I was able to do some Googling to find out what constitutes culture. We can then apply some analysis to see whether this is true, tapping into ideas from sociologists like Pierre Bourdieu and Jean-Clauge Passeron.

a) Cultural capital can be embodied.

Sometimes, you can cultivate your cultural capital by joining a profession or being born into privileged circumstances. It's rare for someone outside the legal sector to "come alive to an understanding of" something or view something as "apposite". So, these vocabulary markers might hint at being someone from that sector. 

Workplaces focusing on style rather than substance can be places of cultural warfare. An associate was shamed for loving K-pop and asked to watch Andrew Lloyd Weber instead. 

A taxi driver taught me that he knows clients are poor if they speak in absolute numbers, like a watch costing $14,000, but wealthy clients who drop off at posh locales almost always speak in percentages, like a rate of return of 7%.

Whether financial literacy can constitute cultural capital will depend on whether some part of language use is considered "atas," and I don't think that matter has been resolved yet. No matter what some people say, talking about "safe rate of withdrawal" or "sequence of return risk" is not considered posh yet. I also think that dividends in Singapore have a stronger relationship with hawker food than Michelin fare, judging from the food pictures in the Dividends chat group.

b) Cultural capital can be objectified

This is irrelevant to our discussion, but owning something can be seen as cultural capital. Art objects often play this role because they are superfluous and costly.

Not all branded goods denote cultural capital, but brands like Hermes artificially create scarcity so that their Birkin bags can claim that role. 

I believe books can signify cultural capital, but you really need to understand the genre to make this work for you. An old copy of Security Analysis by Graham and Dodd might say something about you, but only if it is a copy that is worn from use.

c) Cultural capital can be institutionalised

You can also gain cultural capital by getting some form of qualifications. This is the same reason parents want their kids to enter law or medical school; it allows their children to qualify for a different stratum of society.

For this to work, the qualification must be hard to attain. The CFA does this by failing 50% of candidates at every level, but I imagine the full qualification to become an actuary is even harder. 

Exams should not be enough to be really valuable. The best professions have their own exclusive access in the form of guilds and a specific way of communicating with each other. 

After this analysis, I don't think financial literacy is yet ready to be considered part of cultural capital. While being practical, claiming some rudimentary grasp of financial literacy is not something you wave around in a cocktail party. In fact, talking nonstop about crypto on a Tinder date is universally scorned by Singaporean women. 

But cultural capital evolves over time. In the past, quoting Shakespeare might create an impression of cultural sophistication; these days, I think you'll be much cooler if you quote Game of Thrones or Dune.

At the end of the day, discussions like this should not really matter; if a reader wishes to develop and cultivate his cultural capital, he should simply make an effort to read more than his or her peers.

Read to make yourself more knowledgeable.

Read to be able to handle a magazine like the Economist. 

The cultural capital will come with more literacy.