Portfolio Review (April 2024)

Review of my Portfolio (30/04/2024)

Total unrealized profit: +4.6%

YTD performance: +0.3%

Added in April

Goal 1: ( $35,999.96 / $81,594) ⚔️

Growth Portfolio: AAPL, QQQM

Dividend Portfolio: O39, United Global Durable Equities

Portfolio Weightage

Dividend Recieved

Goal 2: ($ 3,841.68 / $14,212) ❤️

Dividend recieved in April = $ 1,170.21

How i Plan For Retirement Or F.I.

1. How much we need?

• How much do we need is detemine by our (1) retirement age and (2) how long the fund need to last.
• We can use any retirement calculator online for approximation.

Example: Am i able to retire now?

• The more conservative we are, the more money we will need for retirement.
• I am currently 40. If my target monthly expense is $2,000 per month.
• Under 3 scenerio, holding cash, bond and equities & dividend, i will need $6.2M, $1.6M and $500k respectively. i am not ready to fully stop working. 😕
• These are the value of the assets that we planned to sell to fund our retirement.
• These amount should excludes the value of the income producing assets that is used to generate "other income after retirement".

2. How to fund our retirement?

• Are we going to (1) selling assets, (2) passive income or (3) hybrid?
• This decision will influence our portfolio construction.
• To understand which style suit us, we need to know how to make projection.

• Projection give us a glimpse into our future how our financial look like.

Example: How will my investment like in my 50?

• According to my projection, my dividend portfolio should generate $3.8k/mth and ~$642k for my growth portfolio @50. I will be able to retire without the need to sell anything, all expense can covered by passive income.
• If i go 100% growth portfolio, assume investing $60k/yr into growth portfolio instead of building my passive income, i should have $1.57M of assets to sell.

• If i go 100% dividend portfolio, $436k + ($60k x10) = $1.036M. Yield of 5% p.a. = $4.3k/mth. Which will still be sufficient $2k today = ~$3k in the future with 4% inflation.

• The challenge of 100% growth portfolio will be ensuring we dont deplete our portfolio completely before we die.
• The challenge of 100% dividend portfolio will be ensuring the payout can keep pace with inflation.
• As long our capital is big enough any strategy will work.
• Thus, the key is actually find ways to increase our capital by earning more money, then stick to our plan.

3. Setting Milestones

• Some people may feel setting milestones are unnecessary and causes anxiety; but it will helps to ensure that we stay on course.
• It may take 20 - 30 years before reaching our destination; we wont want to be at the wrong place and only noticing it at the end. Everything will be too late by then, life is an one way journey.
• Milestones are a measure between our projection and the reality. This allows us to make adjustment along the way and pull ourself back when we deviate from the path.
• Setting a New Year resolutions are mini milestones to help us achieve the main milestones.

4. Trial Retirement

• Before fully quit our job or take on less stressful job for a lesser pay, it is best to go for a trial retirement.
• A trial retirement is to be done while we are still employed.
• It will require us to change our mindset to become less career minded. If your mind is all about your job then you will never able to retire even if you are able.
• The objective is to find a balance between our happiness level and financial substainability.
• Gradually, cutting expenses that doesnt increase our happiness level and accustom to certain type of lifestyle.
• I would suggest a 5 to 10 years trial before actual retirement as it takes time to make adjustment and routinize our lifestyle.

• Some people may also worry they will have nothing to do after retirement. We may also use this time to explore what we like or things we can do just to pass time.

Previous Review

https://seedly.sg/opinions/portfolio-review-march-2024/