Portfolio Review (July 2025)

Review of my Portfolio (31/07/2025)

Total unrealized profit: + 30.0%

YTD performance: +5.0%

Added in July

Goal 1: ( $ 58,205.75 / $ 80,464) ⚔️

Growth Portfolio: XLV, AAPL

Dividend Portfolio: YLD, CLR, M44U, T82U, AJBU, United Global Durable Equities

Portfolio Weightage

Dividend Recieved

Goal 2: ($ 9,137.70 / $ 17,117) ❤️

Dividend recieved in July = $ 673.65

Passive Income Portfolio

• Passive income is a cornerstone of long-term financial freedom.
• It is a powerful tool for reducing dependency on employment and building lasting wealth.
• Passive income provides a more sustainable and psychologically secure path to financial freedom than selling off investments to fund expenses.

What does "safe" mean to you?

• There is no 100% risk-free financial products.
• Even the "safest" option carrying some form of risk.

1. Principle Protection?
2. No Volatility?
3. Keep up with inflation?

Products / Purpose / Risks

• Instead of looking for risk-free products, a better approach is to build a passive income portfolio that balance safety, income and growth.
• Thus is important to understand the purpose and risks of different financial products and its risks.

Passive Income Milestones

• In general, there a several milestones for different passive income level.
• At level 3, we will be able to survive in Singapore without a job, cover essential expenses (include housing), but no luxuries. We probably still to have to do some gig work if we choose to quit our 9 to 5.
• At level 4 financial independence is achieved.
• Singapore banks and Reits typically pay a yield of 5 to 6% p.a.
• If we will be able to invest consistently at least $3000 every month and reinvest the dividend, we will be able to achieve F.I. in less than 15 years.

Index/Growth investors VS Dividend investors

• An index investors focused more on net worth growth, while a dividend investors are more income-focused, enjoying cahflow hitting the account.
• Thus it’s not that easy to switch from growth investing to dividend investing later in life, despite how often that advice gets repeated.
• This shift in priorities takes mental rewiring, not just reallocating assets.
• A better strategy is to blend both strategies when young, gradually tilting toward dividend producing assets. This makes the transition smoother and less emotional.

Conclusions

• Financial independence is a progressive process of replacing active income with passive income, until passive income exceeds expenses, creating a surplus.
• However, the key to successful investing is not only giving it time to compound, but also consistently increasing our capital.
• Time fuels compounding, but growing our capital is what accelerates our journey to wealth.
• The fastest way to increase capital is to (1) maximise income through our job, (2) save aggressively (more than 50%), (3) reinvest dividend and (4) explore side hustle / scalable business.