Portfolio Review (September 2024)

Review of my Portfolio (30/09/2024)

Total unrealized profit: +19.6 %

YTD performance: + 15.3 %

Added in July

Goal 1: ( $ 61,404.42 / $ 81,594) ⚔️

Growth Portfolio: GOOGL

Dividend Portfolio: C38U, United Global Durable Equities, Allianz income & growth

Portfolio Weightage

Dividend Recieved

Goal 2: ($ 10,142.25 / $ 14,212) ❤️

Dividend recieved in September = $ 1,194.49

LIFE, TIME & WEALTH

Different Life Stages

• Each circle represents 1 years of our life. Assuming we are able to live until 84 years old, Singapore average life expectancy.

• Age 1 to 16, are often considered a carefree period, as parents typically provide basic needs and children have minimal financial responsibilities.

• Family bonds are usually strongest during this time.

• Age 17 to 25, many of us seek part-time jobs while still studying, often experiencing our first taste of earning money.
• Our parents may still provide allowances, and we have limited financial responsibilities.

• This period also involves navigating the complexities of romantic relationships and maintaining healthy friendships.

• Age 26 to 30, newfound freedom and opportunities often come with increased responsibilities and challenges.
• We must begin managing our finances, saving for the future, and paying our own bills.

• Some individuals may experience a sense of loss when reality doesn't align with their expectations, leading them to explore new opportunities.

• Age 30 is a significant milestone.
• Financially, education level may not significantly impact wealth accumulation before age 30. Instead, frugality plays a crucial role.
• After 30, the gap in wealth among peers becomes more noticeable.

• Biologically, fertility begins to decline after 30. Therefore, starting a family in the 20s or early 30s is often recommended.

• Age 31 to 40, we often focus on developing specialized skills and advancing our careers.
• This is typically a period of significant salary growth.
• To reach a mid-level position, it's common to have 4-5 years of work experience. Many professionals also change jobs 2-3 times during this decade.
• This can lead to a divergence in wealth levels among peers.
• As our responsibilities, such as providing for families, increase, so does the pressure to earn more.

• Additionally, rising income can sometimes lead to lifestyle inflation.

• Age 41 to 50, we may have reached the peaked of our earning potential and it's less likely that we will experience a major career breakthrough.
• At this stage, we either feel satisfied with our accomplishments from the 30s or disappointed that our sacrifices have not led to significant advancements.
• As we get older, job hopping becomes more difficult, and younger generations often have an advantage in terms of career progression.

• The available opportunities and options may seem limited.

• Age 51 to 60, is often a time of transition and reflection.
• Many people in this age group begin to think about retirement, as they approach the traditional retirement age.

• This can lead to a mix of excitement and apprehension. Some may look forward to the freedom and flexibility that retirement offers, while others may worry about the financial security and social isolation that it might bring.

• Age 61 to 70, is often a time of retirement and new beginnings.
• As people leave the workforce, they have the opportunity to pursue new interests, travel, and spend more time with loved ones.

• However, this transition can also bring challenges, such as adjusting to a new lifestyle, managing finances, and dealing with health issues.

• Age 71 to 80, is a time of reflection and contentment.
• As people approach their late 70s, they may look back on their lives with a sense of accomplishment and gratitude.
• While this decade can also bring challenges, such as declining health and the loss of loved ones, many people find joy and meaning in their later years.

Healthy Life Expectancy

• HALE is the average number of years that a person could expected to live at full health.
• Do we really want to wait for CPFLife in 65 for retirement?
• By 74 years old we may loss our mobility and unable to move around.

Life is Shorter than We think

• Following the norm, Singaporean (Male) will enter the workforce at age 25 after graduation and worked until 65 years old then retired.
• We will left with 24.1 years, this assumed that we have work-life balance, leaving our workplace on the dot, still ~50% of our life are gone.

• The pie chart also shows that job take up less than 20% of life, we can make significant changes if we make good use of our free time.

Assumption:

1. We will lose our health at 74 years old and won't be able to do what we want.
2. We will have 8 hour of sleep per day
3. We works 8 hour per day, 5 day a week until 65 years old

4. There are 11 public holiday in Singapore, 14 days of Annual leave.

• Number of healthy year left: 74 years - 25 years = 49 years
• Number of hour left: 49 years x 365 days x 24 hr = 429 240 hours
• Sleeping hours: 49 years x 365 days x 8 hr = 143 080 hours = 16.3 years
• Waking hours: 429 240 hrs - 143 080 hr = 286 160 hr = 32.7 years
• Working hours: (65 years - 25 years) x (260 days - 25 days) x 8 hours = 75 200 hours = 8.6 years
• Free time left: 32.7 years - 8.6 years = 24.1 years

What is the Points?

• Age 31 to 40, is the best time to work really hard to build a career, wealth and family or whatever we wishes to pursue.
• This 10 years will have the most significant impact.
• It is unsurprisingly that money is the biggest stress factor for most Singaporean.
• We should also have to acknowledge that luck is a crucial factor when climbing the corporate ladder as there are fewer top positions.
• Fortunately, our work only take up less than 20% of our life, if we choose not to be a workaholic.
• We still have ~50% of our free time to pursue what we want, dont let our job become our identity, start a "side project".

Previous Review

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