facebookI'm currently 25, with a $65,000 yearly income. I'm looking to construct a 100% equities portfolio to hold for the next 10 years, before slowly adding bonds. Is that a good strategy? - Seedly

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Anonymous

07 Jun 2019

General Investing

I'm currently 25, with a $65,000 yearly income. I'm looking to construct a 100% equities portfolio to hold for the next 10 years, before slowly adding bonds. Is that a good strategy?

Discussion (20)

What are your thoughts?

I had 100% equities too when i was 25. that was because i didnt deem cash and cpf as part of portfolio lol... it motivated me more to save more and think of it as 100%... follow what rocks your boat.

at 35 yo, i included cpf in the portfolio then equities to cpf ratio became 1:1

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Hariz, could I please ask how you got to the figure for the bond recommendation?

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Best investment according to legendary warren buffet , late jack Bogle is to buy Low cost index fund ie vanguard s&p500 index fund. Buy it every month for 10, 20,30 yrs and u will do well. Take away the emotions out investment as market never goes in a linear fashion. In Long run market has delivered 10% return, so imagine if ur money compounds at 10% for 10, 20,30 yrs what fortune u will make.

In theory it looks very simple but when it comes to apply it’s not easy. Bcoz it’s human nature to be emotionally affected once u invest in market and there will be time when market will be stagnant and may give negative returns for long period of time but we as an investor have habit of looking at our stock portfolio every mins and getting emotionally affected by it.

so again in theory it’s simple but not easy to apply , otherwise we would have so many millionaires in this world.

I would think that a 100% equities strategy make sense if you have the risk appetite, being able to withstand market volatility and not sell in panic. Otherwise it is always good to have bonds (20-25%) that you can re-balance and smooth out the volatility in your portfolio.

At age 30, I am too going for 100% equities. I have 6-12mths worth of expenses as cash and also cpf ...

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