Asked on 06 Nov 2018
Good question on asset allocation. It would be a even better question (if you don’t mind me tweaking your question) if you could ask about the sequence of how I form my asset allocation.
First, I build up my 1M65 portfolio. Meaning dump all I could with OA, Cash into the SA to max it out the FRS in my early 30s. This will then form a financial safety net for me to have the right emotional mindset to start allocating into other risky assets.
Second I started building up my equities. When I started, I tried to do my stock picks, which over time, turned out largely to be disastrous. Eventually, all my equities are into Index Funds (ETFs). I tried to buy some US, Europe, STI funds across the board.
Third, I do have a HDB flat. While I am against heavy property investment, one should always have a roof to your name, bought at a good price and right location.
Last, when my assets are all build up, I eventually go into high risk / high volatility funds (which very high returns) and also became an entrepreneur (which itself carries high risk as well).
Note the need for me to do it sequentially, else my financial guts would not be at the right level to manage the risk vs returns.
Hope this answer your question
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08 Nov 2018