Milestones and Targets to achieve:
- By end-2023 (Age 35): Fully recover from my loss from writing off Alita Resources
- Periodical: After 2022, inject at least SGD 9000 excluding dividends and bonus shares into portfolio.
- By end-2033 (Age 45): Portfolio to achieve sustainable dividend of at least SGD 6000 yearly. With a 5% dividend yield, this translate to a portfolio value of SGD 120,000.
Other Personal Goals
- Ability to consistently make money through trading
- Further hone knowledge on Data Science / Python and have a portfolio of projects to demonstrate my knowledge
Hi Marksman -
ReplyDeleteAll the best with your goals . I have some friendly perspective and as I dont know you so dont take offense cos i am only writing this with best of intentions :
a. From Goal 2 , you are injecting 9k per year from 2022 . So by that rationale , you will have hit say 99k in 2033. If you look at from a very long term perspective and assume all dividends go back to your portfolio and to say your dividend + portfolio growth was just 4% pa, then you will hit your goal of >120k ! and if your get 4% dividend at year 11 , you get 5k+ dividend .. so quite close to your goal ..Great right ?
b. What is not so good is that you can already do that without an equity portfolio ie CPF SA. So if you ask me, your equity portfolio must earn a better return that CPF.. ie cannot be taking market risk + still have such poor returns.
c. So the question is how much of risk and then what can you to get what you want. If you wish to have a more conservative portfolio, do what many have been saying lah.. Do CPF SA - gao gao FRS at SA... then you start equity portfolio. If you find you cannot tahan, must do equity, then consider ETF etc.. If cannot tahan, still must do single stokc equity, then i suggest sizing the risk of the stock bet. ie do diversification and keep the size of each bet on the stock small. What is small ? I use a simple pay check benchmark - 50% of your working employment annual bonus is a small. Anything, big lah.. i mean you work your whole year, you get this cash bonus. So imagine losing 50% (half year additional effort work) overnight... Big when you are starting out.. but maybe as time passes, half a year is really not a big deal ... Especially when you are at 45.
All the best ! hope you can FIRE at 45 asper your goal !