Back in Dec 2023, I explained my strategy for 5 Pots of Gold for Perpetual Income:
https://financeopti.blogspot.com/2023/12/plotting-my-investment-strategy-for-2024.html
Now that the first half of the year is over, it is timely to provide my progress on this strategy.
I revised my strategy and decided having 8 pots of gold is best.
Here are my 8 pots of gold:
Here are my 5 pots of gold in Dec 2023:
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As of Dec 2023. |
Here is how full each pot is now as of Aug 2024:
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As of Aug 2024. |
I have made progress on the TLT, S-Reit ETF, ABF Singapore Bond, and SP500 ETF pots.
I wanted to start on the ACWI pot during the recent market downturn in Aug 2024. But it did not hit my target. I was planning to buy only when there is a correction, defined as a 10% drop from the previous high.
The QQQ did fall more than 10% from the previous high. Unfortunately, my soldiers from the SRS battalion are not ready. They are still trapped in a fixed deposit 😣.
The US ETFs pot is something I started in 2017 after reading the classic "A Random Walk down Wall Street". I followed the book's advice and invested in equal proportions of US stock, International stock, and emerging markets. I follow a DCA strategy for this one, but I purchase only once a year. Each year when I purchase, I re-balance the portfolio at the same time. These are the 3 ETFs that make up this fund:
- Vanguard Total Stock Market ETF (VTI)
- Vanguard Total International Stock ETF (VXUS)
- Vanguard FTSE Emerging Markets ETF (VWO)
Hi, if you are looking for dividends, US listed ETFs have 30% withholding tax and there is also estate duty. Any reason why you don't use LSE listed ETFs which are tax advantageous for SG investors? (maybe the broker you use doesn't support LSE?)
ReplyDeleteYes some of the funds are actually already in Irish-domiciled ETFs. Will be using Irish-domiciled ETFs going forward to save on withholding tax.
Deletethanks for clarifying this. your strategy of diversifying is great, and also choosing which pot to add to depending on 'price' is also something I practice.
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