Author Topic: Advice: assets distribution  (Read 2367 times)

neonlight

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Advice: assets distribution
« on: August 15, 2017, 10:15:52 AM »
Hi earthlings,

Newbie here and trying to use excel to figure things out.

my-baby-stash



29% Cryptocurrency - Self evident, plan to decrease % but where should I put the money into?
11% Shares & Bonds - blue chips stocks and secured bonds, plan to move some stocks to ETFs, plan to increase %.
7% Fully paid life insurance - payout in cash at certain age, or can be withdrawn immediately, covers health.
21% Property - two houses. One parents staying hence no rental, another rental covering loan more or less.
17% Cash - in bank, mostly not TD yet.
15% Others - Called "others" they are debts. I know I might not get them back but I'd say it's solid and will be cleared soon. If I add 15% cash at hand I'll have 32%, plan to move somewhere, where?

Monthly income savings is approximately 0.5% of the stash. 35 and living in a not-so-rich Asian country. No pension from dear government. Doing catchup with managing stash these days.

If my math is correct am FI ready. It will be a frugal but comfortable FIRE, or I can FI-travel-enjoy-life and come out of retirement if really needed. Won't work for money if I un-retire.

Thanks so much, recommendation and criticism welcomed :)

neonlight

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Re: Advice: assets distribution
« Reply #1 on: August 16, 2017, 07:16:25 AM »
No takers?

Or am I asking it the wrong way. :(

ysette9

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Re: Advice: assets distribution
« Reply #2 on: August 16, 2017, 07:48:04 AM »
I am no expert, but my first impression is that this is a strange asset allocation. I am much more used to a mix of stocks, bonds, and real estate. Personally I have low risk tolerance for exotic investments, so things like cryptocurrency and personal loans to me seem unnecessarily risky. I would dump those in favor of a nice, broad index fund if I were you.

neonlight

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Re: Advice: assets distribution
« Reply #3 on: August 16, 2017, 08:04:44 AM »
I am no expert, but my first impression is that this is a strange asset allocation. I am much more used to a mix of stocks, bonds, and real estate. Personally I have low risk tolerance for exotic investments, so things like cryptocurrency and personal loans to me seem unnecessarily risky. I would dump those in favor of a nice, broad index fund if I were you.

Thanks, that's part of the plan really. :)

Came to know about MMM fairly recently and am trying to optimize my portfolio. The debt part is a remnants of old partnerships and should clear out entirely by next year. I plan to still have a certain % for cryptocurrency but not as much as how it looks now.

kenaces

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Re: Advice: assets distribution
« Reply #4 on: August 16, 2017, 12:29:18 PM »
WAY to much in crypto!  I sold a bunch of BTC ~ a month ago when it hit $2600 as I realized it had grown to almost 10% of my stacsh.  Having 1/4 of your net worth in such a speculative investment when you are already in FIRE seems crazy.  As they say you have already won the game, so just getting your steady/safe 4% and enjoying life would be my focus.

I don't really know exactly what your "opportunity set" is living in "not-so-rich Asian" country but if you can buy/own some world equity funds/ETFs cheap(low cost/low tax) that would be next place I would look.
« Last Edit: August 16, 2017, 12:32:04 PM by kenaces »

neonlight

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Re: Advice: assets distribution
« Reply #5 on: August 16, 2017, 08:13:38 PM »
WAY to much in crypto!  I sold a bunch of BTC ~ a month ago when it hit $2600 as I realized it had grown to almost 10% of my stacsh.  Having 1/4 of your net worth in such a speculative investment when you are already in FIRE seems crazy.  As they say you have already won the game, so just getting your steady/safe 4% and enjoying life would be my focus.

I don't really know exactly what your "opportunity set" is living in "not-so-rich Asian" country but if you can buy/own some world equity funds/ETFs cheap(low cost/low tax) that would be next place I would look.

Thanks kenaces :)

The plan to reduce the ratio to about 10-20% for crypto.

My plan is to FIRE next year at 35, so while I travel the world I want to have 2-3 hours a day working on something I enjoy, so maybe coding (another likelihood would be to write or teach). I don't want to be tracking my portfolio weekly or even monthly, but I can do that with crypto. So all in all, I want my stash to be on "auto-pilot", and am figuring out what's the best ratio like. :) A rough idea would be 90% auto-pilot and 10% crypto trading.

I am Malaysian so post FIRE my location would be part Malaysia but mostly just everywhere. I plan to live nomad.

The investment opportunities I have will be pretty much the same as you, opportunity sets includes:

- I can buy stocks in major exchanges and this includes Vanguard ETFs
- I cannot buy mutual funds such as Vanguards
- I am wary of the 30% withholding for non residences. I have ITIN due to payments from US projects (but I don't have SSN)
- My properties are in Malaysia and the rule of thumb is prices doubles every 15 years.

My cash are mostly in USD, so advice appreciated what's the ratio in portfolio it should be and do they mostly go into TD?

Thanks

« Last Edit: August 16, 2017, 08:16:53 PM by neonlight »

neonlight

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Re: Advice: assets distribution
« Reply #6 on: February 10, 2019, 01:28:02 AM »
Hi,

I am the OP and want to record down progress made in the past 18 months, and hopefully get some advice too, please do offer your thoughts :)

I now have about 800K USD in savings (half in cash TD, others in bonds, stocks, insurance-like-savings etc).

My plan is to get myself an apartment in the future that would cost me ~ 1M.  I have another apartment but that is bought for my parents so I wonít and donít plan to touch it for several decades later.

I also have 4.5 M worth of crypto which is still unrealized into cash (I bought it when it was really cheap). In Aug 2017 I promise to reduce my crypto allocation to 20% of my stash but because of the crypto boom I know have even more of it, I plan to sell of 70% of 24 months - gradually but certainly.

I also have about 300K of my own business/debt that I can confidently sell off in 2-3 years. I canít sell this off immediately though I wish I could.

Note 1: The reason why my fiats are half in cash TD is because I am pessimistic of current economic climate and plan to accumulate stocks and bonds over 2-3 years are the global economy to get the most buck out of it.

Progress 1: I told myself to get into ETF, and hold some gold. I got Vanguard, and indirectly have gold via gold ETFs.
Progress 2: my stash have grown x 7 though most are still unrealized crypto, and if excluding crypto they have grown 3x.

Any advice or how I plan to plan ahead? I am 37 this year, and my dream is to FI in 2 years, which is already 2 years late considering that I wanted to do it at 35-36.

Thank you, and again please offer your thoughts.

neonlight

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Re: Advice: assets distribution
« Reply #7 on: May 11, 2019, 03:52:45 AM »
Hi,

I am the OP and want to record down progress made in the past 18 months, and hopefully get some advice too, please do offer your thoughts :)

I now have about 800K USD in savings (half in cash TD, others in bonds, stocks, insurance-like-savings etc).


Progress report,

I have now increased my liquid asset to 1.5M USD mostly from selling my cryptos, and partly from the share price increases after the turn of the year into 2019.

I also have slightly below 400K USD that is a business loan, I am not counting this yet as my stash as it is uncertain. It's a long story.


My plan is to get myself an apartment in the future that would cost me ~ 1M.  I have another apartment but that is bought for my parents so I wonít and donít plan to touch it for several decades later.

I still haven't gotten to buying an apartment yet, to me it seems like a big undertaking and maybe I will stall for months or a year before finally taking the plunge. The long term objective remains the same, which is to own an apartment. It will likely be an Asian city where house property is expensive, 1M might not suffice, 2M definitely will. We will see.

I have one that I bought for my parents but that is not counted.


I also have 4.5 M worth of crypto which is still unrealized into cash (I bought it when it was really cheap). In Aug 2017 I promise to reduce my crypto allocation to 20% of my stash but because of the crypto boom I know have even more of it, I plan to sell of 70% in 24 months - gradually but certainly.

Since February I've liquidated X amount hence the increased in my current asset, I know it's not enough but slowly and surely.

Ironically the recent crypto price increase actually ended up increasing the ratio of this portfolio as I look to cash out.


I also have about 300K of my own business/debt that I can confidently sell off in 2-3 years. I canít sell this off immediately though I wish I could.

Note 1: The reason why my fiats are half in cash TD is because I am pessimistic of current economic climate and plan to accumulate stocks and bonds over 2-3 years are the global economy to get the most buck out of it.

Progress 1: I told myself to get into ETF, and hold some gold. I got Vanguard, and indirectly have gold via gold ETFs.
Progress 2: my stash have grown x 7 though most are still unrealized crypto, and if excluding crypto they have grown 3x.

While still a beginner I've learnt quite a bit about ETF - I have put in about 100K USD each into VTI, VOO, VNQ and IWF. I also have some mix blue chips.

Any advice or how I plan to plan ahead? I am 37 this year, and my dream is to FI in 2 years, which is already 2 years late considering that I wanted to do it at 35-36.

Thank you, and again please offer your thoughts.

On my to-do list by end of 2019.

1) Diversify into APAC ETFs to take up 30% of my ETF portfolio.

Top of my list is Hang Seng's 2800.HK which mirrors the HKEX. I now have about 80K USD into this ETF, I plan to put another 120K into it. The reason is because I have weighted quite alot into US market and I'd like some exposure into APAC and I gather that going in via Hong Kong (or to an extend Singapore) is the best option.

Second is health care REITs, I am considering places like Singapore whereby health care is slowly becoming a dominant service industry. I try to avoid shopping mall REITs as I feel e-commerce will be challenging this sector.

2) Sell another 1M of crypto so that my stash hits 2.5M USD.

If I were to achieve that I will need to sell about 140K USD worth of crypto each month, tbh it's quite a big sum to liquidate each month.

3) Open a bank account in EU.

As a nomad, I also hope to open a bank account in a jurisdiction without capital gain tax outside of APAC. Not hard, but just need to execute. I love to spend time in Europe so I hope this works and I have a bank account soon.
« Last Edit: May 11, 2019, 09:47:13 AM by neonlight »

neonlight

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Re: Advice: assets distribution
« Reply #8 on: May 19, 2019, 05:06:03 AM »
Another to-do list,

Which is to put about 100K USD into a micro lending platform. I know the gripes about micro lending, but I have researched and felt the confidence to put one that is monitored by Singapore Monetary Authority.

neonlight

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Re: Advice: assets distribution
« Reply #9 on: June 07, 2019, 09:01:59 PM »
Updates: put in another 110K USD into VOO this week.

neonlight

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Re: Advice: assets distribution
« Reply #10 on: June 25, 2019, 09:25:07 AM »
Itís with a little sad irony that Iíve manage to diversify by selling my cryptocurrency. The good part was that I collected almost a million, out of it, the sad part is if I sold at todayís price I could have collected not 1M but 3M. Anyways, this is a sales note for memory.

2018
Sept 50 ETH
Nov ~30 BTC
Dec ~10 BTC
2019
Jan ~500 ETH
Feb ~ 60 BTC
Marc ~ 20 BTC
April ~ 20 BTC + 1000 ETH
May ~ 10 BTC
June ~ 10 BTC

neonlight

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Re: Advice: assets distribution
« Reply #11 on: July 06, 2019, 10:13:46 PM »
1) Diversify into APAC ETFs to take up 30% of my ETF portfolio.

Top of my list is Hang Seng's 2800.HK which mirrors the HKEX. I now have about 80K USD into this ETF, I plan to put another 120K into it. The reason is because I have weighted quite alot into US market and I'd like some exposure into APAC and I gather that going in via Hong Kong (or to an extend Singapore) is the best option.

Second is health care REITs, I am considering places like Singapore whereby health care is slowly becoming a dominant service industry. I try to avoid shopping mall REITs as I feel e-commerce will be challenging this sector.


Placed another 850K HKD into 2800.HK last week, thus making the total holding around 1,800,000 HKD for 2800.HK.

I still have not put any investment into REITS, considering the obvious property market slowdown in APAC I am not sure if this is the best time for it.