This month I reached my original financial independence goal from 2014, back when I started this blog! Exciting times.
In Q3 the portfolio rose from SGD 1,135,067 to SGD 1,269,342.
- SGD 126,875 market gains
- SGD 5,244 fresh investments
- SGD 2,155 reinvested dividends
The market feels frothy. Just last quarter the portfolio crossed SGD 1.1m. The old saying that the first SGD 100k is the hardest is true for me. Each subsequent SGD 100k arrived faster on average.
Savings
My salary at the startup is small, so monthly saving is limited.
Year to date I saved SGD 1,958 per month including reinvested dividends.
Excluding reinvested dividends, the figure is SGD 1,323 per month.
At this portfolio size, market moves matter far more than new contributions.
Allocation
I am almost fully in stock ETFs. In April, during the US “Liberation Day” selloff, I sold all bonds and bought stock ETFs. Since then those ETFs are up about 28%. In hindsight this has helped so far.
I am increasingly worried that stocks are in a bubble. I would like to rebalance back to bonds, but doing so would trigger large capital gains taxes in Europe, so it is not practical for me. For now I am sending fresh savings and dividends to cash to build a small war chest for future opportunities.
Financial Independence
In 2014 I set my FI target at SGD 1.2m, planned for late 2027. I reached it earlier than expected. I built a budget and I believe I am basically financially independent today. If I were fired or quit, I could live simply somewhere without working again.
Like many people at this stage, I am moving the goalposts. Do I have enough? Is a 4% withdrawal safe for me, or should I aim for 3.5%? Are stocks in a bubble? Should I work one more year?
Right now I live in Switzerland because my wife has a well paid job here. I am fully remote, so no commute. Work is not always fun, but it is fine.
My plan is to work one more year until all my startup equity vests. If the startup fails (medium likelihood), I get fired (low), or my wife takes a job outside Europe (medium), I should still be fine to stop working. That feels good.
When Can I Retire?
My current expenses are still a bit high for a safe retirement today, but the trend is positive. Most of my spending is on wants and travel rather than needs. Overall I am a bit wasteful.
Once the blue and green lines cross, I can retire without changing my lifestyle much. Until then I will keep saving, keep expenses in check, and let the portfolio work.
Congratulations on achieving this peace of mind through many years of hard work and dedications. Your story is an inspiration that with enough dedication, and time we can achieve financial independence.
Thank you for sharing, and keep on writing.
All the best in life.