Markets are fluctuating, international politics remain stressful, but at least spring in Europe is finally in full swing.
Geopolitics and Investing
World politics is going through another turbulent phase. While the situations in the Middle East and elsewhere are deeply concerning on a human level, for long-term investors, crises and geopolitical tensions are an inevitable part of the journey. Over the 12-year history of this little blog there have been plenty of crises and probably further ones will come…
Q1 Portfolio Update
It was a wild first quarter. My portfolio initially surged, then took a dive, ultimately closing the quarter at SGD 1,257,803. Market losses of SGD 37,660 were partially offset by SGD 4,142 in fresh capital and SGD 1,951 in reinvested dividends.
Current Asset Allocation
My portfolio allocation is now very straightforward:
- 96% global stock index funds
- One individual stock pick (Alibaba)
- A small cash buffer
Tracking Expenses
So far this year, my average monthly spend is SGD 4,925. On the bright side, this is a slight decrease from last year’s average of SGD 5,062. Most of my spending goes toward wants rather than absolute needs. I recently returned from a 17-day hiking trip in Portugal, and I already have several more activities and holidays booked for the year.
Why am I not retired yet?
This is the most important chart. The green line represents the hypothetical income I could draw from my portfolio, while the blue line shows my trailing twelve-month average expenses. The yellow dots mark my actual monthly spending.
Once the green and blue lines intersect, I can officially retire – even at my current, relatively high spending rate. I spend much more money on “wants” vs “needs” so I could realistically pull the trigger today. One thing is certain: I will never take another traditional office job. If my current role ended tomorrow, I would simply retire.
My wife is working in a high pay, high stress job here in Switzerland and wants to save some more money, it is complicated…
These days, I focus my energy on personal fitness, continuous learning, and spending time with my family and friends. At 44, my main goals are to read more novels and truly enjoy my time on Earth. Even though I am technically in “middle age,” I feel as curious as ever to learn and experience new things.
My current job is relatively relaxed and provides great mental stimulation. I never have to commute to an office, though I do take quite a few business trips. Still, it is a job, and it cannot go on forever. These days I think of working the proverbial “one more year” until all my stocks are vested. Then I would be 45 – a good age to retire… I think.
The dilemmas of middle age!
Why do you say “ Once the green and blue lines intersect, I can officially retire ” dont you always want the green line to be above blue line
Once they intersect the average expenses over the previous 12 months equal the passive income. As long as the average expenses are less than the passive income, I can stay retired. Sorry I should have written this better!