How I am planning to invest in 2024
Doubling down on what has been working for me
Investing can be as simple or complicated as you make it out to be.
Others might disagree but I like to keep my investments stupid and simple (KISS).
I optimise for peace of mind, instead of the highest returns for my investment portfolio.
Here’s my strategy for my U.S portfolio.
My U.S portfolio comprises a combination of Portfolio 1 and 2.
Portfolio 1: more stable, lower risk but lower return
Portfolio 2: more volatile, higher risk but higher return
It’s important to consider the amount to be allocated for each portfolio.
Portfolio 1 will be about twice the size of Portfolio 2.
With a lower drawdown of 28% (Portfolio 1) vs 40% (Portfolio 2), this will help me weather the storm of a bear market.
I know that this is a drawdown I can stomach, and won’t panic sell when the bear (inevitably) returns.
While I am willing to sacrifice the higher returns Portfolio 2 might bring, it’s natural to want a little slice of the pie.
Since the drawdowns of Portfolio 2 are higher, a smaller allocation is needed.
I do have a SG portfolio as well, but I’ll be doubling down on investing in the U.S market, a market which served me so well in the last 5 years.
The goal is to double down on what has been working for me.
Automating My Investments
What good is having a plan if you can’t execute it?
This is why I make use of the recurring investment feature on IBKR and USMART.
2 things I like about automation:
No emotions involved
Removes decision fatigue - no need to think if this is the right time to buy
Here’s how the auto-invest feature in each brokerage looks like:
Interactive Brokers (IBKR)
IBKR: https://ibkr.com/referral/benedict482
uSMART: https://m.usmartsg.com/promo/overseas/bonus-dec.html?ICode=ux55&langType=3&Id=
If you haven’t yet, consider opening an account with one of the brokerages, and start automating your investments.
Conclusion
Each portfolio is unique, reflecting distinct risk tolerances.
A well-constructed portfolio considers your risk appetite, ensures adequate (but not too much) diversification, and is rooted in strong fundamentals at a fair price.
Wishing you a happy and wonderful 2024 ahead!