FIRE (Financial Independence, Retire Early) Movement

[laokorkor]

In your case the entire sector/space you invested was out of favor and it affected everyone who invested in that space.

But if something is still down then it may not even recover, for example ARKK peak was 150 and now it is 50. I think it is better to sell ARKK and buy S&P500, even now.

I also resonate strongly with this approach—divesting from narrow, specific investments such as individual stocks, sectors and instead investing in diversified, broad-based instruments such as ETFs that cover entire continents or global markets.

 

[revhappy]

I also resonate strongly with this approach—divesting from narrow, specific investments such as individual stocks, sectors and instead investing in diversified, broad-based instruments such as ETFs that cover entire continents or global markets.

The history is written by the winners. On this forum we have winners who constantly post, they are like the same 5-10 people. This makes it appear as if stock picking is the winning trick.

But remember at one point ARKK was so popular, Cathie Woods was on a magazine front page as the new Warren Buffet and imagine the 10s of 1000s of people who bought ARKK at the peak and then still holding the bag. They are not coming here and posting.

ARKK would have been a reasonable bet at one point, it was a diversified ETF and a star fund manager. What could go wrong?

 

[d9lives]

In your case the entire sector/space you invested was out of favor and it affected everyone who invested in that space.

But if something is still down then it may not even recover, for example ARKK peak was 150 and now it is 50. I think it is better to sell ARKK and buy S&P500, even now.

I dunno man.
It's difficult to get rich from s&p500.
Imo, take more risk when you're young.

 

[highsulphur]

I dunno man.
It's difficult to get rich from s&p500.
Imo, take more risk when you're young.

Its not difficult. Just take time and discipline

 

[BBCWatcher]

It's difficult to get rich from s&p500.
Imo, take more risk when you're young.

Here are the latest historical performance figures for VWRA (per Morningstar, annualized, close of trading Friday, nominal U.S. dollar NAV terms, 10 and 15 year figures based on comparable funds since the specific fund VWRA didn't exist long enough for those performance figures):

• 1 Year: 13.43%
• 3 Years: 10.97%
• 5 Years: 13.98%
• 10 Years: 6.80%
• 15 Years: 7.09%

VWRA is the broadest stock bet available, a global stock index fund with the highest number of holdings at least among any commonly available funds. (ISAC is also quite good, and lately Amundi has a good global stock index fund available via POEMS for SRS/CPFIA purposes.) All you had to do over this period was work hard, keep your spending under control (i.e. have a decent or better savings rate), dollar cost average into VWRA (with periodic rebalancing versus MBH or CRPA, also dollar cost averaged), and...you'd be doing quite well!

It also helps to shift OA dollars into SA (and/or an elder's RA) if you don't need every OA dollar for housing, and to top up MA (then SA) with tax relief. And then start contributing to an SRS account when you've run out of CPF-related tax relief.

"Past performance is not necessarily indicative of future results."

 

[BBCWatcher]

But remember at one point ARKK was so popular, Cathie Woods was on a magazine front page as the new Warren Buffet and imagine the 10s of 1000s of people who bought ARKK at the peak and then still holding the bag. They are not coming here and posting.
ARKK would have been a reasonable bet at one point, it was a diversified ETF and a star fund manager. What could go wrong?

ARKK wasn't/isn't that diversified.

Here are the latest historical performance figures for ARKK (per Morningstar, annualized nominal U.S. dollar NAV terms, close of trading Friday):

• 1 Year: 15.48%
• 3 Years: 1.19%
• 5 Years: 0.36%
• 10 Years: 10.62%
• 15 Years: 10.80% (comparable funds)

These figures are overstated for residents of Singapore (who are non-U.S. persons) because you'd be whacked with a flat 30% dividend withholding tax. The top marginal U.S. federal dividend tax rate for U.S. persons (for qualified dividends) is 23.8%. Also, ARKK is U.S. estate taxable.

"Past performance is not necessarily indicative of future results."

 

[DevilPlate]

I dunno man.
It's difficult to get rich from s&p500.
Imo, take more risk when you're young.

U already vy conservative and humchi liao

I max my mortgage loan in my 40s with almost 2M in debt at peak

2M 15years+ ago prolly like 3M+ today?

 

[DevilPlate]

The history is written by the winners. On this forum we have winners who constantly post, they are like the same 5-10 people. This makes it appear as if stock picking is the winning trick.

But remember at one point ARKK was so popular, Cathie Woods was on a magazine front page as the new Warren Buffet and imagine the 10s of 1000s of people who bought ARKK at the peak and then still holding the bag. They are not coming here and posting.

ARKK would have been a reasonable bet at one point, it was a diversified ETF and a star fund manager. What could go wrong?

Provided u earn take hm pay of >10k then able to DCA like 4-5k pm and compound 7-8% a year over 20-30years still OK

Those sandwiched groups hardly any leftover and let say they can only DCA 1k per mth over 30years at 7% amounts to 1.2M only at age 60yo

1.2M 30years later prolly only worth 500k today

Moral of the story to True FIRE is Single/DINK, no need to support parents, and earn >10k pm

 

[d9lives]

U already vy conservative and humchi liao

I max my mortgage loan in my 40s with almost 2M in debt at peak

2M 15years+ ago prolly like 3M+ today?

Wow! Being 2m in debt will send me spiralling.
How's your situation now?

 

[hwmook]

Provided u earn take hm pay of >10k then able to DCA like 4-5k pm and compound 7-8% a year over 20-30years still OK

Those sandwiched groups hardly any leftover and let say they can only DCA 1k per mth over 30years at 7% amounts to 1.2M only at age 60yo

1.2M 30years later prolly only worth 500k today

Moral of the story to True FIRE is Single/DINK, no need to support parents, and earn >10k pm

When you are young, need to target to invest 50% of your salary then down to 30% when you have a family. If you don't then you have no hope of decent retirement life, need to work until you kick the bucket.

 

[ericcsn]

When you are young, need to target to invest 50% of your salary then down to 30% when you have a family. If you don't then you have no hope of decent retirement life, need to work until you kick the bucket.

Dont rule out the fat inheritance (parents' properties, balance from their cpf accounts, life insurance payable on their deaths etc) that the younger generations are going to reap...

 

[ericcsn]

U already vy conservative and humchi liao

I max my mortgage loan in my 40s with almost 2M in debt at peak

2M 15years+ ago prolly like 3M+ today?

I should think with that money at your age then, it enabled you to own a big size free hold landed property.

 

[DevilPlate]

Wow! Being 2m in debt will send me spiralling.
How's your situation now?

Nowadays buy a brand new 4BR from developer will easily cost u 3M+ with 2M+ debt liao

 

[DevilPlate]

I should think with that money at your age then, it enabled you to own a big size free hold landed property.

Not so satki lah.

Buy 1 Landed to stay siao liao sia….how to service the loan

 

[DevilPlate]

Dont rule out the fat inheritance (parents' properties, balance from their cpf accounts, life insurance payable on their deaths etc) that the younger generations are going to reap...

Or u mean inherit debts?
Luckily our dear garmen provide all citizens with basic Medishield now. (Our insurance premium shot up though )
Last time many housewives got zero medical coverage.

 

[DevilPlate]

When you are young, need to target to invest 50% of your salary then down to 30% when you have a family. If you don't then you have no hope of decent retirement life, need to work until you kick the bucket.

Thats why majority of the population retire in their 60s?

 

[BBCWatcher]

Dont rule out the fat inheritance (parents' properties, balance from their cpf accounts, life insurance payable on their deaths etc) that the younger generations are going to reap...

Is this idea realistic as a generalization?

First of all, the vast majority of Singaporeans live in HDB flats. Let's suppose your mother purchased her BTO flat (together with your father) at age 27 then dies at age 97. Congratulations, you've now inherited a HDB flat with only 29 years of remaining leasehold. Minus some medical and long-term care debts to settle, quite often. (And we're assuming your mother did not take advantage of the HDB Lease Buyback Scheme.) Will this residual leasehold (less debts) be a particularly valuable asset? And you had to wait until about age 67 to inherit this asset. Does that work well?

What life insurance are we talking about? The $12,000 whole life insurance policy they purchased in 1972?

What balance from their CPF accounts?

 

[laokorkor]

Nowadays buy a brand new 4BR from developer will easily cost u 3M+ with 2M+ debt liao

Everyone has different needs and preferences, but personally, I would steer clear of new launch condos. They often come with a 30% to 50% markup compared to similar resale units. In my view, once these projects reach T.O.P., there's a higher-than-average risk of losing money—especially when compared to buying a well-priced resale condo that's 5 to 10 years old.

 

[hwmook]

Everyone has different needs and preferences, but personally, I would steer clear of new launch condos. They often come with a 30% to 50% markup compared to similar resale units. In my view, once these projects reach T.O.P., there's a higher-than-average risk of losing money—especially when compared to buying a well-priced resale condo that's 5 to 10 years old.

Nowadays new launch and resales condo already 2 different pricing. If you buy new launch, you need to sell fast after TOP else will hard to get your money back.

 

[DevilPlate]

Everyone has different needs and preferences, but personally, I would steer clear of new launch condos. They often come with a 30% to 50% markup compared to similar resale units. In my view, once these projects reach T.O.P., there's a higher-than-average risk of losing money—especially when compared to buying a well-priced resale condo that's 5 to 10 years old.

Nowadays new launch and resales condo already 2 different pricing. If you buy new launch, you need to sell fast after TOP else will hard to get your money back.

Pls proceed to Homeseeker subforum to discuss further.
There is a “formula” to calculate new launch premium whether resale or new launch better.
Too many factors……resale age/baywindow/planter/size/overall quantum/5-7% post harmonisation etc etc

Some agents say 10-20yo FH boutique selling 30-50% cheaper (good buy) than 99LH condo new launch (full facilities)