Charlie Munger - Enough

"I'm not saying poverty is noble. I'm saying extravagance is foolish. Between those extremes lies something wonderful. Enough. Enough means you don't wake up and panic. Enough means you don't worship luck.

Enough means you can think clearly without the noise of greed. But modern culture hates that word. Enough doesn't sell. It doesn't trend. It doesn't make your neighbor jealous, so people ignore it and end up slaves to excess. I'm telling you this as someone who's seen both sides. We built fortunes at Berkshire not by chasing fantasies, but by avoiding idiocy.

Warren and I didn't need 20 mansions or five yachts. We just needed peace of mind and the ability to keep playing the game. The game isn't about getting rich. It's about staying rational long enough to let compounding do the work."

Nothing to Do?

As I inch closer and closer to the finishing line, I have been hearing stories of being "bored out of your mind" after retirement.

Frankly, I have no idea how that is possible. Perhaps when my turn come I will face the same problem.

There are so, so much things I want to do.

1. Exercising much more frequently (3-4 times a week)

2. Hundreds of games (on Steam) that I wanted to play 

3. Hundreds of shows (dramas, movies, anime, donghua) that I wanted to watch.

4. Hundreds of books (on my NLB app) that I wanted to read.

5. Endless new content coming out on News / Youtube / Reddit everyday.

6. Relearning my Japanese and going Japan more often.

7. Trying famous food all across the island (1 hour queue? Not if I go there at 10am or 3pm)

What's more, I will still be spending a portion of time managing my portfolio, following up with financial news.

Is that enough to keep one occupied?

And that is just the main bulk of things I can think of. I might even revisit some of my old hobbies (meetups groups, games development). 

Let's see if I would have "nothing to do" next time...

Almost There...

Been a long time since I blogged anything (haha, life and laziness got in the way), and I'm so, so close to the end of the rat race.

It's time to take stock of how I intend to sustain myself once this is over.

Bucket 1 - Core Singapore
This consists of STI ETF, CFA ETF, REITs, local banks and other ahgong holdings like ST Engineering. The dividends generated can fully cover all my expenses.

Bucket 2 - Cash / SSB
More than $200K in this bucket, to act as "sleep well at night" fund aka margin of safety aka warchest during market downturn. It will fund any future large expenses (e.g. home renovation, top-up for home). In the meantime, the yield generated can supplement Bucket 1 for additional discretionary spending (e.g. holidays) or reinvestment.

Bucket 3 - CPF / OA
Around $250K now. One portion in CFA ETF, one portion I intend to deploy to Amundi World, and the rest will sit in OA. This will be utilized when I get a house - probably a 2-room BTO if nothing changes. In the more 'luxurious' case, I might get a 3-room resale which will be covered using Bucket 2.

Bucket 4 - CPF / SA
Aim to hit FRS (Almost there). That's it. The annual interest should be able to cover the rise in FRS.

Bucket 5 - US & Options
My 'trading' portfolio, where I hold a few US blue chips (e.g. Magnificient 7) and do wheel strategy to generate abit of kopi money. Based on historical performance in the past 3 years, I can generate around $5000 a year in option premium, which is reinvested into this bucket.

Bucket 6 - China / HK
My side bet on the rise of China with 3 main holdings - HS Tech, Tencent and BABA. This should be an indefinite hold until drawdown.

Bucket 7 - World ETF
Currently consists of SRS Funds (in Endowus, intend to transfer to Poems Amundi) and FWRA in IBKR. This is a small bucket (< $100K), but I hope to DCA for a little longer and then let it autoroll until drawdown.

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I am at about 90% mark of the race. Just less than 2 years to go.

My only concern now is to build one last buffer against a future HDB purchase. I need to be confident of securing a house without drawing down my portfolio, and that'll be it.

For big luxury expense (e.g. if I want to Japan a few more times) in the future, I might drawdown from Bucket 5 or 6.

After FIRE-ing, my portfolio should still, minimally grow at a very slow pace (maybe $500 to $1000 per month). Will look to drawdown only when I hit my 50s.

Hang in there~!