My target? Maybe the 2 Cs, Condo and Car
(This target is too far for now, skip to below for my more realistic short term target).
In Singapore, I guess staying in most districts would be fine as there are plenty of amenities everywhere nowadays. A 2-bedroom condo in a non-central district would cost $1M on average.
My ideal car would be the Mercedes-Benz GLC300 Coupe. Selling price: $262,888.
Total = $1,262,888
With a starting amount of $15,000, it would take me 17 years to reach my target of approx $1.3M (assuming my yearly rate of return is 30% which is also an exceptionally high ROR).
*The above is a simple calculation, not considering a lot of aspects like annual additions to my portfolio
Now back to reality or a more realistic short term target. That would be a $100,000 portfolio before entering the workforce. I am entering Uni this year and thus have approx 4 years to reach my target. A simple breakdown of how I am planning to achieve my target would be as follows:
Starting Portfolio value of $15,000. Annual Additions would be from my monthly savings of $300. With 4 years and an estimated rate of return of 30% (this is my target rate of return, I usually invest in stocks that I feel would bring about at least 30% gain in equity. However, I may or may not hit this ROR yearly).
I should have a $70,000 portfolio by 2024. However, I am still $30,000 short of my target. Thus, I decided to pitch an idea to my Dad whereby he would grant me $35,000 to invest. My commission would then be 50% of all profits excluding dividends (The commission may sound extremely high but its a win-win situation as if that $35,000 is placed in the bank, interest would be a mere 1.6% – 1.7% p.a. / $595 annually).
I would also have to bear the losses should they arise.
For my Dad’s portfolio, I will be focusing more on dividend stocks as compared to growth stocks to allow him to have additional passive income and also to lower the risk. After all, it’s not my money.
By 2024, my own estimated portfolio value of $70,000 and estimated commission of $18,500 ($70,000 – $35,000 x 50%), I should have a total of $88,500. Still $11,500 short of my target.
For now, I have no plans to cover the $11,500 that I would be short of. However, I am planning to earn some side income (maybe through photography or part time jobs, interested in learning new skills like becoming a barista). Along the way should I come up with ideas to cover the $11,500, I will surely update it on my blog.
This is overall my rough target for the next 4 years, hopefully I will hit or exceed my target. Seeing that a recession is imminent in coming years, I would also have to proceed with caution and ensure my portfolio sails through the rough seas safely.
In my upcoming posts, I will be talking about what stocks am I holding currently for both my own portfolio and the portfolio that I manage for my Dad, and also update on the progress of these stocks. 🙂
Investing from Young 