~~Towards Barista FIRE~~

This will be a relatively short post to update my portfolio transactions for October. October has been a particularly rough month for my portfolio.  Volatile oil prices, persistent US inflation and rising Treasury yields added pressure to the market.  Things took a turn for the worse when concerns over stretched valuations in Singapore's stock market came to the forefront, prompting analysts to downgrade Singapore banks.  Following Citibank's downgrade of Oversea-Chinese Banking Corporation (OCBC), the Straits Times Index (STI) experienced a sharp correction. Singapore banks and REITs were both caught in the sell-off, leaving few places for my portfolio to hide.  With both sectors coming under pressure at the same time, the impact on my portfolio was significant. Matters were made worse during the last week of the month, where the turmoil in AI related stocks, underwhelming results from Google and Amazon and the crypto-hack caused precious metals to plunge as well....

Looking at this illustration, I cannot help but smile.  Nine little versions of me, nine destinations, and every one of them is somewhere I have actually visited, either on my own or with my mum. There is a little twist behind the title.  When my mum, aunt, cousin and I return from China in November, the total number of days I have spent travelling around Asia will add up to 80.  Unlike the famous story by Jules Verne, I did not travel around the world in 80 days.  I accumulated those days one trip at a time, over several years. From the Petronas Twin Towers in Malaysia and Marina Bay Sands in Singapore to ICONSIAM in Bangkok, Bali's beaches, Ho Chi Minh City's Pink Church, Zhangjiajie's spectacular mountains, Osaka's Glico Man, Seoul Tower and West Lake in Hangzhou, each destination brings back different memories, simple and sweet. Some trips were solo adventures, like my relaxing getaway to Bali.  Others were family holidays, including the Bangkok trip wher...

Every time I call my mum, there is a question that comes up surprisingly often.  “Do you have tuition today?”.  Or sometimes: “Got any students today?”.  I know what she is really asking.  She is wondering whether I have enough work.  From her perspective, it probably makes sense.  I do not have a regular employer.  I work for myself as a tutor, so if I do not have lessons, I do not have income from work that day.  And because I have gradually reduced the amount of tutoring I do, there are more and more days when the answer is no. I do not think she worries about me because she thinks I am doing badly.  But I suspect that if she looked only at the visible parts of my life, she would probably conclude that I am doing okay, but not particularly well.  And that is the interesting part, because financially, my lifestyle probably does show that I am just getting by. What My Life Looks Like From the Outside I do not drive.  I have neve...

Many investors like to think that the stock market returns about 7 to 8% a year over the long run, and for S&P500, that number was about 10%.  That sounds reassuring, and it is often used as the basis for retirement planning.  But these averages can hide an important problem.  Two investors can experience exactly the same average return over 30 years and still end up in very different financial positions, simply because the good and bad years happened in a different order.  That is sequence-of-returns risk, or SRR. What Sequence-of-Returns Risk Actually Is Sequence-of-returns risk is the risk that the order in which investment returns happen matters, especially when you are withdrawing money from your portfolio.  Imagine two retirees who start with the same portfolio, withdraw the same amount every year and experience exactly the same set of returns over 25 years, just in reverse order. Retiree A experiences a major crash in year 1, followed by a long...