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Showing posts from October, 2025

When Compounding Turns Against Us

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Previously, I wrote about how compounding is the 8th wonder of the world.  When used wisely, it is the magic that helps me grow wealth quietly in the background, as long as I give it sufficient time, inject a big enough capital, and manage a sufficiently decent yield.  However what people often ignore, forget or dismiss, is how compounding does not discriminate.  It is just a force, and it can just as easily work against one, as it can work in one's favor. In my own journey, I have seen both sides of compounding. On the positive side, compounding has helped my dividend portfolio grow.  Every reinvested payout plants a seed that continues to bear fruit.  But on the negative side, I have also experienced how a property with negative cashflow quietly chips away at my finances.  Month after month, it drains resources that could have been building my future.  People often say mortgage debt is “good debt”, but I have come to realize that if it does not p...

Are We Due for a Correction?

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Lately, it feels like every time I check the markets, both the US and SG stock indices are charting fresh all-time highs, and even my portfolio are hitting new highs daily.  What is more surprising is that this continues to happen even when the economic data, like the latest disappointing employment numbers, does not quite line up with the optimism we are seeing on the screen.  It makes me wonder are we riding too high on hope rather than fundamentals?  Consequently, the biggest question in my mind is, when is the next correction/ market crash that every seasoned investors are talking about, coming? Currently, markets are being buoyed by one main factor: the expectation that the FED will continue cutting rates, at least 2 more times this year.  Liquidity and cheap money are the oxygen of financial markets, thus every time the FED signals that cuts are on the horizon, investors rush to front-run that move, pushing valuations higher and higher. However, how long can ...

Honest Disclosure of How I Built My Portfolio to Where It Is Today

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From time to time, people have asked me how I managed to build up my current portfolio size, especially when I often say I have always had a relatively low active income.  More questions actually popped up after I wrote the post where I decide to liquidate my US Growth Portfolio to pay off my mortgage in Malaysia.  To be very honest, the journey was not glamorous, nor was it the result of overnight success.  It was a combination of discipline, patience, keeping expenses low, and a few key decisions (and saddening privileges) along the way.  This post is written with much emotions, as it openly shares my entire financial journey along the way, filled with ups and downs, and scars in life.  Please be kind towards my financial mistakes, as I know very well I am far from being perfect. Early Days – Humble Beginnings I started working in 2007 at a Japanese engineering firm with a starting pay of SGD 2,400 per month.  It was not much, but it was the reality of ...