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Mid Autumn U.S. Open SRS Portfolio

I was traveling to US two weeks back when i read a weekend article on the Business Times on the "risk of cash".  The simple concept is presented in the chart below. 

How to double the money you have now ?

Assume you have $100,000 now and you invest in a portfolio that gives you an annualised return of 7.2%. In 10 years time, you will have $200,000.  However, if you decide to invest only 20% of the cash and keep 80% of the cash for rainy days, then you will need that portfolio to make an annualised return of 18.76% before you can double your money in 10 years. As you are well aware, an annualised return of 18% is highly unlikely. 

If you want to keep 50% in cash and invest the 50%, then an annualised return of 10% is needed. Furthermore, the chart below shows you the difference between the a portfolio that compounds at 1% for 30 years and one that compounds for 7%. The "magic of compounding" means that you can potentially "lose" $626,000 over 30 years. That can be quite substantial assuming you are 40 years old now and you want to retire at 70. 

As such, the conclusion is that we should start planning for retirement as early as we can. The early we start, the better. 

US Men's Open

As i grow older, i am more into "paying" for experiences rather than branded goods. This is what i did in Sep, watching the US Men's open at Arthur Ashe Stadium where Rafael Nadal beats Russian Medvedev. It was such a classic! 

And i learned something new for the first time - the famous cocktail drink of the event is Honey Deuce 😂 I really "sounded" like a mountain tortoise as i have not heard about it before. So you know... it tasted not too bad at all. 

SRS Portfolio

With regards to the SRS portfolio, nothing much has changed. This is the snapshot as of 20 Sep 2019

Happy SRSing and in your pursuit of financial freedom, remember to sip some cocktail along the way.

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