My current asset allocation consists of 25% cash and 75% risk assets. I hold cash in JPY (Japanese Yen), USD (US Dollar), and SGD (Singapore Dollar). Similarly, my risk assets are diversified across these currencies.
Breakdown of Risk Assets
My risk assets are allocated as follows:
- S&P 500 Index Funds: 43%
- Global Equity Index Funds: 13%
- $VTI (Vanguard Total Stock Market ETF): 25%
- $QQQ (NASDAQ-100 Index ETF): 7%
- $NVDA (NVIDIA stock): 3%
- $IBIT (Bitcoin ETF): 2%
- Singapore REITs: 6%
Currency Diversification
Just like my cash holdings, my risk assets are managed in JPY, USD, and SGD. This currency diversification helps mitigate risks and enhances the stability of my portfolio.
Utilizing the NISA System
Currently, I am leveraging the NISA (Nippon Individual Savings Account) system for my regular investments. My goal is to maximize the NISA benefits by investing up to the ¥18 million limit over five years. This system allows for tax-free growth, providing significant advantages for long-term investment growth.
Impact of Currency Fluctuations
The depreciation of the yen has led to higher costs of living. However, in terms of asset management, my holdings in USD and SGD have appreciated when evaluated in yen. This highlights the advantage of holding assets in multiple currencies, offering a natural hedge against currency risk.
Risk Management and Investment Strategy
While I don’t have major concerns about the future, life is unpredictable. Therefore, I aim to invest in trends without taking excessive risks. During the Covid-19 pandemic, I suffered significant losses with $MRNA (Moderna) and $BNTX (BioNTech). This experience taught me the importance of a balanced investment strategy, leading me to adopt a core-satellite approach. My core portfolio consists of stable assets, while the satellite portion includes smaller, higher-risk investments.
Individual Stocks and ETFs
Currently, I only hold $NVDA (NVIDIA) as an individual stock. I believe in holding strong, reliable stocks. I also include $IBIT (Bitcoin ETF) in my portfolio, which has shown unique movements, different from $QQQ, thus contributing to portfolio stability.
Importance of Long-Term Holdings
My primary strategy is to hold index funds and ETFs for the long term. Staying focused on long-term growth helps me avoid the distractions of short-term market fluctuations.
Future Goals
My main goal is to fully utilize the NISA allowance over the next five years, aiming for an investment of ¥18 million. Achieving this goal will provide a solid foundation for future asset growth and financial security.
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