Portfolio feedback (Beginner)

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Topic Author
drl136
Posts: 2
Joined: Mon Feb 12, 2024 1:35 am

Portfolio feedback (Beginner)

Post by drl136 »

Hi all,

I'm new to investing and started my investing journey by trading meme stocks/ETFs during the COVID period. I'm now looking to settle on a long-term portfolio. Appreciate any feedback on my portfolio (optimal allocation, fund overlaps, etc.)

Some information about me:
Country of residence: Singapore
Age: mid-20s
Debt: None
Investment horizon: 20+ years (Planning to retire early to mid-40s)
Monthly Contributions: ~$4k - $5k
Rebalance: Quarterly (buy underweight holdings)
Current portfolio value:~$125,000 (excluding AVGV)
Future Contributions: Planning to contribute an additional ~$100k (from cash fund) and add AVGV to my portfolio in Q2.

Exempted from paying taxes on capital gains, but I do have to pay taxes (30%) on dividends.

Ticker | Target Allocation
NTSX (WisdomTree US Efficient Core Fund) | 30%
VWRA (Vanguard All-World ETF Accumulating) | 30%
AVGV (Avantis All Equity Markets Value ETF) | 20%
QQQ (Invesco QQQ Trust (Tech-heavy) | 17.5-19%
TQQQ (3x ProShares UltraPro QQQ) | 1-2.5%

NTSX | 90% Large-cap US equities / 60% US treasury bond futures
VWRA| 60% US equities / 25% Developed market / 15% Emerging
AVGV | 60% US equities / 30% Developed market / 10% Emerging
QQQ | NASDAQ-100 Index (Tech-heavy)
Last edited by drl136 on Thu Feb 15, 2024 9:34 am, edited 1 time in total.
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typical.investor
Posts: 5201
Joined: Mon Jun 11, 2018 3:17 am

Re: Portfolio feedback (Beginner)

Post by typical.investor »

drl136 wrote: Mon Feb 12, 2024 2:08 am
Country of residence: Singapore
Hi and welcome. Can we assume you are a non-US person this means not a US citizen or green card holder). If you are a US expat resident in Singapore some of your funds are trouble.

I kind of don't get the point of AVGV 20% and QQQ 17.5-19%. One is tilted value and one growth, so overall it's kinda like total market. I mean you maybe be able to do some tax loss harvesting by holding those two in taxable, or reduce your dividends by putting AVGV in tax sheltered (or is AVGV light on dividends... ).

Also, do you know how leverage in TQQQ works? You can have a drag (boost) depending on volatility. The only way to reliably approximate 3X returns is to add when the fund has lost and take money out when the fund has done well. Or are you going to try to hop in and out of it for fun?
TedSwippet
Posts: 5141
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: Portfolio feedback (Beginner)

Post by TedSwippet »

drl136 wrote: Mon Feb 12, 2024 2:08 am I'm new to investing ...
Welcome to the forum. If you haven't already found it, our wiki contains a lot of information for new investors. Investing from Singapore could be particularly relevant to you.
typical.investor wrote: Mon Feb 12, 2024 2:53 pm Can we assume you are a non-US person this means not a US citizen or green card holder). If you are a US expat resident in Singapore some of your funds are trouble.
Conversely, if you are not a US citizen, the others of your funds are trouble. The basic rule is: US citizens can realistically only use US domiciled funds; non-US citizens generally very much want to avoid US domiciled funds. This wiki article is a good starting point for uncovering the bulk of the US tax ugliness you might face:

Non-US investor's guide to navigating US tax traps - Bogleheads
typical.investor wrote: Mon Feb 12, 2024 2:53 pm ... I mean you maybe be able to do some tax loss harvesting by holding those two in taxable, or reduce your dividends by putting AVGV in tax sheltered (or is AVGV light on dividends... ).
Just a note here that "tax loss harvesting" and "tax sheltered" are terms of art specific to US investors. Unless you are a US citizen, as a Singaporean investor these will likely have no relevance to you.
Topic Author
drl136
Posts: 2
Joined: Mon Feb 12, 2024 1:35 am

Re: Portfolio feedback (Beginner)

Post by drl136 »

Hi, thanks for the responses.
typical.investor wrote: Mon Feb 12, 2024 2:53 pm Hi and welcome. Can we assume you are a non-US person this means not a US citizen or green card holder). If you are a US expat resident in Singapore some of your funds are trouble.
Yes, I am a non-US person.
typical.investor wrote: Mon Feb 12, 2024 2:53 pm I kind of don't get the point of AVGV 20% and QQQ 17.5-19%. One is tilted value and one growth, so overall it's kinda like total market. I mean you maybe be able to do some tax loss harvesting by holding those two in taxable, or reduce your dividends by putting AVGV in tax sheltered (or is AVGV light on dividends... ).
I initially considered adding AVGV to my portfolio because value has historically outperformed growth at times. However, after some thought, I realized it wouldn't be optimal due to the higher tax implications from the dividends. Now, I'm thinking of just allocating more to VWRA, but I'm still unsure about what's missing from my portfolio.
TedSwippet wrote: Mon Feb 12, 2024 5:11 pm
Conversely, if you are not a US citizen, the others of your funds are trouble. The basic rule is: US citizens can realistically only use US domiciled funds; non-US citizens generally very much want to avoid US domiciled funds. This wiki article is a good starting point for uncovering the bulk of the US tax ugliness you might face:

Non-US investor's guide to navigating US tax traps - Bogleheads
Thanks for the link. I'm fully aware of the 40% estate tax on my holdings, but it's not a major concern as I have a few strategies. These include shifting to lower-risk Irish-domiciled funds closer to retirement, joint accounts, account sharing, etc.
TedSwippet
Posts: 5141
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: Portfolio feedback (Beginner)

Post by TedSwippet »

drl136 wrote: Mon Feb 12, 2024 2:08 am Exempted from paying taxes on capital gains, but I do have to pay taxes (30%) on dividends.
You could cut this to between 15% and 0% by using non-US domiciled funds.
drl136 wrote: Tue Feb 13, 2024 9:24 am Thanks for the link. I'm fully aware of the 40% estate tax on my holdings, but it's not a major concern as I have a few strategies. These include shifting to lower-risk Irish-domiciled funds closer to retirement, ...
Nobody plans to die before retirement, but some do nevertheless. Sometimes long before.
drl136 wrote: Tue Feb 13, 2024 9:24 am ... joint accounts, account sharing, etc.
This is unsound, and likely not to work in the way you hope. From Deloitte:
If the surviving spouse is not a US citizen, in general, the portion of jointly owned property that is taxed in the estate of the first spouse to die is based upon who provided the “consideration” to purchase the property (i.e. whose assets were used to purchase the property).
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