Feedback please [Malaysian]

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Topic Author
oeuvre
Posts: 9
Joined: Tue Mar 29, 2022 10:55 am

Feedback please [Malaysian]

Post by oeuvre »

Dear everyone,

Below is my planned asset allocation (500k MYR or roughly 70k USD as my starting capital). I believe I am making the correct choice by using Ireland Domiciled ETFs as opposed to US ETFs. Please do feel free to give feedback regarding the risk exposure to regions and whatnot. Anything at all, I am all ears and am down for discussions.

60% VWRA, 25% VUAA, 15% China ETF which then means:
I will have 62.14% on NA markets, 16.44% on developed markets, 4.32% on emerging markets, 17.1% on China.
chiacp
Posts: 2
Joined: Mon Dec 14, 2020 5:16 pm
Location: Malaysia

Re: Feedback please [Malaysian]

Post by chiacp »

Hi there,
For a more accurate answer to your query, more info is required.
R u a tax resident in Malaysia?
What's your goal, duration and investment policy statement?
Will your expenses be in ringgit? Emergency fund fully funded? What percentage of your asset do you plan to keep within Malaysia?
Have you assessed your risk tolerance; whether you are able, willing or need to do so?
What's your asset allocation?
Topic Author
oeuvre
Posts: 9
Joined: Tue Mar 29, 2022 10:55 am

Re: Feedback please [Malaysian]

Post by oeuvre »

chiacp wrote: Mon May 16, 2022 7:14 pm Hi there,
For a more accurate answer to your query, more info is required.
R u a tax resident in Malaysia?
What's your goal, duration and investment policy statement?
Will your expenses be in ringgit? Emergency fund fully funded? What percentage of your asset do you plan to keep within Malaysia?
Have you assessed your risk tolerance; whether you are able, willing or need to do so?
What's your asset allocation?
Hello,
Yes I am a tax resident in Malaysia. My goal is to set a portion of my funds (1/4th of my total funds available) to these endeavors. The goal is for it to be a retirement fund, it will be monthly DCA for however long I can afford to. I earn HKD, and use Interactive Brokers, and hence my monetary transfers towards IB and the currency exchange to USD is to say the least negligible since IB doesn't charge on deposits and withdrawals; and the foreign currency exchange fees is next to nil. I have an acceptable emergency fund set aside so that is of no worry. I am 28 years old now and my risk policy is to be 100% in stocks, will allocate some portion into bonds when I am 35.
KlangFool
Posts: 31426
Joined: Sat Oct 11, 2008 12:35 pm

Re: Feedback please [Malaysian]

Post by KlangFool »

oeuvre wrote: Tue May 17, 2022 11:22 am
chiacp wrote: Mon May 16, 2022 7:14 pm Hi there,
For a more accurate answer to your query, more info is required.
R u a tax resident in Malaysia?
What's your goal, duration and investment policy statement?
Will your expenses be in ringgit? Emergency fund fully funded? What percentage of your asset do you plan to keep within Malaysia?
Have you assessed your risk tolerance; whether you are able, willing or need to do so?
What's your asset allocation?
Hello,
Yes I am a tax resident in Malaysia. My goal is to set a portion of my funds (1/4th of my total funds available) to these endeavors. The goal is for it to be a retirement fund, it will be monthly DCA for however long I can afford to. I earn HKD, and use Interactive Brokers, and hence my monetary transfers towards IB and the currency exchange to USD is to say the least negligible since IB doesn't charge on deposits and withdrawals; and the foreign currency exchange fees is next to nil. I have an acceptable emergency fund set aside so that is of no worry. I am 28 years old now and my risk policy is to be 100% in stocks, will allocate some portion into bonds when I am 35.
oeuvre,

1) What is your annual savings?

2) What is your annual expense?

<< I am 28 years old now and my risk policy is to be 100% in stocks, will allocate some portion into bonds when I am 35.>>

3) Why do you think that is the right answer?

KlangFool
30% VWENX | 16% VFWAX/VTIAX | 14.5% VTSAX | 19.5% VBTLX | 10% VSIAX/VTMSX/VSMAX | 10% VSIGX| 30% Wellington 50% 3-funds 20% Mini-Larry
Topic Author
oeuvre
Posts: 9
Joined: Tue Mar 29, 2022 10:55 am

Re: Feedback please [Malaysian]

Post by oeuvre »

KlangFool wrote: Tue May 17, 2022 11:53 am
oeuvre wrote: Tue May 17, 2022 11:22 am
chiacp wrote: Mon May 16, 2022 7:14 pm Hi there,
For a more accurate answer to your query, more info is required.
R u a tax resident in Malaysia?
What's your goal, duration and investment policy statement?
Will your expenses be in ringgit? Emergency fund fully funded? What percentage of your asset do you plan to keep within Malaysia?
Have you assessed your risk tolerance; whether you are able, willing or need to do so?
What's your asset allocation?
Hello,
Yes I am a tax resident in Malaysia. My goal is to set a portion of my funds (1/4th of my total funds available) to these endeavors. The goal is for it to be a retirement fund, it will be monthly DCA for however long I can afford to. I earn HKD, and use Interactive Brokers, and hence my monetary transfers towards IB and the currency exchange to USD is to say the least negligible since IB doesn't charge on deposits and withdrawals; and the foreign currency exchange fees is next to nil. I have an acceptable emergency fund set aside so that is of no worry. I am 28 years old now and my risk policy is to be 100% in stocks, will allocate some portion into bonds when I am 35.
oeuvre,

1) What is your annual savings?

2) What is your annual expense?

<< I am 28 years old now and my risk policy is to be 100% in stocks, will allocate some portion into bonds when I am 35.>>

3) Why do you think that is the right answer?

KlangFool
1) 500k

2) 150k

3) Personal preference. As I am now currently single, as well as my understanding of myself dictates me to go for full equities.
KlangFool
Posts: 31426
Joined: Sat Oct 11, 2008 12:35 pm

Re: Feedback please [Malaysian]

Post by KlangFool »

oeuvre wrote: Tue May 17, 2022 12:43 pm
3) Personal preference. As I am now currently single, as well as my understanding of myself dictates me to go for full equities.
oeuvre,

A) You are 28 years old. You were not unemployed in 2008/2009 GFC. So, how would you know how you would handle 100% stock when you are unemployed in the coming recession?

B) Even if you know how you would behave, when you run out of your emergency fund, you still have to sell your stock and take your losses.

C) You are saving 3 years of expense every year. You do not need the return of 100% stock to be Financially Independent.

KlangFool
30% VWENX | 16% VFWAX/VTIAX | 14.5% VTSAX | 19.5% VBTLX | 10% VSIAX/VTMSX/VSMAX | 10% VSIGX| 30% Wellington 50% 3-funds 20% Mini-Larry
Topic Author
oeuvre
Posts: 9
Joined: Tue Mar 29, 2022 10:55 am

Re: Feedback please [Malaysian]

Post by oeuvre »

KlangFool wrote: Tue May 17, 2022 1:01 pm
oeuvre wrote: Tue May 17, 2022 12:43 pm
3) Personal preference. As I am now currently single, as well as my understanding of myself dictates me to go for full equities.
oeuvre,

A) You are 28 years old. You were not unemployed in 2008/2009 GFC. So, how would you know how you would handle 100% stock when you are unemployed in the coming recession?

B) Even if you know how you would behave, when you run out of your emergency fund, you still have to sell your stock and take your losses.

C) You are saving 3 years of expense every year. You do not need the return of 100% stock to be Financially Independent.

KlangFool
Thank you for your feedback. Will certainly keep that in mind.
jg12345
Posts: 421
Joined: Fri Dec 11, 2020 12:03 pm

Re: Feedback please [Malaysian]

Post by jg12345 »

Hi OP,

One clarification: you said your portfolio is only 25% of your wealth? the remaining 75% is what then? Or am I misunderstanding this "My goal is to set a portion of my funds (1/4th of my total funds available) to these endeavors"?

Your portfolio allocation duplicates USA and China which are already part of VWRA. That presumes you know better than the market, which I doubt it is the case.

So my suggestion is go simple, just do VWRA 100%, and stick to it.

Other thoughts:
1) make an IPS (see boglewiki)
2) read boglewiki!
3) think about your retirement plan a bit better. you are single now, but your expenses might go up with a family? although saving 3y of expenses is pretty huge regardless, congrats on that
chiacp
Posts: 2
Joined: Mon Dec 14, 2020 5:16 pm
Location: Malaysia

Re: Feedback please [Malaysian]

Post by chiacp »

[/quote]

Hello,
Yes I am a tax resident in Malaysia. My goal is to set a portion of my funds (1/4th of my total funds available) to these endeavors. The goal is for it to be a retirement fund, it will be monthly DCA for however long I can afford to. I earn HKD, and use Interactive Brokers, and hence my monetary transfers towards IB and the currency exchange to USD is to say the least negligible since IB doesn't charge on deposits and withdrawals; and the foreign currency exchange fees is next to nil. I have an acceptable emergency fund set aside so that is of no worry. I am 28 years old now and my risk policy is to be 100% in stocks, will allocate some portion into bonds when I am 35.
[/quote]

Congratulations on your decision to invest via the BH philosophy . I hv only 2 points.
1. Keep it simple. Jz as one of the above posters suggested. Jz stick with VWRA.
2. Develop an IPS. It will help to keep you rooted for the long term.

Happy investing.

ChiaCP
Topic Author
oeuvre
Posts: 9
Joined: Tue Mar 29, 2022 10:55 am

Re: Feedback please [Malaysian]

Post by oeuvre »

jg12345 wrote: Tue May 17, 2022 2:18 pm Hi OP,

One clarification: you said your portfolio is only 25% of your wealth? the remaining 75% is what then? Or am I misunderstanding this "My goal is to set a portion of my funds (1/4th of my total funds available) to these endeavors"?

Your portfolio allocation duplicates USA and China which are already part of VWRA. That presumes you know better than the market, which I doubt it is the case.

So my suggestion is go simple, just do VWRA 100%, and stick to it.

Other thoughts:
1) make an IPS (see boglewiki)
2) read boglewiki!
3) think about your retirement plan a bit better. you are single now, but your expenses might go up with a family? although saving 3y of expenses is pretty huge regardless, congrats on that
Hello there, thank you kindly for your message.

To your first question, apologies, it is 1/3rd not 1/4th (edited my first post), below is my planned allocation:
Trading fund (full time trading): 250k
Cash on hand: 250k
DCA (Bogleheads): 500k
Shares (individual shares): 300k
Properties: 200k
Crypto world: 10k

Regarding VWRA 100%,
Image
My intention is to try and replicate the three-fund portfolio by Bogleheads with below adjustments:
1. Ireland Domiciled ETFs
2. 100% equities
3. Less weightage on EU and Pacific markets and more weightage on China markets. (I would like more feedback and discussion on this.)

And thank you! Will take up your advice.
Topic Author
oeuvre
Posts: 9
Joined: Tue Mar 29, 2022 10:55 am

Re: Feedback please [Malaysian]

Post by oeuvre »

chiacp wrote: Tue May 17, 2022 10:59 pm
Hello,
Yes I am a tax resident in Malaysia. My goal is to set a portion of my funds (1/4th of my total funds available) to these endeavors. The goal is for it to be a retirement fund, it will be monthly DCA for however long I can afford to. I earn HKD, and use Interactive Brokers, and hence my monetary transfers towards IB and the currency exchange to USD is to say the least negligible since IB doesn't charge on deposits and withdrawals; and the foreign currency exchange fees is next to nil. I have an acceptable emergency fund set aside so that is of no worry. I am 28 years old now and my risk policy is to be 100% in stocks, will allocate some portion into bonds when I am 35.
[/quote]

Congratulations on your decision to invest via the BH philosophy . I hv only 2 points.
1. Keep it simple. Jz as one of the above posters suggested. Jz stick with VWRA.
2. Develop an IPS. It will help to keep you rooted for the long term.

Happy investing.

ChiaCP
[/quote]

Thank you! Will do.
jg12345
Posts: 421
Joined: Fri Dec 11, 2020 12:03 pm

Re: Feedback please [Malaysian]

Post by jg12345 »

oeuvre wrote: Wed May 18, 2022 4:27 am
jg12345 wrote: Tue May 17, 2022 2:18 pm Hi OP,

One clarification: you said your portfolio is only 25% of your wealth? the remaining 75% is what then? Or am I misunderstanding this "My goal is to set a portion of my funds (1/4th of my total funds available) to these endeavors"?

Your portfolio allocation duplicates USA and China which are already part of VWRA. That presumes you know better than the market, which I doubt it is the case.

So my suggestion is go simple, just do VWRA 100%, and stick to it.

Other thoughts:
1) make an IPS (see boglewiki)
2) read boglewiki!
3) think about your retirement plan a bit better. you are single now, but your expenses might go up with a family? although saving 3y of expenses is pretty huge regardless, congrats on that
Hello there, thank you kindly for your message.

To your first question, apologies, it is 1/3rd not 1/4th (edited my first post), below is my planned allocation:
Trading fund (full time trading): 250k
Cash on hand: 250k
DCA (Bogleheads): 500k
Shares (individual shares): 300k
Properties: 200k
Crypto world: 10k

Regarding VWRA 100%,
Image
My intention is to try and replicate the three-fund portfolio by Bogleheads with below adjustments:
1. Ireland Domiciled ETFs
2. 100% equities
3. Less weightage on EU and Pacific markets and more weightage on China markets. (I would like more feedback and discussion on this.)

And thank you! Will take up your advice.
Hi ouevre,
here is more feedback and discussion:
1) if you overweight China and US, especially dedicating to them more than 30% of your portfolio, you are assuming that "you know better than the market". this is unlikely. the performance of funds managed by well-paid, well-educated, well-equipped (with all data possibly purchasable and software developed by highly skilled PhD in quantitative finance) is rarely consistently above the market.

So here we say: buy the market and forget about it until you need the money in 20 years from now. That means only buying VWRA 100%, with no overweight to China or US, or at the very least not with an overweight of 30%. If you want to use 5% of your portfolio to "play with individual shares", so be it.

Plenty of info on this on boglewiki, and in the books recommended on boglewiki

2) I see that you have about 1/3 of your investable portfolio into full time trading and individual shares. If full-time trading is your full-time job, I wish you best of luck and probably that money is like "money into your business".

3) However, on this forum we suggest to stay away from individual shares, because of point 1. So we would suggest to move all the individual shares under VWRA. Same reasoning for Crypto. A previous post suggested that crypto must be 0% of your portfolio, or if you really want to have some then max 1% of your portfolio, which seems to be your case

4) regarding cash on hand, we suggest to have an emergency fund between 3 months to 12 months of your expenses. so it seems yours is a bit high

I hope this helps in some way
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