Questions On Portfolio Allocation and Rebalancing

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xkosmox
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Questions On Portfolio Allocation and Rebalancing

Post by xkosmox »

Hello, so I have some questions about portfolio allocation and rebalancing:

Question 1) (Currently I don't have enough for real estate so I'm excluding that. )
This is the current portfolio ratio I'm aiming for; wanted to see if anyone has feedback or anything big that I'm missing/doing wrong

Roboadvisors like Stashaway: 5%

A consistent investment (by a large travel and entertainment company) recommended from a millionaire friend that's giving me a guaranteed 12% return every year, tested for the past 3 years so far: 5%

Real-Estate Investment Trust stocks (REIT stocks): 10%

Lower-risk stocks in the TI Market Update (Trend Portfolio), ETF Portfolio (Primary Candidates) and the A.I. Trend Trader: 20%

Higher-risk stocks and options in the Market Update (Moderate to High Risk Portfolio), Plunder from Down Under and A.I. Trend Trader's Random Sector Plays: 15%

Cryptocurrencies (Bitcoin, Ethereum and other 20-40 altcoins): 25%

Cash-in-bank (For 6 month living expenses and any sudden investment opportunities like S&P500 or crypto market crash): 20%

I understand that portfolio differs by circumstances so here's some additional information (I'll put that in the self-intro thread as well)
- 33 year old in Singapore currently on a 1-year contract of high pay (Digital marketing consultant for a business house)
- Single, family is self-sufficient and staying together in a purchased house
- Looking to grow investment portfolio aggressively by 50-80% a year
- This money is all "money we can afford to lose", all money necessary for the family has already been set aside and excluded from the calculations

2) Does it make more sense to re-balance these ratios in terms of the cash I'm putting into each; or in terms of the realised+unrealised outputs? I'm considering the latter but due to fluctations sometimes it gets confusing.

3) The way I'm looking at rebalancing; is that every month I'll look at the amount of investment gains I've gotten; and add around 80% of my income (I spend very little for myself at the moment); and use that total amount to re-correct the ratio.
This means that even if a specific sector has a big jump or decrease (Like cryptocurrency at the moment); I'll be putting lesser money into the sector that has a big gain; and more money into those that aren't so effective at the moment.
It also means that I'm not taking out any of my investment gains for entertainment use, instead i'm re-investing 100% of my gains back into the channels.
Is this a smart decision?

Thank you.
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