“Our favorite holding period is forever.” – Warren Buffett
Since 2020, my blog has chronicled my investment philosophy, which centers on a long-term approach, particularly with Exchange Traded Funds (ETFs). My strategy is built on the conviction that these assets, held over extended periods, are key to achieving financial independence.
While I subscribe to the principles of the Trinity Study, especially its 4% withdrawal rate as a sustainable income generation model for retirement, my portfolio diversifies beyond a single currency. I strategically invest across three major currencies: USD, MYR, and SGD. This multi-currency approach is designed to mitigate currency risks and enhance overall portfolio resilience, providing a robust hedge against economic fluctuations in any single region.
Currently, the cumulative dividends generated from these three distinct portfolios have surpassed my financial requirements for retirement. This significant milestone means that the income stream from my investments is more than sufficient to cover my living expenses and desired lifestyle in perpetuity.
The consistent inflow of dividends, disbursed on a quarterly basis from my diverse holdings, provides a predictable and reliable source of income. This steady stream of passive income reinforces my belief that I will never need to liquidate any of my principal investment shares in the future. My goal is to live off the income generated by my capital, allowing the core investment to grow and compound indefinitely, thus ensuring a lasting legacy and sustained financial security.
My USD Portfolio in 2025
My investment strategy heavily features a portfolio of USD-denominated Exchange Traded Funds (ETFs), specifically VUSD, VWRD, and IGLO. These ETFs are all distributing in nature, meaning they regularly pay out dividends or interest to investors. While many investors are drawn to the allure of high-growth individual stocks, my personal philosophy centers on building a consistent and compounding portfolio. My goal is a steady annual growth of 8-10%, which I find to be a sufficiently robust return.
Interestingly, I actually find myself preferring a bear market environment during my wealth accumulation phase. This is because a downturn allows me to purchase these high-quality ETFs at more attractive, lower prices, effectively maximizing my long-term gains through dollar-cost averaging. However, it appears that 2025 is shaping up to be another year of positive growth for my three chosen ETFs, which, while beneficial, means fewer opportunities to “buy the dip.” This continued upward trend reflects the inherent strength and stability I seek in my investment vehicles, allowing my portfolio to steadily appreciate and compound over time.
Another Good Year For me
The S&P 500 has achieved a commendable return of 13.21% year-to-date, marking yet another impressive performance for the index. This solid growth reflects the overall strength and resilience of the US stock market.
In comparison, my personal USD portfolio has outperformed the S&P 500, registering a 15.31% return so far this year. This superior performance can largely be attributed to the strategic composition of the portfolio, where approximately 55% is allocated to VWRD, a globally diversified exchange-traded fund (ETF). VWRD’s broad exposure to international markets has proven beneficial, as many stock markets outside the United States have experienced stronger growth than the US market this year. This highlights the advantages of global diversification in capturing growth opportunities across various regions.
Conclusion
My journey towards Financial Independence, Retire Early (FIRE) has been a significant part of my life for several years. I’m thrilled to share that I actually hit my target financial number two months ago. This was a monumental personal achievement, marking the culmination of diligent saving, strategic investing, and careful planning.
Congratulations