Sell, add or hold?

Which portfolio?


This post has been edited by Cubalagi: Apr 19 2023, 12:18 PM

Whats the other 30%?

Reits is also a form of equities. Or perhaps more accurately a hybrid equity real estate.

And since you are close to retiremenr, you should also have Kwsp. Kwsp.has more than 40% equities in their portfolio.

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Even at retirement age, it is still.advisable to have some exposure to equities. Its still one of the best way to beat inflation.

You will only lose everything if you do silly things.

Safest way it to go for broad based indexes. Spx wont go to zero. Vwra wont go to zero.

Or really strong blue chips. Like Maybank also wont go to zero (it dropped to below RM3 tho in 2009 n below 2 in 1997).

But I agree to start small for beginners and ramp up.



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This post has been edited by Cubalagi: Apr 20 2023, 09:45 AM

Valid point.

For total return, you actually have to add dividends as well which is not shown in price chart. The breakeven would happen in 2007, but then soon the market would crash again.

One would also be the unfortunate fella who went all n at the peak and didnt make any investment onwards to average down.

To be fair, quite a number of investors have this behavior (buy at peak n soon give up). Spx, bitcoin, gold..u name it. Even here at Stashaway.

This post has been edited by Cubalagi: Apr 20 2023, 11:29 AM

I mean even after retire you need some equity exposure, what more if you not retire yet.

You dont know your reits making money or not? How come? Reits disclose financial.reports every quarter. How are u buying your reits if u dont mind to share?

Historically, a well run quality MReit should give u an annualized return of 8-10% pa in terms of dividends and price. However, this return can be volatile and your entry points are also important.

Back to stashaway, the robo part is a bit exaggerated lah. Still a lot of human factors. I see it just as a lower cost unit trust.

I did the same as you. Back in 2013, sold my condo. Half of proceeds went to reducing one mortgage, the other half went to reit (pavilion). That was my first individual stock. Exited in 2017, for about 50% profit if include dividends. Focused on other stocks.

Anyway 2020-22 were pretty rough years for reits. U had the MCOs which hit retail reits (shopping centres), office reits and hospitality reits badly. Then 2022 interest rate hikes which is not good for reits.

However last year I started going back to Mreits. Reason being Im seeing light at the end of the tunnel. MCO is over and for major retail reits their revenue now is back or higher than 2019 levels. Interest rate hikes appear to have peaked or very close to peaking now. So things are looking up, in my view. But there are also, as always, some risks..in particular the R word.

FYI Im a DIY investor. I keep track of Stashaway to see their asset allocation models. Stashaway has their ERAA model. I practice my own amateur ERAA too in a way.