The Lazy Man Portfolio – A rethink
By Derek  •  January 13, 2019
I have been dabbling in stocks for the last 10 odd years and I have to admit I suck – period. I realised that I have zero interest in crunching numbers or reading analyst reports.  I look at bloggers and analysts who spent hours scrutinising financial reports, looking at charts, doing back testing, attending AGMs etc and I realised that that is not for me. If it is not for the fact that I have to have some form of investment for retirement, I would have washed my hands off investing now. In the past when I see courses or seminars on investing, I will try to sign up but after a while I begin to find it boring and I am still nowhere closer to my 'end game'. I will like to remind myself that I am a mediocre investor. If the professionals spent hours each day to in just trying to achieve 10% annualised returns, how can I better them without spending the same amount of time and effort? I find working to be a more sustainable and less stressful way to achieve financial independence. Rather than having investing classes, I hope to see more courses to help people manage and enjoy their job. Instead of calculating how I fare in my stocks and them shaming or praising myself on the performance, I decided to set a goal and how far am I from achieving it. My target is to have the Lazy Man Portfolio generate $20,000 per annum. Based on 5% yield, I should be able to reach my target at age 54.  Instead of focusing on portfolio growth, I will look at how I can achieve the yield in absolute amount.
Year Age Portfolio (Start of the Year) Yield (%) Yield ($) Cash Injection Portfolio (End of the Year)
1 39 $86,000.00 5.00% $4,300.00 $11,000.00 $101,300.00
2 40 $101,300.00 5.00% $5,065.00 $11,000.00 $117,365.00
3 41 $117,365.00 5.00% $5,868.25 $11,000.00 $134,233.25
4 42 $134,233.25 5.00% $6,711.66 $11,000.00 $151,944.91
5 43 $151,944.91 5.00% $7,597.25 $11,000.00 $170,542.16
6 44 $170,542.16 5.00% $8,527.11 $11,000.00 $190,069.27
7 45 $190,069.27 5.00% $9,503.46 $11,000.00 $210,572.73
8 46 $210,572.73 5.00% $10,528.64 $11,000.00 $232,101.37
9 47 $232,101.37 5.00% $11,605.07 $11,000.00 $254,706.43
10 48 $254,706.43 5.00% $12,735.32 $11,000.00 $278,441.76
11 49 $278,441.76 5.00% $13,922.09 $11,000.00 $303,363.84
12 50 $303,363.84 5.00% $15,168.19 $11,000.00 $329,532.04
13 51 $329,532.04 5.00% $16,476.60 $11,000.00 $357,008.64
14 52 $357,008.64 5.00% $17,850.43 $11,000.00 $385,859.07
15 53 $385,859.07 5.00% $19,292.95 $11,000.00 $416,152.02
16 54 $416,152.02 5.00% $20,807.60 $11,000.00 $447,959.62
17 55 $447,959.62 5.00% $22,397.98 $11,000.00 $481,357.61
  There are still a few hard questions that I have to ask myself: 1) Is 5% yield a realistic target considering I hardly spend any time reading up on stocks? 2) Is my current portfolio generating at least 5% yield, else how should I re-balance it? 3) A huge portion of my portfolio is in cash but I do not want to rush to invest it. 4) Is $11,000 cash injection a year sustainable considering that I will have more liabilities in the future. 5) I have not yet taken my spouse into consideration. $20,000 is barely enough for one let alone two. 6) Are plans like OCBC Blue Chips Investment Plan, POEMS Share Builder Plan etc a viable option?
Asahi Girl Photo Credit: Cocoa
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By Derek
Derek is an investor who follows Peter Lynch style of investing. He prefers to use simple and straight forward information for stock analysis. He started with the intention to bring together all bloggers and professionals who are interested or already in the area of Finance and Investing, and to create a community where everyone is free to write and to share their articles, experience and opinions.

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4 responses to “The Lazy Man Portfolio – A rethink”

  1. Quote : I find working to be a more sustainable and less stressful way to achieve financial independence

    Progress in our career to hit the current monthly CPF contributions limit at $6K ASAP. That is one good way to grow our net worth for retirement.

    • Derek says:

      Hi CW8888,

      Thanks for sharing. It’s also important to find some form of fulfilment in my job, and most importantly keep relevant to the industry as I never know when I will be shown the door.

  2. lazyman2 says:

    and i thought i was the only lazy one!

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