Here is the update for my Daedalus portfolio for August 2024. If work is not too busy, I will try to provide an update where possible.
I explain how I constructed this portfolio in Deconstructing Daedalus Income Portfolio. If you haven’t read this post, you might not understand what I wrote below.
All my personal planning notes such as income planning, insurance planning, investment & portfolio construction will be under my personal notes section of this blog. You can also find the past updates in the section.
Portfolio Change Since Last Update
The portfolio was valued at $1.442 million at the end of July and is currently at $1.436 million at the end of August.
We reported a portfolio change of -$6,000 for August 2024.
Here are the primary security holding returns for the month-to-date and year-to-date:
The returns of Dimensional funds are in SGD, with the rest in USD. I have also listed the major index ETF performance for comparison.
The big difference between July and August is the broadening out of the equities to non-Mag seven large-cap companies. The US small cap recovered from the early month plunge but is still below where we ended in July.
The portfolio lost 2.2% to the strengthening of the SGD against the USD.
Role of Portfolio
The goal of the portfolio is to provide consistent, inflation-adjusted income for my essential and basic spending. The portfolio is sized based on a conservative 2-2.5% Initial Safe Withdrawal Rate (SWR) so that the income can last even considering challenging historical sequences such as the Great Depression, external war and 30 years of high inflation averaging 5.5-6% p.a.
The timeframe that the income stream to be planned for: 60 years to Perpetual
I am currently not drawing down the portfolio.
For further
