One of the key strategies for successful financial independence is to keep right portfolio allocation and diversification.
What I have decided is my annual investment targets to be invested in mutual funds. This will provide less growth but less risk as well. Should I manage to accumulate any additional money for the investment, I can put them in individual equities, if I want to.
This is last two years and three scenario for this year (Do nothing and stay in cash, do partial investment or invest everything):
In a way I still limited by the size of my emergency fund and I choose to stay in cash, overall cash allocation percentage wise will go up to 61%. If I invest it all, only emergency fund will be left (~30%). It is still very substantial percentage of the overall
Pie charts diversification will look like this:
Aspired allocation is to keep only minimum (emergency fund) in cash and keep investing. Till overall will reach financial independence target. However grand total is relatively very small amount of money to be worried about. Even having $ 269 K will generate income to replace about 12% of annual expenses. It will take some time to get there.
I am grateful and excited having opportunity saving money aside towards my financial independence, but I have mixed feelings. Almost like having ice cream in front of you and resisting temptation to eat it.