Part 3 of 3: A 10-Year Project for My Traditional IRA account
The final part of the Project $350K series covering allocation plans for my Traditional IRA account. By Benjamin Tan.
This article is a continuation from Part 1 and Part 2.
Other portfolio rules for Project $350K include:
Disposal Rules: Holdings will be evaluated for the long term, and disposals will be considered only if the fundamental growth story breaks or execution falters. Every quarter, I will assess their financial results, focusing on areas where management falls short. Often, I have noticed that consecutive gaps between Wall Street consensus numbers and actual results are a harbinger of deeper troubles. Think Unity ( U 0.00%↑ ), ZoomInfo ( ZI 0.00%↑ ), Peloton ( PTON 0.00%↑ ), and Oatly ( OTLY 0.00%↑ ). While there are always mitigating circumstances to consider, red flags can be cloaked in management explanations that sound like broken records.
S&P 500 Names versus Others in Portfolio Balancing: I want to strike an intentional balance between S&P 500 constituent stocks—which arguably have already been uncovered by the markets—and non-constituent stocks. Currently, 75% of my traditional IRA account (in terms of market value) comprises S&P 500 constituent stocks, and Amazon ($AMZN) dominates it. It was not by design, and the allocation was random as mentioned above. Going forward, I will aim for a 50-50 split between S&P 500 names and non-constituent stocks, with an immediate focus on adding names that appear poised for index inclusion. They offer the highest potential for re-rating post-index inclusion and are suitable candidates for the lofty target returns of Project $350K.
Multiple Growth Engines: Each stock must have a proven track record of being able to keep adding new businesses and product categories. Amazon ($AMZN) is a prime example of a company that has been able to expand horizontally over multiple decades from a bookseller to the conglomerate that it is today, with more growth engines continually added (streaming, advertising, Buy With Prime). A single-product company just won’t cut it (think Oatly $OTYL and Peloton $PTON), even if they tout geographical expansion.
Caution with Mega Mergers: I will also be wary of companies that grow horizontally by entering large M&A deals relative to their existing sizes. I just don’t think it is a good sign, and I will stay away. While bolt-on acquisitions make sense since building new businesses from scratch can be riskier, when two peers try to swallow each other, it tends not to do well and can even result in more risk than a home-grown strategy. History is littered with more failures than successful mergers. Think of Time Warner and AOL as the quintessential cautionary tale.
The Road to $350K
Combining the tax-deferred growth benefits of a Traditional IRA account with a focused investing approach, I aim to create a narrative that can resonate with others in this community. I want to prove that the 14% IRR required to reach this $350K goal by 2035 is achievable with a focused strategy and a commitment to learning from successes and mistakes.
Since I am already financially independent and have substantial resources reserved in safe asset classes, I will take more risk with my Traditional IRA account. At the same time, the statutory limits on annual contributions provide a hard stop on the amount of capital at risk.
Conclusion: Join This Journey of Community Learning
Project $350K serves a few purposes. Firstly, the mission is informed by the lessons I learned from years of investing in a combination of multi-baggers (including Tesla TSLA 0.00%↑ , CrowdStrike CRWD 0.00%↑ , Cloudflare NET 0.00%↑ , and Datadog DDOG 0.00%↑ ) and certified losers (Peloton PTON 0.00%↑ , Oatly OTLY 0.00%↑ , and Fastly FSLY 0.00%↑ ). Secondly, I want to create a disciplined, transparent challenge. Knowing my tendency for insular thinking, I want to make Project $350K into a Substack community project open to feedback, comments, and iteration. Plus, it adds an element of fun to the discipline of investing when there is lively engagement. Thirdly, using my Traditional IRA, I am testing the boundaries of higher-risk investing within a defined framework. This account allows me to explore the intellectual challenge of finding high-growth companies while limiting the overall impact on my broader financial picture.
Accordingly, this project is more than just hitting my desired investment returns. Project $350K reflects my past learnings and continuing journey to align investing strategies with a deeper understanding of discipline, focus, and long-term growth. Money heightens emotions like no other life variable. By executing Project $350K on this forum, I want to put my investment theses to the test of open feedback and become a better investor. This project also invites readers to share insights, learn from each other, and contribute to a community of thoughtful investors.
I hope Project $350K motivates readers to think more intentionally about their Traditional IRA accounts, which tend to take a backseat to regular trading accounts. Retirement accounts are not merely passive vehicles but can also be structured challenges for self-awareness and growth.
Update as of April 29, 2025: I have added to the following positions in my Traditional IRA account since Part 2 publication:
LTH 0.00%↑ at $28.63 per share
GLOB 0.00%↑ at $132.50 per share
The above was funded by disposing of my original WMG 0.00%↑ stake, a position that did not align with my new mandate due to its tepid growth profile.
Follow me on X.com (formerly Twitter) @ConsumeOwnTech and Yahoo Finance
Subscribe to Consume Your Own Tech Investing FOR FREE to receive a welcome email with the following:
My Top 10 high-conviction portfolio positions, combining value and growth stocks
Book recommendations in investing, consumer, and tech sectors
Monthly articles delivered straight to your inbox