Part 1 of 3: A 10-Year Project for My Traditional IRA account

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Part 1 of 3: A 10-Year Project for My Traditional IRA account

Project $350K: Growing My Traditional IRA by 2035

Since 2021, when I moved to the United States from London, I have had to juggle the challenges of a transatlantic relocation, graduate school, a tech startup, writing a book, and preparing for parenthood. Amidst these demands, I found some time to open a Traditional IRA because my husband had touted all the tax advantages of doing so. So, once I obtained my green card, I began contributing, albeit with little thought or strategy, as I had limited bandwidth. I did not have a cohesive plan for deploying the funds I contributed. Consequently, I put them into names I had already invested in my separate trading account.

Despite a hasty start, my Traditional IRA account has grown by more than 50% over the last three years – see the breakdown of my results below. While I am satisfied with the performance—no doubt aided by a strong market performance lifting all boats—the lack of an intentional strategy left me feeling wanting.

Recently, I came across an article Project $1M: End Of A Journey With Mission Accomplished on Seeking Alpha. That mission resonated, and I felt inspired to do something similar. Hence, I am setting a goal: Project $350K, a mission to grow my Traditional IRA to $350,000 by 2035. It has an implied 15% internal rate of return (IRR) over the next decade. By sharing Project $350K on Substack, I hope to make this a community-driven project, taking onboard ideas and feedback from readers while providing an inspirational blueprint for investors wishing to embark on a more purposeful journey with their Traditional IRA accounts.

My Story and Where I Have Invested

While living in Singapore, I worked in the investment banking and buy-side sectors for over 13 years at firms like Credit Suisse, UBS, and Oaktree Capital. I earned my financial independence mainly through employment income and property investments. What did not work well for me were the obscure stocks I had been drawn to since my nascent days as a stock picker. I was also overly focused on assets trading at low price-to-net-tangible-asset ratios, mistaking cheap valuations for genuine value. The kind of insular thinking and scarcity mindset common among my breed of highly intellectualized personalities—see below article on Type Fives, in Enneagram speak—resulted in missed opportunities to invest in quality companies trading at fair prices.

In recent years, however, spurred by moves to London and Atlanta, I started investing more in growth names. It was not a sudden pivot but a slow one that began with companies that embodied growth and profitability, such as Match Group ( ), Starbucks ( ), and a streaming-focused Disney ( ). Then, I doubled down on rapid growth stories—all lacking in GAAP profits—deep within the technology space, with mixed results. Over a decade, the lessons I learned from investing in winners and losers have informed my portfolio philosophy, which I wish to apply in earnest to Project $350K.

Current Holdings and Allocation

Overall, my current assets are anchored by home equity, and my liquid investments are evenly spread across S&P 500 constituent stocks, real estate investment trusts (REITs), cash, fixed income, and companies poised for index inclusion. My existing equity holdings—primarily in a separate trading account—comprise REITs and stocks in the technology and consumer sectors.

Below are the current holdings in my Traditional IRA account (as of December 31, 2024):

Current Holdings in My Traditional IRA Account
(market prices as of Dec 31, 2024):

Amazon (90 shares)

Closing Price: $219

Average Cost: $107

Market Value: $19,745

Gain: +104%

Lululemon (17 shares)

Closing Price: $382

Average Cost: $250

Market Value: $6,501

Gain: +53%

Shopify (45 shares)

Closing Price: $106

Average Cost: $58

Market Value: $4,785

Gain: +84%

Floor & Décor (25 shares)

Closing Price: $100

Average Cost: $119

Market Value: $2,493

Loss: (16%)

Disney (24 shares)

Closing Price: $111

Average Cost: $131

Market Value: $2,672

Loss: (15%)

Warner Music (75 shares)

Closing Price: $31

Average Cost: $39

Market Value: $2,325

Loss: (21%)

Square (1 share)

Closing Price: $85

Average Cost: $73

Market Value: $85

Gain: +17%

Total Portfolio Performance

Capital Cost: $25,635

Market Value: $38,606

Total Gain: +51%

Mandate: Growing with Consumer and Technology Companies

I will make the maximum annual contributions to my Traditional IRA account for the next ten years. In 2025, year 1 of this project, it is $7,000. To calculate my target IRR, I assume it will remain the same for 2026-2035. As described above, I am starting with my seed investments, so to reach $350,000 by the end of 2035, the implied returns needed will be approximately 15%.

1. Sector Focus

Given Project $350K's high target returns, I will focus solely on technology and consumer names for this portfolio, not REITs. Having invested in these sectors for many years, I feel most comfortable with them.

Without stating the obvious, we are at the cusp of an AI revolution. Technology transforms every industry. I am working at a startup that harnesses AI to transform the mental health industry, so I see it firsthand. Having meaningful exposure to this sector and stakes in technology companies instrumental to this revolution is key to any portfolio’s relevance.

When investing in consumer stocks, my personal experiences come into play, and I find that to be most fulfilling when trends spotted early translate into portfolio performance. Spotify ( ), Lululemon ( ), and Tesla ( ) have been some of my best consumer stock investments, and they are all inspired by what I see myself or others consuming.

In combination, technology and consumer companies represent the highest potential for portfolio appreciation and align with my experience and professional background.

2. Research Universe

To find relevant names to add to my Traditional IRA account, I shall rely on the following sources:

- Current Holdings. My trading account currently comprises about 20 relevant names, including Tesla ( ), Zscaler ( ), Cloudflare ( ), and Adyen. These have been high-conviction, long-term holdings, and I know them sufficiently well. If prices dip to certain levels, I will add them using funds in my Traditional IRA account.

- Past Investments: I recently sold several names to fund a more significant home purchase for family planning purposes. Some names that I wish I had kept—including Trupanion ( ) and Globant ( )—are prime candidates for my Traditional IRA account.

- Sector Focus Lists via Research: I have access to multiple broker research databases, so I will examine related subsectors within the technology and consumer space. I will be monitoring cloud-native software makers, cybersecurity providers, fintech companies, and discretionary consumer-based companies.

Parts 2 and 3 are to come - stay tuned!

Update as of Jan 31, 2025: I have added more at $107 and initiated at $200 in my Traditional IRA account.

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