How I’m Investing in an Uncertain World
Nearly 20 years ago, I arrived in Japan with $5,000 in my pocket from selling a car—and $20,000 in student loan debt. I didn’t know what “financial independence” was. I just knew I was in my late 20s, far from home, and needed to get my financial life together.
One day, I wandered into a bookstore in Osaka that carried foreign-language titles and found The Complete Idiot’s Guide to Getting Rich by Larry Waschka. It wasn’t flashy, but it was full of solid, foundational advice:
Save more than you earn
Pay off high-interest debt
Build an emergency fund
Invest in low-cost index funds
Eventually, expand into real estate and business
That simple framework helped guide me through two decades of investing. And while I’ve added nuance and complexity over the years—especially as an American expat living in Japan—the core principles haven’t changed.
But the world around us has.
The 2025 Reality Check
We’re in a moment that feels increasingly uncertain. The return of Trump-era tariffs is shaking international trade. The stock market is reacting to political instability, inflation pressures, and concerns about rate cuts—or the lack of them. And with geopolitical tensions simmering across multiple regions, the usual noise of the market has gotten louder.
So how do you invest when everything feels like it’s in flux?
You don’t panic. You don’t pull out. You don’t chase shiny objects.
Instead, you focus on what you can control. You make intentional, flexible moves that align with your goals—and your current stage of life.
As someone who is already financially independent, my goal is no longer to build toward FI. It’s to preserve wealth, stay diversified, and maintain liquidity so I can navigate whatever’s next.
Here’s how I’m doing that.
How I Use My Job Income in Japan
My full-time salary from my university job in Japan is stable and predictable, which allows me to be methodical in how I deploy it.
Step 1: Maximize Tax-Advantaged Accounts
Each year, I gift my wife ¥1.1 million to invest in her NISA account. (That’s the annual limit under Japan’s gift tax exclusion for spouses.) She recently hit a milestone—her NISA account crossed ¥10 million. That long-term, tax-free compounding is one of the best wealth-building strategies available to us in Japan.
Step 2: Build and Maintain an Emergency Fund
I keep a modest yen-based emergency fund to cover 3–6 months of expenses. Living in Japan, it’s important to have quick access to yen in the event of unexpected costs, a job transition, or short-term disruptions.
Step 3: Invest the Rest in Taxable Brokerage (Japan)
Once the NISA is funded and the emergency fund is topped off, I invest the remaining income into my Japanese taxable brokerage account. My strategy there is consistent:
30% VOO (U.S. Large Cap)
20% VB (U.S. Small Cap)
20% VXUS (International Developed)
10% VWO (Emerging Markets)
I keep this mix aligned with my U.S.-based taxable investments, with one key difference: it’s all in yen. That gives me currency diversification and future spending flexibility if I stay in Japan long term.
What I Do With My Rental Property Income (U.S.)
My 10 rental properties in the U.S. generate steady cash flow. Here’s how I allocate that income:
1. One-Third to Vanguard Money Market Fund (VMFXX – 4.5% interest)
This is my cash cushion—an opportunity fund that earns solid interest while keeping me nimble. In today’s environment, with rates still high and markets bouncing around, liquidity is a form of defense.
If a great real estate deal comes along or there’s a major market correction, this is where I’ll pull from. It’s dry powder, plain and simple.
2. One-Third to My U.S. Taxable Brokerage Account
This continues to be the long-term growth engine of my portfolio. I stick with what’s worked:
VTI (U.S. total market)
VOO (S&P 500)
VB (Small-cap)
VXUS (International)
VWO (Emerging Markets)
I rebalance once or twice a year, and I don’t try to time the market. This part of my strategy is about staying the course—investing consistently and letting compounding do the heavy lifting.
3. One-Third to Rental Property Debt Paydown
All of my mortgages are at or below 5%. From a strict mathematical ROI standpoint, there’s no rush to pay them off. But from a risk management and lifestyle perspective, I see real value here.
I’m not trying to maximize leverage. I’m already FI, and I care more about stability, simplicity, and cash flow than squeezing out every extra percentage point. Reducing debt improves my net cash flow and strengthens my position if the real estate market softens.
A Hard-Learned Lesson: My Commercial Real Estate Investment
One area where things didn’t go as planned was my commercial real estate investment. A few years ago, I invested in a 19-duplex portfolio in Huntsville, Alabama. On paper, it looked like a great opportunity—scale, strong market, solid returns.
But the reality didn’t match the projections. The deal faced multiple challenges over time—management turnover, cost overruns, shifting market conditions—and I spent years trying to exit the investment.
This year, I finally sold the last duplex in the portfolio and fully exited. It wasn’t a financial win. But it was a learning experience. It reminded me how important transparency, conservative underwriting, and sponsor alignment are in any commercial deal.
Even with that experience, I’m not closing the door on commercial real estate altogether. I still believe in the asset class. But next time, I’ll go in with clearer eyes, better structure, and sharper due diligence.
I’ll write a full post soon on the sale, including:
What went wrong
What I learned
How I’m handling the tax consequences
And what I plan to do with the proceeds
Why This Strategy Works for Me
Everyone’s portfolio is personal. This is what works for me right now, based on where I am in my journey:
I’m already financially independent. That shifts my focus from accumulation to preservation and optionality.
I value simplicity and flexibility. That’s why I don’t day-trade, chase hot trends, or over-complicate things.
I’m diversified across countries, currencies, and asset classes. That helps me weather uncertainty—whether it’s market-related, geopolitical, or personal.
I keep some dry powder. In today’s climate, cash isn’t just king—it’s opportunity fuel.
Final Thoughts: Back to the Basics
It’s easy to get caught up in the headlines—tariffs, elections, inflation, recessions. But the truth is, the future has always been uncertain.
What’s helped me is sticking to a plan, revisiting it periodically, and staying grounded in the basics:
Keep investing
Stay diversified
Manage risk thoughtfully
Don't overreact
When I started out, I was just trying to escape debt. Today, I have a portfolio that gives me the flexibility to live life on my own terms.
And I still believe the same thing I did when I picked up that first finance book in Osaka:
Consistency beats complexity.
How are you navigating the current market? Are you making changes or staying the course? Let me know in the comments.
Disclaimer: This post is for educational purposes only and does not constitute financial or legal advice. Please consult with a qualified financial or tax professional before making any investment decisions, especially regarding U.S. brokerage accounts, international tax treatment, or retirement planning as an expat.
