As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

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Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

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Value Investing
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Sunday, 2 June 2013

Life starts at 60, how long will funds last?

think, June 2, 2013 thesundaytimes, pg 43


Life starts at 60, how long will funds last?

As retirees, we need to avoid two big money mistakes commonly made by many retirees during their financial planning for retirement income for life.


No 1: Not adequately factor in year-on-year inflation for retirement income cash flow. Our passive income (e.g. dividend income from stocks) from our investment portfolio is never inflation proof or inflation adjusted. When we need to top up any short fall in our retirement income, we may then commit the bigger No 2 money mistake.

No 2:  We are forced to sell assets when the market is slumping to meet shortfall in retirement income. This is definitely a Game killing move!



Uncle8888 has been thinking hard during his financial planning for Retirement Income for Life and coming out with strategy to avoid committing these two big money mistakes commonly made by many retirees.

Introducing ...


Dual Taps Cash Flow Balancing and Contingency

Tap 1:

During good times, cash flow from his investment portfolio should be able to fund his living expenses. Investment strategy will still be Growth-dividend focus to counter  the effect of year-on-year inflation threat.

Tap 2:

Tap 2 is normally corked!

But, it has the financial capability to fund at least 67% of his annual living expenses at 3% inflationary rate till 80 years old of age. It will definitely help Uncle8888 to avoid committing two big money mistakes commonly made by many retirees. The remaining 33% coming from investment cash flow should not be too difficult to achieve even in worse market condition.






























 
 

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