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.

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.

Think Investing as Tug of War - Read more? Click and scroll down



Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Thursday, 23 March 2017

The Evolution Of The Four Pillars For Retirement Income Portfolios


Read? The Evolution Of The Four Pillars For Retirement Income Portfolios




Since Uncle8888 as retail investor is a failed trader; he has learnt something from the above diagram and from SMOL. He has amended his diagram according.

Changing from Trading P/L to Capital Gains from the Bull i.e. no capital gain; it is NO SELLING to reflect exactly the state of mind of a failed trader!








16 comments:

  1. Thanks for sharing.

    One question. Why are interest from CPF OA and SA considered separate taps ?

    ReplyDelete
    Replies
    1. Tap 2 is meant for medical & health fund. I have allocated SA, MA, RA and Medi-shield for this purpose. Interests from SA will be used to pay medical and health expenses if any.

      As Ant; I like to make simple thing a little more complicated for Grasshoppers to poke. LOL!

      Delete
    2. I have checked my records. Since 2008 when I reached MA limit; every year interests from MA transferred to OA till 2016

      Delete
  2. Every year has capital gain... excellent!!!

    ReplyDelete
    Replies
    1. Somehow, some year, and some sectors seen to be rising while other sectors might be dropping. Sector rotation across market cycle. Good to have a diversified portfolio bought over diversified time frame across market cycle; then we may observe this effect with our portfolio.

      Delete
  3. CW,

    That's why I like to engage with people stronger, smarter, and wiser than me ;)

    Through our "sparring sessions", I have gained a lot of new insights too.

    How to sharpen my saw if I don't go AGAINST a touchstone?

    LOL!

    ReplyDelete
  4. i think it's even better if we can tell ourselves we can learn from "The Bad, The good & The ugly".

    ReplyDelete
  5. And what constitute as principals?

    Stock portfolio?

    Cash in the bank?

    Rental property?

    Bonds

    CPF OA,SA, MA & RA?

    Any others?

    ReplyDelete
    Replies
    1. Any assets that you received your cash flow is your principal

      Delete
    2. Ya hoh.

      So can consider WL with yearly cash increment as principal or not?

      Delete
  6. Why the pillars all draw as equal size?

    ReplyDelete
  7. WL is Rich Asset with no cash flow so it is not consider as Principal. Once surrender it is good asset

    Principal is associated with cash flow or interests

    ReplyDelete
  8. I understand anything that has monetary value now but doesn't generates immediate cash flow in, is considered Rich Asset.

    WL with cash value does generate cash flow in but into itself.

    One is yearly interest base on the surrender cash value.

    Two is the profit sharing as allotted bonus yearly.

    So this WL can not consider as Principal because the cash flow generated is under encumbrance.

    But like you said, nevertheless it is a good asset, once surrender.

    For me i don't mind to have such rich asset as standby for emergency.

    In fact it can be for "anything".

    ReplyDelete
    Replies
    1. Actually surrending policy and getting the cheque is quite fast. I got it done in less one hour. Reading newspapers while waiting.

      Delete
  9. Thanks!

    Will remember what you say when i needed or want to cash in.

    ReplyDelete

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