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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Friday, 10 November 2017

Should you follow the 3% or 4% retirement rule?

Uncle8888 doesn't follow the 3% or 4% retirement rule!

After researching the cyberspace and also reading available NLB's books on retirement planning; he is convinced that his three taps model to build retirement income for life is more sustainable across market cycles as he doesn't have to draw down on his investment portfolio pay for household living expenses during market low. Any draw down on our investment account size will make very difficult to recover. 

In long term investing; our account size really matters!

Read? DIY Annuity (Jan 2018 to Dec 2038) With CPF OA


  1. Is your 3 tap model similar to bucket strategy for retirement?
    I mean, you keep the next 5-10 years in cash/liquid form, the next 5-10 years in balanced portfolio (with heavy emphasis on capital preservation) and the last bucket in risky assets (equity). In this model, you first draw down from bucket 1 (liquid/cash) and exceed proceeds/returns if any from bucket 2 and 3 move into bucket 1 as you progress into retirement.

    1. About the same concept, the idea is that we shouldn't be funding bulk of cash flow ONLY from our investment to avoid any significant draw down during market low. Forced to sell is painful. When we need additional cash flow it is better to draw down on fixed assets that is non volatile over market cycles.

  2. And i suspect if too many people DIY ANNUITY using CPF, the G may shifts CPF's GOAL POST sooner than later.

    It seems than CPF LIFE may becomes a "Laughing Matter" for some people loh.

    Better be prepared!

  3. Can this works or not?


    "I’m 62. I’ve spent decades caring about the market. I counted on it to make me enough money so that I’d be able to cash in my chips and walk away when I hit retirement age"


    1. That is Tap 1. When Tap 1 is enough to provide sustainable retirement income for life, investing is no longer critical as wealth accumulation tool. We can either quit the investing game or treat it as hobby.


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