Probably, the odd Singaporean investment blogger out there in Singapore investment blogosphere.
No rental income, no Gold or Silver, no Bitcoins, and no overseas stocks.
Just CPF and local stock portfolio in SGX.
Live local. Eat local. Receive SGD. No WHT!
Posts
Unexpected one off $12K of passive income from Govt in 2020
ReplyDeleteHmmm, I much prefer the concepts of creating multiple sources of passive income for better sustainability.
ReplyDeleteFixed income flow from CPF will allow less aggressive/timid/simpler investing strategy on investment portfolio to generate investment income across market cycles.
ReplyDeleteHi CW,
ReplyDeleteOnce again thanks very much for sharing your retirement sustenance strategy. I think it is a robust strategy that should serve you well. We all desire and aspire for a financially stress free retirement and your strategy is a solid one. Keep your expenses within reasonable bounds and have at least one stable source of income to sustain that lifestyle.
This is how my wife and I are planning for our retirement sustenance :
Now to 61 (just in case we "decide" to retire)
Basic income source
CPF interest (OA & SA) about $50k (based on 2019 figures) pa
Cash - Drawdown as needed
Bonus sources (highly variable)
Dividends - highly unpredictable. 2019 figure was $78k. This year, maybe halved!!
Rental income - highly unpredictable. 2019 figure was $36k. This year, tenancy terminated after 4 months!! Luckily got new tenant after one month but at much reduced rental
62 to 69 yo
Basic source :
CPF Interest (OA &SA) about $50K pa
SRS drawdown : $38k pa (8 years)
Cash : drawdown as needed
Bonus source:
Dividends - at the mercy of Mr Market
Rental - at mercy of rental Market
70 yo onwards
Basic source:
CPF interest (OA & SA) about $50k pa
CPF Life about $54k pa
Cash - as needed
Bonus source
Dividends - up to Mr Market
Rental - as above.
Looking at the above, we have to be prepared to drawdown on our principals or tighten our belts to live on just the income from the basic sources, IF this crisis wears on or somewhere down the road another major crisis hits. And hope that the govt doesnt reduced the CPF interest rates otherwise our planning will be out of the window.
That is very solid sustainable retirement income life that you have. Good!
DeleteWah. I never see anybody have 50k cpf interest. May I know how much balance need to be in CPF to get 50k interest p.a.?
DeleteHi Uncle Createwealth8888, I have always admired your Koala approach + one person "swordsmanship" to creating wealth and building sustainable retirement income for yourself and family. It's really not easy. The time, sweat, effort and decision-makings.
ReplyDeleteFirst time hearing Koala approach is okay and not getting Pokes. Ha ha!
DeleteCW,
DeleteLOL!
Don't worry. If your head gets too inflated, you can always trust me to poke you to deflate for you ;)
You are cool to share your zero baggers.
You're koala, but you not bat-shit stupid to go full koala as in putting everything into one single stock or position!
For total transparency and honesty, few here can compare to you ;)
(Don't say poke only; got praise one OK?)
I define zero baggers as not bad la. At least no up, no down right 😁
DeleteHow I wish I can have zero baggers instead of negative baggers or cotton candies for that matter lol!
Push.. and Pull..
Yin.. and Yang..
Most importantly, having fun poking around to learn different perspectives
#Respect!
Yea. You are first! You remember what you read. LOL
ReplyDeleteAnswer to pf
ReplyDeleteIt is combined for couple, not for one person.
It is the combined total interests from our OA and SA based on 11 months.
CW has kindly shared the "secrets" on how to preserve your SA principal and that is to withdraw on or after 5 Dec of each year.
We are still working so have not started any withdrawals.
Hi
ReplyDeletehow to preserve SA principle before CPF transfer SA funds to RA? Whats the secrets?
Only FRS in SA is transferred to RA. Not sure what is your question?
DeleteHi CW,
ReplyDeleteSaw the msg from "mysecretinvestment" mentioned you shared quote" on how to preserve your SA principal and that is to withdraw on or after 5 Dec of each year."
Im curious on this secret as i was checking this with CPF on some investment plans to move the funds out from SA before reaching 55.
purpose is to keep as much funds in SA so that it is earning 4%pa. Avoid SA funds being lock up in RA till 65.
ReplyDeleteOk, I see where the confusion is.
ReplyDeleteThe question you were asking was how to "protect" your SA money from being moved into your RA at 55, while we were talking about withdrawing the yearly CPF interest from our OA and SA after 55, without drawing down the principals.
For your question, you can refer to Straits Times article by Lorna Tan on how to protect your SA from being moved to your SA upon reaching 55. I dont have the link, but you should be able to easily find it using google search.
Good luck
thanks MSI.
Delete