Read? How Much Is Enough To Retire??? (2) CW8888: One method is to benchmark to current median gross income of $4,437 including employer CPF contribution and net take home pay is about $3K
For single $3K? For couple $4.5K? For retirees with fully paid residential home living at median income level in Singapore from their net worth's cash flow or investment income should be comfortable enough. Okay right?
How are you? Fine! It is quite certain that there will be no follow up questions to "How are you?" Next time you try answering : "I am not fine. I am dying!" You will have a few more follow up questions! 100% sure!
Hmm .. It seems to be true in Uncle8888's stock picking skills for his investment portfolio after 19 years from Jan 2000 to 29 Nov 2018. 90% of his stock pick are really crap! Top 3 winners offset all the losers! 3 out of 56 stocks is about 5%. Simply 90% of all other stocks are just crap! So he might be better off waiting 90% of his time to filter out that 10% at the next Bear market! Less analyzing. More investing - CW8888
Uncle8888 sent all his three children for swimming lessons (classes) up to Gold level and his eldest son who was very keen in swimming up to life saving level and qualified to be Life Guard. Uncle8888 himself attended tennis lessons. He paid for all these training but the coaches never advertise that they will swim like Joseph Schooling and Uncle888 will play like a pro! But; for investment training courses; "Gurus" can teach you to reach FI, FIRE or FIRe and then lives off investment income. Did "Gurus" tell you that your desired level of investment income for FI, FIRE or FIRe will depend on your capability to inject the right size of your own capital into the market? Investing is a Game of Capital and our account size really matters! Look at those star bloggers who have impressed you with their six digits passive income. (1) Do you think that they have injected six or seven digitsown capital into the stock market from their hard earned saving from their day job or jobs to generate this level of investment income? or (2) Do you think they have compounded from investment gains from their own capital base of just five or six digits or less? Your answer is (1) or (2)?
In investing, our account size really matters! - CW8888
When the Going Gets Expensive It’s easy for most people to feel the effects of cost-of-living increases in their daily life. But rising prices hit the lower and middle classes especially hard. Higher food, gasoline and utility costs mean less money remains once these necessities are paid for, leaving little for savings or discretionary spending. To compensate for the rise in prices, consumers tend to buy less, switch to less-expensive substitutes or drive farther to find bargains. Uncle8888 is still trying hard to understand how (1) past inflationary rate has actually affected his household living expenses as compared to theoretical extrapolation based on 2.5% yearly inflationary rate; and (2) future yearly 2.5% inflationary rate starting from 2019.
Sunday, 2 March 2014 Ring Fencing Retirement Life for Income model
It is too difficult to describe with words so Uncle8888 has uploaded as silent PowerPoint presentation for you to view by shifting left or right, shifting left or right again till you understand the silent slide content.
To him, you are either holding (investing) stocks for yield and over long run you won't lose money or you are gambling in stocks, Forex, Gold or Crude oil. When you gamble, you must know how to run fast; otherwise, you will get killed!
Now can include Bitcoin into the list of stocks, forex, gold or crude oil.
If we are lucky in our investing journey; after Point X we may not feel that investing is damn hard but not easy as there is no proven Method to do it consistently and rewarding year on year! Never lose our capital is good enough!
The Dow Jones Industrial Average and S&P 500 fell sharply on Tuesday and turned negative for the year as a decline in Target shares pressured retailers, while some of the most popular tech shares dropped again.
The 30-stock Dow dropped 551.80 points to 24,465.64 and the S&P 500 plunged 1.8 percent to close at 2,641.89. The Dow and S&P 500 were up 1.2 percent and 0.6 percent, respectively, for 2018 entering Tuesday. Meanwhile, the Nasdaq Composite also dropped 1.7 percent to 6,908.82 but managed to hang on to a slight gain for 2018. Tuesday's declines come after the Dow dropped 395 points on Monday.
Stocks hit their lows of the day after Doubleline Capital founder Jeffrey Gundlach said stocks are still too expensive, adding there has not been a "panic low" yet. The Dow was down nearly 650 points at its session low, while the S&P 500 and Nasdaq had both dropped more than 2 percent.
Target fell 10.5 percent after reporting weaker-than-expected earnings for the previous quarter. The company also posted lighter-than-forecast same-store sales, which is a key metric for retailers.
The decline sent the SPDR S&P Retail ETF (XRT) down 3.4 percent. Kohl's, L Brands and Macy's — which are also in the XRT — fell 9.2 percent, 17.7 percent and 3.4 percent, respectively. Retail's steep decline comes ahead of the holiday shopping season, a critical period of the year for these companies.
Read? Investing Is So Damn Tough You Are Right Why damn tough? It is direct hit on our face and ego when stock price goes against us! Index investing is softer hit on our face and our ego will not be hurt as it is NOT our fault! This is Mr Market's! No hard feeling! Hee hee!
Each of the five 'FAANG' stocks – Facebook, Amazon, Apple, Netflixand Google-parent Alphabet – slipped into a bear market during Monday trading. Wall Street defines a bear market as a fall of 20 percent or more from a stock's 52-week high.
I belong to the second category and I have to rely on investments to help me. Ideally, investments should generate sufficient income to pay for your expenses and other spending. This is easier said than done. A lot of time, we have to use our capital to pay for our expenditures (especially during poor investment climate). This reduces our net worth over time.
The next question is where to park our money to achieve investment returns that are sufficient and safe for our investment capital. Well, this is the million-dollar question. One can write a book on investments and there are many books in the market. There are courses on investments that one can take too.
I have reached an age that I cannot afford to take major risk on investments. I have turned conservative and investment returns are moderate commensurate with less risk-taking. As for now, my investment return was about 2.0% in the year that is turning out to be a difficult year. This rate of return is hardly sufficient to cover total expenditures to-date.
Most investors will love yield! Most investors will want passive income stream! Monthly passive income is the BEST!!!! So what happen? In some overseas property investment, investors are guaranteed rental income for three years. Guaranteed for three years!!!! But, where does the money come from??? Remember this Chinese's proverb Yang mao chu zai yang sheng shang : Sheep's wool comes off the sheep's back.
Hmm .. now really happened in JB
A group of 116 people - mostly Singaporeans - who bought serviced apartments in a waterfront development at Johor's Puteri Harbour are claiming that they have had their fingers burnt in a buy-and-leaseback scheme. They are accusing a company linked to the developer of giving "unreasonably and inconceivably negligible" rental returns after the first two years of guaranteed returns in a 10-year contract. This began in March 2015 and they got at least five per cent a year. But when the guarantee period expired in February 2017, the returns plunged. Mr Victor Ng, who had paid almost RM1 million (S$327,450) for a 1,178 sq ft apartment, said the rental returns fell to 0.57 per cent a year and losses were carried forward to be deducted from future profits. "When I entered this deal, I wanted it to be safe. With the Somerset brand, at least the odds are not against me," the 47-year-old, who runs private investment consulting firm Saash Capital, told The Sunday Times. The 204-unit development, sited in the massive Iskandar township and just 10 minutes from the first Legoland theme park in Asia, is called Somerset Puteri Harbour as it is managed and operated by The Ascott, which uses the brand name Somerset. Like Mr Ng, several others were also drawn by the Somerset name and the fact that The Ascott is a unit of the giant property development company CapitaLand. Last month, the group engaged a law firm in Malaysia to send a letter of demand to Clear Dynamic, the company with which they had entered the leaseback agreement. Clear Dynamic is a wholly-owned subsidiary of Nusajaya Consolidated, which is the developer of Somerset Puteri Harbour and a joint venture between United Malayan Land and UEM Land. The group wants Clear Dynamic to review its management agreement with The Ascott and, if necessary, "replace Ascott as the management body". The buyers claimed their decision to enter the leaseback agreement was based on the developer's assurances that The Ascott could promote and market the property and deliver reasonable rental returns. Clear Dynamic strongly denied the allegations, saying the leaseback agreement was entered on a "willing buyer and willing seller basis". It also said it is bound by the terms of the management agreement and may not be able to terminate it unilaterally as "there is no default on Ascott's part". When contacted, The Ascott said that under its contract with Clear Dynamic, it will manage and operate Somerset Puteri Harbour for the first 10 years, starting in March 2015. Meanwhile, Clear Dynamic said it has "strictly complied with all the terms and conditions of the Leaseback Agreement and all owners have received the rate of rental in accordance with the agreed terms". It added: "The guaranteed rental period is for the first two years, with the remaining eight years being non-guaranteed and dependent on market factors." But the group crying foul said they expect a consistent minimum net return of 2.8 per cent per annum of their investments. "If they can't produce that, we might as well put our money as fixed deposits with the banks," said polytechnic lecturer Lim Poh Ghee, 58. Mr Ng said the net rent, paid every two months, of a typical two-bedroom unit shrank from RM7,500 to RM2,000 right after the guaranteed period. "I then received a negative rent of RM1,800. This amount would be deducted from future profits," he added. Mr Lim said a woman in their WhatsApp chat group said her bank has been calling her to ask for the mortgage payments of the flat. Another man said he had borrowed money from his parents to invest in the unit."For me, I had used money meant for my children to buy the property."
CW8888: Those days when Uncle8888 has just started working in 1977; many CEOs loved to quote GE as model to follow. General Electric stock has fallen to single digits and its investment grade bonds trade like high-yield debt, as the market bets it will continue to deteriorate and could end up with a junk rating. GE was a negative factor in the sell off in both the investment grade and high yield bond markets this week, but strategists say it has its own issues and is not a signal of broader trouble in the corporate debt market. GE's new CEO said he will move quickly to raise cash and make asset sales. "When the market begins to price you to junk status, you have a very limited time to clear that up before you become junk," said one strategist. Jeff Bezos to employees: 'One day, Amazon will fail' but our job is to delay it as long as possible Amazon CEO Jeff Bezos told employees, in response to a question at an all-hands meeting last week, that the company is not "too big to fail." Bezos was asked a similar question at an internal meeting in March about Amazon's size and the potential for government regulation.
Bezos is addressing the concerns as Amazon prepares to expand into two new headquarters locations in New York and Virginia.
Mr Neo, who sold his car and now takes public transport to understand issues that commuters face daily, said that their problems have become personal for him. "I thought that it was important for me to experience the MRT for myself," he added. "When I sit in a room and I listen to briefings about maintenance problems ... and then I get feedback from commuters about ... the heat, the smell, I don't know what they are talking about. "And then when I smell it, it's totally personal," he said. Read more at https://www.channelnewsasia.com/news/singapore/smrt-neo-kian-hong-no-poor-soldiers-only-poor-leaders-10938510 Hmm ... SMRT CEO may need to encourage more regular commuters like Uncle8888 to feedback. Uncle8888 took so many MRT trips until he could tell the difference and feedback. :-)
Uncle8888 has been following the current hot debate on financial/retirement planning arising from this news article SINGAPORE - New financial advisory firm MoneyOwl, as its name suggests, wants to help Singaporeans make wise financial decisions that include integrating schemes such as the Central Provident Fund (CPF). Hmm .. so Uncle8888 has made wise financial decisions with his Three Taps Solution model for sustainable retirement income for life! LOL!
The Golden Formula for a good financial planning
Good Financial Planning = Saving + Insurance + Investment Tap 1 : Savings in CPF OA & Cash Tap 2 : Self-insured medical and health care fund on top of Medishield Life. (His last life insurance matured at age of 60 as planned donkey years ago in his 30s to retire from full-time employment latest by 60. Since he is no longer human asset generating income after 60 so there is no need to cover human liability with life insurance after 60) Tap 3 : Investment
Real Person. Real ex-colleague! He was on his annual leave; but he still went back to office to "tidy" up his desk except that he was wearing casually since he was officially on annual leave and not working. He loves his job so much??? You can guess why he doesn't want to retire!
Next, based on his 15 years of real savings at Dec 2016, Uncle8888 will do simplified version of retirement planning for his retirement income starting from 2017 (age 61) under portfolio return and its associated withdrawal rate and period.
Assuming yearly inflation rate is at 2.5% A) 3% Yield, 5% Withdrawal rate, 21 years @ 81 B) 4% Yield, 6%Withdrawal rate, 19 years @ 79 C) 5% Yield, 7% Withdrawal rate, 18 years @ 78
Option A can be achieved by index investing e.g. STI ETF.
He can afford to retire simply as local and JB tourist with his monthly Senior citizen Silver concession pass.
Since Jan 2002; Uncle8888 has been downloading his bank monthly statement and tracked them diligently till now. Monthly
A real life example of single household income earner since 1995 who has supported a family of 5 members including expenses for his three children's university study. (1) Total earned income after tax from his full-time job as employee from Jan 2002 to Sep 2016 (2) Total mandatory CPF contributions from Jan 2002 to Sep 2016 (3) Total earned income after tax and CPF from Jan 2002 to Sep 2016 (4) Total household expenses from Jan 2002 to Dec 2016
That peace of mind will happen in late 40s or 50s when rumours start flying around that retrenchment exercise is coming - CW8888
Uncle8888 has lived long enough to meet real people who have been retrenched in their late 40s and 50s. Their difference when they are retrenched: Worry less or worry more Concern less or concern more Peace of mind or Troubled mind Read? Key word Retrenched
Huge difference between "Having debts" and "Having debts on negative net worth" Having debts doesn't means negative net worth. Know the difference! Having debts on negative net worth is potentially troubled mind when you are retrenched in your late 40s or 50s. OMG! I am retrenched!
One Indian ex-colleague asked what is the news about Uncle8888 when one of them posted in the chat group.
Uncle888 tried his hand at translating this news. Pardon from any errors in translation. :-) Bought monthly pass. Within two months completed walking around the coast of the island
Uncle cleverly used public transport concession to walk around the coast of the island and only spent $120
Active uncle cleverly used public transport concession and less than two months only spent $120 to complete walking around the coast of the island!
Once he read about the news that in Taiwan one retiree cycled around the coast of Taiwan. Freelance delivery agent, Jacob Ng (62) got that inspiration, two years ago at his 60th birthday, he started to use senior citizen concession card and bought $60 monthly pass, the next day started (planned) "round the coast tour".
Jacob said : "I often go for overseas tour; but never really tour much in Singapore; might as well make use of this opportunity (in retirement) to do round the coast of island walking trail.
His first stop was at Punggol by following the walking path along the coast of Punggol. When it was getting too dark or it was going to rain; he would stop his walking trail and took MRT and bus back home. The next day; he would resume his walking trail from the last stop point.
By MRT, bus and walk; Jacob spent about two months to complete round the coast of island walking trail. But, because he couldn't really "rest" his feet; he continued to jog the Park Connectors after that.
Last January; he took up freelance delivery job. He took MRT and bus to deliver documents.
He worked about 6 hours daily, one day taking about 15 trips of MRT and bus; because of purchasing monthly pass he has unlimited travel on public transport.
With PAssion Silver concession card; he also shopped at Cold Storage to accumulate points.
Jacob said : " I feel that this card is very good to use and the monthly pass gave him the push (incentive or NO transport cost restriction) to move around and by moving around a lots is also a form of walking exercise.
Due to heavy usage of PAssion Silver concession pass; this morning he received Goodie Bag at Tampines North CC PA event from Guest of Honour, MP Baey Yam Keng, Senior Parliamentary Secretary Ministry of Transport, Culture, Community and Youth.
Another recipient, Chua (65, retiree) also received the Goodie Bag. He said : " I everyday took about 6 MRT and bus trips to walk around and to meet friends. Because I bought the monthy pass; I saved some money on transport. cost As retiree; can save, better save!
Two years later; Uncle8888 totally unexpectedly was recognized by LTA for becoming the top senior citizen using public transport on PAssion Silver concession via $60 unlimited monthly pass. Yesterday he received Goodie bag as appreciation for using public trasnport from MP Baey Yam Keng, Senior Parliamentary Secretary for Transport.
Beware of inflation, inflation and inflation! It is what financial planners and bloggers have been chanting on preparing for retirement! Looking at Uncle8888's own past 16 years of data points since 2002; not sure why it didn't match up any closer to inflation theory. May be he needs more data points in the next one or two decades to finally see the financial impact/burden of yearly inflation!
After successful appeal for Auntie8888 workfare eligibility last month since Uncle8888 has already retired from his full-time job and no longer earning more than $70K. Auntie8888 has began to receive monthly workfare payouts and also another lump sum for 2017 of same amount. Workfare payout is good enough to cover daily coffee and also yearly Medi-shield premium. Uncle8888 will appeal for his eligibility for 2018 workfare next year in Jan 2019 after submitting earned income from his free lance as self-employed to IRAS.
Last updated : 14 Sep 2020
I am 64 yrs old uncle living in HDB heartland who has achieved financial independence @ 56 and finally retired @ 60 from full-time job as employee on 1 Oct 2016.
Single household income since 1995 with three children.
Currently, two sons and one daughter are working.
I have been doing 21 years of long-term investing and short-term trading in Singapore stock market only since Jan 2000 so I am that so-called Panda or Koala in the investment world.
I am currently executing my Three Taps solution model to maintain sustainable retirement income for life till 2041 @ 85 yrs old.
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