Ferrari Me (Ferrarilim)

 On MY properties, my friend bought two freehold JB condos as Foreigner buying above RM500k per unit; meant as for bequest/inheritance for his two sons. He shared that he is just renting out the unit to AirBnB stays, for some days he can still stay in JB too. Because of his age at 65, he is not able to take MY home loan and have to pay for full condo by TOP.  Each unit he paid ~RM900k (or S$260k); total RM1.8M (S$520k) by TOP in 2024.  One unit has TOP; while another nearby will TOP by 2024. His two sons' wives are MY who owns MY local properties too. ~ I share my views with him: 1.  Why didnt he pass the monies to his DIL, let them choose the JB condo or landed they wishes.  And being a local, his DILs are not subject to min RM500k threshold pty requirement.   As locals, they would have bought at local prices.   (of course under both sons' names too. His children have already own SG HDB home liao). 2. For AirBnB rental for both units, even if the...

 Someone shared that a particular chap has a wide investment diversification; which included: 1. Pty (local n overseas) 2. FD (T-bills, bonds) 3. Cash 4. Equity (ETF, local n overseas, S&P500) 5. Endowments 6. SRS 7. CPF 8. Cryptos ~~~~~~ My reply would be: If he is in his 20s to mid 40s, he is very commendable and outstanding. Never mind if the passive income is sizable.  His runway is still long way to grow. And being investment savvy, he will outshine. ~~~ Generally, if one is nearing retirement or retired, usually all these taps maybe more or less default. By then we cannot talk in % now. We will be asking what is the real passive income number ?  $200k p.a.?  For working class peoples. If he is willing to share his numbers. ~~~~ For some who has retired, even 3 or 4 taps are already JBL (Jia Buay Liao); do not need to be troubled by so many investment types. I have known of one couple who owns few landed and many pty condos (more than 10 then, local pty)....

 It may not be easy for young couple with kids who just started family to start saving big-time for retirement. ~~~ Someone in chat candidly detailed his $12k (x 2?) household monthly expenses; mainly: - fixed expenses $10k - kids enichment classes: $4k - maid n food: $4k - car n other expenses: $2k - HDB + Pte condo loan: $4k+ p.m. On investment : Usually one will start to big-time-save for retirement around age 40s; when your kid is into teenage years.  His loan obligation may get lower. But with so much mentors sharing, the younger ones learn better to invest; unlike us who pay for hard lessons. For him, one hdb and one private are very commendable feat.  From his HDB Town Council charges of $80 p.m., likely it maybe a 3-rm flat? Hefty loan risk: But $4k+ p.m. housing loan, likely for his pte condo, is hefty and maybe risky. What if one or both got retrench, which ever happened to few couples ? (My first resale endowment was bought from a 30-yo young housewife whose sp...

 A lot of chats talk of achieving $3k p.m. retirement passive income.  1. Is it $1k, $2k or $3.5k ? Some asked if $1k p.m. or $2k p.m. is enough.  A retirement lifestyle survey says $3.5k p.m. can retire adequately. 2. Is it $1.8k investible portfolio sufficient to general dividend? 3. Some say 2% or 4% drawdown from your networth. ~~~~ My workable, practicable strategy just require $346k + $143k = $490k portfolio is enough to generate an annual passive income from age 65 with lifetime payout of $46k p.m. (or $3.9k p.m.) Just do the following: 1. CPF-RA: $346k @59yo. 2. 3 x endowments, payout at $32k p.a., singly. ~~~~~ To extrapolate, imagine a couple would double up to lifetime payout ($46k x 2 = $92k p.a.) would receive $3.9k x 2 = $7.8k p.m. lifetime CPFLife payout. ~~~~~ Query1 from someone1: Are these real numbers? My reply: These are my real numbers.   My CPF Retirement RA Payout: 1. Payout is from CPFB estimator calculator at age 65 and 70.   2...

 Someone in chat asked on how best optimise his cash on buying into T-bills; and minimise his effort to monitor. I thought was no-brainer; it has by left and by right implications: Option 1. Easiest is lump sum into T-bills, easier to admin. Then renew in 6mth- or 12mth- bill Option 2: Build-down and do DCA for T-bills; as by averaging, we will dollar average the T-bill auction price. By left answer: "watch your thought on the "Love of money".  Meaningless, absolutely meaningless. ~~~~ Sharing on being slaved in the world Yesterday I spoke to a colleague; asking why he didnt reply to my whatsapp, sent last week ?  His answer was that he read it but too busy to reply.  Upon further asking, his large home aquarium of 1000 fishes, half died of bacterium.  He had to clean up the mess; now the aquarium health is in control. It makes me wonder, if I were the one who were too caught up and slaved by technology. ~~~~ Find a hobby, spend our time wisely. By the way, my c...

 The strategy: 1. Still Withdraw CPFLife payout at age 65. 2. For me, I would select Basic Plan instead of Std Plan or Escalating Plan.  Std Plan or Escalating Plan bequest becomes zero around age 80/82. But Basic Plan payout bequest becomes zero around age 92.  3. Strategy 1 (just by-the-way sharing), difference between Std Plan and Basic Plan payout from age 65 to 85 is ~$180 p.m. x 12 × (86 - 65) = $43k. Choose Basic Plan.  Just build up a sum equals to $43k before retirement, you already would have enjoyed Std Plan Payout.  In addition, re-invest this $43k, you earn even more. ~~~ Strategy #2 (which you requested): 4. Withdraw CPFLife payout at age 65. Then, (depend on how deep your pocket):  option 1: On Jan or any month after age 65, transfer back your $$ into RA or even VC3AC & MA again. This will have effect of delay your payout, and yet withdraw first.  This will earn you 4% interest. Continue to do it from age 65 to 69/70, to match th...

Should I start my CPFLife Payout at age 65 or delay till age 70? Here is my answer:  1. Compare: * BASIC Plan RA payout at 65yo vs * Delayed BASIC Plan RA payout to age 70-yo . 2. The Payout is based on CPFB provided RA Payout Estimator at age 65 and delayed at age 70. Hence more acccurate. 3. My CPFLife payout at age 65 will be $2150 p.m. If I delay my CPFLife payout till age 70, my payout will be $2,870 p.m. Above are based on BASIC Plan payouts. 4. I tabulate the combined payouts; and find that the delayed payout at age 70 will only catch-up at age 84 with those who starts payout at age 65. 5. Breakeven for Delayed Payout at age 70, with Payout at age 65, is at age 84. (comparing BASIC plan and BASIC plan payout.  Not BASIC n STD Plans) ~~~~ 6. Actually I have a legal way to better-er to beat the payout system, even if I withdraw at age 65.  Beat the BASIC age70 payout for life and for bequest. 7. I shared the strategy with my colleagues who early wanted to withdraw a...

On Resale Endowments, there are about 7 local Resale Agents; Largest is REPS. I prefer TES Capital and Conservation Capital; being smaller and lesser overhead cost.  My opinion. As for reliable, all are reliable as your policy deal is transferred directly at the original insurer; For example, if original policy is bought with Ntuc Income, then your resale transaction can be done at Ntuc branch; discuss directly with the Ntuc branch Agent.  Document is chopped and official. Subsequently Ntuc will send official acknowledgement that you are the new Policy Holder, though Assured is still the original assured. And you can go to Ntuc Income app, your resale policy is registered in your portfolio. Once you go to TES or CC Investment List, the Policy Code will tell you their policy is from which Insurer. Example N1657 refers to Ntuc Income Policy No. is xxxxxx1657 or M1666 refers to Manulife or P4555 refers to Prud or S1355 refers to Singlife As I have bought many resale policies from...