How to generate another RA tap? Savings have to be deliberate intention and discipline; putting aside the money or reinvest the cashback and let it compound. My learning from my colleague single policy: *Single $100k @6% (quite decent dividend/interest) put aside for 20year. a. $100k×(1.06^(20) = $320k maturity sum b. Then withdraw it over next 20-years; $100k×(1.06^(20)÷(20×12) = $1.33k p.m. It gives $1.33k p.m. every month for 20-years. c. My colleague chose to save $280k total !! age 48 to 55yo. He started late and hence shorter runway to compound. *$280k ×(1.05^(10)÷(10×12) = $3.8k p.m. But it is still good to enjoy $3.8k p.m. from 65 yo to 75yo. My Takeaway 1. Be it any saving instrument, stocks or endowment or CPF-SA, build up and reinvest or compound it, the principle sum has to be of bigger sum like $200k or $300k portfolio. (The bigger the better, just no quick return and get scammed.) Small portfolio, small outcome.
Someone who is my cohort just retired last year. He candidly shared that his average monthly expenses is less than $1000. Some background that I gathered: 1. Married with a working adult child. 2. Stay in condo; ever spinned n profited from few property sales. 3. Still need to support aged parent with 4 siblings. 4. No car. So I did some quick calculation to see sure or not to retire with $1k monthly expenses. Think his $1k p.m. is thin retirement. Utility & PS, water : $100 p.m. Telco: $20 p.m. MCST: $200 p.m. (where got so low maintenance?) Medishieldlife: $800 / 12= $66 p.m. (can pay by CPF-MA) H&S Shield Plan: $1200 / 12 = $100 p.m. (excluded $680 deducted from MA) Support his parents: $2000/5 = $400. Basic fixed monthly overhead: 100+20+200+100 + 400 = $820 With just $1000 p.m., net available for meal = $1000 - $820 = $180 p.m. (or $6 per day) Not forgetting that he just retired, he need to fully pay his last year personal income t...
My Endowment payout tap 1. For past 13 years, I have bought 25 endowments policies since 2011. The larger payout started from 2022, paying me ~$38k p.a. about $3k p.m. till age 84. 2. Think it is enough from this Endowment Tap. ~~~ Stock Tap 3. Separately I have also built up my Dividend/Trading income through Stocks, local n foreign. To-date, this equity stream gives me ~$50k p.a. 4. Now I will be focussing on building up this portfolio. My next Chapter is to focus more on local stocks; bank & REITS. I am aiming to SINGLY achieve a dividend payout of $5k ~ $6k p.m. before I retire. ($60k to $70k p.a.) 5. So, what are my key stocks holding to-date? - VENT, Maybank, MPACT, LION-PHILIPS S-Reit, GLI, CDG. 6. Someone once told me that he bought an assortment of stocks to spread out the risk from a particular sector. Lol. He might as well buy STI-ETF. But then, it's dividend is only a pale 4% p.a. at best. Sharing... 7. One guru who built up his ...
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