kykh Supercharged May 25, 2017 Share May 25, 2017 My error. Based on 4% annual gains, drawing $6,000 monthly will allow drawdown for about 20 years only, excluding inflation. Ha... So the solution has to be something that is tagged to inflation, allow net $8,000 per month (based on 1 million capital placed in tranches or full sum), capital protected, allow regular and predictable draw down per month, and be able to trade for future prices even after 30-40 years... No idea what can satisfy all these. The risk-free approach: Spread the $1M and make voluntary contributions yearly to your spouse's and your CPF accounts up to the CPF Annual Limit to enjoy CPF LIFE for life-long monthly payout during retirement. ↡ Advertisement Link to post Share on other sites More sharing options...
Showster Twincharged May 25, 2017 Share May 25, 2017 The risk-free approach: Spread the $1M and make voluntary contributions yearly to your spouse's and your CPF accounts up to the CPF Annual Limit to enjoy CPF LIFE for life-long monthly payout during retirement.The only major setback in this is MUST work till 65 as the money cannot be touched until then... or maybe 55. Not really liquid also. Link to post Share on other sites More sharing options...
kykh Supercharged May 25, 2017 Share May 25, 2017 The only major setback in this is MUST work till 65 as the money cannot be touched until then... or maybe 55. Not really liquid also. One cannot have his cake and eat it. There's a CPF Annual Limit that caps the amount that one will be allowed to make yearly voluntary contribution, so the balance could serve as the war chest for deployment when undervalued investment opportunities arise. Link to post Share on other sites More sharing options...
Victor68 Turbocharged May 25, 2017 Author Share May 25, 2017 The risk-free approach: Spread the $1M and make voluntary contributions yearly to your spouse's and your CPF accounts up to the CPF Annual Limit to enjoy CPF LIFE for life-long monthly payout during retirement. Bro, this is exactly my question. How to spread the $1 M? 20% FD, 30% stocks, 30% funds, 20% insurance? Even that, some details/guides which counters or funds can? Link to post Share on other sites More sharing options...
Throttle2 Supersonic May 26, 2017 Share May 26, 2017 Interesting maths. Without adjusting for inflation over 30 years Income: $5k x 2 pax x 12 months X 30 years = $3.6m Expenses HDB flat (including interest): $750k Expenses (assuming 50% of household income - $5k x 12 months x 30 years) = $1.8m Kids, parents, medical.... Most people with 5k income (10k for dual income family) don't have $1m to retire on if you exclude the primary residence, which is difficult to monetize if it is just a HDB. So 10k per month better stay in HDB and invest. Well Said! The Voodooman Link to post Share on other sites More sharing options...
Enye Hypersonic May 26, 2017 Share May 26, 2017 Interesting maths. Without adjusting for inflation over 30 years Income: $5k x 2 pax x 12 months X 30 years = $3.6m Expenses HDB flat (including interest): $750k Expenses (assuming 50% of household income - $5k x 12 months x 30 years) = $1.8m Kids, parents, medical.... Most people with 5k income (10k for dual income family) don't have $1m to retire on if you exclude the primary residence, which is difficult to monetize if it is just a HDB. So 10k per month better stay in HDB and invest. yes yes stay hdb people no have $1m assets esp single income worse 1 Link to post Share on other sites More sharing options...
Throttle2 Supersonic May 26, 2017 Share May 26, 2017 yes yes stay hdb people no have $1m assets esp single income worse Link to post Share on other sites More sharing options...
kykh Supercharged May 26, 2017 Share May 26, 2017 (edited) Bro, this is exactly my question. How to spread the $1 M? 20% FD, 30% stocks, 30% funds, 20% insurance? Even that, some details/guides which counters or funds can? Hi TS, there's no one size fits all kind of solution as it depends on individual's risk tolerance, investment horizon and aspiration, and may need to be re-balanced as one's circumstances evolve over time. A fundamentally good counter may also deliver negative returns if it was overpriced when it was bought. Edited May 26, 2017 by kykh 1 Link to post Share on other sites More sharing options...
Victor68 Turbocharged May 26, 2017 Author Share May 26, 2017 wow, this is only a chit chat session. idea is to share personal experiences. decision to follow or not is up to individual. at least we learn what are the options, what others feel are good investments, etc. Link to post Share on other sites More sharing options...
Voodooman Supersonic May 27, 2017 Share May 27, 2017 yes yes stay hdb people no have $1m assets esp single income worse ð¬ð Not true lah and you know it. Many rich people staying in CCK HDB. My uncle stays in HDB but he has a few industrial and commercial properties, I stay private and drive big car but darn poor relative to him. Link to post Share on other sites More sharing options...
Voodooman Supersonic May 27, 2017 Share May 27, 2017 wow, this is only a chit chat session. idea is to share personal experiences. decision to follow or not is up to individual. at least we learn what are the options, what others feel are good investments, etc.Actually one's risk appetite, investment horizon and other factors will determine the "options" on the table. As I age, I seek sustainable yield rather than big capital gains, a 30 years old would have a very different portfolio from mine. But importantly, invest in what you know, don't come forum and follow what others are telling you they are buying, easiest way to lose money. Link to post Share on other sites More sharing options...
Fuelsaver Supercharged May 27, 2017 Share May 27, 2017 Singapore so expensive $4k a month how to pay for bills like water, tv phone And food (unless u eat 2 dish a meal all home cook) Travel Etc If u only need food n local travel n utilities is enuf w leftover unless u every meal restaurant n travel overseas I'd say it's lifestyle choice. 1 Link to post Share on other sites More sharing options...
Fuelsaver Supercharged May 27, 2017 Share May 27, 2017 The risk-free approach: Spread the $1M and make voluntary contributions yearly to your spouse's and your CPF accounts up to the CPF Annual Limit to enjoy CPF LIFE for life-long monthly payout during retirement.Provided live to 55 .. Maybe I'll do the max cpf limit every year, as I dunno how to invest or scared to do so. Then maybe buy some single premium deposit stuffs n take back few yrs later or receive cash payment w bonus / interest.. Link to post Share on other sites More sharing options...
Throttle2 Supersonic May 27, 2017 Share May 27, 2017 If u only need food n local travel n utilities is enuf w leftover unless u every meal restaurant n travel overseas I'd say it's lifestyle choice. Yes its a lifestyle choice. My choice would be a min. $10k per month lifestyle for me and my wife. Which is definitely not extravagant today 10 yrs later or 20-30yrs later $10k a month would be nothing Link to post Share on other sites More sharing options...
Piyopico Supercharged May 27, 2017 Share May 27, 2017 Sidetrack a bit. If you have 1M in investable fund. In a market downturn where equities drop 30-40% and property drop 15-20%. How would you allocate your fund? How about other scenarios where equities drop 50-60% or property drop more than 30%? Assumption you can stay invested for more than 10 years. Which is best bang for bucks? Both can leverage I suppose. 1 Link to post Share on other sites More sharing options...
Fuelsaver Supercharged May 27, 2017 Share May 27, 2017 Yes its a lifestyle choice. My choice would be a min. $10k per month lifestyle for me and my wife. Which is definitely not extravagant today 10 yrs later or 20-30yrs later $10k a month would be nothing Ur 10k a mth is extravagant for me at least Link to post Share on other sites More sharing options...
Showster Twincharged May 27, 2017 Share May 27, 2017 Sidetrack a bit. If you have 1M in investable fund. In a market downturn where equities drop 30-40% and property drop 15-20%. How would you allocate your fund? How about other scenarios where equities drop 50-60% or property drop more than 30%? Assumption you can stay invested for more than 10 years. Which is best bang for bucks? Both can leverage I suppose. If whichever market drops, it is not difficult to decide what to invest. The difficult part of the game is what if everything is on uptrend? How then should we allocate the portfolio? 1 Link to post Share on other sites More sharing options...
Voodooman Supersonic May 27, 2017 Share May 27, 2017 (edited) Sidetrack a bit. If you have 1M in investable fund. In a market downturn where equities drop 30-40% and property drop 15-20%. How would you allocate your fund? How about other scenarios where equities drop 50-60% or property drop more than 30%? Assumption you can stay invested for more than 10 years. Which is best bang for bucks? Both can leverage I suppose. Equities are more liquid and come with lower transaction cost, so I will buy equities first as the drop is larger in your scenario, then switch to properties, the latter should lag equities in a recovery. Equities/ bond usually cannot leverage as much as property (assume no CM). Edited May 27, 2017 by Voodooman ↡ Advertisement 4 Link to post Share on other sites More sharing options...
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