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Old 25-04-2015, 08:33 PM
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The topic of retirement is widely discussed as most people want to retire when they reach a certain age as they will be tired of working after a long number of years. The time to start planning for retirement is when you get your first pay cheque and not when you are at 50. If you plan well, you can actually retire by 65.

The first thing to decide is your retirement lifestyle. Once you determine your retirement lifestyle, you then estimate how much you need to sustain your retirement lifestyle. The best step is to work on a passive income which will finance your retirement lifestyle. So, if you need $50k pa of passive income, then you must have $1m invested in an investment which gives you 5% dividend income. You can invest in blue chips which gives you 5% dividend yield. This will ensure that you have regular income for the rest of your life.

The CPF Life scheme is also a good option and if you choose the enhanced option, you get $1750 pm or $21k pa. So a retired couple would get $42k pa. So, if they have a $1m investment giving $50k pa, their total passive income will be $92k pa. If your children give you $1k pm ($500 each from 2 children) or $12k pa. Then the total income is $104k pa.

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