I think your money is already work hard for you unless your spending is much higher than your passive income.
You must be a high earner or businessman that pay your property in cash or inherited/supported by family members. Otherwise you may have make the cash from property enbloc or sold those property that you have purchased before year 2007.
And your age should be close to 50 years old, if not 48-49.
Per your description, you doesn't seem to be a high risk taker in investment and prefer to invest in safer asset such as bond, property, blue chip stock and
CPF.
I wish to learn from you and thus are unable to give any good suggestion.
My current net worth including
HDB (don't own any private prty) minus off loan is $2.4M and is in the mid-40's.
My aim is to build up strong
CPF account like you and have a passive income of $100K (including
CPF interest) when I reach 50. Btw, I am sole breadwinner and the passive income is nothing for a household with young children. That also explain reason why I don't have second property as the risk is too high to take in the event of jobless and having to pay mortgage.
Quote:
Originally Posted by Unregistered
Just wondering how many of you would consider $5m to $6m as sufficient savings for you to consider retiring?
With $5m (Household networth), this is what I would do
1. Primary residence - $1.5m (doesnt generate passive income)
2. Stocks - $1m (generates about $45K pa of dividends)
3. Bonds - $500K (generates about $25K pa of coupons/interests)
4. CPF -- SA $440k (combined) -- (generates $17.6K pa in interests)
5. CPF -- MA $99.6k (combined) -- (generates about $4k pa in interest)
6. CPF --- OA $1m (combined) -- (generates $25k pa in interest)
7. Mickey Mouse (1 bedder rental) apt -- $700k (generates $24k pa in rental income)
8. Emergency cash -- $100k (generates zero interest)
Total passive income = $140K pa
With $6m, I would add the following investment
9. Another 2 bedder rental apt - $1m (generates $40K rental)
Total passive income = $180k pa.
Reality check:
Before 55, the interests earned in CPF accounts cannot be withdrawn, so available passive income before 55 is only: $134k pa
Would welcome suggestion on how to work the money harder for better cash flow. |