No need to so rude. Keep an open mind, you can learn more. Not only that, rudeness is a sure fireway to kill meaningful exchange of ideas.
Also, it is obvious you have not invested in Reits before or have limited exposure to them. Reits in Singapore by law, have to distribute about 90% of their yearly taxable income to share holders. This may sound good to shareholders on the surface, but this also means reits hold limited cash for growth. To grow and acquire new properties, it is very common for reits to raise funds through rights issues. If you don't buy the rights, you will see your share values dropping and along with that, the dividend payout. If you want to buy the Reits, you will need to spend your retirement money which will eat into your cash flow.
Reits is thus not a good source of passive income for retirees.
Quote:
Originally Posted by Unregistered
If you need $50k pa in retirement, you just need
1. CPF Life. You will get $1800 pm each or $3600 pm ($43.2k pa)
2. $500k invested in 4% dividend yield stocks or REITs, giving you $20k pa of dividends
Total passive income $63.2k pa. You can save $13.2k pa to take care of future inflation.
At the end of your life you still have your stocks and home to bequeath to your children.
Don't need to be so stupid to need $6m to retire. Foolish. |