Quote:
Originally Posted by Unregistered
I have not come across anyone sharing their income at mid year point, so I thought I would be the first one to share. Anyway, when you are past 55, every year you are still gainfully employed is a bonus. As one of these "seniors", we look at our remaining employability in terms of months. So here goes:
All Income (Jan to Jun)
Passive Income : $78k
salary - self : $100k
Salary - wife: $76k
Total half yearly income : $254k
Going forward, we expect the income from our salaries for the second half of the year to be higher because that's when we are paid our bonuses. The passive income portion will be lower in the second half than the first, as the highest dividend payout for us is usually in the month of May - unless some company decides to dish out extra dividend in the second half of the year.
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I will answer the few similar queries on our how we got the above passive incomes. In two words - "Size matters". It means literally the size of the investment principal amount determines the size of the returns.
If you were expecting some secrets or easy way of making quick and big profits, I have none.
Our above passive income comprises:
Jan - Jun 2017
1. Rental income (gross): $20k
2. Dividends from stocks : $26k
3. Interest from Bonds : $14k (half yearly coupon payment)
4. Interest from
CPF (OA & SA) : $18k (from Jan to Jun)
The stocks we hold are giving us 4.5% on average. The various bonds we hold gave us an average of 5%. You can do the math yourself to determine the capital invested to arrive at the passive income.
As we are above 55, we could withdraw the interest from our
CPF OA & SA if we so wish.
Here, I wish to share that depending only on dividend and retal income for cash flow is rather risky as dividend and rental income are highly volatile and market dependent. As we near and prepare for retirement we have shifted our focus on more stable passive income sources, namely the
CPF and bonds.
Our full year passive income for 2016 was $160k and this year we are not hopeful of hitting the same amount as the companies / economy have not been doing well. And we are also not sure if our tenant will see out the tenancy. On the other hand, we are more confident of receiving the same interest from our bonds and slightly higher interests from our
CPF accounts because of the compounding effect.