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For me I am 34 this year and passive income is close to 4k. Hoping to hit at least 10k per month by 40. |
In the past very achievable maybe because the cost of living was low and the HDB were cheap.
My parents (no education) retire after working for 26years, now drawing 14k/year from shares... not a lot but still livable... Looks like investing in shares is better than children LoL |
what about the market value of the shares generating the passive income? the passive income can cover loss in share price?
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Good question. Share price goes up and down and so do the dividends. As long as you dont borrow money to buy those shares and as long as the company dont go bust, you should not worry too much about price swings. I have been building my shares portfolio over the years buying a few lots every now and then especially during bonus months. Some relatively cheap but stable stocks that also provide consistent and good dividends are Sing Post (about 6%) and Sabana Reits (about 8%). I am now deriving about 10K annually from these two stocks. Others like Starhub, SPH and SATS also provide good and consistent payouts but cost more to acquire. Unlike savings in a bank, these stocks can appreciate in value or at the very least they keep up with inflation. With a stable of these stocks in your portfolio, you can comfortably retire on their dividends. Bear in mind these investments (as long as the company is around) can be passed to your children for them to continue receiving the dividends when your time is up! I have a few buddies who are happily receiving up to 50K per year just from dividends, and attending AGMs for the free meals! |
50K in dividends (assuming extremely fantastic 10% returns) implies minimum 500K in shares?
With that amount of money in shares it could have been leveraged up to buy a 2.5M house. I'm cash-negligible.... somehow when i save up enough I'll put it into property and start from nearly zero cash again. Wonder how other people get to the perfect state of both cash rich and asset rich? Can share? My passive income (from rental) >3K a mth. But after factoring the agent fees, maintenance, monthly loan repayments, tax, it goes back to net zero. So I feel no different from before, am living no better, though my taxable income looks high .... wondering if this is the right way to do things. My salary is very average. |
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You are honest about your passive income. It is OK. At the moment , it should be net zero. Of course! You still need to pay off the loan, so it's not passive income. You have no passive income. But it will come in time. Time is your best friend. In future, your property will appreciate, and when your loan is paid off, then you have passive income, or capital gains. The problem with believing forum posts is that one ends up feeling tht one is not taking enough risks, then things may go wrong. Slowly. It will come. |
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abotsrethis
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My buddies, they off loaded some of their appreciated shares to buy investment condo. They only paid 30% and took loan for the remaining 70% of the property cost. And why not? Housing loans are at all time low of 1% (or lower in the first year). The rest of their wealth are kept in shares with dividend returns of 6 - 8%. I only mentioned their dividend incomes of 50K, because their rental income (about 40K) are being used to pay off the housing loan. When their housing loans are paid up eventually, they will be looking at 90K passive income annually. Can shake leg and attend AGM for free meals. |
50k dividend although not very common, actually not that rare. I expect these people to be at least 40+.
Its just not really that worth it to put that much cash into stocks anymore, nowadays its more worthwhile to leverage it into property. That said both holds a cross related risk, if you dun trust money, buy gold. Although returns are not as lucrative, if other investment blows, you can cash out immediately with higher returns and grab the unwanted stuffs at low prices, cycle repeats itself :) Or if you dun trust life, then just spend it away(be sure to enjoy while doing that), who knows maybe we left a few more days to survive only. |
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Baiscally the whole blog just keep repeat the same thing in every post - buy REIT and STI dividend stock. Might as well go SGX website list out all the REIT and STI stocks faster and more comprehensive |
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