same crazy old man replying to his own made-up fantasies.

Your net worth each is $750k. This is higher than the average net worth per adult person here ($395k). You are rich.

Same old same old
 

It has been a few months since I last visited this forum and nothing has changed. The same old stories keep appearing. Posters talking to themselves mainly.

For me, the last couple of months was hectic - workwise. At 56, instead of seeing my workload easing off, I am taking on more load. Sigh. Waiting for the day to offload some of the work to my younger colleague when he gets promoted.

Financially, my wife and I are ok. We have established our passive income streams. We are looking at a likely $150k passive income this year despite many of the companies reducing their dividend payout. We made up for the reduced dividends by accumulating more shares/bonds. In the meantime, we do not plan to retire anytime soon. As I have shared before, the period from age 50+ to 60+ is when you see your financial obligations tapering off while your salary peaks or is peaking. This is the period where your savings rate accelerates.

From the age of 50, for every year that we worked, we saved enough to last us 3 years in retirement at the current standard of living. No doubt, this was helped greatly by the passive income we have been getting. At $150k, the passive income would cover our annual expense, including an overseas holiday for a family of 4. This would mean that we could practically saved our full salary for this year. Going forward, if we can grow our passive income by 3% per year, we will be confident of keeping pace of inflation and we will be ready for retirement.

44 & 45, married. Working couple.
Combined salaries $200k pa.
Home is a 3 bedroom condo. No mortgage. Debt free.
Our plan to retire at 55 is on track.
We have so many plans for our retirement.

Good sharing Sir.

I would like to know what have you invested to generate passive income of $150K. Does this include the CPF interest?

To generate consistent of $150K, I think the total portfolio investment is in the range of $2.5-$3.5M.

If you have invested that amount, do you still have cash saving that can last you for 2-3 years?

Solely myself (the mid-40s) is generating $50K/year based on investment and CPF. My net worth is $1.6M including the HDB flat (the one and only property) but excluding my spouse saving.

My spouse does not invest and has stopped work. Including my spouse, we have a total net worth of $2.5M.

I am aiming for a total net worth of $4.5M at age 65. It should can be achieved if I can continue work till then. However, work is never secure and health is not certain.

Thus I would like to learn tips from an experienced user on how to plan and invest for passive income.

Thank you

If you are rich, please donate to the poor and needy.

There are billions of people in this world living in poverty.

Hi Sir,

May I know what is your personal net worth now? How much net worth do you need to retire? Thank you.

First, the maths.

Size matters when you are talking about investing for income. The dividends that one can get from the stocks can range from 4% to 8% pa on a more or less consistent basis (ie year on year).

Lets say the yearly average returns is 5%, then to get $100k in passive income, you will need to have $2mil invested. So if you want $200k pa in dividend income, you will need to have $4m in the market.

Now we look at risk management.
We have seen that the stock market can be very volatile. It goes up and it can also come down drastically and fast. If you have only $1m, I wouldn't recommend that you put all of it into the stock market. You could lose half of it (at least on paper) when you need the money most. Even if it is money that you can afford to "lose", and you want to invest in stocks, it is natural that you would spread out your bets over different kinds of shares. Thus using a 5% returns is a realistic figure.

For me, not including my home, my total invested amount stands at $4.7m as of today. To manage the risk, the money is spread over property, shares and bonds/cpf.

This spread of investment has been giving me passive income of over $100k over the last 5 years (not including capital gain). This year, we hope to cross the $150k passive income mark.

Thanks for the sharing. I'm mid 50s and have $200k for investment. My criteria wld be stable sustainable fixed income funds of ard 4 to 5%, that preserve my funds. Someone recommend to look at City Spring, JPMorgan and Allianz. As this is my first time buying, wld like to ask:
a) Do I need to consider the mgmt fees?
b) How and where do I buy and sell such funds? Through bank or broking firm?

Tks.

Thanks for the sharing, Sir. Your personal net worth must be more than $6m. If adding your wife's net worth, is your total combined net worth more than $12m?