How much is your annual passive income?

Originally Posted by Unregistered

Its income tax filing season again.

Here's the combined income tax we had to pay for the last 5 years

2013 - $29,000
2014 - $33,000
2015 - $35,000
2016 - $37,000
This year, we will have to pay $41,000. The increase comes about as we can no longer claim relief for our children as they are working now.

Each time when we see the tax we have to pay we cringed. Thats where a chunk of our passive income goes. Sigh.

The income tax may seem high. But when you retire, there will be no more income tax to pay and all your passive income can go into daily expenses.

Originally Posted by Unregistered

39 yr old
my income tax is around $1200
I am a regular employee

can you guys give tips on how to start building passive income? I don't want to spend money taking courses or asking bank staff for these details. Bank staff just tell us what is the best deal for them. They are not customer oriented and they fool us into taking something that is not worth for us.

Buy blue-chip REITS and high-dividend stocks. Wait for market corrections to start picking and downturns to amass.

Originally Posted by Unregistered

Buy blue-chip REITS and high-dividend stocks. Wait for market corrections to start picking and downturns to amass.

This way too slow. Unless you have a lot of money to start with or super high flyer with 7-figure salary, at most retire slightly earlier in 50s with 150k passive.

Originally Posted by Unregistered

This way too slow. Unless you have a lot of money to start with or super high flyer with 7-figure salary, at most retire slightly earlier in 50s with 150k passive.

When investing for passive income, its all about the SIZE of your capital.

The maths laid bare. Given the following desired passive income and the expected ROI and you will see how much you need to have as capital for investment.


Desired passive income: $100k pa

ROI: 3%, Capital required : $3.3M
ROI: 5%, Capital required: $2M
ROI: 8%, Capital required: $1.25M

So if you desire a passive income of $150k pa with an expected ROI of 5%, you need to have an investment capital of $3M.

Will you be able to achieve the above targets?

What is your current investment capital? How much can you grow it year on year?

If you are now 40 yo, with an investment capital of $500k, and you wish to have $150k pa of passive income by the time you reach 55 with an ROI of 5%, you will need to grow your capital by $167k pa over 15 years.

From 40 yo to 50 yo, your household expenses may still be high so harder to save. But from 50 yo onwards, you should be able to accelerate your savings as your financial obligations and commitments taper off. So dont retire too early and miss the golden period of accelerated savings.

In our case, we saw our savings rate accelerates only after we turned 50. From $200k pa to the record high of $400k last year.

Originally Posted by Unregistered

When investing for passive income, its all about the SIZE of your capital.

The maths laid bare. Given the following desired passive income and the expected ROI and you will see how much you need to have as capital for investment.


Desired passive income: $100k pa

ROI: 3%, Capital required : $3.3M
ROI: 5%, Capital required: $2M
ROI: 8%, Capital required: $1.25M

So if you desire a passive income of $150k pa with an expected ROI of 5%, you need to have an investment capital of $3M.

Will you be able to achieve the above targets?

What is your current investment capital? How much can you grow it year on year?

If you are now 40 yo, with an investment capital of $500k, and you wish to have $150k pa of passive income by the time you reach 55 with an ROI of 5%, you will need to grow your capital by $167k pa over 15 years.

From 40 yo to 50 yo, your household expenses may still be high so harder to save. But from 50 yo onwards, you should be able to accelerate your savings as your financial obligations and commitments taper off. So dont retire too early and miss the golden period of accelerated savings.

In our case, we saw our savings rate accelerates only after we turned 50. From $200k pa to the record high of $400k last year.

So what is your age now and what is your targeted passive income per annum before you will retire?

I think having a target amount and sticking to the retirement plan is important because I have seen a couple who keep delaying their retirement because they keep moving their goalpost after the targeted amount is reached! I suppose it is okay if making more retirement money makes them happy and keeps them mentally alert and physically active at the same time.

with 10 millions NW, 200k passive income - you can't even come close to bang Kong hee's wife!! more over with 50 yo - you can't even get it up

I will say true wealth is having it when you are in your twenties (read: when you are young, you having everything and money just brings in the color...

for those who are already with 5/6 M NW, coming here ---- is pathetic...
is like saying you are very rich but yet so poor inside

the problem with people on the fast track is that they dunno when to stop
there is no discipline to control cost, always on the expansion track to earn more spend more.
there is more to life than it is to money...

you come to earth bare, you go off bare - everyone is the same, no special class..
if you happen to make slightly abit more than others (or faster) and feel prideful...you are just fooling yourself. end of the day all is empty..

we compare ourselves to a down syndrome boy working in a spd factory; and feel superior with the fat paycheck and recurring income we gotten. but the true happiness of the latter is never understood by the former
true happiness is never materialism

just one day, you will truly understand that the most valuable things in life is peacefulness of the mind, and the giving nature of the heart

Originally Posted by lazyplane

Wa .. 9k passive income from 30 yr old still cannot retire... A quick calculation of his networth is

1.CPF - Approx 300k (dunno know how he get there so fast but guess everything is possible)
2. FD - Approx 400 k to 1 m depending on his spread
3. Bond - Also approx 400k-1 m depending on his spread
4. Dividend from stock - [300k to 800k]
5. Property [Value of property likely around 1m but dont know debt size].

Networth : 1.6m - 4m ...

Still cannot retire at 30...
sigh

Originally Posted by Unregistered

The income tax may seem high. But when you retire, there will be no more income tax to pay and all your passive income can go into daily expenses.

don't worry the ministers are paying even more

Many people equated having wealth (financially) with being busy, unhealthy and losing the bigger picture of life. This Is very far from the truth.

In reality, the wealthy tended to be healthier, happier and enjoys many more options in life (like quitting work when they want to, but all chose to work or be involved in business or work because that is their very nature). The wealthy are more able to help the poor as they often do and with greater impact too. They also pay high taxes.

When the wealthy compare and compete, they dont do it against disadvantaged people, they compare and compete against people of equal status. Thats where they drive each other to greater heights (and also derive greater satisfaction)

Only losers will go and compete and compare themselves with a Down syndrome person and gloat.

Originally Posted by Unregistered

the problem with people on the fast track is that they dunno when to stop
there is no discipline to control cost, always on the expansion track to earn more spend more.
there is more to life than it is to money...

you come to earth bare, you go off bare - everyone is the same, no special class..
if you happen to make slightly abit more than others (or faster) and feel prideful...you are just fooling yourself. end of the day all is empty..

we compare ourselves to a down syndrome boy working in a spd factory; and feel superior with the fat paycheck and recurring income we gotten. but the true happiness of the latter is never understood by the former
true happiness is never materialism

just one day, you will truly understand that the most valuable things in life is peacefulness of the mind, and the giving nature of the heart

Hate to break the news to you. Studies have shown that successful males are less likely to suffer from ED than their less successful and struggling counterparts.

So if you are suffering from ED, it could be stress induced meaning you are not coping well with your job/life.

I am happy to have high networth people coming here to share. It definitely provides a more balanced viewpoint. They give us glimpses of what is possible out there (or even within this limited group of forummers)

This forum would really be a gloomy and self defeating forum if only losers come here to gripe, complain and curse.

Originally Posted by Unregistered

with 10 millions NW, 200k passive income - you can't even come close to bang Kong hee's wife!! more over with 50 yo - you can't even get it up

I will say true wealth is having it when you are in your twenties (read: when you are young, you having everything and money just brings in the color...

for those who are already with 5/6 M NW, coming here ---- is pathetic...
is like saying you are very rich but yet so poor inside