How much is your annual passive income?

Originally Posted by Unregistered

A $200k pa salary would put you in the top 15% of the working population here. With 2.26 million working adults in Singapore (based on 2016 DOS figures) this would mean there are 339,000 people in Singapore earning at least $200k pa.

I guess in tiny Singapore, chances of you bumping into a person in the top 15% salary bracket will be very high - and you dont even have to be in the financial district to "meet" them. So that would give the impression that a $200k pa salary is common.

Many of the senior uniform officers (LTC and above) would easily command such salaries.

I am neither in the uniform services nor in the financial services but I have managed to work my way up the career ladder over the years to reach a salary of $250k+ pa. It was a slow progression, but I "achieved" the $200k pa mark before I turned 50. I am now 57 - better late than never.

Over my 32 years of working, I have seen all spectrum of colleague types. Some were earmarked early for higher responsibilities and were fast tracked in their careers and easily earned $200k before they were 35, while many others fell by the wayside and many left the company.

I count myself lucky to have survived this many years in the company and still commanding such reasonably good remuneration.

Earning a good income is just "part 1" of 3 parts necessary to ensure reasonable wealth and passive income. The other two parts are savings and investment.

The second part - savings. Earning a high income is meaningless if you spend most of it away every month. In a recent article from the US, it was reported that many high income (USD 150k pa and above) earners in the US complained that they were unable to save. This was mainly due to their lifestyles. It seems that many of these high income earners were living lifestyles matching their incomes meaning big houses, big and multiple cars, holidays, and frequent restaurant dining.

So it is thus not enough just to earn a high income, but you must be able to save a substantial amount of that income.

For us, we were also sucked into lifestyle inflation as our income grew. From living in a 4 room HDB, we upgraded to a 4 bedroom condo. From taking buses, we now own two cars. From self drive holidays in Malaysia, we now enjoy self drive holidays all over the world.

It was indeed difficult for us to save in our earlier years. We only saw our savings grew steadily and strongly when we crossed 50 yo. And that's because our financial commitment started to taper off while our incomes were peaking. For the last 5 to 6 years, we were able to save upwards of $300k pa.

We knew much early on that we will not be able to sustain our desired lifestyles when we near and then go into retirement. That's when we started investing. Small steps initially. Buying shares whenever we had some savings.

Making your money work is the third part to wealth and passive income building. Savings alone, if not invested well, will not be enough as inflation will erode its value over time.

Originally Posted by Unregistered

Earning a good income is just "part 1" of 3 parts necessary to ensure reasonable wealth and passive income. The other two parts are savings and investment.

The second part - savings. Earning a high income is meaningless if you spend most of it away every month. In a recent article from the US, it was reported that many high income (USD 150k pa and above) earners in the US complained that they were unable to save. This was mainly due to their lifestyles. It seems that many of these high income earners were living lifestyles matching their incomes meaning big houses, big and multiple cars, holidays, and frequent restaurant dining.

So it is thus not enough just to earn a high income, but you must be able to save a substantial amount of that income.

For us, we were also sucked into lifestyle inflation as our income grew. From living in a 4 room HDB, we upgraded to a 4 bedroom condo. From taking buses, we now own two cars. From self drive holidays in Malaysia, we now enjoy self drive holidays all over the world.

It was indeed difficult for us to save in our earlier years. We only saw our savings grew steadily and strongly when we crossed 50 yo. And that's because our financial commitment started to taper off while our incomes were peaking. For the last 5 to 6 years, we were able to save upwards of $300k pa.

We knew much early on that we will not be able to sustain our desired lifestyles when we near and then go into retirement. That's when we started investing. Small steps initially. Buying shares whenever we had some savings.

Making your money work is the third part to wealth and passive income building. Savings alone, if not invested well, will not be enough as inflation will erode its value over time.

CPF funds usually generate about 4k/month and now the withdrawal age is at 65. A little bit disgruntled, I did some data analysis on the growth of China. Property market there is booming, especially in the cities where the government is executing it's Mega City Development Plans. I'm heading down every couple of months to take a look at the flow of capital and their URA plans. It is very interesting. Thinking of investing in property or starting a business there but I'm now trying to raise seed money.

If you're looking for passive income opportunities in China there are plenty. Give me a shout at [email protected] and perhaps we can have coffee and discuss more about opportunities in the region.

Would love to hear everyone's thoughts.

Originally Posted by Unregistered

CPF funds usually generate about 4k/month and now the withdrawal age is at 65. A little bit disgruntled, I did some data analysis on the growth of China. Property market there is booming, especially in the cities where the government is executing it's Mega City Development Plans. I'm heading down every couple of months to take a look at the flow of capital and their URA plans. It is very interesting. Thinking of investing in property or starting a business there but I'm now trying to raise seed money.

If you're looking for passive income opportunities in China there are plenty. Give me a shout at [email protected] and perhaps we can have coffee and discuss more about opportunities in the region.

Would love to hear everyone's thoughts.

It seems to me you are not familiar with the CPF. In order to ensure that a person have some income till his very last day, a part of a person's CPF funds is channeled into the retirement account (RA). The rest will still be in his OA, SA and MA. Of these three accounts, you can withdraw whatever that is left in the OA & SA at age 55 when you have set aside the Basic Retirement Sum (BRS) or Full retirement sum (FRS).

For retirees, the last thing you want to do is to withdraw your CPF money which gives a guaranteed 2.5% in your OA and 4% in your SA to go and invest in a risky China venture.

For us, when we retire, we will be depending on:

Interest from our CPF OA & SA : $4k pm or $48K pa (combined)
From age 65, CPF Life payout : $4k pm or $48k pa (combined) @ ERS

This means a total income of $96k pa from age 65 onwards. This should be sufficient for us if we live frugally.

Hi, everyone. I’m Dr D, whatever u have and earn for the past 50 or 60 years,

Be it, passive income or fixed income. You only live once.

Eventually, u have to return it to either me, the hospital or back to the earth
And
ur soul have to stay underground alone forever.

Originally Posted by Unregistered

Hi, everyone. I’m Dr D, whatever u have and earn for the past 50 or 60 years,

Be it, passive income or fixed income. You only live once.

Eventually, u have to return it to either me, the hospital or back to the earth
And
ur soul have to stay underground alone forever.

This is defeatist thinking. Only losers think like that. Because if you have this mindset, from the day you were born, you will not want to try your best.

You should look at life as a journey, and money as the enabler to enjoy your journey. The more money you have, the smoother and more enjoyable your life journey will be.

The one with less/no money console himself that he cannot bring money to his grave.

The one with more money constantly thinks of enriching his life experiences, living life to the full. He has more options.

Which would you rather be?

Originally Posted by Shinkong

For sharing of passive income
a) Annual amount
b) Sources
c) Age (either individual or couple)

a) varies
b) cryptocurrencies - bitcoin (18), ethereum (25), litecoin (40)
c) started accumulating them for last 3 year. now i am 38

Originally Posted by Unregistered

a) varies
b) cryptocurrencies - bitcoin (18), ethereum (25), litecoin (40)
c) started accumulating them for last 3 year. now i am 38

33 yo. Passive income 6.5K per annum. Have a lot to catch up on.

Originally Posted by Shinkong

For sharing of passive income
a) Annual amount
b) Sources
c) Age (either individual or couple)

for FY2017 round up
shares dividend from local= $17k
shares dividend from overseas = $10k

average couple ages 46.

30 yrs old with 12k annual passive income. Aiming to hit 3k per month by 35.

refreshing thread

coming to end of 2021, decided to take stock of our passive income for a working couple age 50

annualized
dividends = $45k
cpf interest = $50k
rental = $36k

plan to work till 55 yo to further boost portfolio