How much is your annual passive income?
 

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

You must start the balling, being the originator of this new thread.

this is gonna end up exactly like the earn how much and net worth thread...

30yo. 5K pa.

a) Annual amount
$50K

b) Sources
Insurance, UT, CPF interest, Bank,

c) Age (either individual or couple)[/QUOTE]
45/48 couple

40 yo couple

$5K CPF $120K
$6K FD $600K
$7K stocks $120K
$4K insurance funds $200K

gross passive income per month:

rental 3k
websites 1k
apps 5k
cpf, insurance, savings interest 1k

Couple 55 & 59

Passive income: $400-450K varies depending on dividends. Expenses about $300k so still saving and reinvesting about $100-150k per year. About $45k per year in CPF interest remains in CPF. Redeploying $900k of CPF in Ordinary Accounts into higher yielding investments could potentially give us another $30k in extra passive income, but keeping it there for a rainy day and 2.5% is fine. Expecting another $48-60k combined per year from our SRS accounts when we both hit 62. We have property investments, but don't rent them out. Some relatives live in them. CPF Life should also give us about $40k per year in income when we both hit 65. So our passive income is expected to continue to rise over time and I estimate will reach $600k by the time we are 65.

Sources:

CPF: $45k from both of us based on $1.5m+ in CPF with both retirement accounts topped up and currently $250-260k each. Ordinary accounts around $900k+
About $400K in 2016 from $7.5m portfolio of high dividend blue chips, REITS, preference shares, bond ladders

Not bad. How did you amass the $7.5M?

Also, do you put aside a cash pile in case the markets crash?

That is pathetic. BY that age each should have at least USD10m minimum. Need to catch up man.

45 yo couple

Annual passive income

$18k dividends from Singapore stocks
$8k dividends from US stocks
$24k interest from CPF accounts

$50k total for now

Waiting to buy 2nd property and turn one into rental income, target $30k

We are roughly in the same group, me and wifey are both 56.

Our combined passive income (2016 figures)

1. Dividends - $55k
2. Rental - $40k (gross)
3. Interest from FDs - $5k
4. CPF (all accounts) - $60k (of which $18k was from our RA, cannot touch until 65)

Total passive income : $160k

Our retirement plan - to depend on CPF as the main source of income. The secondary sources would the dividends and rentals, which are highly volatile and very dependent on market conditions.

At 65, we should be receiving $45k - $48k from CPF Life, and another $48k - $50k of yearly interests from our OA and SA. The total from CPF would be $93k to $98k pa while our expenses should be $84k pa or $7k pm.

Hi,

Thank you for your posting.

Your number is reasonable and I guess both of you are high-income earner and rather conservative investors.

To achieve your passive income, I think both of your combined income is in the range of $450-600K/year.

I am unable to hit such salary level. Have to save and invest more, starting from CPF, insurance, structured notes, UT.

Do you leverage in your portfolio of $7.5M or is it full cash investment?

Thanks

The $7.5m is just our listed investments. Our properties are worth more than that. It's just that we decided not to rent them out and the investments generate more than enough cashflow. Although I'm 59, I actually retired quite a few years ago. My original target was $1m of income a year off $50m of assets, but I figured I would have had to work until at least 60 and I got lazy.

You didn't put any money into SRS?

To get $50K from your Ordinary Account at 65 (since your Special Account gets transferred to the Retirement Account for CPF Life and contributions to the Special account fall dramatically after 55), you need bout $2,000,000 or $1m each in your Ordinary account. That might be too much liquidity to have around and not deployed into higher yielding investments.

I've been retired for some time and also have properties that are worth more than the investment portfolio. I have leverage but I apply a maximum 20% LTV for both listed investment portfolios and properties. So I do use a little leverage, but for most people it would seem like a staggering loan. Just that the assets are even larger. The loans were to generate more cash flow in the last 8 years of low interest rates, but not enough to get into trouble. I can close down the loans completely at the expense of some cashflow, hence less savings, but I haven't seen the need to yet. If interest rates rise, I will rebalance the portfolio into more short-term fixed income note structures from equities. See how.

We have SRS too, only $260k combined, as we started contribution late. We didnt include the SRS money as one of the retirement fund sources as we intend to use it up over 10years (from age 62) at a drawdown rate of $26k pa.

And I agree that having $2m in our CPF OA and SA is holding too much liquidity. But we are happy with the 2.5+% interest rate from the CPF while waiting for opportunity for investment. If there is another market or economic downturn we will be ready just like when we bought our 2 properties - one in 2003 SARS period and one in 2008/9. In the meantime, $60k pa interest income from CPF is not too shabby.

As we are passed 55, we also want to move away from riskier investments, so unless any market correction (property and stocks) is deep, we will maintain our status quo of investment holdings and keep the money in CPF.

And yes, we have no debt. This peace of mind is really priceless.

Everyone looks rich in this forum

So much passive income flowing in

Singapore has no Poor people

Only those who have done well will share

There are poor people

Dont believe everything you read here lah!

Passive income
Rental = $30k
CPF interest = $24k

Negligible holdings in stocks and shares.
Couple 44 & 45.
NW about 2m

hi we are in same age group

couple 45 & 45

stocks $24k
CPF interest $24k

we are looking to buy a second house to start some rental income.

Quite typical of Singaporean couples in this age group to have around $2m in NW. When we were in our mid 40s 10 years ago, we had about $2.5m NW too.

So just to give you a glimpse of what your NW could grow to, in 10 years time (when you turn 55/56), our NW is currently at $6.5m. It grew roughly $1m+ every 3 years.

The important ingredients to the growth trajectory were:

1. Staying employed continuously (ie no break in income at any time)
2. Annual increase in salary. (Before age of 55, you should see your salaries growing each year. At 55, you may/may not hit your wage ceiling)
3. Invest for better returns (savings alone is a necessary step but not sufficient)
4. Grow your passive income to cover part or all of your expenses. Last year our passive income almost covers our expenses. This year we are expecting our passive income to totally cover our annual expense of $150k. And we are not even talking about the potential capital gain in our investment.
5. Dont lose money. Paper losses are ok during stock market decline, so long as you dont turn them into real losses. Stocks go in cycles. If the companies are fundamentally strong, their prices will rebound.
6. Related to the above point, buy stocks when markets are in decline. I maintain a war chest of $200k for such opportunities.
7. Likewise for property investment. We bought our investment property during market weakness.
8. Be patient. Borrow a quote from Warren Buffet:"The stock market takes money from the impatient and rewards the patient"
9. Another quote, from Robert Kiyosaki: "The 'poor' buy stuff, The 'middle income' buy liabilities and the wealthy buy assets."
10. Thus be frugal - dont buy stuff (eg high end hand bags, watches, handphones), and dont buy liabilities - expensive cars, club memberships, etc, but instead invest your savings - buy assets. It is the same as making your savings work for you!

Am heading 50 soon. All i can say I wish the past can always predict the future... I think the 40s have to work harder than i did as SG market levers are more max out compared to then. We could do property (clear investing strategy) but now, i am not so sure. rental yields are poor, and prices are not too realistic. Rental yields r better overseas but the risk is also higher. (ie fx risk, regulation risk etc)

36yo now with passive income of 80k+ p.a. from rental, interest, dividend. Hoping to retire once I hit the 200k mark.

One thing i have learnt about income and networth.. While it is easy to say how much xxx income is being derived from xxx assets , it is not easy to see the leverage that the person has taken to derive that income .

Part of analysing this equation can be applied to companies and especially REITS.. and the risk/reward may not be so rosy after factoring the leverage effect that has been taken.

What is the problem with leverage ?

Well, nothing .... if you based on nearly 10 years of QE easing ... In fact , it has been a ultimate tool to growth wealth over profitable and even marginally profitable assets . Hence back to me talking to myself that the past cannot predict the future.

But with the Fed hike starting and with further hike looming in the horizon... we may see a new change...

I dont think we will see growth like we used to in the next 10 years. Bets on STI index strategies , rental etc will no longer always be winners. It is going to be all hard work now to identify gems in the rubble. If you cant put the time in for the hardwork, then u will be better off with CPF investing.

at 55/56, your NW of $6.5m is nothing much. If you are an investment banker couple, your bungalow alone is worth $20m.

i dun recommend retiring with just 200k passive income unless ur content with typical pme middle class lifestyle. ur a bit behind the curve, time to buck up!

I agree. You have to work harder and longer until you're 75 years old.

You should aim to retire only after your net worth reaches $30m and your passive income is at least $1m pa.

BS advise. Should aim for billionaire status if wanna work till 75.

Thanks for sharing your experience.

I did a simple projection for me and my Wife to both work till 60yo.

Even at static pay, we will reach > 5m in NW. Depending on whether we rent out the HDB and stay in landed or VV, our passive income is likely to be from 100k - 150k. It is quite sufficient for us. We are very used to living a few notches below our income percentile..

AND we give thanks for the fact that despite having a child with developmental disability, we have been resilient in holding on to full time jobs.

We are not bankers, but your typical white collar executives. And we are quite satisfied with what we have. We are leading a very comfortable lifestyle with $150k pa expense.

What we do know is how we got to where we are now and know that many other typical young white collar executive couples will also achieve what we have or even exceed our NW when they are in their 50s. Just ensure no breaks in income (wage/salary) over the years, invest and live within your means.

I am sure you will agree with me that there is no need to have a bungalow to have a happy life.

single 35 yo
passive income
$10k per year from stocks
$5k per year from CPF accounts

looks miserable as i compare here

The really miserable part is that a 35yo actually need to count interest from CPF as passive income. Seriously!?

CPF interest not passive income Meh?

It is a something that can only be taken out like 35 years later for your case. If you like that also count then everyone in sg also got a lot of passive income lor.

Agree to some extent. If the passive income can be used to offset daily expenditure, i think that would count. So interest from CPF (in OA) can be used for part of mortgage repayment, so can count as passive. Likewise the interest in MA can be used to purchase insurance.

Good point.
Very logical. Otherwise would have to use Cash.

I don't think anyone will refer to interest in CPF esp. MA as passive income. You can argue with with some sort of logic twist which I will give you that also acceptable, but let's stick with the normal understanding of the word.

Like that almost everyone in Sg can claim to have at least 5-10k of 'passive income' once they work for 10 years or more. I don't think that is the way most people will describe their income.

Interest from CPF is passive income. Any income you receive without actively working for it is passive income. Other sources of passive income include dividends, rentals, etc.

Interest from CPF can be used to pay for mortgage, insurance premium, education, buying stocks and other investments.