I am impressed by the amount of savings people have..

Age: 30 this year
Qualifications: Degree with 2nd lower hons
Job: Civil Service
Current income: 5k per month with sideline job 1.5k additional
Savings in cash: 85k (all in FD)
Stocks: 2k+ paper loss of 1k+ alrdy PEC LTD BOO HOO ( i only sell if i profit. I only buy 1 share at any one time lol)
CPF: 70k in OA ( worked for 4 yrs after graduating)
Rojak cash: about 1k+ in various bank accounts


NO DEBTS


Anyone can advise how i can generate more passive income.

There is no mystery nor magic in generating PASSIVE income.

It takes money to make money and if you are the adventurous types, you can use leverage.

Lets say you want to generate $100k pa in passive income. And with expected returns of 4.5%, you will need a capital of $2.22M. Its simple maths without considering the risks.

How about leveraging? Property is one of the best means to use leverage. Because the banks view the property as a good collateral, they are willing to lend you money at low interest rates. Housing loans have the lowest loan interest rates.

Let me share my case, and I think I represent the typical singaporean who is kiasu and kiasi.

For one, I would not dare to dump all my money into one asset class for eg. stocks. To mitigate risks, I spread my investment out to these 3 broad classes of investments.

1. Stocks and shares - 30% of my investible assets (ie not including my primary residence)
2. Rental Property - 15% (Leverage on loan)
3. Bonds, FD, and CPF - 55%

Based on the above 3 investment spread, my passive income last year was $130K.

Will I get this amount this year? This year started off with a dampener with the STI dropping badly. Some of the companies reduced paying dividends and on top of that, I suffered paper loss on my capital! And tenants are proving elusive. I managed to get another tenant for my rental property but with reduced rental income.

The only steady component is the third one - the bonds, FD and CPF

So as you can see, you want higher returns you have to bear the higher risks.

As of Jun this year, my passive income is $67K. Going forward, my rental income is going to be lower, so I am not too confident of hitting $130k again this year.

Impressive. You're the most successful among us here in the forum. 99.99% of those aged 50 are all still working to pay mortgage, pay bills, etc.

Kena kicked out from another forum now here to infest this one. Same insecure joker/loser always praising himself. Tsk tsk.

around half of my cash now is emergency fund, so don't intend to use it for investment. I need the cash actually for marriage and renovation of flat in the coming 3 years or so.

Oh. yes! i have been to your blog a few times actually when i go to sginvestblogger. you are very close to your 100k goal already.

The cash is in my OCBC360 account which i feel still give a decent returns for a saving account.

Yea, I will be hitting my 100K target this year if everything goes smoothly. But it will be all gone next year cause I am going to purchase my first house next year. Have to start from scratch again haha.

Civil servant can do moonlight? I tot cannot right

Are you still working or retired? There are some in this forum who have amassed significant networrh generating impressive passive income, and still working as they feel that this is the best period of time to accumulate even more wealth. Would be interesting to know your situation too and what you think.

Many people here talks about retirement. How much do you really need for retirement? It all depends on your retirement lifestyle. So, what's the typical average Singaporean retired couple's profile and how much do they need? Let's explore.

A typical, average heartlander retired Singaporean couple would be staying in a 4 room HDB flat which they bought cheap, direct from HDB many years ago and would be paid off fully by the time they retire (no more mortgage). They would most likely not own a car (a car is a luxury and not a necessity, especially for a retired couple) and do not employ a maid. They would do their own housework, which is not much for just two persons. They also cook their own meals or buy food from hawker centres.

How much are their expenses (TWO PERSONS ONLY)?

Groceries, hawker food, utilities - $1000 pm
Public transport (discount with PG card) - $100 pm
Medical - $200 pm
Medical insurance premium - $400 pm
Entertainment - $100 pm
Holiday travel (pro rated) - $200 pm
Total - $2000 pm

So, if they can earn a passive income of $2500 pm or $30,000 pa, they can retire before 65. If they don't have this passive income, they will have to retire at 65.

At 65, if they choose the Enhanced CPF Life, they will get $3,600 pm or $43,200 pa.