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-   -   How much savings do you have? (https://forums.salary.sg/investments-net-worth/1199-how-much-savings-do-you-have.html)

Unregistered 07-07-2016 10:01 AM

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.

Unregistered 07-07-2016 11:27 AM

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.










Quote:

Originally Posted by Unregistered (Post 88242)
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.


Unregistered 08-07-2016 08:05 AM

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.


Quote:

Originally Posted by Unregistered (Post 88029)
How old are you? What's your net worth?

I'm 50 and happily retired. I worked very hard in a highly stressed and high paced environment. Made very good money though. I invested my huge bonuses and made millions from my investments. Now can retire.

My advice to youngsters is to work in a sector which pays very high, even though it's a high stressed environment. But must plan your exit early before you collapse. I manage to exit at the right time. Now a lot more healthier and happier.


Unregistered 08-07-2016 10:37 AM

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

Quote:

Originally Posted by Unregistered (Post 88275)
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.


Unregistered 08-07-2016 10:06 PM

Quote:

Originally Posted by Unregistered (Post 88143)
Cash can start to dump in FD or lump sum rsp soon. Dont accumulate too much cash.

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.

Unregistered 08-07-2016 10:11 PM

Quote:

Originally Posted by Unregistered (Post 88202)
You are around the same situation as i am, i work for 2 years already so my OA is a bit higher than yours. For around 2 years i manage to save around 40k and equities of 2.8k only. I am hoping to earn my 100k before i hit 30 years old.

For the 26k cash you can put it in banking account which gives you higher interest rate.

I have record my experience in my saving journey in my blog, so if you want you can read it. s://jyklmoneyblog.blogspot.sg

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.

Unregistered 13-07-2016 09:05 AM

Quote:

Originally Posted by Unregistered (Post 88295)
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.

Unregistered 16-07-2016 08:40 PM

Quote:

Originally Posted by Unregistered (Post 88242)
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.

Civil servant can do moonlight? I tot cannot right

Unregistered 18-07-2016 06:55 PM

Quote:

Originally Posted by Unregistered (Post 88245)
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.

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.

Unregistered 18-07-2016 07:51 PM

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.


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