Motivation — SGD cash crunch due to BGC, maid etc
caution — i could make another loss on this investment. Need to avoid the temptation of ” quick removal of chronic eyesore, even if at a small loss ”
It’s useful to see the price history of the USD version.
This HY fund is a prime example of “erosive dividend” …
These are mostly but not all Minestones. Towards the recent years, the more brief I write, the better .. beware oth
Update:
Tanko pointed out $3k/M is sufficient until tested by a cashflow event. He feels real life is more unpredictable, so for many retired couples the uneventful phase may not last long. If you want to weather the storm, you may need a $3M contingency reserve .. something 99% of us don’t have.
This was exactly my attitude expressed in numerous emails until 2018. My attitude (tanko?) was like “even though I have recorded evidence of a 4k family burn rate for the past X years, I still need to prepare 10k/M”in my old age, I still want (not “need”) a salary.
See also https://tanbinvest.dreamhosters.com/2014/12/08/retirement-planning-ideas-le2-tanko/ and other posts in the same blog.
See also passive income generators
When asked by financial planners such as at a Prudential road show, I have estimated that for my wife and me combined, the retirement monthly burn rate is very roughly S$3k in today’s dollars,
At s$3k, my wealth (by Fuller’s definition) is rather high. No need to work any more. The EarlyRetirementExtreme author estimated 100Y of wealth for himself.
Looking at my recent burn rate (which I track carefully), 3k is a realistic forecast of our retirement burn rate. I understand my own burn rate very well. This is the part of my financial planning I understand best, which is still rather imperfect.
Living alone in the U.S. I spent below $1k/month excluding rent and flights. When self-employed as a bachelor, I was earning $2k/month and had no cash flow problem at all.
My Zofia and I could move back to MYS/SG when retired. Below are some of the positive/negative cash flows during my semi-retirement years:
^ kids contributing a bit of allowance, if any
^ part time salary — Note my target retirement age from Full Time job is 75.
^ low risk investment dividend, such as insurance
^^ rental income minus property maintenance cost.
* I would advocate lease spread — rent a cheaper/smaller place and rent out our home.
^^^ CPF Life would start paying at 67 or 70
…. see figures in 3 ffree scenarios: cashflow figures
▼flights to see family
▼Major medical? Rely on medi-shield?
▼other medical expenses not covered by medi-shield. Other insurance can help. It’s naive to assume that medical would be 80% of the burn rate.
▼old age related expenses? Ask grandparents
▼▼ utilities including daily transportation
▼▼ food
Repeated “^” means higher predictability.
If we stay in JB or Thailand and visit Singapore when needed, then the savings/gains would include (look at the tax-like expenses)
+ cheaper food
+ lease spread
+ routine medical is cheaper
+ cheaper utilities including daily transportation
— support grandma? My NNIA is sufficient for CRBR, but not sufficient to support my aging parents. I think this type of “support” is a luxury comparable to branded degree for my kids. There is one difference — my aging parents have their pension income and nest egg.
BusinessTimes 16 Jan 2017 has a detailed analysis about retiring on 3-4% investment yield. (My savings rate is probably 60-70%) This analysis has a basic assumption — investment yield CAN keep up with inflation…. Really?
In the Singapore context I blogged about the 20Y inflation as I experienced. Relatively low.
As to investment yield in the form of dividends or fixed deposit interests… not so sure. In conclusion, I would say — inflation did erode but investment yield didn’t keep up 🙁
Therefore, I like rental property better. Rental income rises against inflation, with good reliability. (In fact, the capital appreciation also rises with inflation, but that’s topic for another day.)
Key thing in this plan — reliable passive income. I’m betting on 5-7%. I think mostly I need to rely on rental properties.
In a 2020 CNBC survey, “financial elites” refer to those with $50,000 or more in investments and an annual household income of $75,000 or greater
In a May 2016 commentary in Business Times, Robert J Samuelson pointed out that in terms of annual household income the US “families” can be classified into 3 segments:
These are easy numbers to remember. Note in economic science, there are exact definitions of “household”. I will just call them “families”.
AVERAGE household income is skewed by the wealthy outliers (“average GS bonus” shit). Instead, let’s talk about median household income. As of 2013, US median household income is about $43k pretax.
— typical U.S. household cash flow level, as reflected in the Mar 2020 $2 trillion covid19 rescue package
I’m surprised that a one-time $2k 红包 would mean a lot for many U.S. families.
It then dawned on me that my fellow ibank tech professionals are a wealthy privileged class in this society.