What is your Passive Income stream?

[alvinleo]

Hi All!

I'd like to call myself an Entrepreneur, and spend most of my time building up my businesses. As such, I don't like to spend hours on end learning about companies to invest in stocks, and prefer to take a passive approach to investing.

Do any of you know of or currently have money parked in passive income investment streams such as Equity funds or others?

I'm currently using Forex robots to make my money grow for me, but would like to diversify my passive income portfolio.

I'm open to all kinds of possibilities so let's hear it, what are your passive income streams?

 

[Shiny Things]

You know those FX robots are a rort, right?

For me (and for a lot of other people on the forum) it's stock and bond ETFs. 75% stocks, 25% bonds, retire to the pub. Cheap, easy, and you get a nice phat div cheque every so often.

 

[Dividends Warrior]

Hi All!

I'd like to call myself an Entrepreneur, and spend most of my time building up my businesses. As such, I don't like to spend hours on end learning about companies to invest in stocks, and prefer to take a passive approach to investing.

Do any of you know of or currently have money parked in passive income investment streams such as Equity funds or others?

I'm currently using Forex robots to make my money grow for me, but would like to diversify my passive income portfolio.

I'm open to all kinds of possibilities so let's hear it, what are your passive income streams?

Look at my signature.

 

[limster]

Look at my signature.

agree that $1,000 a month dividends can be achieved by careful investing and nice supplement to income. If inflation rises, companies will be able to increase prices so the dividends will also be protected from inflation.

Yet strangely, gold threads are more active than dividend investing threads, even though gold doesn't pay dividends

 

[alvinleo]

You know those FX robots are a rort, right?

For me (and for a lot of other people on the forum) it's stock and bond ETFs. 75% stocks, 25% bonds, retire to the pub. Cheap, easy, and you get a nice phat div cheque every so often.

I understand the flak most people have against robots.. I do feel that it is a good way to get passive income with safe settings to make like 2% a month or so. Of course, I don't keep all my eggs in 1 basket either.

Anyone have any good ETFs to introduce? What should I look out for when picking such stock or bond funds ?

 

[sonicdeejay]

I trade forex..

Sonic R. System

 

[Shiny Things]

I understand the flak most people have against robots.. I do feel that it is a good way to get passive income with safe settings to make like 2% a month or so. Of course, I don't keep all my eggs in 1 basket either.

OK, but you can't make 2% a month without taking some serious risk. If you're really hellbent on doing it, be prepared to lose everything you put in.

Anyone have any good ETFs to introduce? What should I look out for when picking such stock or bond funds ?

Sure!

Basically the only two you need are the STI ETF (which invests in all the stocks in the STI) and the ABF Bond Index ETF (which invests in a basket of Singaporean bonds). Split your cash between these - 110 minus your age in the stock ETF, and the rest in the bond ETF - and you'll be doing a lot better than most people.

If you need a smaller lot size than the $3k-ish for the STI ETF, the Nikko version is the same thing with a 100-share ($300-ish) lot size.

There are a lot of ETFs listed in Singapore, and most of them are useless trash that never trades. The three listed above are the only ones worth caring about. Generally, though, when you're picking an ETF, you want to look for two things:

1. Do you understand what you're investing in? "All the stocks in the STI" is easy. "A variable-weight basket of the first and second VIX futures" is not.
2. Are the fees low? You should never ever ever pay more than 0.5% management fees for any ETF - if you're paying more than that you're getting ripped off.

 

[alvinleo]

OK, but you can't make 2% a month without taking some serious risk. If you're really hellbent on doing it, be prepared to lose everything you put in.



Sure!

Basically the only two you need are the STI ETF (which invests in all the stocks in the STI) and the ABF Bond Index ETF (which invests in a basket of Singaporean bonds). Split your cash between these - 110 minus your age in the stock ETF, and the rest in the bond ETF - and you'll be doing a lot better than most people.

If you need a smaller lot size than the $3k-ish for the STI ETF, the Nikko version is the same thing with a 100-share ($300-ish) lot size.

There are a lot of ETFs listed in Singapore, and most of them are useless trash that never trades. The three listed above are the only ones worth caring about. Generally, though, when you're picking an ETF, you want to look for two things:

1. Do you understand what you're investing in? "All the stocks in the STI" is easy. "A variable-weight basket of the first and second VIX futures" is not.
2. Are the fees low? You should never ever ever pay more than 0.5% management fees for any ETF - if you're paying more than that you're getting ripped off.

Great! Thank you very much for sharing! May I know what kind of returns I can expect from the 3 mentioned ETFs ?

Well, as for my forex robot, you may be surprised to hear that my drawdown is only about 5%-10% for a 2% monthly return. And yes I understand the risks!

 

[Shiny Things]

Great! Thank you very much for sharing! May I know what kind of returns I can expect from the 3 mentioned ETFs ?

No, you may not, because if I could predict what's going to happen to the stock and bond markets I'd be posting from a hammock in the Bahamas.

The only thing I can say is that the two STI ETFs will give you basically identical returns, because they've got identical underliers.

Edit: Also, I am intrigued by your money-pooping FX robot. Can you show me some performance data? If it's really making you 25%+ p.a. with 5-10% max drawdown, there are a lot of hedge funds who will want to have a chat with you.

 

[kEvinErd]

OK, but you can't make 2% a month without taking some serious risk. If you're really hellbent on doing it, be prepared to lose everything you put in.



Sure!

Basically the only two you need are the STI ETF (which invests in all the stocks in the STI) and the ABF Bond Index ETF (which invests in a basket of Singaporean bonds). Split your cash between these - 110 minus your age in the stock ETF, and the rest in the bond ETF - and you'll be doing a lot better than most people.

If you need a smaller lot size than the $3k-ish for the STI ETF, the Nikko version is the same thing with a 100-share ($300-ish) lot size.

There are a lot of ETFs listed in Singapore, and most of them are useless trash that never trades. The three listed above are the only ones worth caring about. Generally, though, when you're picking an ETF, you want to look for two things:

1. Do you understand what you're investing in? "All the stocks in the STI" is easy. "A variable-weight basket of the first and second VIX futures" is not.
2. Are the fees low? You should never ever ever pay more than 0.5% management fees for any ETF - if you're paying more than that you're getting ripped off.

Hey that's some good information you have there. Can I just check with you what's the rationale behind the way you choose to allocate your assets between stocks and bonds? Has there been a research to back that up somehow?

 

[Shiny Things]

Hey that's some good information you have there. Can I just check with you what's the rationale behind the way you choose to allocate your assets between stocks and bonds? Has there been a research to back that up somehow?

My rule of thumb is dead simple: just "110 minus your age" in stocks, and the rest in bonds.

There's no particular research to back it up - it's just that bonds are less volatile, so you want more of them in your portfolio as you get older; but they also return less than stocks, so you want less of them in your portfolio when you're younger and have a longer investment horizon.

(Side note: the usual rule is "100 minus your age" in stocks - but I think interest rates are going up over the long term, so I want to be underweight bonds.)

(Side side note: I changed my stance from "100 minus your age" to "110 minus your age" at the beginning of this year, when I decided that there was no way corporate bonds yielding 2% would outperform stocks over my 20-year investment horizon. So I switched 10% of my portfolio from LQD to SPY on December 31st, and it's... well, it's been a pretty good trade.)

 

[Skinny_bastard]

I trade forex..

Sonic R. System

heyyy...ive been studying this system but i cant seem to understand how to do it...

hows the system going for you???

 

[focus1974]

Passive income .. better diversify your sources.
So your forex robot is one..
Buy a property for rental income(when yield is >5%).
Buy some short-term bonds(<7yrs) yielding at least 4%.
Have some dividend-paying stocks yielding at least 5%.
Have some cash.
Buy your hospitalisation and medical insurance plus a term insurance.
Tthat's about it.

Of course, you got the best passive income generator, the BUSINESSES you owned.

 

[alvinleo]

No, you may not, because if I could predict what's going to happen to the stock and bond markets I'd be posting from a hammock in the Bahamas.

The only thing I can say is that the two STI ETFs will give you basically identical returns, because they've got identical underliers.

Edit: Also, I am intrigued by your money-pooping FX robot. Can you show me some performance data? If it's really making you 25%+ p.a. with 5-10% max drawdown, there are a lot of hedge funds who will want to have a chat with you.

I understand market is volatile. But I just want a better image of what I can expect from the ETFs, at least based on past 5 years performance? Say about 5% a year? or 5-10%?

You can check out this live account trading results using the robot. But this one is running at a higher risk & return. MT4i - Statement for leogbpusd

I do have some other results with various risk/reward ratios. If you're interested PM me.

 

[alvinleo]

Passive income .. better diversify your sources.
So your forex robot is one..
Buy a property for rental income(when yield is >5%).
Buy some short-term bonds(<7yrs) yielding at least 4%.
Have some dividend-paying stocks yielding at least 5%.
Have some cash.
Buy your hospitalisation and medical insurance plus a term insurance.
Tthat's about it.

Of course, you got the best passive income generator, the BUSINESSES you owned.

I'm also trying to manage my mum's funds. Which currently includes a few private properties, and just purchased some commercial properties.

I think she has too much money in property (although some say you can never have too much $ in Singapore property), and so we have been looking around for other opportunities recently.

Her banker introduced these 5 bonds & equity funds. Hope someone can give me an opinion on them! Your input will be greatly appreciated!

BONDS
1. Templeton Total Return (SGD-H)
2. Neuberger Berman High Yield Bond Fund (SGD-H)

EQUITIES
1. BlackRock Global Equity Income SGD-H
2. Schroder Asian Equity Yield Fund SGD
3. First State Dividend Advantage Fund SGD

 

[limkopilimteh]

seriously, i think u have way more money than those giving out advices... continue to make money the way u made yours.

even michael jordan couldn't make it big in baseball. We all need to play the game we are good at.

 

[focus1974]

I'm also trying to manage my mum's funds. Which currently includes a few private properties, and just purchased some commercial properties.

I think she has too much money in property (although some say you can never have too much $ in Singapore property), and so we have been looking around for other opportunities recently.

Her banker introduced these 5 bonds & equity funds. Hope someone can give me an opinion on them! Your input will be greatly appreciated!

BONDS
1. Templeton Total Return (SGD-H)
2. Neuberger Berman High Yield Bond Fund (SGD-H)

EQUITIES
1. BlackRock Global Equity Income SGD-H
2. Schroder Asian Equity Yield Fund SGD
3. First State Dividend Advantage Fund SGD

Then actually .. you should ask your mum for advice. She is the SMART One!

But for me, I don't do any mutual funds or hedge funds. Go google and you will see most underperformed the market after fees(even the hedge funds).

 

[kEvinErd]

My rule of thumb is dead simple: just "110 minus your age" in stocks, and the rest in bonds.

There's no particular research to back it up - it's just that bonds are less volatile, so you want more of them in your portfolio as you get older; but they also return less than stocks, so you want less of them in your portfolio when you're younger and have a longer investment horizon.

(Side note: the usual rule is "100 minus your age" in stocks - but I think interest rates are going up over the long term, so I want to be underweight bonds.)

(Side side note: I changed my stance from "100 minus your age" to "110 minus your age" at the beginning of this year, when I decided that there was no way corporate bonds yielding 2% would outperform stocks over my 20-year investment horizon. So I switched 10% of my portfolio from LQD to SPY on December 31st, and it's... well, it's been a pretty good trade.)

Thanks for that! And I suppose in SG, if you're not an accredited investor or have more than S$200k to invest, the only way to get bond exposure is Mutual funds?

 

[alvinleo]

Then actually .. you should ask your mum for advice. She is the SMART One!

But for me, I don't do any mutual funds or hedge funds. Go google and you will see most underperformed the market after fees(even the hedge funds).

She doesn't have much investment sense, because her time is better spent continually trying to grow and expand her business. She knows how to handle a business, that I give to her! But investment wise, not so much.

We threw in some funds into Genneva, and thankfully had money in long enough to not make a loss. Apart from properties, that was the only other investment she's ever made. Asked her to sell the physical gold when it was at $68/g and again at $63/g but she didn't and now we have a lump of physical gold sitting there devaluing everyday

Back to topic, I am curious about the stock market. I think it's been pretty bullish the last 3 years .. but can it really continue going up like that ? What are your sentiments on the Stock market for the next year or two ?

I've been looking into a few Equity funds concentrating on Asia because I think that's where serious money can be made. Was introduced to Pine Forest Capital by a friend of mine, but have yet to invest in the fund. Can anyone give me some tips about what I should know (other than fair management fees) before I invest in such funds?

 

[deViLzAdV0C4TE]

you're an interesting guy, i have to say. You're advertising for ur business, and yet at the same time u're asking for advice... On the one hand i wish u could have been more honest. But on the other hand.. i respect what u've done!