Advice for age 42

[Soomp!]

I'm an income investor mainly focus on dividend stock in Singapore market.

I had less than 20 shares on CSPX and little of US shares such as 1000 in grab, 500 over in NOK and 2-3 in VTI.

Portfolio size is 161K and mainly into REITs of Singapore.

I had read about the 4 percent draw down from the portfolio and to be financially independence.

Intend to retire at age 50 with the size of 500K portfolio. That is 8 more years for me.

If based on 4 percent draw down, per month is just 1,666 and for sure not enough to retire in Singapore.

Intended to rent out the whole HDB to supplement my retirement with this 1,666K. During my retirement, intending to do some side hustle such as youtube, offering some consultation services and stuffs, but anyway these are the later part...

If hdb can still be rented out for 3K, with 1,666 SGD from portfolio, I think should barely be enough to retire overseas. Targeting either Malaysia or Indonesia.

Question are
1. This 4 percent drawn down is it applicable to income investor too?

2. I intend to pump in 120 per day, is there any other faster way to get 500K portfolio faster ?

3. DBS looks expensive now, should I wait for it to drop or just get into it ? I got into OCBC because I feel DBS is overpriced but of course they are of 2 different fundamental

4. Is there any other way for me to work on getting my portfolio to go slightly faster ? Don't ask me to bet on high volatility stocks / Cryptocurrency/ Forex and etc. Old man can't take the volatility anymore.

 

[homer123]

If you are planning dividend investment strategy, there is no need to do a 4% withdrawal. For me. I made sure that I build my dividend to cover all my expenses accounting for inflation.

 

[tehhalia]

Just my 2 quick views.

If mainly reits, I feel not diversified enough. If reits sector hit, then may dent your income. Can have bond component also as part of your portfolio.

You can conservatively estimate and include your CPF (life) payout as part of your portfolio.

I’m working towards the same target as you. All the best.

 

[BBCWatcher]

Please see my reply to your other post in the "FIRE" thread. You may wish to consolidate your post into that thread.

 

[yslvlys]

If you are planning dividend investment strategy, there is no need to do a 4% withdrawal. For me. I made sure that I build my dividend to cover all my expenses accounting for inflation.

He needs to achieve his targeted yield with 500k dividend portfolio, which could be challenging, else may need to sell some to top up the difference.

 

[wutawa]

Intended to rent out the whole HDB to supplement my retirement with this 1,666K. During my retirement, intending to do some side hustle such as youtube, offering some consultation services and stuffs, but anyway these are the later part...

if u have 1,666k ($1.6m) and renting out your whole hdb, u can lepak liao

 

[FlyGuardX]

I'm an income investor mainly focus on dividend stock in Singapore market.

I had less than 20 shares on CSPX and little of US shares such as 1000 in grab, 500 over in NOK and 2-3 in VTI.

Portfolio size is 161K and mainly into REITs of Singapore.

I had read about the 4 percent draw down from the portfolio and to be financially independence.

Intend to retire at age 50 with the size of 500K portfolio. That is 8 more years for me.

If based on 4 percent draw down, per month is just 1,666 and for sure not enough to retire in Singapore.

Intended to rent out the whole HDB to supplement my retirement with this 1,666K. During my retirement, intending to do some side hustle such as youtube, offering some consultation services and stuffs, but anyway these are the later part...

If hdb can still be rented out for 3K, with 1,666 SGD from portfolio, I think should barely be enough to retire overseas. Targeting either Malaysia or Indonesia.

Question are
1. This 4 percent drawn down is it applicable to income investor too?

2. I intend to pump in 120 per day, is there any other faster way to get 500K portfolio faster ?

3. DBS looks expensive now, should I wait for it to drop or just get into it ? I got into OCBC because I feel DBS is overpriced but of course they are of 2 different fundamental

4. Is there any other way for me to work on getting my portfolio to go slightly faster ? Don't ask me to bet on high volatility stocks / Cryptocurrency/ Forex and etc. Old man can't take the volatility anymore.

reits should do well as interest rate go down

 

[Soomp!]

Just my 2 quick views.

If mainly reits, I feel not diversified enough. If reits sector hit, then may dent your income. Can have bond component also as part of your portfolio.

You can conservatively estimate and include your CPF (life) payout as part of your portfolio.

I’m working towards the same target as you. All the best.

I will add in the bank stocks , waiting for price correction and if there is going to be

 

[Soomp!]

High reits port is not a good idea.
Rights issue (you need to cough up more money than the dividends given to you), or institutional placement (dilutes your dividends) happen frequently.
Only the top 2-3 reits have actually made money for their investors over long periods of time (>10, 15yrs). As the top reits, their yields are now compressed. Of course, a rate cut cycle is good for reits, but over 30years i'm not sure.

Personally, i think buying STI index (ES3) is better for long run, for close to 4% yield, and no fear of dilutions, having to vomit out more money, reit closing shop, etc.. The index also include the big reits, so if you like reits, you are holding them too

Everyone wants to pump their portfolio faster, but we cannot control the market...

I had G3B too .....around 10K units

Was placed at Standard chartered Bank custodian so I don't usually talk about it.

I kept RSP into the market daily as I purposely drive taxi to get this daily income....^^;

 

[CrashWire]

Portfolio size is 161K and mainly into REITs of Singapore.

You should consider all your properties minus outstanding mortgage as part of your net worth too, for calculation of safe withdrawal rate.

Let's say that your HDB is $400k and your 2 foreign properties are $200k each, and are all fully paid up.

Your actual networth is around $966k! (I didn't even include the G3B which you mentioned in a later post.)

 

[wutawa]

I had G3B too .....around 10K units

Was placed at Standard chartered Bank custodian so I don't usually talk about it.

I kept RSP into the market daily as I purposely drive taxi to get this daily income....^^;

didn't know scb has daily RSP. not an easy feat. keep up the good work.

 

[yslvlys]

Actually I think threadstarter is quite rich

 

[Soomp!]

Actually I think threadstarter is quite rich

I used to think like you until i get to learn these people

1. Shao Chun, 2 million USD age 38
2. Christopher Ng,2 million at age 39
3. Contra Turtle, 4.5 million USD age 38
4. Dividend Warrior - he is in Hwz too

These are called rich
I'm already 42 this year and my portfolio is still way far from target

 

[hwmook]

I used to think like you until i get to learn these people

1. Shao Chun, 2 million USD age 38
2. Christopher Ng,2 million at age 39
3. Contra Turtle, 4.5 million USD age 38
4. Dividend Warrior - he is in Hwz too

These are called rich
I'm already 42 this year and my portfolio is still way far from target

No need to envy others or try to match others. Planning for retirement is already a good job, a lot of people I know have no plans at all.

 

[Soomp!]

You should consider all your properties minus outstanding mortgage as part of your net worth too, for calculation of safe withdrawal rate.

Let's say that your HDB is $400k and your 2 foreign properties are $200k each, and are all fully paid up.

Your actual networth is around $966k! (I didn't even include the G3B which you mentioned in a later post.)

But those property can't withdraw any monies when I retire. It can only be included in the net worth.

No need to envy others or try to match others. Planning for retirement is already a good job, a lot of people I know have no plans at all.

Yes, because some people said im rich... im definately not rich.

 

[Shiny Things]

Portfolio size is 161K and mainly into REITs of Singapore.

I had read about the 4 percent draw down from the portfolio and to be financially independence.
Intend to retire at age 50 with the size of 500K portfolio. That is 8 more years for me.

If based on 4 percent draw down, per month is just 1,666 and for sure not enough to retire in Singapore.

Intended to rent out the whole HDB to supplement my retirement with this 1,666K. During my retirement, intending to do some side hustle such as youtube, offering some consultation services and stuffs, but anyway these are the later part...

If hdb can still be rented out for 3K, with 1,666 SGD from portfolio, I think should barely be enough to retire overseas. Targeting either Malaysia or Indonesia.

Question are
1. This 4 percent drawn down is it applicable to income investor too?

BBCW pointed this out in the other thread: while the 4% rule is independent of what your portfolio's invested in, using a low-growth income portfolio puts you at more risk of running out of money. You'll probably either need to pivot your portfolio more toward stocks (and growth in particular), or reduce your withdrawal rate.

2. I intend to pump in 120 per day, is there any other faster way to get 500K portfolio faster ?

4. Is there any other way for me to work on getting my portfolio to go slightly faster ? Don't ask me to bet on high volatility stocks / Cryptocurrency/ Forex and etc. Old man can't take the volatility anymore.

In your position, you might want to focus on building up your day job: getting raises, getting promoted, whatever that path to a higher salary looks like. There's no magic bullet to making your portfolio grow faster - not without taking some risk, somewhere, of blowing yourself up.

On a related note, I'm gonna answer a question you didn't ask: "is this the right portfolio for someone who wants to retire in eight years and needs a lot of capital growth to get there?" ... and the answer is "no, it's not; income stocks are a trap". When you're working and still accumulating retirement savings, you don't need income from your investments; you need capital growth.

 

[BBCWatcher]

But those property can't withdraw any monies when I retire. It can only be included in the net worth.

Yes you can. Homes can be sold to raise cash. They cannot be sold quickly assuming you want a reasonable market price. But they can be sold.

In some cases there are other ways to monetize home equity. The HDB Lease Buyback Scheme is one such option.

 

[CrashWire]

But those property can't withdraw any monies when I retire. It can only be included in the net worth.

Some countries also allow for a secured loan by way of a Home Equity Line of Credit (HELOC) or reverse mortgage.

I guess your bigger problem is whether you want to leave anything to your wife and kids. If not, Die with Zero means you can borrow from the secured loan, and have the bank foreclose on the property when you die.

 

[elvintay07]

I used to think like you until i get to learn these people

1. Shao Chun, 2 million USD age 38
2. Christopher Ng,2 million at age 39
3. Contra Turtle, 4.5 million USD age 38
4. Dividend Warrior - he is in Hwz too

These are called rich
I'm already 42 this year and my portfolio is still way far from target

Don’t learn from thsee ppl la. Contra turtle portfolio is $500k and not $4.5m. If want to learn, at least benchmark Adam Khoo. All The best

 

[singaporean11]

Don’t learn from thsee ppl la. Contra turtle portfolio is $500k and not $4.5m. If want to learn, at least benchmark Adam Khoo. All The best

Adam Khoo so good? What is his portfolio and returns history? Looking to learn more from anybody with a 9-figure investment portfolio (without leverage)...