How t

[proton91]

Hi guys, need some advice on whether my thinking is correct.

Assuming I need $5,000 a month / $60,000 a year to live a comfortable semi-retired lifestyle, how much will I need in my stock portfolio?

Scenario 1:
Annual growth = 4%
Portfolio = $1,500,000


Scenario 2:
Annual portfolio growth = 10%
Portfolio = $600,000

So basically, the portfolio will generate $60,000 a year which I will draw down regularly to support my expenses.

Is this thinking / calculation accurate? If not, any other factors I should consider?

Thanks!

 

[fr33d0m]

Market goes up and down and can stay down for extended period.


Once you start to withdraw capital, it is the end of retirement.

 

[addict951]

Your assumption very simplistic leh
have you factored in the big plunges that happens every 10 years?
Have you experienced the 2009 & 2020 mega plunges? Can you tahan anot?

 

[Perisher]

You forgot inflation?
Safe withdrawal is within the 3-4% range. You must ensure your capital is growing faster than your withdrawal.

 

[bobobob]

Hi guys, need some advice on whether my thinking is correct.

Assuming I need $5,000 a month / $60,000 a year to live a comfortable semi-retired lifestyle, how much will I need in my stock portfolio?

Scenario 1:
Annual growth = 4%
Portfolio = $1,500,000


Scenario 2:
Annual portfolio growth = 10%
Portfolio = $600,000

So basically, the portfolio will generate $60,000 a year which I will draw down regularly to support my expenses.

Is this thinking / calculation accurate? If not, any other factors I should consider?

Thanks!

Experts recommend you withdraw 3% a year to be safe. So you'd need $2M.

 

[Okenba]

Stocks don't give a guaranteed 4% or 10% every year. That's not how it works.

You may have heard of the 4% safe withdrawal rate. It is worth noting that if I'm not wrong, it was designed to last 30 years and I think it was modelled on a 60/40 portfolio. And based on US markets.

 

[addict951]

Stocks don't give a guaranteed 4% or 10% every year. That's not how it works.

You may have heard of the 4% safe withdrawal rate. It is worth noting that if I'm not wrong, it was designed to last 30 years and I think it was modelled on a 60/40 portfolio. And based on US markets.

STi also can, the reits, that is.
I managed 11 years riao. Another 19 to go

 

[DevilPlate]

Most importantly is to build up your financial knowledge before one start dreaming about living off from your stock investment!

Best to create multiple passive income streams
Rental income + CPF monthly payout + Stock Dividend + Bonds coupons + Growth stocks + other side gigs like looking after pets etc (ops this is not passive but to kill some time haha)

 

[direbmem]

STi also can, the reits, that is.
I managed 11 years riao. Another 19 to go

u retired using sti/ reits portfolio for 11 years liao ah?

 

[zoneguard]

https://www.bogleheads.org/wiki/Amortization_based_withdrawal

 

[sk0065]

the question is not the portfolio size

the question is what skills you possess to earn the %%

if your skill set allows you 10% year in year out, then you are right - SGD 600,000 is enough.

if your skill set is the 1% FD type...................
do your own math for other permutation.

like some other forum-ers have mentioned, upgrade your financial knowledge first.

 

[addict951]

u retired using sti/ reits portfolio for 11 years liao ah?

I'm almost to the stage of surviving on CDs liao (and keep monthly celery in bank).
When got rights/PO then I use celery/excess CD to fund.
Cos nao also wfh, cannot go overseas also/nothing major to buy except buy fruit every nite.

 

[peppermint7]

I'm almost to the stage of surviving on CDs liao (and keep monthly celery in bank).
When got rights/PO then I use celery/excess CD to fund.
Cos nao also wfh, cannot go overseas also/nothing major to buy except buy fruit every nite.

Good job!

 

[direbmem]

I'm almost to the stage of surviving on CDs liao (and keep monthly celery in bank).
When got rights/PO then I use celery/excess CD to fund.
Cos nao also wfh, cannot go overseas also/nothing major to buy except buy fruit every nite.

Wow congrats! you are only late 30s to Early 40s right?