Passive income options

[wahkao3]

In short, my research is really observation rather than textbook rules.

what I observe maybe very different from reality.

How do we make sure our observations reflect reality?
Maybe your observation skills are top notch and you are able to tell what is reality. For me, I cannot.

I see Lehman Brother got big building on wall street I think "Lehman brother will not bankrupt one lah. They got big building. A lot of asset and they around for 100+ years. Solid company"

 

[wahkao3]

The other sector I'm trying to enter is financial & credit transactions which the world will become more reliant on. And IMO, almost peerless here is MasterCard.

Mastercard also same situation as google, its super expensive. PE at 30

 

[Shiny Things]

If you are just 100% on ETF, how is that a REAL diversification ?

Therefore a diversification would be allocating your money into different asset classes like some precious metals, some bonds, or something else.

Nope. There are zillions of bond and precious metal ETFs out there, and it's a hell of a lot easier to get exposure to bonds or gold that way (by buying them on the exchange) than by buying individual bonds, or buying individual gold bars and a friggin' enormous safe to put them in.

 

[Shiny Things]

I know in this case, the parents have enough income already. So there is no need to increase the bond allocation along aging.

The point of increasing your exposure to bonds is not to increase the income that the portfolio throws off - it's to reduce the volatility. If you're 65, and about to retire, and 100% invested in stocks, you're going to be a bit unhappy if a 2008-style crash hits just before you retire. The point of increasing your bond exposure is to reduce the risk of your portfolio taking a huge hit from a crash that happens close to your retirement.

For me, if I want to implement a full ETF portfolio, how do I re-balance annually to reflect the increase of age?

's easy. Let's say you're 30, and your rule is "110 minus your age in stocks", so your portfolio is 20-80 bonds-stocks. On your 31st birthday, you just sell a little bit of stocks and buy a little bit of bonds so that your portfolio is now 21-79 in stocks. (If that one percent size is too small to be practical, you can do this change every three to five years, as long as you still do your regular annual rebalancing as well.)

 

[Shiny Things]

How do I take into the consideration of all CPF money with the monthly regular subscription of ETFs? Should I consider them as bonds? If so, how do I manage the allocation?

If your CPF's just earning the basic 2.5% or 4% or whatever it is now, treat it like part of your bond allocation.

Also, if the gold is in the picture, which gold product can you recommend. I am based in Singapore with all my options "globalization-ready".

There's O87, the SGX-listed version of GLD, but it seems like spreads are fairly wide on that. If you can handle staying up late so you can trade in America, it might be worth going to the big daddy GLD. Don't bother with UOB's gold savings account, or actual bricks of the stuff, or anything like that - they're either too expensive or too fiddly or you have to buy a friggin' safe to hold the stuff.

(Really, though, I think owning gold is still going to be pretty terrible for at least the next 3-4 years. I don't think it should be in the picture in the first place.)

 

[antonpoh]

Mastercard also same situation as google, its super expensive. PE at 30

I don't view PE like how you see it. They're expensive for a reason. Let's compare.

Google - (US$ 1069.87)
Mkt Cap: 357.43 Bil -- PE: 29.12
Base on the PE, this company can make 12.27 billion per year.

MasterCard - (US$ 758.47)
Mkt Cap: 91.3 Bil -- PE: 30.0
Base on the PE, this company can make 3.04 billion per year.

Visa - (US$ 201.87)
Mkt Cap: 128.8 Bil -- PE: 26.6
Base on the PE, this company can make 4.84 billion per year.

Bank of America - (US$ 15.56)
Mkt Cap: 165.97 Bil -- PE: 23.72
Base on the PE, this company can make 6.99 billion per year.

Base on people willing to pay $1069 for a google's share that make 12.27 bil per year, VISA should be worth around US$422.87 for making 4.84 bil per year. From there you can see that VISA is better than mastercard.

If you have $100k, which would u invest? As for me I would pick BoA.

 

[wahkao3]

The median PE is around 15-16
PE of 30 is pretty bubble-ish liao. The risk is higher.

Maybe, indeed stock price will move even higher to PE of 40.
Maybe, stock price will crash down to 15.

Really we dont know. Chances are, due to mean reversion, it is more likely to drop to 15.

 

[wahkao3]

Bank of America - (US$ 15.56)
Mkt Cap: 165.97 Bil -- PE: 23.72
Base on the PE, this company can make 6.99 billion per year.
If you have $100k, which would u invest? As for me I would pick BoA.

I think Price/Book value would be a better choice for financial services like master card, VISA and BOA.

for me, I will see both PE,price/book, gearing, historical.

 

[Greg Koch]

Any passive income options to share?

I know the best is property and then collect rental.. but not sure if i am able to afford a house now.. (i am below 35).

But then again, one of my colleague also bought a private property and his passive income for rental is basically i think he used cpf and also bank loan to buy, but the rental monthly can cover the bank loan and still got earn.. any advise if this is really worth it?

so, any other passive income options you guys use can share share?

oh ya, i also thinking of driving taxi on the weekends..

I earn passive income through iOS and Android apps.

Just develop/upload once, and just leave it there.

What's most impt is the idea behind the app. Programming wise don't have to do yourself, can get freelancers to do for you.

Stocks wise, yes the opportunity is there. But I feel that it requires a large amount of capital which you should already have. So, I prefer and search for passive income streams that do not require huge investments of capital upfront.

 

[wts2013]

I earn passive income through iOS and Android apps.

Just develop/upload once, and just leave it there.

What's most impt is the idea behind the app. Programming wise don't have to do yourself, can get freelancers to do for you.

Stocks wise, yes the opportunity is there. But I feel that it requires a large amount of capital which you should already have. So, I prefer and search for passive income streams that do not require huge investments of capital upfront.

why u keep deleting and changing your post? what happened to your offer of your free book to us?

 

[Greg Koch]

I have already PM you.

 

[focus1974]

I don't view PE like how you see it. They're expensive for a reason. Let's compare.

Google - (US$ 1069.87)
Mkt Cap: 357.43 Bil -- PE: 29.12
Base on the PE, this company can make 12.27 billion per year.

MasterCard - (US$ 758.47)
Mkt Cap: 91.3 Bil -- PE: 30.0
Base on the PE, this company can make 3.04 billion per year.

Visa - (US$ 201.87)
Mkt Cap: 128.8 Bil -- PE: 26.6
Base on the PE, this company can make 4.84 billion per year.

Bank of America - (US$ 15.56)
Mkt Cap: 165.97 Bil -- PE: 23.72
Base on the PE, this company can make 6.99 billion per year.

Base on people willing to pay $1069 for a google's share that make 12.27 bil per year, VISA should be worth around US$422.87 for making 4.84 bil per year. From there you can see that VISA is better than mastercard.

If you have $100k, which would u invest? As for me I would pick BoA.

Eh friend... Have you taken into account the number of shares per company to derive your valuation?

 

[focus1974]

I earn passive income through iOS and Android apps.


Stocks wise, yes the opportunity is there. But I feel that it requires a large amount of capital which you should already have. So, I prefer and search for passive income streams that do not require huge investments of capital upfront.

Eh.. how much are you making online?

 

[Greg Koch]

Eh.. how much are you making online?

Ok, if you are interested,

Here are some latest income report screenshots, (note: these are just part of it)

Income from iOS apps (1600 SGD in June)

Income from ebooks published on Amazon (USD 166, GBP 101 - June)

Income from physical books published on Amazon (676 USD, 158 GBP, 25 EUR)

 

[makeupconnect]

Dividends and rental... think im a broken recorder.

anyway Sg Property Inc analysed the highest yields, DPUs and lowest gearing, as well as highlighted some potentially undervalued stocks, arising from net asset value being less than market value. But still must highlight, a lot of REIT prices have gone up, as investors are yield hungry.

Nonetheless, this may be a good starting point i guess.

 

[Gummy Bear]

I have with me cash money of 700k but I do not know how to invest it. Thinking of getting private property for rental income n share dividend.

 

[Shiny Things]

I have with me cash money of 700k but I do not know how to invest it. Thinking of getting private property for rental income n share dividend.

I think step 1 is not to go telling the whole world you've got three-quarters of a million you don't know what to do with. Anyway, I had a couple questions for you back in the thread you started; answer those and I'll be able to help you out.

 

[gunston]

is the topic still on-going?

 

[wahkao3]

good passive income

 

[frenchbriefs]

dividend warrior how come ur dividend income drop down to $200 a month?i thought ur portfolio used to be 200k to 300k in size and generating close to 1k/mth dividend?