What to do?

[MikeZhang]

Either Top up cpf or invest in bonds. Or both.

 

[RM2SSG]

U dunno what it is like to retire early and do your own things, all the wonderful things

Completely agree. Those who think retirement is boring obviously not ready to retire

Which idea to "make this 500K last longer" appeals more to him?

I think many ideas have been thrown out in this thread. I believe all suggested with good intention. The idea appeal most is probably buying investment grade bond and live on the payout.

 

[teck2104]

For 500K, I will buy 2 lots of local OTC bonds paying 4% to 5%pa like DBS4.7, UOB4.7 etc

Still have 4-5%? My own calculations indicate about 3% Y-T-M, unless I completely messed them up. Which is still decent given the lack of options nowadays.

I can't imagine them yielding so much still with something like Oxley's new 4-year bonds yielding only 5.15%.

I'd sit and wait though. Never be in a hurry to put cash anywhere, unless the conditions are right.

 

[Majestic12]

U dunno what it is like to retire early and do your own things, all the wonderful things

I am below 30 and can choose to semi-retire, but I decide not to.

My stand is shaped from the numerous businessmen, C level executives and other professionals who are my clients.

You do not know what is it like having the luxury of time to run your own businesses, do the things you want at the time that you want, and much more.

 

[urbuhcs]

Retired.

Coffin money of S$500,000 in cash.

Don't want to risk anything, just want constant stream of incoming and would like to preserve this cash for as long as possible.

What would you suggest this person do?

Lets stick to what TC want. He already said retired so lets not ask him to un-retire ( you all really bo xim. Ask him return to work )
He wants very low risk, constant return and preservation of value.

I only see high dividend blue chips, bonds and maybe ETFs. I am an investment noob. Maybe some really savvy investor can give him good advice without teaching him how to lead his life.

 

[Majestic12]

The issue here is that this hypothetical person wants his cake and to eat it, toppings and all. The steps leading up to this should have been made years and decades ago. Trying to maintain the same amount of capital and to generate decent yield out of it throws the risk equation out of whack for someone in their retirement.

Lets stick to what TC want. He already said retired so lets not ask him to un-retire ( you all really bo xim. Ask him return to work )
He wants very low risk, constant return and preservation of value.

I only see high dividend blue chips, bonds and maybe ETFs. I am an investment noob. Maybe some really savvy investor can give him good advice without teaching him how to lead his life.

 

[urbuhcs]

The issue here is that this hypothetical person wants his cake and to eat it, toppings and all. The steps leading up to this should have been made years and decades ago. Trying to maintain the same amount of capital and to generate decent yield out of it throws the risk equation out of whack for someone in their retirement.

So how will you advise him? A successful young man like you must be really smart. Please share something he can do with his money

 

[wts2013]

In Singapore, you should never fully retire. It is a waste of your time.

I am below 30 and can choose to semi-retire, but I decide not to.

My stand is shaped from the numerous businessmen, C level executives and other professionals who are my clients.

You do not know what is it like having the luxury of time to run your own businesses, do the things you want at the time that you want, and much more.

The issue here is that this hypothetical person wants his cake and to eat it, toppings and all. The steps leading up to this should have been made years and decades ago. Trying to maintain the same amount of capital and to generate decent yield out of it throws the risk equation out of whack for someone in their retirement.

Young man like u should never fully retire in Singapore, it is a waste of your time! (just quoting u hor)

Who cares what shaped your thinking! You can continue with your struggle! We are enjoying our fruits of labour, retired. I only believe in what I do, what I need to do, want to do and have to do with early retirement

Uncle is humble, trying tap current ideas how to preserve that extra money. At retirement, people are most interested in wealth preservation, not like u young people always wanting to make it rich fast, grow wealth fast by taking high risk hor!

 

[freesignalz]

The issue here is that this hypothetical person wants his cake and to eat it, toppings and all. The steps leading up to this should have been made years and decades ago. Trying to maintain the same amount of capital and to generate decent yield out of it throws the risk equation out of whack for someone in their retirement.

ROFL!!! You made my day...

 

[Majestic12]

So how will you advise him? A successful young man like you must be really smart. Please share something he can do with his money

You don't have to be very smart to be successful - just lucky enough. Sorry but that's the truth.

Since the goals of this gentleman are to have a constant stream of income without defining the exact yield and to have as much capital preservation as possible, a 30 year Singapore Government Bond would do the trick.

 

[Majestic12]

Uncle is clearly having a bitter case of sour grapes.

The beauty of the struggle is half of the journey. It's something you probably don't comprehend.

Young man like u should never fully retire in Singapore, it is a waste of your time! (just quoting u hor)

Who cares what shaped your thinking! You can continue with your struggle! We are enjoying our fruits of labour, retired. I only believe in what I do, what I need to do, want to do and have to do with early retirement

Uncle is humble, trying tap current ideas how to preserve that extra money. At retirement, people are most interested in wealth preservation, not like u young people always wanting to make it rich fast, grow wealth fast by taking high risk hor!

 

[Majestic12]

ROFL!!! You made my day...

Your actions yesterday created your results today. Obviously if you did not plan for your finances, be it intentionally or otherwise, you cannot expect to have certain results in place. This assumes a full discount of luck.

 

[wts2013]

Uncle is clearly having a bitter case of sour grapes.

The beauty of the struggle is half of the journey. It's something you probably don't comprehend.

Enjoy your luck while it last, continue to struggle to complete your journey. I already moved on to the next journey, catchup with me lor

 

[RM2SSG]

The issue here is that this hypothetical person wants his cake and to eat it, toppings and all. The steps leading up to this should have been made years and decades ago. Trying to maintain the same amount of capital and to generate decent yield out of it throws the risk equation out of whack for someone in their retirement.

It's not hypothetical, it is real.

I do not think it is impossible to have constant stream of income (yet preserving the capital) with a lump sum investment of $500K in cash. The question as you have pointed out is the rate of return; that is why I posted the question in this forum to seek alternative views on how best to achieve it.

If you think this is impractical, that is fine with me, you are entitled to your opinion anyway.

 

[freesignalz]

Your actions yesterday created your results today. Obviously if you did not plan for your finances, be it intentionally or otherwise, you cannot expect to have certain results in place. This assumes a full discount of luck.

Jim Cramer is a very smart man. I watch his show. I just do not follow his advice.

 

[alexchia01]

Retired.

Coffin money of S$500,000 in cash.

Don't want to risk anything, just want constant stream of incoming and would like to preserve this cash for as long as possible.

What would you suggest this person do?

Don't retire.

Once you retired, health deteriorate very fast.

Just keep the cash in a FD and look for a part-time relaxing work.

Preserve cash, have constant income and stay healthy.

People are not meant to retired like cars are not meant to stay in showroom.

Ruse and death will claim you very fast, if you do that.

 

[RM2SSG]

Don't retire.

Retired from work but not life.

Once a person free him/herself from the daily grind of work, there are many other things one can do. I've developed many personal hobbies in the years leading to this stage of life that I can finally spend more time perfecting my crafts. The level of personal satisfaction is immense.

Plan ahead, enjoy life!

 

[wts2013]

Retired from work but not life.

Once a person free him/herself from the daily grind of work, there are many other things one can do. I've developed many personal hobbies in the years leading to this stage of life that I can finally spend more time perfecting my crafts. The level of personal satisfaction is immense.

Plan ahead, enjoy life!

"LIKE"

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[shareholder]

Retired from work but not life.

Once a person free him/herself from the daily grind of work, there are many other things one can do. I've developed many personal hobbies in the years leading to this stage of life that I can finally spend more time perfecting my crafts. The level of personal satisfaction is immense.

Plan ahead, enjoy life!

yeah totally agree, those who suggest don't retire just don't understand the meaning of passion, true living. The concept of work or employment is created by the rich to create a pool of workers to serve them.

To enjoy the 500k without worrying, buy bonds of local banks and spend the coupons.

 

[Perisher]

There are people who enjoy working and those who rather be free of everything.
Just different way of life.