How can I earn an average of 5 percent interest per annum?

Getting a 5% return shouldn’t be that hard as long as you are ready to go through the ups and downs of the market.

S&P 500 is known to give on average 10% annualised returns over longer period of times. There will definitely be times when the markets are down. As long as you are comfortable in riding that wave without taking out your money, you should be good.

Singapore REITs are pretty secure and consistent too and will give you anywhere between 3-6% annual dividends. However, picking the right REIT can be a bit tricky and you need to look at a lot of factors. If interested in REITs, you can look at NIKKOAM-STRAITSTRADING ASIA EX JAPAN REIT ETF. This will diversify your exposure within REITs and at a regional level too.

In short, 5% (or more) is achievable as long as you are ready to be in for the long haul.

Thanks!

Over a long time horizon (10-20 years), Index investing (also known as passive investing) in the right ETFs can get you pretty decent returns. On average, the S&P500 has return an average of 9.8% since 1929. This would also mean that investing in an S&P500 ETF would give you similar returns! If you're not sure which one to pick, you can check out this article I wrote on S&P 500 ETFs here!