facebookI am a 24 year old female who has just started working full-time this year and abit bth la so I am already thinking of retirement. As such, I would like to ask about the steps to plan for retirement? - Seedly

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          Anonymous

          26 May 2021

          General Investing

          I am a 24 year old female who has just started working full-time this year and abit bth la so I am already thinking of retirement. As such, I would like to ask about the steps to plan for retirement?

          I have my insurance (i.e hospital plan, whole life with ECI + CI plan) sorted out. Currently aiming to hit my 6 months emergency fund which will probably be around Feb/Mar 2021. Thereafter, I would like to begin investing for my retirement. I will have about $1K/month to spare and would like to find out how I can plan for my retirement + some investment options to consider. Looking into ETFs at the moment but open to other options as well!

          4

              Discussion (4)

              What are your thoughts?

              For your reference:

              To me inorder to retire your monthly cashflow must be sufficient. You may own million of asset (growth stock) but if you dont sell you will have no cashflow & when you sell you must ensure you will not deplete your portfolio before you ☠. Thus these are my steps:

              Step 1: Workout your monthly Expenses. You need to roughly know how much you need for each month. In addition, you need to take account in the future you will have kids. If you plan to retire early.

              Step 2: How much you need to invest to retire. In order to retirement, you need to generate passive income. In order to do that, SG dividends stocks/Reits. To be very conservative i will use 4% dividend p.a.

              AMOUNT TO INVEST = MONTHLY EXPENSE / 0.04

              Step 3 : Building capital If you are able to do side hustle, of course that will speed up the process. But most people would just advise to invest in US stock for growth. Most popular: S&P ETF, Tesla👍, FAANG stocks👍, bitcoin🤨, TOTO😆.

              Step 4: How to put your $$ into your investment. DCA or lump sum. Sometime it make a difference, sometime it dont.

              Personally, current position i have 30% in SG, 70% US. When i retired my portfolio would probably 80% SG, 20% US

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                  Andy Chan

                  Andy Chan

                  05 Dec 2020

                  Level 10·Associate Software Engineer at GovTech

                  You can consider topping up your CPF SA for the 4% risk-free interest. There is a strong 1M65 community that you can join to clarify your doubts regarding your CPF.

                  Apart from that, I think broad-market ETFs are a good start, as this reduces the sector-specific risk you will face if you invest in a 'narrower' ETF. If you plan on investing in the US market, do take note of the estate tax and dividend tax.

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                      V

                      Victor

                      26 May 2021

                      Level 8·Financial Service Consultant at AIA

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