26 May 2021
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!
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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