facebookInvesting lump sum from property sale to get monthly passive income - Seedly


15 Sep 2023

General Investing

Investing lump sum from property sale to get monthly passive income

My 53 year old mom is selling her HDB and will get about $330k of proceeds. Currently I'm fully supporting all her expenses by giving an allowance. After the sale, I would like to help her invest the money in such a way that she can get a monthly passive income, which she can use for her living expenses. We are ok to take moderate risk. Please suggest any ideas. Thank you!

Discussion (28)

What are your thoughts?

Learn how to style your text

Put all proceeds back into CP. Max out to FRS using OA.

Point is she is 53 and do not know about investment.

Besides Singapore saving bond and t-bills, reits can be a good option.

Singapore T bills, best option for lowest risk

Ngooi Zhi Cheng

Edited 21 Sep 2023

Student Ambassador 2020/21 at Seedly

It's great that you want to help your mom make the most of the proceeds from the HDB sale to secure a monthly passive income for her living expenses. Here are some ideas to consider:

  1. Singapore Savings Bonds (SSBs): SSBs are considered a safe option. They offer a fixed interest rate and can be a good choice for a portion of the funds to provide stability.
  2. Dividend Stocks: Consider a diversified portfolio of dividend-paying stocks. Look for companies with a history of consistent dividends. These can provide a steady stream of income.
  3. Real Estate Investment Trusts (REITs): REITs are known for their regular dividend payouts. They invest in income-generating real estate properties, offering exposure to the real estate market.
  4. Fixed Deposits or Singapore Fixed Income Bonds: While they may not offer the highest returns, they are low-risk options that can provide monthly or quarterly interest payments.
  5. Annuities: Annuities can be purchased to provide a guaranteed income stream for a set period or for life. They can offer peace of mind for retirees.
  6. Robo-Advisors: Consider using a robo-advisor to create a diversified portfolio tailored to your risk tolerance. They can automate the investment process.
  7. Immediate Annuities: Immediate annuities provide regular payments for life. A portion of the proceeds could be used to purchase one.
  8. Consult a Financial Advisor: It's advisable to consult a financial advisor to create a customized investment plan that suits your mom's financial goals, risk tolerance, and time horizon.

Remember that while these options can provide monthly income, they also come with varying levels of risk. Diversification is key to managing risk, so consider spreading the funds across different asset classes. Additionally, your mom's age, financial goals, and overall financial situation should guide your investment decisions.

I am currently a Financial Advisor as well, so feel free to reach out to me on IG (@ngooooied) if you have any further questions!

Here are some tools you could use: Annuities, Keep Property and rent for rental income + capital app...

Write your thoughts