Anonymous
Semi-retirement with SGD500k savings and an investment plan - Too good to be true?
If I have 500k in savings, would it possible to lever up x2 and invest S$1m in some relatively safer REITs earning 4-5% a year in dividends and semi-retire? that's about $4k in income a month plus I could work some other jobs and make another $3k a month. Seem too good to be true?
Has anyone tried or is doing this? for simplification, have assumed no cost on leverage and taxes on dividend income earned
if cost on leverage is not negligible, then maybe a more aggressive investment plan which averages out to 7-8% return a year
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Chris
29 Jun 2021
Owner and Writer at Tortoisemoney.com
Why not just do CoastFI instead? I.e. let your investments continue to grow, while you just get a job that you actually like (but pays lesser to pay your expenses) so that you don't have to drawdown on your investments? Of course, the process will be slower than grinding to an early retirement but it'll be more enjoyable and at the end of it, you might not even retire when your investments reach your FIRE number.
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CFD? Market down may be dangerous, dont overleverage. different brokerage different rate....
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