This depends on the yield of your instruments. Bonds may give around 3% yield, while REITs can give 5%-6%. It would be better to have a mixture of asset classes so that you can achieve diversification which helps reduce risk.
With a weighted average yield of 4%, that is $900K worth of income producing assets. However, realistically, you would want a bit more, maybe $1M, as inflation means that your $3K now is worth lesser in 10 years. Thus you would probably need to have your investments growing gradually in order to mitigate the effects of inflation 'creep'.
I would suggest a multi-asset plan where by you mix the following asset classes to achieve your $3K
CPF Life - This can easily provide about a third, in the form of guaranteed income
Annuities - You can use this to top up your guaranteed income streams
REITs - High yields, but you will want to be careful, the recent COVID crisis has had a negative impact on DPU
Stocks - Same as REITs but lower yield. Dividends may be cut in uncertain times, so make sure you diversify accordingly.
Bonds - Lower yield but relatively safer
Property is indeed very tricky; there are many aspects to manage, of which having a tenant is just one of your worries. Depreciation, tax, liquidity, costs are some of the issues you need to content with, when retirement should really be about sitting back and enjoying a stream (or streams) of income that come to you without too much fuss.
It depends on the yield of your investment. $3k monthly would be about $36k per year. If your investment gives 4% in yield, then you will need at least $900k in investment, excluding CPF Life of $1-2k per month depending on the plan and RA balance. (The $900k can last for 25 years assuming no interest and inflation). It is also important to note that the investment capital can also fluctuate in value depending on the type of investment instrument used. Generally, the risker the security, the higher chance of capital loses.
Last I check, property yield has been decreasing with highest yield (freehold) of a little more than 4% in 2016 with a downtrend. I personally wouldn't go with property due to lower returns and more complex nature (tax, maintenance, etc).
3 years ago, a colleague invested approx. $200K in a restaurant run by his friend - his share of ann...
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