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Anonymous

Asked on 15 Aug 2020

How much should I invest if I want to get $900 passive income on a monthly basis?

Any thoughts and suggestions?

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Answers (1)

Yang Teng

Yang Teng

Level 9. God of Wisdom

Answered on 15 Aug 2020

$900 monthly would be $10,800 annually. Assuming an estimate of 4% for dividend yield/coupon rate, you will need to invest $270,000. It is important to bear in mind that the higher the rate, the higher the risk of losing your principal. This is in the scenario where there is zero taxation. If you invest in overseas equities/bonds or receive royalties, a tax may be imposed and will reduce your net income.

2

Question Poster

15 Aug 2020

Thanks! Realistically, what investment instruments give a realistic 4% (other than CPF SA?)

Yang Teng

Yang Teng

15 Aug 2020

You can achieve yields >4% with corporate bonds, REITs, high dividend yield blue chip stocks.

Thank You!
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