Asked by Anonymous
Also, I've got a 3 room flat that I can continue to rent out after I stop work but I don't want to rely on it for an income. I took a HDB loan and I'm paying for it via my CPF. I'd feel more comfortable putting the rental income into my CPF.
Your money needs to earn 5% annually to hit $375K, so you could divide your $2400 between Autowealth and BCIP to be safe?
Basically given the situation, you need a annual rate of 5% to hit your goals.
Cash earns you close to zero (granted some accounts gives you 2% and more but that caps off after 50k)
Given that its unrealistic to keep a zero cash allocation, that means that your investments have to yield above 5% - depending on your level of familiarity as well as luck it can either be an easy cap to hit or really tough.
I would distribute it across a mix of equities and fixed income products - no ILPs or whatever nonsense cause that yields too low.
Probably something like 60% global equities and 40% fixed income
Work backwards. $370k/10 years = 37k/year = about 3k a month in savings.
So based on this calculation, you need another 600 to top up to your 2400 a month.