Asked by Anonymous

I want to save about $370,000 in 10 years' time and stop work. I can start putting aside about $2400 towards savings and investments. But what's the best way to do this?

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.

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    • Anant Shiva
      Anant Shiva
      1 Answers, 2 Upvotes
      Answered on 11 Sep 2018

      Your money needs to earn 5% annually to hit $375K, so you could divide your $2400 between Autowealth and BCIP to be safe?

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    • Chen Qijian
      Chen Qijian
      5 Answers, 12 Upvotes
      Answered on 11 Sep 2018

      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

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    Gabriel Tham
    Gabriel Tham, Tag Team Member at Kenichi Tag Team

    Top Contributor (Jan)

    421 Answers, 749 Upvotes
    11 Sep 2018

    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.

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