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FIRE Movement

Financial Independence, Retire Early

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FIRE Movement

Investments

Retirement

If you are looking at index ETFs then online broker offering access to London market such as Saxo/Interactive Brokers will meet your need.

Investments

FIRE Movement

Savings

Paridhi Jhunjhunwala
Paridhi Jhunjhunwala, Associate at Kristal.AI
Level 6. Master
Answered 6d ago
Hi! Looking at your situation, the entire 50-60K can be used in investments and making your capital grow. To invest a large amount, you must diversify well, so that the portfolio can earn a sufficient return with a lower risk associated. A robo-advisor will provide you with a diversified portfolio to invest in based on your risk appetite and the amount of capital that you invest. I work at Kristal.AI, and it's my passion to evaluate various upcoming investment opportunities.

FIRE Movement

Retirement

Hi anon, You'll need to know what your basic expenses are right now, and if you feel fairly confident that your passive income can meet those needs (including adjusting for inflation), then sure, you can start to semi-retire. I say that because from 40 to age 85 (the median life expectancy) is a very long time. Inflation could increase, a couple of bear markets could come along at just the wrong timing, and a whole list of other factors can throw the best projections off course. Better to build in an extra level of safety. The 4% withdrawal rule may not hold that much relevance now, I would usually use a 3% rule for safety. A semi-retirement would mean that you would not be bound to your job, and can pursue other avenues or take on freelance jobs that will provide supplementary income, all while knowing that your basic expenses are taken care of. As you work on your side income, channel it into your income producing assets so that you have a margin of safety. Work on building both guaranteed and variable income sources; guaranteed to take care of the needs, and variable to take care of the wants. And of course, if you have spare funds, CPF SA can be topped up; when you reach 65, CPF life is the best annuity there is, make that your baseline, and every other income source just adds on top of that. The biggest risk is really longevity; it is the multiplier of all risks.

Investments

CPF

Savings

Retirement

FIRE Movement

Supplementary Retirement Scheme (SRS)

Hi anon, If you buy an SSB via SRS, the bi-yearly coupons credit back to the SRS account, and maturity capital will also be credited back to the SRS account. Annuity plans vary in pricing based on your desired payout age and duration and I won't be able to give a blanket answer here. But most SRS annuity plans are single premium or recurring single premium, so you won't have to worry about premium commitment. By all means, do contribute to SRS to lower your tax and build another pillar for retirement income. However, to full maximize your SRS, you should look into deploying it instead of leaving it sitting in the account. Whether you choose SSB or annuity, or even UTs/equity, will have to depend on your preferences after you understand the pros and cons of each option. You might want to speak to an independent financial advisor to find out more before taking action. If you have any further question, feel free to reply to this post.

StashAway

Investments

FIRE Movement

Robo-Advisors

John Smiths
John Smiths
Level 4. Prodigy
Answered 3w ago
14% risk level seems to suggest a moderate risk appetite and this is for the portfolio you are currently building. If you want to build a higher risk appetite portfolio at 36% risk level, why not start with the $100/month to it now (and keep the other $100/month to the current moderate risk appetite portfolio)? Just so that it can start building now. Rather than wait until it hits $4K before you do that balancing event. It's not creating more risk or fees that you should worry about. It's the fact that you will have to wait for about 6 months before you can take this action. Who knows what can happen in the next 6 months. Unless you are taking a position that the equity markets might drop significantly during this period of time and you only want to increase your equities exposure by setting up the higher risk appetite portfolio then.

Investments

Savings

FIRE Movement

Realistically, you'll need around 8% yield to achieve $1k/mth on your investments. This only leave high yield bonds, and REITs that can achieve such a payout (unless you leverage, but that's another topic entirely, unless you want to explore it). Your capital will also be subject to market movements. You might find that deploying $145K @ 5% will yield you $7.25K and the remaining $5K that you didn't invest can be spread over 12 months to make up the difference to $1k/mth, and that might be a better way of managing it, since you'll (hopefully) go back to work after a year and saving $5K back up shouldn't take too long. Better to play safe than worry about your leveraged investments moving against you due to market movements.

Investments

FIRE Movement

Dividends

Hi anon, I'm going to make an inference here and assume that you won't have any issues with regards to an emergency fund or insurance coverage. With that said, let's look at the considerations for your question. $24K/yr dividends at 5% can be achieved through a combination of high yield bond funds, balanced funds, REITs and equities. You will want to analyze which holdings can give you sustainable and consistent payouts, have strong fundamentals and good management. This will be doable for REITs and equities, less so for funds, but still not impossible. Once that's done, have an idea of how you want to allocate your portfolio in terms of position sizing. You should not have too much concentrated in a single stock or UT, but not so many holdings that managing and monitoring become difficult. Once you have an idea of which holdings you want, you can then look at your entry prices. It is better to wait for a good price rather than jump the gun and deploy all $480K at one go. It might take a few years to deploy your funds, but there's no harm in treading with caution. Once you have achieved $24k/yr dividends, it's a matter of monitoring and adding on when opportunities allow or taking profit if your holding has run up. Over time, saving part of your dividends and re-injecting into the portfolio will allow you to increase your payouts. Just note that by going with a fully variable investment, you are exposed to market risk, so there will be times that your dividends may be reduced, so in time to come you will want to take your variable payouts and convert them to guaranteed sources of income to increase the reliability of your payouts as you approach retirement.

FIRE Movement

Retirement

I think I bring it up probably before they do. Not many would understand 'FIRE' as a term. But they understand having the choice to stop work whenever and earlier than everyone else. I think if you aren't planning for that, then you're just doing what the average does. No one wants to live an average life. But at the same time, sometimes people don't want to out in the work. Everyone wants to go to heaven. But no one is prepared to die. So I always start with a baseline of what you need to do. But if you can do more, you'll be able to retire earlier. It's already a part of my conversations usually.

Investments

FIRE Movement

Trading

Cryptocurrency

Stocks Discussion

Jianhao
Jianhao, Founder at mSource.co
Level 3. Wonderkid
Updated 3w ago
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Retirement

Lifestyle

FIRE Movement

Gabriel Tham
Gabriel Tham, Tag Team Member at Kenichi Tag Team
Level 9. God of Wisdom
Answered on 24 Sep 2019
I would continue working but I won't be tied down to any job because of money. If the people or working hours are bad, I can just quit anytime. Definitely spend more time with family, read more books like camp in library whole day like those retired uncles. Maybe take up some courses like cooking, gardening and going hiking in Singapore nature reserves!
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