My Retirement Plan At 35

(21-07-2012, 01:18 AM)palantir Wrote:

(20-07-2012, 06:07 PM)Temperament Wrote: Ha! Ha!
Bear market is for you to shop for fire-sale items. Who's talking about selling? Not WB; neither the late Sir John Templeton and many Great SIFUs. It should be Buy, Buy, Buy, until fear got into your psyche. Or the best is you run out of investable fund.

One can shop for fire-sale items during bear market. But at the same time, your originally invested capital will also take a dive. Preservation of capital in a bear market is something I still don't know how best to handle it

Let me say upfront, everyone of us is different or unique.
For me i believe if there is "YING", there must be a "YANG" too.
Now:
But if you don't buy your "favorite stocks" during fire sale in a bear market, when are you going to buy cheaply? This opportunity is actually quite "rare" in normal economical cycle unless trigger by the so called "BLACK SWAN"
Again, can WB and Greats be wrong about their advice of when to buy as much as you can or dare to in an excessive extreme markets?
If you are really good at value investing, of course you can buy at any time; if you spotted an under-value stock that even Mr. market missed. Cheers!

yes, 100k pa includes bonus, working OT & weekends.
My initial target was to accumulate abt $2mil before retirement so as to achieve passive income of abt 100k pa, but the stress is getting too much so i compromise by make do w 50k pa passive income.

well, travelled almost the whole of australia, the major cities of china, & southeast asia countries.

there is no fix formuale, tink we all kenna brainwash by our education system to tink there is a model answer to all qns, haha.
u can go broke investing in blue chips & also be rich investing in junk stocks. i invest mainly in second-liners & penny stocks.

(21-07-2012, 08:37 AM)pianist Wrote:

(21-07-2012, 01:52 AM)funman168 Wrote: I only enjoy the $100k pa pay for abt 2 yrs only, haha.
Actually, I only start to seriously invest & accumulate wealth after 30 yrs old.
I used to spurge all my winnings & income on sports car, holidaying & partying.
Having high pay does nt default meant that u will be rich.
If u gd in investment, ur nett worth can easily outbeat ur richer high income friends after sm years.

hi funman thanks for sharing. i have realli learnt quite a bit. just for wondering if the 100k pa check include all in bonus/entitilements, and does it take a toll on the health? during the retirement, where did u go for holidaying? and for the 'auto-pilot cruise' period after taking off(buy) and before landing(sell), what are the notable company fundamentals that triggered your decision? i recently entered into territory of paycheck in comfortable excess of 100k as well..a bit scared actually..because high pay = no time + stress + no smiling face ;p

[quote='funman168' pid='29005' dateline='1342940520']
yes, 100k pa includes bonus, working OT & weekends.
My initial target was to accumulate abt $2mil before retirement so as to achieve passive income of abt 100k pa, but the stress is getting too much so i compromise by make do w 50k pa passive income.
Unquote:_
Do you mind to share how your assets allocation to earn your 50K pa passive income. What is your total asset in $ to generate this income. Of course, you can generate more than 50K passive income pa in high yielding stocks with $1 million. But it's quite risky i think. Unless you have another $500,000.00 to a $1,000,000.00 somewhere.

Both are young highly paid professional who had amassed 1mil, no housing loans, know what is their ideal lifestyle etc. So many similarities.

If funman can share with us, what is the thing that make him put into action? Is it because funman has something to fall back on? Or maybe there is no naysayers around him?

1/3 corporate bonds,1/3 AUD Fixed deposit, 1/3 SGP dividend stocks.
Need to amassed enuf experience, knowledge & confidence to be successful.

(22-07-2012, 04:46 PM)Temperament Wrote: [quote='funman168' pid='29005' dateline='1342940520']
yes, 100k pa includes bonus, working OT & weekends.
My initial target was to accumulate abt $2mil before retirement so as to achieve passive income of abt 100k pa, but the stress is getting too much so i compromise by make do w 50k pa passive income.
Unquote:_
Do you mind to share how your assets allocation to earn your 50K pa passive income. What is your total asset in $ to generate this income. Of course, you can generate more than 50K passive income pa in high yielding stocks with $1 million. But it's quite risky i think. Unless you have another $500,000.00 to a $1,000,000.00 somewhere.

(22-07-2012, 08:35 PM)funman168 Wrote: 1/3 corporate bonds,1/3 AUD Fixed deposit, 1/3 SGP dividend stocks.
Need to amassed enuf experience, knowledge & confidence to be successful.

(22-07-2012, 04:46 PM)Temperament Wrote: [quote='funman168' pid='29005' dateline='1342940520']
yes, 100k pa includes bonus, working OT & weekends.
My initial target was to accumulate abt $2mil before retirement so as to achieve passive income of abt 100k pa, but the stress is getting too much so i compromise by make do w 50k pa passive income.
Unquote:_
Do you mind to share how your assets allocation to earn your 50K pa passive income. What is your total asset in $ to generate this income. Of course, you can generate more than 50K passive income pa in high yielding stocks with $1 million. But it's quite risky i think. Unless you have another $500,000.00 to a $1,000,000.00 somewhere.

Quite interesting. i like to learn from you about "1/3 AUD Fixed deposit". What is the best way to do it? Are you a Singaporean living in Australia?

The NAB website shows 100K-499K AUD fixed deposit for 60 months can give 5.2% . Is this too risky leaving 1/3rd with just one bank ?

i have come across internet banking for placing AUD Fixed deposit with AUS BANKS from Singapore. But i am unsured how it works.
60-month period is never attractive to me. Any thing that is more than a year is not suitable to me. Besides FOREX and AUS tax are quite high, i think.

With 1 mil, there are more alternatives open out there.
Corp bonds are one and in fact allows one to be getting 3+ to 5+% yield to maturity and at low risk.

Low risks doesn't mean no risks, but if one chooses corp bonds that are backed by Temasek with low debt to asset ratio, I guess it should be pretty alright.

Imagine.. REITs giving 5-7% dividend yield yet when recession comes, the price would start to wobble. Corp bonds however don't wobble much at all and yet continually give 3-5% yield.

Furthermore, corp bonds give one the power to leverage and banks look at the bonds as your assets. Thus allowing up to 60% leverage power.
If you have one mil, you can get 4 corp bonds, and leverage for another 2 more, and the two bonds can leverage for one more. (at most extreme leveraging)
All at the interest of 1.2% per annum. (subjected to i/r fluctuation in future)

Sadly the denomination are in 250k, thus this is why the rich get richer in this country. Crappy but true.

(22-07-2012, 10:52 PM)Temperament Wrote: i have come across internet banking for placing AUD Fixed deposit with AUS BANKS from Singapore. But i am unsured how it works.
60-month period is never attractive to me. Any thing that is more than a year is not suitable to me. Besides FOREX and AUS tax are quite high, i think.

If you're looking at <1yr, then the NAB rate looks similar to the ones offered by MayBank iSavvy. Also, not sure if there'll be with-holding taxes (for interest earned) if you open directly with NAB (not S'pore ones).

I used to put some $$ in A$ ACU but have stopped when interest rates dropped (used to be >10% a long time ago) and S$ kept strengthening. The only time I was thankful I had some $$ in A$ was when stock market collapsed...

(22-07-2012, 11:04 PM)arthur Wrote: Sadly the denomination are in 250k, thus this is why the rich get richer in this country. Crappy but true.

Some years back, I was very envious of a friend of mine who was getting 10% to 12% for some investments that were only available via Private Bankers. I was seriously contemplating whether to put together $250k and beg this friend to ask the Private Banker to allow me to invest in this good 'lobang'. Fortunately, I didn't do that as that 'lobang' was for CDOs....