Yes, if the nestegg (principal) is BIG enough, then it is viable to live off FD interest, which is nrxt to risk-free, IN THOSE DAYS !!!!!!!

BUT,... moving fwd, in a low-interest rate environment, an FD Retiree will need a bigger and bigger nestegg to maintain the same level of lifestyle ! Things are changing,...

Or,... the Retiree needs to start learning higher-risk instruments,...

I have a saying here :-

1) If got a lot of money - can our in FD.
2) If got reasonable amount of money - can put into multiple instruments in a diversified manner, and focus on fixed-income instruments.
3) If still building wealth and retirement funds, no choice - must go for capital gains.

And the Msian version is here, reported today morning : https://www.thestar.com.my/news/nation/2019...source=smartech

I agree with you on the above.

I never tell my children abt FI/RE, never even wanted to give them an idea of this. I advised them to work hard, be thrifty and think before spending but don't undercut their lifestyles and most of all, to go out into the world and find their dreams to achieve.

My responsibitlity is to give them all the resources and opportunities possible.

Yes, I am the one as bolded in the above. Money is not everything,... after achieving money, other wants and needs will come long in life.

Bros,... you only put 3mil RM inside a bank iF the bank can help you make money or the bank has strong investment programs for you to participate in.

Or,... the bank gave your company a lot of loans and you have to please the bank like this.

Otherwise,... no need,....

Err,... I am not a PB client in Msia.

Riches and 'wealthiness' is relative. One is rich, another is not richer, another is even richer. So,... no point comparing like this.

What we can compare is : the strength of our knowledge and our capability to predict future mkt movements with accuracy based on years of experience and reading and forumming and conversing and blogging.

I have UNHWI's coming to me wanting to talk to me abt instruments and opening of accounts, maneuvering around accounts for best risk vs returns and how to aim for best returns.

To me,... this is more important. But that's what I think,....

Like this, bro,... the bank gives you a 'title' because you keep 3mil RM with them. But I don't want the title. I want to be able to make money with money, so that I don't need to make money with time and effort.

Hence, the title is not important.

If one has a lot of assets outside the bank, it's the same thing,... why need the bank to give you a title ?

I think,... this is the same thinking sa many in a ctry like Msia who want the Dato', etc titles,...

I'm not hitting you, bro,... just giving my opinions only.

By the way, if you are really an economic student, then I'm really sad with my own performance because when I was a student, I only aimed to do well in my job. Never knew abt all these things until I made some money.

Since I've talked so much,... I'll add one more : another thing in today's world is,.. we need to be able to make money in the most 'righteous and legal way possible'. Then we need to know if we have to fulfill our responsibilities to countries and authorities wherever we are making money from.

The world is different today,... things are complicated,... it's no more like nothing else matters except making money. It's no more like in the olden days when we can say.... no problem-lar, so long as I can make lots of money and hide the money safely, I'll be happy for the rest of my life...

What's the point of being able to make lots of money and then one has to hide here and there and to watch his back against authorities going after him ?

Then I'm on the 'unlikely' case. My paper assets in banks are more than my fixed assets outside of the banks.

Keeping CASH to preserve wealth is,... to me,... loss of opportunity cost. This is especially so if you are holding cash in the form of a weak and easily-wavered currency.

Waiting to pick up dead chicken is also loss of opportunity cost. If the dead chicken does not come, then he will be waiting forever, forced to 'enjoy' low deposit interest rates, which keeps going lower today as time goes by.

Then you might tell me it's a form of diversification,.. well, I'll diversify with instruments then, not with cash. Having said this,... I can never stop cash coming in,... cash is coming in faster than I can invest out.

Most important is one must have the knowledge and experience of where to invest with the best risk/return adjustments.

I'm aware of this,... but since you mentioned cash, so I followed what you said.

But if we speak on the basis of having instruments to invest into, then as I said earlier, I would choose a Private Bank that can provide me with programs that I can make more money on with my available money. If such a Private Bank exists, I wouldn't mind going with it.

Liquidity comes via a few ways, one is availability of gearing that the bank can accord to me.

My experience tells me all Private Banking institutions have gearing facilities, what we have to be careful of are the details with which we deploy this facility, ie the terms and conditions of the loan. And then,... what programs are available and how DANGEROUS those programs are when we deploy the facility onto the programs...

An eg would be : do they do mark-to-mkt activities every week onto our holdings ? If they do, then I wouldn't want to 'play' because it will be too strict. I wouldn't even join them in the first place.

I would agree with the above sentences.

However, I would also add that the principles and tactics of engaging with Private Banking remains universal, is time-tested and would not chg for the foreseeable future. Private Banking engagements is actually an art and a science of its own.

It is,... to me,... a way of making more money with money.

Of course, there are other ways out there.

Mine is in Private Banking, and in international regulated instruments.

Yes, true,... we can avoid,... but well,... to make larger amts of money, legally... I'm afraid we needed gearing, how else to do it ?? Perhaps,.. steal, or mis-use national funds ?

I am not aware of any other tactics,...

Then again, the term : large amts is relative.

You are right ! There are many who are more loaded. 'Loadedness' is relative.

But 'loadedness' is not my goal,... so it's okay !

You can be more loaded,...

"Since I've talked so much,... I'll add one more : another thing in today's world is,.. we need to be able to make money in the most 'righteous and legal way possible'. Then we need to know if we have to fulfill our responsibilities to countries and authorities wherever we are making money from.

The world is different today,... things are complicated,... it's no more like nothing else matters except making money. It's no more like in the olden days when we can say.... no problem-lar, so long as I can make lots of money and hide the money safely, I'll be happy for the rest of my life...

What's the point of being able to make lots of money and then one has to hide here and there and to watch his back against authorities going after him ?"

I'm curious,... bronkos,... how are you able to estimate that I am not loaded from the my statements in the above ? I just thought of asking you this.

I have always carried the above thinking whenever I want to make money,... pls elaborate for me. Perhaps I missed something here,...

[quote=Dd2318,Nov 20 2019, 07:19 PM]
I'm curious,... bronkos,... how are you able to estimate that I am not loaded from the my statements in the above ? I just thought of asking you this.

I have always carried the above thinking whenever I want to make money,... pls elaborate for me. Perhaps I missed something here,...

[/quote]
The discussion really very deep liao.
Just wanted to understand meaning of 'loaded' in the context.
Loaded = lots of money?
Loaded = as in gearing (taking loans to expand investment) ?

Sorry for interruption, pls continue.... Maybe, just make it easier, what is the net worth? If million-million, then surely Master Sifu Hansel!

[/quote]

I think he meant loaded means unlimited amt,... but not too sure-lar,... some UNHWI's I spoke with meant loaded like that-lar,...

Well,... Jho Low is loaded,.. ex-PM is loaded,... these are very good egs.

However,... I think I wouldn't want to employ their tactics of making money-lar,...

[quote=Dd2318,Nov 20 2019, 07:29 PM]

[/quote]

I think he meant loaded means unlimited amt,... but not too sure-lar,... some UNHWI's I spoke with meant loaded like that-lar,...

Well,... Jho Low is loaded,.. ex-PM is loaded,... these are very good egs.

However,... I think I wouldn't want to employ their tactics of making money-lar,...

[/quote]
Oh! I see. No need to convince people. Master Sifu generously share financial phylosophy.

I for one believe Master Sifu very 'loaded'...and I mean the proper way!

Thank you n sorry for interrupting. Better than reading financial books n free advice. Where rest of Master Sifu Ramjade n MUM?

[/quote]

Tks bro,...

That's because,.. perhaps,.. we are too careful in deploying our ammo, bro,... But today, we have to be careful, right ?

Bro,... I saw your updated portfolio dated November 16. Tq for posting.

I have a big proportion of my holdings in REITs, mainly SG REITs. If we are investing for FI/RE, we should even out some of our ammo over to non-REITs, just in case a major tsunami comes and trounces-out our REITs. Wold you agree to this and reasons pls ?

I noticed that 70.43% of your hldgs are REITs. Of course REITs give us regular income if we have invested properly and have managed our REIT portfolio constantly, but we have to be careful of a possible REIT catastrophe as I mentioned in the above, right ?

If we span out our ammo over to non-REITs, our dividend collection will be sacrificed.

Improve on your good statement above : Earning in a high income country and at the same time, staying inside that high income ctry will even out, but if the administration is good, perhaps the net effect is not too bad too, with the residents till having purchasing power due to good and 'accurate' governance.

I think aspartame has a good point there,... the Passive Income portion truely made many people speechless.

If you are able to make "Converted (using a simple assumption of S$ = AUD = RM x 3), the passive income ranges from RM90,000 to RM150,000 per month.', this means we can count your average monthly passive income from dividends, coupons, rentals and interests to be SGD40K PER MONTH. AND THIS IS PASSIVE INCOME.

Everybody would be impressed. The important point here is the Income-type, let's just limit ourselves to regulated and known income to authorities. Shadow economy income may catch more,...

If yours is Active Income,... then err,... it's not really a big deal,.... but Passive Income ??

What is the size of your portfolio ? Do you have a blog that charts out your investment journey please ?

I'm sure even fund managers would like to learn from you !!!

SGD40K equates PER MONTH equates to SGD480K PER YEAR. THIS IS A VERY STRONG ACHIEVEMENT.

You record would better most, if not all of the SG financial bloggers whose articles that I have read, though I may not have read all,... Please share your blog.

On your plans,... well, I'm not really a guru on planning,.. never thought much abt my own plans too,...I just go on day by day. I have my own motivations,..

Maybe some comments from myself,...

1) I think.... money-wise, not too much for you to worry abt-lar,... unless you start thinking abt splurging to the likes of JLow,.. then maybe not enough to do it consistently. But with SGD40K per month and further income from your Active Income,... if consistent,... can still buy a nice yatch in SG to take your friends out to sea and to Bintan on weekends.

The side perks that come along with owning such a yacth (forgot how to spell,...) would be many,... especially if you have a liking for 'cordial relationships'. Life is short, bro,.. Don't worry too much abt what others say,,...

2) No 1) above can be expanded to Aust when you retire there one day. You really like Aust,.. huh ? Not for me though.

Err,... by the way, perhaps you already know this,... if you become a Tax Resident of Aus, their ATO will go after your Passive Income worldwide, especially Singapore assets. "Angmohs like to tax Passive Income",....please think abt this carefully.

3) I supposed you know a lot abt investments already, having been able to structure such a portfolio. So, I'll add the advice that you'll have to keep up your knowledge on investments so that you can continue to generate those Passive Income CONSISTENTLY FOR THE REST OF YOUR LIVES.

Otherwise, you'll have to entrust your portfolio to a private banking relationship mgr. Err,... best to know the things yourself,...

I heard my RM telling me over dinner that her counterparts in The US kena litigation for simply investing clients' money. This is not the first time I hear this,... many times. .. If the RM is not 'performing', you;ll have to keep pouring in funds to avoid margin calls events from coming.

If you can continue to keep pouring in funds then okay-lar,... BUT err,... I'm not JLow.

4) Ohh yeah,... I almost forgot this VERY IMPORTANT PART : I THINK YOU CAN'T STOP WORKING. BECAUSE YOU NEED THE IMAGE. JUST HAVING MONEY IS NOT ENOUGH. Better not retire at 50 !

Hmm,... I don't know how to explain this in detail,...

I guessed a lot that I said in the above are related to myself,... I'll be here.

Your sentences 1 and 2 are obvious,... even high-yield bonds need money to buy. HY Bonds is part of the instruments, part of the overall portfolio. Of course, it's preferable to pay-up one's debts first before investing,... 4but not necessarily, though,... if returns made from investing is more that the interest-servicing for loans, then it would be better to invest,... safely, don't loose the principal.


Blogging is NOT advertising, you're wrong there. Blogging is a journal of one's journey for record purposes (his own reference too), and well,... if others wish to see and learn from the blog, then the blogger would have done a good deed there by helping others to invest.

If one does not trust bloggers, then what we write here can be taken with a pinch of salt too... as in everywhere else.... this talk will never end. A discussion in an open forum like this needs to be conducted with a certain level of trust. Otherwise,.... it's a waste of time.

Or,... sometimes, there may be a need to 'demonstrate documentary proof' for more convincing effects. I saw some forummers doing this, the most recent being Dividends Warriors putting a shot of his confirmation slip of Rights Application from a DBS ATM.

I'm not too sure if this is good or not,... among friends in a closed group chat is okay-lar,...but in an open forum like this ???

Then again, I can always challenge,.. is that his slip ? Since he covered the personal details,... maybe he picked up the slip from somewhere ?