Retirement Planning (Part 2)

 So, as promised, here is the sequel to my previous post.

As I mentioned in part 1, being a millionaire before reaching the current statutory age of 65 is very difficult with one source of income. Multiple sources are needed, dare I say, required.

So, what do we need to prepare for retirement?

For this one, I defer to the one and only...Dr Sanjay Tolani!!

In one of his Youtube videos, Dr Tolani advised that our retirement portfolio should be split into two categories: Fixed and Variable (Remember my teaser in part 1).

Within these two categories, there are six sources of income to prepare for retirement (other than your job salary of course).


What you see above is a screenshot of his Youtube video.

So what are fixed and what are variable sources of income?

In my opinion, sources 1 to 3 could be variable sources, while sources 4 to 6 are more fixed sources. Here's why:

Rental yields - More property to rent out, more rental income
Dividends and Coupons - Depends on the market

Fixed Deposits - Interest rates are pretty much fixed and guaranteed
Pension - AKA CPF. Self explanatory.
Retirement plan - For this one, you the consumer tell your agent how much retirement income you want when you reach your retirement years.

So how can you achieve multiple sources of income through these six sources?

If you have a regular salaried job, then your pension is taken care of. 

Overtime, you can open a fixed deposit account and investment account. This will generate fixed deposit interests and dividends and coupons from your investment account.

You can also use the profits from your investments to set up a retirement plan and purchase property for rental income.

As always, stay tuned for more!




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