Cory Diary : Retirement Income Sources

Has been squeezing my brain cells a little on how I can stay liquid if I am to retire despite my financial status and investment returns due to my expenses. I am really hard pressed on expanding the list of possible ways. Fact of the matter is I am in good financial health today is because I have a regular job to boost my annual income. Tax will be reduced so I would think my expense will come down if I am retired. So keep this in mind.

In this article I decide to list down all possible practical income sources I could think of excluding discretionary types such as Life Insurance and post retirement salary incomes. They will be more like buffer and back up plans.  Obviously personal loan is not income. Raiding parent home is not counted as it's on parent expenses to generate Rental income but maybe the delta. Inheritance no count as well though the sum could be really good to some.

How about profit from stock market ? I think no as is not guaranteed and I could lose in down years. The return is inconsistent for the past 20 years even though I have relatively sufficient track record as income source. But this can be the engine to build up my dividend base which I could count on.

After listing them in the table, I find it rather interesting. It shows how constraints I am  without regular source of salary income. There are basically 3 main types. Equity dividends, Rental and CPF. Of all of them Equity Dividend is rather important to me. It forms the basis of my retirement funding. Without it in which most locals are adverse to stock market, I wonder how they can do without it.

The 2nd major source of income is Rental. So ability to get more apartment helps except that property curbs have put a stop to this charade. With Covid and constraint on immigrants, this has put a lid on a practical source of retirement income for Singaporeans. No wonder many locals want to try oversea. Maybe I should when I can ! Nevertheless this is a playground to middle income and above generally.

The final major source of income will be CPF. Yes good old CPF except that I won't be able to touch the RA till 65. We could get some interest out from the leftover of FRS to supplement from age 55 though. Keeping in mind BHS will increase till Age 65 so this portion of interests will unlikely be touch for now.

And then lightning strike me that Reverse Mortgage could be a potential source as well. Wonder why this is not popular locally or maybe I am out of touch which is likely. Nevertheless I have no plan currently so is 0 for now. ( Option available )

SSB listed and which provides a baseline stability. It has a cost attached to it though as I could get 5% yield in market today. So the cost probably 5k annually today. If I can plan something, maybe this can be de-commissioned such as additional rental income. 

Others miscellaneous. Anything else ?  Is good to have things listed. 

Thinking.

Cory

2021-0403

Articles in this Blog is personal take and educational purposes only. Reader should seek their own professional help when making financial decision and be responsible for their decision.