Ya, I know it's still lower than CPF, but it's hard to achieve this kind of returns in this time and yet also guarantee the capital. Still, it's better than my parent's initial plan of putting their money in fixed deposit earning maybe 1% pa. I'm potentially offering 3 times as much, and I'm glad I did it for them, even though I don't need to.
I heard from my father that another tranche of money is coming in at the end of this year. It's from his endowment plans he put earlier, amounting to about 100k. Not sure if I can offer capital guarantee again because I'm holding quite a big portfolio already from my parents (160k!). I will most likely outsource the risk to others...maybe find a good annuity for them? We'll see how it goes when he gets the fund and perhaps let me know what's his intentions are for that amount of money.
|Not a good sign eh?|
With their medical fees mostly covered by hospitalization plans, and knowing that they have a sum of money to do what they wanted to do during their retirement phase, having paid up all their housing debts and having their children giving them a monthly allowance to cover their transportation and food bills, I'll be happy to be in their shoes. All in due time I suppose. I'm not expecting to have any inheritance from my parents - they are pretty down to earth folks who had worked hard to get to where they are. They should spend all their money up before they go. At the very least, I'm quite sure they won't be a financial liability to their children. That's already a big plus.
Managing their retirement fund makes me want to have my own retirement funds too. But alas, I've a hefty housing bill to pay, amounting to 1k per month from me, and another 1k from my wife. I'm trying to raise capital that can draw dividends amounting to 1k per month to at least cover my housing contribution. That will greatly relieve my fixed expenses per month. 1k per month for 12 months will be 12k per year. If I have to invest at about 4% to 5%, that'll be about 250k to 300k. If luck is on my side, I should be able to reach that amount in another 3 or maybe 4 years.
That should be my financial goal in the near future. We all have to start somewhere to boost up our passive income. There's a lot of unknowns, but I'm sure I can handle it when I reach there.