Posted by NOBY > 2015-09-16 13:08 | Report Abuse

I favor the bucket method of retirement planning popularized by Morningstar. With current inflation rate, it doesnt make sense to hold too much cash even in retirement. I would divide the retirement funds into 2 buckets. First bucket I ll put aside 5 years of expenses in mostly low risk liquid investments like FD or bonds. The rest of the money can be placed in higher risk investments such as equities. With the 5 years emergency fund in place I can afford to take more risk and need not stress about my equities underperforming in the short run or focus too much on income strategies. Now at the end of every year, I will rebalance my portfolio to replenish the first bucket while reinvesting the rest. I reckon that with this method, the retirement funds would not deplete but even have a lttle growth and even leave some behind at death.

Posted by NOBY > 2015-09-16 13:11 | Report Abuse

Check this out
www.youtube.com/watch?v=ojYxpbalawA

Posted by Bruce88 > 2015-09-16 13:16 | Report Abuse

Good infor on retirement !

Posted by bsngpg > 2015-09-16 18:53 | Report Abuse

I have an opinion that assumption on 8%-10% returns a year from stocks for long period is a stretched target for ordinary investors.

Substantiations:

1)http://www.temasekreview.com.sg/investor/total-shareholder-return.html

As at 31 March 2015, our(Tamasek) Singapore dollar one-year TSR was 19.20%. Our three-year TSR was 9.62% and our five-year TSR was 6.94%. Our 20-year TSR was 7%, versus the Singapore 20-year annualised core inflation of under 2%. TSR since our inception 41 years ago was 16%.

My opinion: An worldwide renowned elite group can achieve 5 yrs @6.94%, 20 yrs@7% and 41yrs@16%. As ordinary investors, I opine benchmarking 7% is a very outstanding target already.

2)http://www.thesimpledollar.com/where-does-7-come-from-when-it-comes-to-long-term-stock-returns/

“..Warren Buffett, who claims point-blank in this Bloomberg article that you should expect a 6-7% annual return in the stock market over the long term. “

My opinion: If the above info from web is correct, then as ordinary investors, we are doing very well already as expected by W. Buffet if we are in the region of 6-7% annual return.

Posted by kcchongnz > 2015-09-16 19:59 | Report Abuse

Posted by ks55 > Sep 16, 2015 04:51 PM | Report Abuse

kcchongnz -- Very good write up for the retirees. I believe many will benefit from this write up.

What is your opinion regarding my asset allocation?
My properties yield [(4% x 3) - (4% x 1 for self use)].
My RMB dominated collectibles grow at 25% annually.
My ROI for share investment say 10% per year.
My yearly expenses say 60% of net income from liquid asset not including collectibles.
Using 1m as base unit, what is your comment?
# All the above was achieved very consistently for past years if not better.


Asset allocation is more of individual preference. What suits me may not suit you, and vice versa. For example, i do not like to invest in properties, nor collectibles, and you do. I invest in fixed income like FD, ASM, and you don't. Each of us has different personal risk profile. I have mine and you shouldn't follow me. But as long as your diversify into different asset with different liquidity and risk, I think it is generally ok.

Posted by kcchongnz > 2015-09-16 20:19 | Report Abuse

Posted by bsngpg > Sep 16, 2015 06:53 PM | Report Abuse

My opinion: An worldwide renowned elite group can achieve 5 yrs @6.94%, 20 yrs@7% and 41yrs@16%. As ordinary investors, I opine benchmarking 7% is a very outstanding target already.


When you compare return, you should compare to the broad index, not a big investment company like Tamasik.

The long-term nominal return of most matured equity market has been around 10%-12% a year. If you can't get that, you are under-performing the market. The super investors of Graham and Dodd had made very long-term return of more than 20% a year, using the value investing strategies.

Of course most retail investors under-performed the market, even by very big margin, that is because most retail investors are not investing the right way, and they do not have the right mind set. But if one follows a proven investing strategy, and with the proper mind set, it is likely that he can over-perform the market.

Compare with a big elephant like Temasik with heavy burdens, small retail investors with the right investing strategy is likely to be able to do much better. Just like Berkshire Hathaway, it has done so well in the past because it was small then. It is so big now that it is very difficult for it to make 10% a year now.

Posted by paperplane2 > 2015-09-18 12:18 | Report Abuse

where to have happy retirement in Malaysia, with such lousy govt

Posted by Icon8888 > 2015-09-18 12:22 | Report Abuse

just out from jail ? how is curry rice ?

Posted by Icon8888 > 2015-09-18 12:26 | Report Abuse

behave yourself, otherwise admin will jail you again

learn to respect others

Posted by Icon8888 > 2015-09-18 12:32 | Report Abuse

ok lah, Coldrisks

give u face

Posted by Icon8888 > 2015-09-18 12:35 | Report Abuse

ha ha ha coldrisks, can you see ? mengamuk again

no need symphatise with him, if I don't attack him, he will attack me

Posted by Icon8888 > 2015-09-18 12:36 | Report Abuse

it is lunch time, enjoy your curry rice lah

see you

Posted by Icon8888 > 2015-09-18 13:02 | Report Abuse

That is assuming I have a wife, ha ha

Posted by paperplane2 > 2015-09-18 14:14 | Report Abuse

nolah, assuming you not a GAY

Posted by paperplane2 > 2015-09-18 16:59 | Report Abuse

you own i3 forum icon8888???

Posted by Icon8888 > 2015-09-18 17:00 | Report Abuse

Shuddup

Posted by slater > 2015-09-20 18:24 | Report Abuse

Hi kcchong ,

A Good Day to you !

What is your views on your skpres ?

Their PE is above 20

Do they have good returns on capital like VS

Please advice

Posted by kcchongnz > 2015-09-21 19:29 | Report Abuse

Posted by slater > Sep 20, 2015 06:24 PM | Report Abuse

Hi kcchong ,

A Good Day to you !

What is your views on your skpres ?

Their PE is above 20

Do they have good returns on capital like VS

Please advice


SKPResources's return on capital is definitely much better than V.S. V.S can't even get close.

It is just that whether the price is right. SKP Resources seems to have high earnings visibility. So PE of > 20 may not be expensive in view of its contracts secured and its future, and its high return on capital.