Last month, I shared how I had to extend my retirement age from 42 (SGD 5K per month passive income target) to 47 (SGD 10K per month passive income target) after the shocking discovery that my expenditure per year exceeded what I initially thought I needed. Besides looking at my expenses, I also took an extra effort this year as part of the retirement planning project to scrutinize the patterns of my passive income.
Stability of Passive Income
Having a stable & reliable stream of passive income gives me peace of mind. Thus, it is one of my key criteria/assessment when it comes to retirement planning. My Top 3 passive income this year comes from the following :
- Starhub 70.7% (Telecom – SG)
- Aimsampi 6.6% (Reit – SG)
- Apple 6.4% (Technology – US)
As you can see from the distribution, I am too heavily weighted on one share as highlighted by many readers. Thus, this year, I have spent considerable efforts trying to study and accumulate REITS as part of the diversification planning. I have since increased my REITS investment to 24% of my total investment portfolio. However, I am still monitoring which REITS to really invest in for long term as I am still a little uncomfortable with some of the industrial REITS that I am currently holding on to i.e. Aimsimpi, Cache & Sabana. Let’s see …
Distribution of Passive Income
Over the years, I have developed the habits of having a constant flow of income per month. However, for the distribution of passive income, bulk of the income arrives namely in May, August and November. Thus, it may be time for me to start thinking how I should cultivate a habit of self-discipline where I learn to allocate a yearly budget for spending and create a model where I learn to spend within a monthly budget. Maybe this involves setting up another account where I deposit/simulate a “monthly salary” in this account. Something to think about and try it out next year …
4 more days to Christmas :-). It has been a relatively peaceful yet restless year for me. Have a Very Merry Christmas to all my readers ! Sharing with you a touching advertisement video from one of my favorite investment. Apple Misunderstood.
I am looking forward to seeing it soar next year 😉
My Retirement Planning 2013 Series