Plan For The Investment Portfolio And Cash At Hand

Having computed my investment portfolio and cash on hand, I note that these two items can last me for 18 years as of now, based on the yield of 2.48%. I can make the duration longer by channelling more cash into the investment portfolio which will in turn generate more dividends for my expense. I am not worried for the current status as I still have the back-up of Central Provident Fund (“CPF”) to supplement. If I include the CPF as well, the total stash will have lasted me for 48 years from now on (not taking into consideration of generated interest from CPF monies).

The assumption is based on the prevailing yield of the investment portfolio. I will channel more cash into the investment portfolio with the aim of generating more dividends and I can afford to take the risk of generating higher dividends.

WTK

Author: firewtk

A middle-age Singaporean currently having a minimalist and simple lifestyle. I am not longer in full-time employment with effect from 1 May 2019. I try my very best to write one post per day on this blog. The purpose is to share my prevailing thoughts to interested readers. It is up to the interested readers to decide whether they want to take action in embarking on the FIRE journey. I do not gain anything from this blog and it is solely for sharing hopefully for the benefits of all interested reader. WTK

4 thoughts on “Plan For The Investment Portfolio And Cash At Hand”

  1. I’m surprised that you can calculate these things so easily. I wish that I could!
    My numbers feel like trying to predict when your plane will run out of fuel – given that there’s lift from the wings, some fuel in the tank, variable headwinds and an undulating flight path.

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    1. Hi,

      It’s very easy to make such computation. The information which you need are as follows:

      – The existing portfolio value and forecasted dividend. I used the last year’s record as a basis for calculation. I will replace with this year’s record in the next year. This is on the changing basis based on the existing (prevailing) circumstance.

      – Other than the existing portfolio size, the rest are in the bank accounts which may generate some form of interest at the prevailing reate.

      – I believe that the CPF (in the place of my residence) should mirror your equivalent example in your place of residence.

      Lastly, you may consider using the template at the following link.

      https://www.mrmoneymustache.com/2018/11/29/how-to-retire-forever-on-a-fixed-chunk-of-money/

      The excel template can be used as a basis for a start. You can modify the details in accordance to your circumstance.

      WTK

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      1. My take is that it is always possible to reduce the expense through various channels. It’s the matter of adopting the minimalism approach. I used to have the thought that it is not possible to do so as this is natural of increasing expenses due to inflation.

        I started to realise that it is possible to do so by letting go of such of such expenditure which I thought to be a need rather than want,

        This pandemic also makes me believe more in the minimalism as further expenses reduction is noted during the past few months.

        It can be done. It is also interesting along the way. Flexibility is the way to go with the peace of mind as a reward.

        My two cents worth of views.

        WTK

        Like

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