My protection plan is using insurance to minimize the cash I need to fork out for medical fees.
My retirement plan consists two strategies which are invest in properties and high yield stocks that will provide me S$6,000 monthly.
My property investment is simple. I just want to buy two properties, one to rent and one to live. Now I am living in a 4 room HDB flat so I'll use 10 years time to see if I can afford 2nd property. My original plan was to rent out HDB and live in a private property somewhere in Telok Blangah after retirement. But this plan is getting bleaker because HDB rules kept on changing and property in Telok Blangah is getting expensive due to MRT and IR. Maybe I'll move back to my home country, Taiwan, for retirement. Anyway, my goal is to get S$3,000 monthly from rental. If you want to know how to become a millionaire by property investment, this is not the place to visit since I have no knowledge of this, but there are plenty of seminars about the topic that you can sign up to.
My stock investment is also simple. I sum it up as below:
Buy Consideration
1. At least 8% dividend yield annually.
2. Below 40% gearing.
3. Increasing or at least stable profit margin.
Sell Consideration
1. Dividend yield decreases to less than 8%.
2. Gearing raises to above 40%.
3. Decreasing profit margin.
By the way, in the early days, I have not devise these considerations and currently, I am doing my best to follow it.
My goal is to put cash and CPF in stocks that will eventually distribute S$3,000 of dividend to me.
I am a lazy person so I don't do in depth fundamental or technical analysis and also my knowledge on both subjects are very limited. If you really want to know more about stock investment, please go visit the blogs I am following.
Addendum 1 (15/06/2011)
Invest only high yield blue chip companies in CPF Portfolio because they are less likely to raise funds through rights issue.
