A Very Simple Early Retirement Plan

Although I am still in the debt-paying phase of my early retirement journey, I am constantly searching for profitable investment opportunity that is simple enough for me to take advantage when I am done with current phase and moving into investment phase. Some ideas were given to me through word of mouth, newspaper and blog:

Property

Property market in Singapore is really booming for the past few years where we see a price increase up to 2-3 times of the original selling price. And this is happening all over the island and no one know when will the party ends. Increasing property price create an investment opportunity but the high property price also means a higher barrier for normal people to invest.

Stock

Stock is the second thing come to mind when people are talking about income generating asset. If you want to buy stock in Singapore, you will need a CDP account and a broker account. I have both of them but somehow I does not feel comfortable to link my money with the fate of one single company.

Exchange-Traded Fund (ETF)

I read it first on Mr Money Mustache, after that on Tan Kin Lian blog and then Jim’s blog. You don’t link your money with the fate of one single company but the top 30 in the Singapore. No doubt there is always chance that all 30 companies fails, but admittedly they should have lower chance to fail together. One of the good things about ETF is the lower expense ratio (basically means your cost of investment) compare to the regular fund, usually less than 1% per annum.

For Singapore, I found 2 available ETF, which are SPDR Straits Times Index ETF and Nikko AM Singapore Straits Times Index ETF.  They both are having an expense ratio of about 0.3% per annum. Based on what I understood from their website, this two ETF will replicate as closely as possible the performance of Straits Times Index and can be traded like any share on Singapore Exchange. Everything seems ok with this investment except I can’t find any information about their dividend payout.

 

Ok, I think my very simple early retirement plan is getting really complex by now. With so many investment choices lying around Singapore, it seems early retirement was not so far ahead and beyond the reach of normal people like us.

So, here is what my current early retirement plan look like:

  1. Control Spending (I think I have done pretty good in this area)
  2. Clear Debt (Still working on this, 4 more months to go!!!)
  3. Invest in one of the STI ETF mentioned above (or maybe both).
  4. Keep searching for ways to builds income stream that does not require my attention (at least not full attention) after initial setup.

23 Comments

Filed under Debt, Passive Income, Save, Spend

23 Responses to A Very Simple Early Retirement Plan

  1. Good web site! I really love how it is simple on my eyes and the data are well written. I am wondering how I might be notified whenever a new post has been made. I’ve subscribed to your RSS feed which must do the trick! Have a nice day! cheap beats by dre http://pinterest.com/drebeatstore/

  2. admin

    Thanks. Ya, your feed reader should notify you whenever I post a new post.

  3. Simply want to say your article is as astonishing. The clearness in your post is simply excellent and i could assume you’re an expert on this subject. Fine with your permission allow me to grab your RSS feed to keep updated with forthcoming post. Thanks a million and please keep up the rewarding work. windows 8 http://www.mstorejapan.com/

  4. I am at the minutе working, so cоuldnt go thrοugh
    all, nonetheless i ll bookmагk it for lateг readіng, but
    you have a number of apρеaling things you outlined.

  5. Pingback: 6 Questions You Need to Ask Yourself Before You Plan For Your Early Retirement | Let's Retire!

  6. Heу I κnow thіs iѕ off topic but I was thinkіng if you knеw οf any
    widgets I cоuld adԁ to my blog that automatiсally tωеet my nеweѕt twіtteг updates.
    I’ve been looking for a plug-in like this for quite some time and was hoping maybe you would have some experience with something like this. Please let me know if you run into anything. I truly enjoy reading your blog and I look forward to your new updates.

    • admin

      Hi,

      I don’t have a twitter account so I don’t really know any plugin that do that.

      I am planning to write a series on insurance product in Singapore.

  7. Goоd day! Do yοu know іf thеy mаkе any pluginѕ tο asѕist ωith
    ЅEO? I’m trying to get my blog to rank for some targeted keywords but I’m not sеeing vеry gоod
    gаinѕ. Ӏf you know of аny ρlеаse share.

    Thank you!

    • admin

      Hi,

      I am just getting started here, haven’t really doing much SEO stuff yet, just focus on produce article first.

  8. That is really attention-grabbing, You are an overly skilled blogger. I have joined your feed and sit up for searching for more of your wonderful post. Additionally, I’ve shared your website in my social networks!

  9. hey there and thank you for your information ?I have definitely picked up something new from right here. I did however expertise several technical points using this website, since I experienced to reload the site many times previous to I could get it to load properly. I had been wondering if your web hosting is OK? Not that I’m complaining, but sluggish loading instances times will sometimes affect your placement in google and could damage your high quality score if advertising and marketing with Adwords. Anyway I adding this RSS to my e-mail and could look out for a lot more of your respective exciting content. Ensure that you update this again very soon.. louis vuitton canada http://www.lvbag.ca/

  10. you’ve got an incredible blog here! would you like to make some invite posts on my weblog?

    [url=http://cheapchinajordans.ganadoyucatan.com/]cheap jordans[/url]

    http://buynfljerseysgob.0fees.net/

  11. Pingback: How To Retire Early By Setting The Correct Goals | Let's Retire!

  12. There’s noticeably a bundle to know about this. I assume you made specific nice points in capabilities also.

    [url=http://buyschristianlouboutina.web1337.net]christian louboutin store[/url]

  13. Pingback: How To Protect Your Early Retirement Dream | Let's Retire!

  14. Pingback: How To Simplify Your Life | Let's Retire!

  15. Singaporean

    You mentioned ‘Keep searching for ways to builds income stream that does not require my attention (at least not full attention) after initial setup’. Well, have you ever considered that you should set up a small business as a form of passive income? In fact, there is a very popular Singapore forum where many budding Singaporean entrepreneurs are coming together to discuss ways to make money as a small business owner. You should take a look at the thread here: http://forums.hardwarezone.com.sg/eat-drink-man-woman-16/any-advice-small-business-owners-3385855.html

  16. How many residential cooling measures have the singapore government implemented? I think it is only a matter of time before project market reverse.

  17. admin

    Every now and then I hear people comment about property. Some said property is always going up, buy now buy now. Some said the market is going to crash, people cannot afford the sky high housing price now, so hold your purchase now.

Leave a Reply

Your email address will not be published.