Here is how to receive $5000 for your retirement

 It seems $5000 is the magic number to live comfortably for retirement in Singapore, as I have seen a few posts on this, However, one needs to know that this amount will varies as it really depends on one's lifestyle and situation.

Anyway, given this amount, how then do you achieve it for your retirement?

Before I start, here are the assumptions:

• Attained Full Retirement Sum(FRS) at 55
• Opt for CPF payout at 65
• Sum of $408,000 invested in a ETF which gives a return of 8% or more at 55
• Retire at age 65.

The amount invested will be much lower if this is shared with your spouse. as not forgetting that your spouse will also have his/her CPF payout as well.

Having prepared the above at 55, when you retire at age 65, you will:

• receive CPF payout of about $1600
• based on rule 72, the amount that you have invested will be double at age 65, which will give you a monthly of another $3400
• Therefore at age 65, you will receive about $5000.

The same amount that is already invested will double again in 10 years at age 75, and it continues. During retirement, one will not have to worry about his/her expense if there is a constant cash flow. Thus, the 2 key important elements during retirement are constant cash flow and managing risk.

I have been buying these ETF since FED signalled no more rate hike

 Last night (Singapore time), the Federal Reserve kept its key interest rate unchanged and indicated that there will be one rate cute before end of this year. Now that there is clarity on the direction of the interest rates, what does one need to prepare so that he can benefit when the rate cut happens.

In this article by Schroders, both stocks and Bonds have significantly outperformed cash following the rate cut. If a recession does not ensue, stocks typically fare better than Bonds. However, in the event of a recession, Bonds generally outperform stocks. Since the initial rate hike, Bonds have faced substantial correction, but long-term bonds now offer attractive yields. In anyway, one should have a proportion of Bonds asset as part of the asset allocation of ones' portfolio. 

As the Bonds have now presented an attractive yield, and as well as potential capital gain due to rate cut, these are the Bonds ETF which I have included into my portfolio: 

1. IDTL ETF - iShares $ Treasury Bond 20+yr UCITS ETF
2. IDTM ETF - iShares $ Treasury Bond 7-10yr UCITS ETF
3. LQDE ETF - iShares $ Corp Bond UCITS ETF

Please dyodd.