My Sweet Retirement Current Portfolio Dividend Yield

Retirement

Recently, I did a rough calculation of the dividend yield on my stock portfolio. The formula is based on the total dividends I collected for FY15 divided by the total amount I invested. The current annual yield of my investment portfolio stands at 5.40%.

Being curious how much I will have when I reach 55 years old, I used the Dividend Calculator found on Dividend Ladder to do a projection. If I have a total invested amount of $200K (for illustration purposes only) and with my current annual dividend yield of 5.40% (current), how much will I have for retirement at 55 years old?

I punched in the figures as follows:

Principal amount: $200K

Annual addition: $24K

Years invested: 21 (I am currently 34. At 55 years, thus 21)

Annual Dividend Yield: 5.40%

Dividend Reinvested: Yes

Here are the results. At age 50, I will be a millionaire! By 55 years which is my targeted retirement age, I will have $1.5 million.

Having said that, is $1.5 million today or in the future enough for retirement? Nevertheless, I shall invest prudently and consistently to improve the annual yield of my portfolio. Looking forward to days where I shall never had to work a single day.

Dividend Calculator

Chinese New Year 2016 Fixed Deposit Promotions

Fixed Deposit CNY 2016

Chinese New Year 2016 is approaching soon. Every year this time, banks will offer promotional fixed deposit rates.

Last year, I placed my money with POSB for 12 months at a promotional interest rate of 1.88 percent. I also got the S$88 lucky Ang Bao (“red packet”) that was offered for the first 10,000 customers.

Personally, I felt that the promotional interest rates this year was not fantastic and in fact, most banks are offering lower interest rates as compared to last year. If you compare it with the Singapore Savings Bonds, the interest rate look even worst.

February Singapore Savings Bonds offer an interest rate of 2.5% over 10 years with no lock in period. However, we know there are many factors to consider besides the interest rate. For example, you need to compare against the holding period between a bond and fixed deposit. Below is the summary of the promotions I found. Read More