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"E-book" by AK

Second "e-book".

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ASSI's Guest bloggers

Confused and wondering what to do with $500K yearly.

Monday, September 5, 2016

Reader:

I read your blog and have a few queries on houses and all. Might be a long post.
Im would like your help to see whether u can talk to yourself? Hhahaah
My wife and i are grateful we have a few businesses giving us very decent cashflow.
We rent small and manageable house(follow rule of 15) and have abt 200k in stocks and a good allocation for gold and silver.
Where im stuck at is every year we will have 500k in cashflow that needs to be utilized. I would like to ask. If you have 500k every year net net. How would you allocate ah.
Thats for stocks. For house. Im also stuck. I would like to buy a small hdb and let my parent stay and be happy and all. But i feel if i do that. I was told by an agent then lose 2 opportunity to buy a property. Zzzzz
I would like to ask if you are free. Can talk talk to urself? Or if u prefer. Can i buy u large lunch?
Regarding cash my main concern is im hoarding cash and is that a good thing?
So many qn so confused. Whole new ball game outside of the biz world im familiar in haha.
Paiseh. Thanks ah






AK:
What people should always ask is what do they want? For me, I am concerned about having a comfortable level of cash flow since I am retired. So, most of what I do will have that in mind.
In your case, cash flow is not an issue. So, what are you looking for? When you know what are you looking for, you will know what to do with the money. Don't ask me how I will allocate the money because we have different circumstances and different aims in life. For example, I would probably allocate a huge chunk of the money to charities if I had an annual cash flow of $500K.
If you know you want to invest the money to grow your wealth, there is nothing wrong with having an overflowing war chest while you wait for opportunities.
As for buying a flat for your parents, I think I understand your concern. Well, you could buy a small flat for them in their names. You won't lose the opportunity to buy a HDB flat or EC for yourself in future then. Consider it a gift. Or you could buy a shoebox condo for them to stay in but in your name. Of course, you won't be allowed to buy a HDB flat or EC for yourself then. With your level of cash flow, either option will be easy financially.

Related posts:
1. Get the most out of ASSI.
2. Enough for retirement and do charity?
3. Is it bad to receive dividends and sit on cash?

4 comments:

Singapore Man of Leisure said...

AK,

I can't help but feel a bit smug and naughty ;)

You are not the door mat


Who wants to give "advice" to a person who has 500K passive income a year???

But if that person is a "door mat", out comes the deluge of well meaning advice and "wah kali kong"...

AK71 said...

Hi SMOL,

If you are not naughty, you are not SMOL. ;p

Singapore Man of Leisure said...

AK,

That's what I call a riposte!

AK71 said...

Hi SMOL,

So cheem! I had to Google:

"a quick, clever reply to an insult or criticism."

Were you insulting or criticising me before? I thought you were just trying to sell me a door mat...

-.-"

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