Investing for income more difficult as CPF SA goes away?

Recently, I blogged about how the CPF SA would vanish once we turn 55 from 2025.

This was, of course, announced during Budget 2024.

Many people have thought of using the CPF SA as one of the ways to generate passive income in retirement.

That is now out the window.

We would be left with the CPF RA which we can choose to top up to the ERS which is going to be 4x the BRS instead of 3x the BRS.

We would still have the OA but that attracts only 2.5% p.a. and not 4.0% p.a.

That 1.5% p.a. difference is a big deal for some people.

Imagine a $200,000 sum would see a difference of $3,000 which could cover a month's worth of expenses for some retirees.

So, how are we going to make up for the shortfall?

For as long as I have been blogging and longer than that, if I were to consider my pre-blogging days, I have said that CPF is a cornerstone in our retirement funding strategy.

However, it should not be the be all and the end all.

We should learn to invest for income in addition to having the CPF as a cornerstone.

Of course, when I say "we", I am referring those of us who are not born with a spoon made of some precious metal in our mouth.

Ahem.

CPF should be the ultimate safety net for most of us in case all else should fail.

I have shared my journey as an investor in all these years of blogging and many have asked me to conduct courses.

Of course, being lazy, I have refused again and again.

However, regular readers know that there is one course I have been promoting year after year.

Yes, Dividend Machines.

Dividend Machines is a course on investing for income and it is conducted yearly by The Fifth Person.

Being the first blogger to promote Dividend Machines so many years ago, I am happy to promote the course again this year.

Learn to invest for income and be less reliant on the CPF to fund our retirement.

Learn to build our own Dividend Machines.

Learn more about Dividend Machines using this link:

DIVIDEND MACHINES 2024.

Value for money.

Or else AK would not promote it.

Dividend Machines will help beginners and seasoned investors alike.

Roar to financial freedom in the Year of the Dragon!

If AK can do it, so can you.

Evening with AK and friends 2023. Ticketing!

This is a follow up blog on "Evening with AK and friends 2023."

As promised last Friday, for those who are interested, here is the ticketing link:

Buy your ticket for "Evening with AK and friends 2023" here.

AK is back!

14 March 2023, 2PM UPDATE.

Some of you might also be interested in the latest YouTube videos by AK Production House.

I was on steroids and produced many videos on the banking crisis in the U.S.A. and if DBS, OCBC and UOB could be affected.

I am now working on new videos regarding the SATS rights issue as well as the S.D.I.C. which insures up to $75,000 in banking deposit.

Remember to subscribe to my YouTube channel if you want to get free timely notifications.

DBS, OCBC and UOB crashed!

 

Interest income under pressure!!

 

Which bank is next to fail?

U.S. banking bailout!

To everyone who is coming to the event on 10 May 2023, please remember the reminders published in my previous blog on the event.

See you, if you are joining us, for an evening of fun and laughter (and some photo taking, of course!)

Related post with reminders:
Evening with AK 2023. Confirmed.
Recently published:
Singapore to split apart? Who to blame?

Banks & REITs Dividend Machines? T-bills, SSBs & CPF?

If you have been following my blogs, you might remember that I have been buying T-bills and Singapore Savings Bonds. 

The plan is to continue maintaining a meaningful fixed income component in my investment portfolio.

Of course, if you have been following my blogs for even only a couple of years, you would know that I have been maxing out voluntary contributions to my CPF account. 

This is because I treat the CPF as an investment grade sovereign bond.

However, for most of us, fixed income alone is not enough if we want to achieve financial freedom.

If I had parked my money only in fixed income, I would not have been able to achieve financial freedom.

I definitely would not have been able to retire before I turned 45 almost 7 years ago.

So, what to do?

We should invest for even higher returns. 

We should also be investing in equities for income.

A big investing theme in my blog for many years now has been to invest in DBS and OCBC, with UOB being added during the pandemic bear market.

I have also mostly been successful investing in some REITs like AIMS APAC REIT, for example.

For most of us, investing in equities is one of the least demanding methods to generate passive income as it has a relatively low barrier to entry.

With smallish sums of money, we can invest in bona fide income generating assets and businesses. 

These are businesses which have the ability and will to share the fruits of their labor with investors.

Investing for income is not sexy and doesn't send my heart racing which is not a bad thing if you have a weak heart like mine.

The bulk of my returns from the stock market is in the form of dividends and I blogged about receiving $2 million in passive income over the last 13 years.

However, to be honest, investing for income can be risky too if we do not know what to avoid.

If we want to be successful as an investor for income, just staying near the shore, we might not catch enough fish to make it.

If we venture farther out to sea in search of bigger schools of fish, we might get hit by a gigantic wave in the form of Eagle Hospitality Trust, for example.

(If you want to read more on how I avoided the landmine that was Eagle Hospitality Trust, a quick search will find you those blogs I published.)

So, how like that?

Our chances of success will be better if we are well schooled (pun intended) to navigate open water.

We can do some self study (and I have a book list in my blog's right sidebar titled "Food for thought") if that is the way we choose to go.

For those who prefer structured guidance, however, there are always courses which can do the job of educating us.

I was the first blogger to ever endorse Dividend Machines and I have attended the classes too.

If we are interested in having structured guidance, don't drag our feet as Dividend Machines is only available once a year.

Miss this and we would have to wait another year.

For many years now, Dividend Machines is the only investment course I promote in my blog as I feel it is truly value for money.

Dividend Machines will not cost us an arm and a leg but don't take my word for it.

Find out more for yourself:

Dividend Machines 2023

Hop to financial freedom in the Year of the Rabbit!

If AK can do it, so can you!

Investing for income works! F.I.R.E. away!

It has been more than a month since the last time I blogged.

I have been spending most of my time in Genshin Impact in the last month but I also took several days off from gaming to attend to stuff in real life.

I will be taking a few days off from gaming to spend more quality time with my parents again this month too.

In my retirement, I try to keep things as simple as possible.

Keeping things simple is seen in my investment philosophy as well as I mostly invest for income and avoid active trading which requires more time and energy.

Investing in good income generating entities which have the ability and willingness to reward their investors is a good way of avoiding emotional roller coasters too.

If you believe that peace of mind is priceless like I do, then, investing for income is probably right for you.

GONG XI FA CAI

So, is investing for income easy?

Is it just about looking for investments which offer the highest yield?

Ahem, have you read about Eagle Hospitality Trust (EHT?)

If you haven't, I have a series of blogs on EHT and one of them is about a reader's experience.

Of course, we cannot be right all the time as even the best of plans can go wrong.

However, if we know what to look out for, we can definitely make better decisions.

If you have been following my blog for a long time, you will know that I share my philosophy and methods openly.

You would probably have an idea of how I go about investing for income.

However, it is all rather piecemeal. 

I have been told by quite a few people that my blog is disorganized but if someone is willing to do the legwork, learning how to invest for income just by reading my blog might almost be doable.

For people who do not have the inclination nor the time to comb through my blog, then, attending an inexpensive and well designed course on investing for income is probably a better idea.

Dividend Machines is the only course on investing for income I have ever promoted.

I even attended the course myself when it first launched so many years ago.

Investing for income is an important reason why I am able to have more time to do the things I enjoy.

Investing for income is an important reason why I no longer even have to work for a living.

Financial freedom isn't impossible.

Early retirement isn't impossible.

What I have achieved might seem magical to some but investing for income really isn't magic.

Run by good people, Dividend Machines is not only well designed, it is also inexpensive and provides great value for money.

Find out more here: 

Dividend Machines 2022.

Want financial independence and the option to retire early?

F.I.R.E. away!

Investing for income works!

If AK can do it, so can you!

How to achieve F.I.R.E. like AK? Learn to invest for income.

Back in 2018, when I announced that I was taking a long break from public appearances, I said it would last, maybe, two or three years.

Well, it is now 2021 but with the COVID-19 situation still wreaking havoc globally and Singapore's Phase 3 of reopening lasting at least a year, it seems that I am being given another year or two off.

Good news for lazy AK who decided long ago that he didn't want to work till the day he dies!

Back in 2018, when I made that announcement, I said to readers that F.I.R.E. which stands for "Financial Independence, Retire Early" isn't just a dream.

However, unless we are very lucky in life, we need to plan for F.I.R.E. to happen.

I planned very early on in life as a salaried worker to achieve financial freedom and to retire by age 45.

With a lot of work and bit of luck, I managed to do this a few months before I turned 45 almost 5 years ago.

I have blogged about this many times before and regular readers know that my approach to achieving F.I.R.E. is a holistic one.

The good news is this holistic approach to F.I.R.E. is accessible to most of us in Singapore.

Most of us are able to achieve financial freedom in Singapore as long as we are willing to work diligently towards it.

I know many have heard this before but if AK can do it, so can you!

If you want to achieve F.I.R.E. the way AK did, then, you have to embrace investing for income.

If you are new to investing for income or have been looking to do some structured learning, I have more good news for you.

The only investment course that AK promotes every year is "Dividend Machines" conducted by The Fifth Person.

"Dividend Machines" not only provides you with all the knowledge and guidance you need as an investor for income, it is also very affordable.

Go ahead and take a look before you decide if you should sign up for 2021's intake.

Follow AK's referral link here: 

Dividend Machines 2021 

If you like what you see, sign up fast or you would have to wait another year for the next intake.

Don't just dream of passive income, really make money while you sleep with Dividend Machines.

May the Year of the Ox be a bullish one for you!

ComfortDelgro is one of my Dividend Machines.

I have received a number of messages from readers regarding the decline in ComfortDelgro's share price.

Mostly, the question is whether it is a good time to buy.

Regular readers know that AK will avoid answering questions like that most of the time.

However, I can say a few things to myself regarding the situation right now.

If we subscribe to what Warren Buffett says that we should be greedy when others are fearful, then, we should know what to do.

Is the Wuhan coronavirus going to be a permanent fixture?

Are we never going to recover from this crisis?

Well, I am inclined to believe that the CEO of DBS is correct.

Things will improve come summer as the virus will not do well in warm weather.

Simply put, we will recover from this Wuhan virus crisis just like we recovered from the SARS crisis.

It will take time, of course, but I do not doubt that we will recover.

What?

Cannot call it the Wuhan virus?

The official name is COVID-19?

Alamak.

Why not call it the Chinese Flu so that we know where it is from?

If you ask me, I think the WHO has to give China face lah.

Before beating the dog must see who is the owner, right or not?

Why can have Spanish Flu but cannot have Chinese Flu leh?

Ahem.

Anyway, I still think that ComfortDelgro is a good Dividend Machine.

I have nibbled at ComfortDelgro as its share price declined.

I hope I am smart enough to buy more if Mr. Market goes into a deeper depression.

On that note, in case you missed my blog on Dividend Machines or if you are thinking about signing up but have yet to do so, please note that application for the class of 2020 closes this weekend.

If you are really interested in learning about investing for income in a structured manner, sign up now or you would have to wait till next year for the next intake.

Find out more or sign up: HERE.

Related posts:
1. CPF and Dividend Machines.
2. Incomplete analysis: ComfortDelgro.

Recently published:
AK tries streaming on Twitch.

Passive income: CPF and Dividend Machines (2020).

If you have been reading my blog for some time, you will know that I like the CPF system.

For the common folks in Singapore, the CPF is our cornerstone in retirement funding.

In fact, I even said that the CPF can be our best friend in our golden years if we nurture the friendship.

However, if we wish to retire early like I have, simply nurturing our friendship with CPF is insufficient since we cannot utilise the savings until we are at least 55 years of age.

Even at 55, we might want to give the magic of compound interest more time to grow our CPF savings before we draw on the account so that our savings can last longer.

The CPF is really our ultimate personal financial safety net.

To be able to retire earlier, however, we will need to have a stream of meaningful passive income that will pay for all our needs and wants in life.

This is where investing for income comes in. 

Investing for income is the main reason why I am able to achieve financial freedom and retire early.

Warren Buffett famously said:

“If you don’t find a way to make money while you sleep, you will work until you die.”

Work until I die?

To me, it is a very gloomy thought.

Now, to be fair, not everyone wants to stop working and that is a good thing.

If everyone wants to retire early, the workforce will shrink.

Imagine what would happen to the economy?

Imagine what would happen to our investments?

The horror!

So, not everyone needs passive income, right?

Wrong.

For those who enjoy working and have no plans to retire early, they should ask:

"What if I am forced to retire early?"

There are many ways this could happen.

Remember what is the best insurance in this world?

Passive income.

I blogged about this before too.

Passive income is really less of a want than a need.

For regular readers, this is really all familiar territory.

For new readers, it might be an eye opener.

Investing for income will help anyone achieve a greater degree of financial security.

Eventually, it could also help us achieve financial freedom.

So, if you still do not know how to invest for income or if you would like to learn more about investing for income, Dividend Machines is accepting applications for their 2020 class now.

AK rarely, if ever, promotes investment courses.

Dividend Machines is, in fact, the only investment course that AK has endorsed year after year since its day one.

So many investment courses to promote, why Dividend Machines?

In a nutshell, Dividend Machines provides great value for money.

Unlike some other investment courses, Dividend Machines does not cost thousands of dollars.

We should all take steps towards financial freedom and Dividend Machines is surely a step in the right direction.

Everyone's life can be and should be better.

If AK can do it, so can you.

Sign up for 
Dividend Machines 2020: HERE.

Related posts:
1. CPF can be our best friend.
2. To retire by 45, have a plan.
3. Best insurance in life.
4. Freedom from wage slavery.

Investing for income to financial freedom. (Dividend Machines creation in 2019.)

When I blogged about my decision to take a long break from public appearances, I also said that I would continue blogging but less frequently.

I know that I am a social media influencer and I have readers who appreciate my blog.

One reader then said:

"Most so called social media influencers I read about pitch/sell products.

"I would say you are some kind of pseudo (not psycho!) influencer who don't sell products (except 'Neverwinter') who talks about how to live your life prudently and be financially free 😉"

That is true.

I hardly sell anything in my blog.





If I find something is good, even if I am not paid to do so, I simply blog about it.

This is the case with "Neverwinter".

This is also definitely the case with the CPF system.

Of course, regular readers know that I am spending a lot more time in "Neverwinter" these days as it is something I enjoy.

They also know I wish for everyone to achieve financial freedom and that all of us will eventually work because we want to and not because we have to.




This is because I truly feel that having to exchange our precious time for money, working because we have no choice but to do so is depressing.

Wage slavery is a terrible thing.

Regular readers know that an important thing that I did which freed me from the shackles of wage slavery is investing for income.

What is investing for income?

Invest in income producing assets and we will enjoy passive income or, as Buffett says, "make money while we sleep".

Remember my earlier blog?

Special dividend from VICOM and financial freedom.

Of course, this is only one of my investments.





If you are new to investing for income, you should attend Dividend Machines.

Although many bloggers are promoting Dividend Machines now, I was the first to do so when it was introduced many years ago.

After so many years, I still believe that the course provides value for money especially if you are relatively new to the world of income investing.

.........

Who are the trainers?

Readers who have attended "Evening with AK and friends" will be familiar with both Victor and Rusmin.

Brilliant investors and good people.

They believe in keeping education very affordable.

So, you don't have to pay an arm and a leg to attend Dividend Machines.

Or else, AK would not be promoting it.

Want to learn how to invest in REITs and non-REITs for income?

If your answer is "yes", sign up for 2019's Dividend Machines: HERE.

Limited places available, as usual.

Unlike "Neverwinter" or CPF, this is a paid advertorial but, quite frankly, I would have promoted Dividend Machines anyway even if I were not paid to do so because I believe it is 100% worth promoting.

To achieve financial freedom, most of us have to create Dividend Machines. 

If AK can do it, so can you!


Sign up: HERE.

Evening with AK and friends 2018 (UPDATE).

We have doubled the capacity of this year's "Evening with AK and friends" because many readers were left out in the cold last year as tickets were sold out in less than a day!

With so many more tickets available and with the event being 4 months away, I thought the tickets should take a much longer time to sell out this time but this conversation happened about 20 minutes ago.

Kenji says...
10 more tix and it will be sold out if you wanna warn your readers...

AK says...
Alamak. So fast? 

It has only been slightly more than a day (since I announced the event yesterday in the morning) ...

Cham liddat. 

I am bracing myself for complaints from readers who cannot get tickets liao. :(

..

..

..

..

Warning:
As of 20 minutes ago, 10 tickets left.

So, if you are genuinely interested and know what you are getting yourself into, chop chop, go to:

Evening with AK and friends 2018.

You have been warned (again).





-------------


FINAL UPDATE AT 4.30 PM
Sold out in less than 29 hours.

Evening with AK and friends 2018.

Many have been asking when the next "Evening with AK and friends" is going to take place?

Some have been asking since the beginning of the year.

My reply has been that there would definitely be one before the year ends.






Many have asked that the venue be a bigger one because the tickets are always sold out so quickly.

So, this time, we have booked an event hall twice as big as the last one.

This will be the largest "Evening with AK and friends" yet.

Hopefully, it is large enough to satisfy the demand.

Some have even asked if they could book the tickets in advance?

So, ticketing is taking place months before the event date.

Now, if you have been to "Evening with AK and friends" before and want to join us again, you would know what it is all about.

I must say I don't know why some of you attend each and every "Evening with AK and friends".

Don't you think once is enough and twice might already be too much?

OK, I think I have managed to make new readers think twice about joining us.

Yes!

Bad AK! Bad AK!

Now, seriously, "Evening with AK and friends" is simply a chit chat session.

Yes, it is unstructured (and unpredictable) chit chat.

How the evening flows would depend on questions from the audience.

Don't come with any expectations (unless it is one of fun and laughter) and you (probably) won't be disappointed.

Like my friend, Rusmin, said before,

"AK no substance never mind lah, can make us laugh enough already."

You have been warned.








Date:
Fri 23 November 2018


Time:
7:00 PM – 10:00 PM Singapore Time


Venue:
Lifelong Learning Institute
11 Eunos Road 8
Event Hall 1-1/1-2
(Enter from Hall 1-1)
Singapore 40860



Buy tickets: HERE.
(Don't kiasu and buy tickets without first reading this blog post hor. Don't suka suka buy hor. Know what you are buying, remember?)

No food or drink will be provided.

Please have dinner before coming or bring something that you can have during the break.

Consistent with AK's healthier lifestyle and going green, please bring your own drinking water too.





Related post:
Chatting and charting with AK.

Get paid for (or get dividends from) blogging?

Someone asked me if I get paid for blogging?

More specifically, he asked if I get paid for promoting "Dividend Machines".

My answer?

Yes, of course, I get paid.





The blog on "Dividend Machines" was labelled "Advertorial".

Anytime you see a blog labelled "Advertorial", it means the blogger will receive a fee.

OK, not all bloggers would do this but honest bloggers would.

I was prepared for some nasty remarks from him as I know there are people who are unhappy with bloggers being paid to blog. 






I really don't want to go into a debate on the subject.

It isn't a productive use of my time.

What?

Spending hours each day in the virtual world of an MMORPG is a productive use of time?

Ahem. Weather today nice right?

Bad AK! Bad AK!





So, you can probably understand that I was pleasantly surprised when, instead, he asked why am I not blogging more regularly if I get paid to blog?

Apparently, he is thinking about becoming a blogger to make a living and is trying to learn from my experience.

I told him quite bluntly don't learn from AK.

Why?


I did not give him the usual "AK is lazy" type of reply because something like this should be addressed seriously.





AK is a hobbyist blogger which means blogging is a hobby and if I do make some money blogging, it is a bonus.

There are bloggers who blog for a living and he should learn from these bloggers instead if he wants to make money as a blogger.

Who are these bloggers?

Don't ask me lah. I blur.





Having said this, I believe that blogging in itself is not a good way to make money but it can help someone with products or services to sell.

AK has no products or services to sell.

AK is, however, helping to promote "Dividend Machines".

Yes, I get paid for doing this but, frankly, I believe in this product and the people behind it so much that I would do it even if I were not paid to do so.





Since I am on the topic, for those who are interested, the 2018 intake for "Dividend Machines" will end 2 days from now on the 18th.

If you are clueless about investing for income or would like to polish your skills, the sooner you learn more, the faster you would achieve your goals.

Everyone should work because they want to and not because they have to.

Investing in income generating assets will go a long way to help achieve this.

I know this for sure because I have done it and, for sure, so can you.

My blog on "Dividend Machines":
Create Dividend Machines in 2018.

Sign up: HERE.

Creating Dividend Machines in 2018!

I have not been blogging much as I have been spending a lot more time on another hobby.

I know many people are envious of me.

"Wah! Can spend so much time playing games online! So jelly!"

Well, I believe anyone who is not severely disadvantaged could do it too.

It doesn't have to be playing games online per se, of course.

All of us could free up time to do things we enjoy instead of exchanging our time for money working.  

Of course, regular readers know one very important reason why I am able to do this is because I invest for income.

Many readers have asked me to teach them how to invest for income and some specifically asked me to teach them how to invest in REITs.

I would tell them that I do not think I am good teacher material.

OK lah. I admit lah. AK is lazy lah.

Anyway, many readers don't seem to learn very well through self study.

For them, to learn effectively, it seems that they need a structure.

So, thank goodness, structured learning is available!

Also, thank goodness it is available at a very affordable price.

Yes, not everyone is charging an arm and a leg to impart investment knowledge.

Want to learn how to invest in REITs and non-REITs for income?

DIVIDEND MACHINES.

If your answer is "yes", sign up for this year's Dividend Machines: HERE.

Limited places available, as usual.

So, fastest fingers first.

Do you want financial freedom?

Of course, you do!

Remember, if AK can do it, so can you! Believe it!

Create Dividend Machines: HERE.