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retirement source of income

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  1. #21

    Join Date
    Mar 2024
    Posts
    147

    I wouldn't get an annuity - you're essentially gambling against the provider on how long you will live with a deck that's stacked in their favour. You'll generally get better returns, and definitely much more flexibility, by making your own investment decisions.

    Also be very cautious about exchange rate effects. I have a friend who thought the Indian deposit rates of ~7% were so much better than the ~3% she could get on TDs in 2019 in HK where she is based. The problem is that in the next 4 years that the rupee fell by over 17% against the HK$ and HK TD rates went up to nearly 5%. Add in the roundtrip exchange costs and she was less well off than she'd have been keeping the money in HK.

    When I first started planning for my retirement the GBP bought about 12.5 HKD, and that seemed to be a fairly stable long-run average. Since then the pound has dropped well below 10, seems stuck there, and my pensions are still defined in GBP. That makes a huge difference with a 20+ year planning horizon.


  2. #22

    Join Date
    Feb 2009
    Location
    Hong Kong
    Posts
    2,518

    My plan for retirement is as follows:

    - Have my portfolio invested in global index tracker fund with 60% in equities and 40% in bonds
    - Sell 3.5% per year (increased by inflation each year)

    That's it.

    (I will also have a very small private pension that I will drawdown, and hopefully the UK state pension (but I'm not counting on it). Will own property we live in outright.)

    traineeinvestor likes this.

  3. #23

    Join Date
    Jun 2007
    Location
    Ex Sai Kunger Sunny Qld for now
    Posts
    8,323

    I'm sticking with our, Brisbane property investments, as it served me well in Hong Kong over the last 2 decades and I'm pretty satisfied with how our Brisbane properties, have performed over the last 6 years. When and if I decide to fully retire, I have amassed enough to be pretty resilient to market corrections, because we own it all outright ( not leveraged) and I'm fairly confident that our rental return alone is more than enough income to keep us in the manner we've been accustomed to.


  4. #24

    We're fairly far from retirement age but our plan is to (1) own our property outright in the UK (2) using rental from the UK property to fund our rent and lifestyle somewhere else if we live abroad (3) a pittance of UK state pension (4) small occupational pension. Need to build up a dividend paying portfolio though.


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