Is there a reliable alternative to property investing?

Retirement planning is very interesting.

As someone who had helped more than 100 mass affluent families get on track to retire 10-15 years earlier than expected, I can say that each individual’s plan differs from the other.

One of my clients – let’s call him Gary (not his real name) – has quite an interesting experience with his retirement planning.

He was a pre-retiree in his 50s and looking for something easy that is able to give him a steady stream of passive income over time.

Gary shared that while CPF Life already provides stability of income, the payout of $1,500+ a month from age 65 onwards is insufficient for his current lifestyle. If possible, he wanted to retire comfortably without making any adjustments to his lifestyle – and preserve his purchasing power even as inflation increases.

He was also looking for something he can benefit from without having to wait till he reaches 65 years old.

He had a lump sum amount of money that he wanted to put to good use.

Gary was aware that he needed to make his money work for him, especially in preparation for retirement. This was a good start.

But Gary’s concern was that he does not know exactly what to do.

So, I asked further:

Do you have an investment and retirement strategy preference?

His preferences for a retirement strategy were as below:

• Certainty:?He was looking for something straightforward that can provide him with consistent passive income during retirement.
• Legacy:?He also wants to pass on the wealth he worked hard for as a legacy to his loved ones.
• He tried investing in some funds but he doesn’t really know how to manage his investments.

As a father, Gary is also a businessman. Almost all of his time is occupied and he might not always have the time to manage his finances in a very detailed manner.

Here’s how Gary managed to get consistent passive income with just a simple lump-sum investment:

A route that Gary was considering was property investment.

He wanted to buy a property for the purpose of getting rental income during his retirement years. This is a common strategy used by many retirees.

On top of that, he can sell the property before he passes on so the profit can be given to his wife and family.

While it is a viable option, his rental income may vary depending on the prevailing market. Hence, it may not give him the consistent passive income he was looking for.

He would also need to spend time finding a responsible tenant, dealing with the possibility of vacant periods, forking out maintenance costs, agent costs, etc.

These costs could reduce his overall profits from rental income.

Acknowledging the possibilities, Gary asked me if there were any other options out there that he can do.

So I proposed a strategy for Gary that can potentially enable him to get consistent passive income in his entire lifetime.

The strategy includes a type of annuity plan, coupled with a holistic investment strategy.

Keen to read more on how Gary is now on track to retire like the Top 1% in our society?

Find the full article here https://www.thefinlens.com/blog/annuity-passive-income-for-retirement