Investment - Careyourpresent

Can I Retire in My Early 40s? A Reader’s Real Question on Early Retirement Feasibility

Posted on May 23, 2025September 29, 2025 by careyourpresent

Lately, I received a heartfelt question that I believe many of us silently wonder about:

“I’m 42, my spouse is 40. We have a fully paid house, around $1.6 million in investments, and CPF savings that will provide monthly payouts starting at age 65. Can we really retire now?”

This isn’t just about numbers. It’s about values, priorities, and the courage to design a life that truly fits.

The Reader’s Financial Snapshot

Let’s start with the basics of their current financial picture:

Ages: 42 and 40
Home: Fully paid off — no mortgage burden
Investments:
- $400,000 in bonds, yielding roughly 3% per year
- $1,200,000 in equities and cash equivalents
- Total liquid assets: about $1.6 million
Monthly Expenses: Around $3,500 to $4,000, covering family needs
CPF Balances (each):
- Ordinary Account (OA): $70,000
- Special Account (SA): $260,000
- Medisave Account (MA): $75,000
CPF LIFE Expected Monthly Payout (each): Approximately $2,860 starting at age 65 (Basic Plan)

They plan to stop working and won’t be making further CPF contributions after early retirement.

Modeling Early Retirement: The Assumptions

To see if early retirement is feasible, we set conservative assumptions:

Factor	Assumption
Annual portfolio return	5%
Inflation rate	2%
Annual spending (starting)	$45,000 (equivalent to ~$3,750/month)
CPF LIFE monthly payout	$2,860 per person from age 65
Employment income	None after retirement

So, from now until 65, living expenses will be paid from their investment portfolio, with inflation taken into account. From 65 onward, CPF LIFE payouts — about $5,700 combined — will cover most monthly expenses, significantly reducing withdrawals from their portfolio.

The Safe Withdrawal Rate: What It Means Here

The Safe Withdrawal Rate (SWR) is a widely used rule of thumb to gauge sustainable retirement withdrawals. The classic 4% rule suggests you can safely withdraw 4% of your portfolio’s initial value each year (adjusted for inflation) for 30 years, with a high probability of not running out of money.

In this reader’s case:

Portfolio size: approximately $1.6 million
Annual expenses: about $45,000
Withdrawal rate: roughly 2.8% ($45,000 ÷ $1,600,000) — well below the 4% rule

This means they are withdrawing less than the suggested “safe” limit, providing a comfortable margin of safety. Plus, their CPF LIFE payouts, starting at 65, will provide a steady income stream, further easing pressure on their portfolio.

In other words, their withdrawal plan looks conservative and sustainable — a great foundation for early retirement.

Portfolio Projections: What Could Happen Over Time

Here’s a simple overview of how their portfolio might evolve in today’s dollars, accounting for spending and growth:

Age	Estimated Portfolio Value	Notes
42	$1,600,000	Starting point
45	$1,400,000	Slight decline after spending
50	$1,100,000	Approaching mid-retirement
55	$900,000	Portfolio gradually reduces
60	$750,000	Nearing CPF LIFE payouts age
64	$720,000	One year before CPF LIFE starts
65	$710,000	CPF LIFE begins, payouts begin
66	$730,000	Portfolio stabilizes or grows slightly

Despite inflation and withdrawals, the portfolio remains healthy through the years before CPF LIFE income starts. Once CPF LIFE kicks in, their combined monthly payouts of about $5,700 will cover most living expenses, allowing their investments to rest or grow.

What Does This Mean for Early Retirement?

In short — this family can confidently retire early.

Here’s why but assuming the following:

Disciplined Spending: Keeping expenses at $3,500–$4,000 monthly helps protect their portfolio.
Balanced Portfolio: A mix of bonds and equities offers steady growth with some cushion against market swings.
CPF LIFE Support: From age 65, CPF LIFE provides a reliable income stream to cover living costs.
Flexibility: Adjusting spending or part-time work could add further resilience.

Things to Keep in Mind

Inflation is real: Your expenses will rise over time. Plan withdrawals accordingly.
Market swings: Early years of retirement are critical; a market downturn could impact savings, so keep some cash reserves.
Longevity matters: Plan for 30+ years of retirement.
Mental and emotional health: Retirement is about more than money — purpose and routine are just as vital.

Final Thoughts

Retiring in your early 40s isn’t just about the dollars in your bank account. It’s about knowing what you want from life, having the courage to step away from the conventional path, and building a plan that supports your values.

For this family, the pieces come together nicely: a paid home, a strong investment portfolio, and CPF LIFE payouts waiting in the wings. With careful planning and flexibility, early retirement is well within reach.

If you’re thinking about your own retirement journey, start by understanding your spending, your portfolio’s growth potential, and your CPF outlook. And most importantly, ask yourself — what freedom do you want to create?

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Money just buy you the chance of freedom but can’t buy back time. In life, there is no reset button. Time is limited but money is not.

When you are young and working, you exchange time for money. When you are old, you can have lots of money but you can’t buy time back, especially the things that you have missed (your strong health, time with young child) while busying striking out in career.

Your kids grew up and they no longer need you to accompany them. They no longer want to sit on your lap to share/do things with you…all these time you spent in your 9 to 6 or even longer cubicles…can the money that you have earned by you back these?

We always thought we have more time with our old parents, but we are wrong. Time with them is ticking away every day. One day it will suddenly be gone. There is no regret medicine, no reset in time. Gone is gone and cannot come back. No matter you are billionaires or millionaires, you cannot reset this.

We always thought that we have more time with our spouse every day, but we are wrong. One day they will be gone too. When you read this, please go tell your spouse that you love him/her and he or she is the best thing that you ever had in your life.

Love your life daily. You have one less day with your spouse, parents, children and yourself. Time is ticking away.

Focusing Careyourpresent & living a fulfilling life by supercharging your mind & investment/online income. Careyourpresent Series focus on things that one MUST know in their Life.

You may dream of reaching Financial Independence, Retire Early (FIRE), but what if it doesn’t bring the fulfillment you expected?

Posted on May 20, 2025May 16, 2025 by careyourpresent

The Dream of FIRE

The idea of Financial Independence, Retire Early (FIRE) is incredibly appealing. Who wouldn’t want to break free from the 9-to-5 grind, eliminate financial stress, and finally have complete control over their time? For many, the FIRE journey becomes more than just a goal—it becomes a way of life. A life dedicated to saving aggressively, investing wisely, and minimizing unnecessary expenses, all for that sweet moment of freedom.

But here’s a question we don’t ask enough: What if you actually reach FIRE… and something still feels missing?

When the Fantasy of FIRE Meets Reality

We often imagine that once we reach FIRE, life will become perfect. We picture carefree days filled with travel, creativity, and peace. No more toxic workplaces, no more alarm clocks, no more financial stress. It’s the happily-ever-after we’ve been working so hard for.

But here’s the truth: FIRE solves financial challenges, not emotional ones. It doesn’t automatically erase inner struggles, insecurities, or the need for a sense of purpose.

Some who achieve FIRE are surprised to find a creeping sense of emptiness. The structure that work once provided vanishes. Suddenly, there’s no urgent reason to get out of bed—and that can be jarring.

Freedom without purpose can feel like floating without direction. Just because the stress is gone doesn’t mean joy takes its place.

Why Financial Freedom Isn’t Emotional Freedom

It’s tempting to think that once we no longer need to work, all our problems will melt away. But if the goal of FIRE is to escape a stressful life—what happens when the escape plan works?

The discomfort might not disappear with your job. It may just change shape. Boredom, restlessness, or a loss of identity can show up once the drive to achieve is no longer needed day-to-day.

FIRE is a powerful financial goal, but it’s not a magic solution for:

A lack of direction
Emotional disconnection
Unresolved inner tension
The longing for deeper meaning

This is why it’s so important to nurture your emotional well-being while you’re still on the path—not just your net worth.

What FIRE Gives You (and What It Doesn’t)

FIRE is amazing for:

Walking away from a job that drains you
Gaining time and space to focus on what matters
Being present for loved ones
Reclaiming your mental energy

But FIRE won’t automatically:

Make your life feel meaningful
Bring deep, satisfying relationships
Give you a fulfilling routine
Help you understand who you really are

FIRE gives you the freedom from things you no longer want—but fulfillment often comes from having the freedom to do things that matter deeply to you.

Without knowing what truly lights you up, FIRE can feel like just another checkbox.

How to Find Meaning Alongside FIRE

Here are some ways to bring purpose into your life now—whether you’re years away from FIRE or almost there:

Reconnect with What You Value
Ask yourself what you truly care about. Is it creativity, family, growth, service, health? When your life reflects your values, you feel more at peace and more grounded.
Start Projects That Feel Meaningful
Whether it’s writing, creating, building, mentoring, or helping others—investing in projects that matter to you adds purpose to your days.
Build Gentle Structure
Complete freedom sounds amazing—until it isn’t. A loose daily rhythm, even something simple, can help you feel anchored and energized.
Invest in Relationships
The most meaningful parts of life often involve people. Time spent nurturing friendships, community, or family bonds creates lasting joy.
Practice Being Present
It’s easy to chase “what’s next” and miss what’s here. Simple habits like breathing deeply, enjoying nature, or jotting down gratitude can help you feel more alive now.

Don’t Let FIRE Be the End of the Story

FIRE isn’t the end. It’s a doorway.

It’s the start of a new chapter where you get to ask: How do I want to spend my time, my energy, my life?

Rather than seeing FIRE as the finish line, think of it as a sturdy foundation. It can support a life filled with curiosity, connection, and creativity—but only if you build those things into your life on purpose.

Don’t wait for FIRE to start living well. Begin shaping your joyful, intentional life right now, no matter how far along you are.

The Deeper Questions Behind FIRE

FIRE is a powerful goal. But beneath it is something more profound—a longing for peace, joy, autonomy, and presence.

So ask yourself: What brings me alive today? What matters to me that money can’t buy? Who am I becoming as I walk this path?

Because the real dream isn’t just freedom from work. It’s freedom to live fully. It’s about caring for the present, not just the future. That’s where real joy begins.

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Sign up for MariBank using my referral code: 2KGZ29UL.
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Many people I realised that they have only shared things that give them the most commissions. I am different. I will only share things that I have bought, used and found it to be good.

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Good deal! Do not miss this! Sign up here now for free money!!

Deal 4:

Trust Bank New Clients

Sign up using referral code KNDBPEPT. Key in this code after you download the Trust Bank App from Trust Bank Website
No minimum balance account
No foreign transaction fee, great exchange rates when overseas. See my review via Trust Card – Excellent Card for overseas usage.

Deal 5:

FSMone – Cheap Comms and can transfer your shares to Personal/Joint CDP for Free

I am using FSMOne.com to invest in funds & ETFs (including money market funds). FSM is good due to the low comms and the free transfer from FSMOne to CDP (typically takes less than a week to transfer). If you do not have an account, you can sign up here. Please use my FSMOne referral code: P0413007.

You can read my experience of how I buy cheaply using FSMOne and then transfer my shares to Joint CDP within few days via $0 Free of Charge Transfer of SGX Shares from FSM to CDP and updates! – Done in less than 3 days!
I am also using FSMOne as part of my Estate Planning Plan. You can read about this via Simplified Guide to the Key Gist of Grant of Probate and Estate Planning

Deal 6:

Eskimo – Best Option for Roaming!

For now, you can get 500MB for free just by signing up with my referral link, no purchase required (I get 500MB only too, but only if you buy a paid plan). Referral code: CHING104915

You can read my review here.

Money just buy you the chance of freedom but can’t buy back time. In life, there is no reset button. Time is limited but money is not.

When you are young and working, you exchange time for money. When you are old, you can have lots of money but you can’t buy time back, especially the things that you have missed (your strong health, time with young child) while busying striking out in career.

Your kids grew up and they no longer need you to accompany them. They no longer want to sit on your lap to share/do things with you…all these time you spent in your 9 to 6 or even longer cubicles…can the money that you have earned by you back these?

We always thought we have more time with our old parents, but we are wrong. Time with them is ticking away every day. One day it will suddenly be gone. There is no regret medicine, no reset in time. Gone is gone and cannot come back. No matter you are billionaires or millionaires, you cannot reset this.

We always thought that we have more time with our spouse every day, but we are wrong. One day they will be gone too. When you read this, please go tell your spouse that you love him/her and he or she is the best thing that you ever had in your life.

Love your life daily. You have one less day with your spouse, parents, children and yourself. Time is ticking away.

Focusing Careyourpresent & living a fulfilling life by supercharging your mind & investment/online income. Careyourpresent Series focus on things that one MUST know in their Life.

The Quiet Slide: Why the Australian Dollar Keeps Falling Against the Singapore Dollar – And What It Means for Everyday Investors

Posted on May 15, 2025May 15, 2025 by careyourpresent

If you’ve been keeping an eye on the currency markets, you might have noticed a steady trend: the Australian dollar (AUD) has been gradually slipping against the Singapore dollar (SGD) over the past few years.

At first glance, this might seem like a niche issue for traders and economists. But currency trends like these can have wider implications for regular investors, expats, travelers, and anyone building a life that crosses borders. Whether you’re investing in overseas assets, planning a family holiday to Melbourne, or simply thinking ahead for retirement, it’s worth understanding why the AUD is weakening — and what that might mean for you.

Let’s see how AUD’s decline and how it ties back to broader economic forces.

Additionally, how this trend could impact Singapore-based investors — especially those holding assets with Australian exposure, like Frasers Logistics & Commercial Trust (SGX: BUOU).

A Tale of Two Economies

Currency exchange rates essentially reflect the strength — or perceived strength — of one economy versus another. In this case, Australia and Singapore offer a contrast in economic structure, policy, and investor sentiment.

While Australia is a resource-rich country heavily reliant on exports (especially to China), Singapore operates as a global financial hub with a strong services economy and careful currency management. These differences are key to understanding why the SGD has been appreciating while the AUD continues to face headwinds.

1. Interest Rate Policies: A Yield Gap Appears

Interest rates have a big influence on currency values. When rates rise, a country’s assets become more attractive to investors seeking better returns. The Reserve Bank of Australia (RBA) has raised interest rates in response to inflation, but it’s done so more cautiously than other major economies.

In contrast, Singapore’s central bank — the Monetary Authority of Singapore (MAS) — uses the exchange rate as its main policy tool rather than interest rates. MAS has allowed the SGD to strengthen steadily in order to manage imported inflation.

As a result, the yield and stability offered by SGD-denominated assets look more attractive than those in AUD. This “interest rate differential” has led to lower demand for the Australian dollar.

2. Australia’s Trade Ties with China

Australia’s economy is deeply tied to China, particularly through exports like iron ore, coal, and liquefied natural gas. When China’s economy is growing rapidly, demand for these materials surges — and so does the value of the AUD.

However, in recent years, China’s growth has been slowing. Its property sector has faced a prolonged downturn, and industrial demand has weakened. This has led to reduced demand for Australian commodities — and with it, lower inflows of AUD.

As demand for Australian exports falls, so too does the demand for the currency itself.

3. Commodity Price Volatility

Australia’s status as a major commodity exporter means its currency tends to move in line with global commodity prices. The AUD is often viewed as a “commodity currency,” influenced by price shifts in energy, metals, and agricultural exports.

Lately, commodity prices have been under pressure due to weaker global demand and increased supply. As prices of key exports like iron ore and coal stabilize or decline, Australia’s trade income drops — which weighs on the AUD.

4. Singapore’s Strong Currency Management

Unlike most central banks, the MAS doesn’t directly set interest rates. Instead, it uses the SGD exchange rate as its primary tool to maintain price stability.

This approach has kept the SGD strong and relatively predictable — qualities that are highly valued in today’s uncertain global economy. By letting the SGD gradually appreciate, MAS has helped Singapore avoid runaway inflation while strengthening investor confidence in the currency.

This strength also makes the SGD more attractive relative to regional currencies, including the AUD.

5. Domestic Pressures in Australia

Beyond external factors, Australia has internal challenges that are weighing on its economic outlook.

High household debt: Australian consumers are among the most indebted in the developed world.
Rising mortgage costs: As interest rates tick higher, mortgage repayments are consuming more of household income.
Subdued wage growth: Despite inflation, wages have not risen quickly enough to maintain purchasing power.
Cooling housing market: Property values, a major driver of Australian wealth, have begun to soften in some cities.

All of these factors contribute to weaker consumer spending, reduced business confidence, and ultimately, a more fragile economy — which investors respond to by reducing exposure to the AUD.

6. Risk Appetite and Safe-Haven Behavior

Finally, it’s important to understand how investor sentiment drives currency flows.

The AUD is often considered a “risk-on” currency — one that performs well when global markets are optimistic and risk appetite is high. The SGD, on the other hand, is viewed as a relatively stable “risk-off” currency, especially in the Asia-Pacific region.

In times of uncertainty — whether it’s due to inflation, interest rate volatility, or geopolitical tension — investors tend to shift their capital into safer currencies. That favors the SGD over the AUD.

What This Means for You

If You Travel to Australia

This trend may benefit you. A stronger SGD means your money goes further when paying for food, lodging, or activities in AUD. Travel becomes slightly more affordable — at least in currency terms.

If You Invest in Australian Assets

Currency depreciation can reduce the value of your overseas investments when translated back into SGD. Even if your investment performs well in AUD terms, exchange losses could drag down your actual returns.

If You’re Planning for Education or Migration

Tuition fees, accommodation, and daily expenses may cost less in SGD terms — but be mindful that local inflation in Australia could offset these savings over time.

If You’re Building Financial Independence

Every cent counts when you’re pursuing FI. Currency risk affects passive income streams, overseas property investments, and diversified portfolios. Understanding these risks helps you protect your capital and grow it wisely.

A Closer Look: Frasers Logistics & Commercial Trust (SGX: BUOU)

If you’re investing in Singapore-listed REITs, one example where the AUD/SGD exchange rate has direct relevance is Frasers Logistics & Commercial Trust (FLCT).

FLCT owns a portfolio of logistics and commercial properties across Australia, Germany, and the Netherlands — with Australia making up a significant portion of its assets and rental income.

Here’s why that matters:

Rental income in AUD: A weaker AUD can reduce the trust’s reported distributions in SGD unless hedging is fully effective.
NAV and asset valuation: If AUD continues to depreciate, the SGD value of Australian assets may decline, affecting FLCT’s book value and possibly its share price.
DPU (Distribution Per Unit): Currency fluctuations can create volatility in payouts, which is a key consideration for income-focused investors.

While FLCT does employ currency hedging strategies, no hedge is perfect — and long-term currency trends still matter. If you’re holding or considering FLCT, it’s worth reviewing the trust’s latest updates on how it’s managing AUD exposure.

Stay Curious

The AUD’s steady decline against the SGD reflects deeper shifts in global trade, interest rate dynamics, and investor sentiment. It’s a reminder that even if we’re living in Singapore and earning in SGD, our financial decisions — whether it’s buying a REIT, investing abroad, or planning a holiday — don’t exist in a vacuum.

Being mindful of currency exposure is part of being intentional with your money. You don’t need to be a forex expert to make smart decisions — just aware, informed, and adaptable.

Stay curious, stay intentional — and most of all, care your present.

Building a FIRE Portfolio in Singapore: A Realistic Hybrid Approach That Balances Income & Growth

Posted on March 10, 2025March 8, 2025 by careyourpresent

This is a follow-up to my previous article:

FIRE and the Big Dilemma – Dividends vs Safe Withdrawal Rate: Which One Helps You Sleep at Night?

Do read if you have missed it!

In that last post, we explored the dividends vs. SWR dilemma faced by many in the FIRE (Financial Independence, Retire Early) movement.

The key question is, do you rely on dividends for passive income or withdraw a fixed percentage of your portfolio (SWR)?

Both strategies have their merits, but combining them could be the sweet spot for a psychologically comfortable and financially stable retirement.

Theory is theory, let’s have a practical example –

Singapore-based investor, with a $1.5M retirement portfolio, can use a hybrid approach to reach their goal of $5,000/month in passive income.

Why a Hybrid Approach to FIRE?

Let’s face it: relying entirely on dividends might sound tempting for peace of mind, but high-dividend stocks can limit long-term growth. Plus, companies can cut dividends, leaving you in a lurch. On the flip side, relying only on a Safe Withdrawal Rate (SWR) like 3.5% from global ETFs can be hard on your mind and psychology aspects — it feels odd to sell assets when markets are down, not many are able to do it.

That’s why the hybrid approach should work well:
✔ Dividend stocks & ETFs provide a steady passive income stream.
✔ Global index ETFs offer long-term growth and inflation protection, with the safety of a 3.5% SWR.
✔ A cash buffer helps manage market volatility and avoid panic selling.

This balance creates a retirement plan that’s not just financially sound, but psychologically comfortable.

Step 1: Portfolio Allocation ($1.5M Portfolio for $5K/month FIRE Goal)

We’ll structure the portfolio into:

40% in dividend stocks & ETFs (~$600,000) for steady income.
55% in global index ETFs (VWRA & EIMI) (~$825,000) for long-term growth with SWR.
5% in cash buffer (~$75,000) to provide safety in downturns. This should last you for 15 months of ~$5000 per month such that you can don’t draw down if you need especially in downturns.

Asset Type	% of Portfolio	Allocation ($)
Dividend Stocks & ETFs	40%	$600,000
Global Index ETFs (LSE-listed)	55%	$825,000
Cash Buffer	5%	$75,000
Total Portfolio	100%	$1.5M

Step 2: Dividend Portfolio (~$600,000 Allocation, ~5% Yield)

The dividend portion will focus on high-quality assets with strong cash flow and sustainable dividends. We’ll include:

Singapore Banks (DBS, UOB, OCBC) for stable and reliable dividends.
Net Cash Singapore Companies like Sheng Siong etc for low-risk, cash-rich companies.
NikkoAM-StraitsTrading Asia ex Japan REIT ETF for exposure to REITs across Asia.
SPDR STI ETF for broad exposure to Singapore’s top 30 companies.
VHYL (Vanguard FTSE All-World High Dividend Yield UCITS ETF) for global dividend exposure.

Dividend Portfolio Breakdown (~5% Yield)

Asset	Type	Allocation ($)	Dividend Yield	Estimated Dividends ($/year)
SG Banks (DBS, UOB, OCBC)	Financials	$150,000	~5.0%	$7,500
Net Cash Singapore Companies (Sheng Siong etc.)	Dividend Stocks	$100,000	~4.0%	$4,000
NikkoAM-StraitsTrading Asia ex Japan REIT ETF	Asia REIT ETF	$150,000	~5.0%	$7,500
SPDR STI ETF	Singapore Index	$100,000	~4.0%	$4,000
VHYL (Vanguard FTSE All-World High Dividend Yield UCITS ETF)	Global Dividend ETF	$100,000	~3.0%	$3,000
Total		$600,000	~5% avg	$26,000/year (~$2,167/month)

Why VHYL?

VHYL gives you global exposure to high-yield dividend companies, diversifying the portfolio beyond Singapore.
It maintains a 3.0% yield, adding strong, reliable income from global markets.

Step 3: Growth Portfolio (~$825,000 in LSE-listed ETFs for SWR)

The growth portfolio will focus on global index ETFs and will be managed via a 3.5% withdrawal rate (SWR):

Asset	Type	Allocation ($)	Withdrawal Rate	Income Generated ($/year)
VWRA (LSE-listed)	Global Index Fund	$725,000	3.5% SWR	$25,375
EIMI (LSE-listed)	Emerging Markets	$100,000	3.5% SWR	$3,500
Total		$825,000		$28,875 (~$2,406/month)

The VWRA provides exposure to global stocks, while EIMI adds higher-growth emerging markets. Both are Ireland-domiciled, meaning they avoid high US withholding taxes and are more tax-efficient for Singapore investors.

Step 4: How Does This Portfolio Generate $5,000/month?

✅ Dividends from stocks/ETFs: ~$2,167/month ($26,000/year).
✅ SWR withdrawals from VWRA/EIMI: ~$2,406/month ($28,875/year).
✅ Total Monthly Income: $4,573/month ($54,875/year).

This comes very close to the $5,000/month goal, with a cash buffer to smooth out any shortfalls.

What if there’s a market crash?

The $75,000 cash buffer will ensure you don’t have to sell assets during market downturns.
In strong market years, you can reinvest excess dividends into VWRA and EIMI.
If needed, adjust the SWR temporarily (e.g., reduce to 3.3% in tough times).

Step 5: Long-Term Growth & Sustainability

Even with SWR withdrawals, this portfolio is designed to continue growing over the long term.

The VWRA portion should appreciate by around 7% per year, so even after 3.5% withdrawals, your portfolio will likely grow rather than shrink.
The VHYL dividend will likely increase over time, providing more income each year.
The SG Banks, STI ETF, and REIT ETFs should also grow with the economy, boosting your income over time.

How Does Net Worth Change Over Time?

Your global index portion (VWRA) will continue to grow, keeping pace with inflation.
EIMI emerging markets should continue to grow, keeping pace with inflation.
The dividend portfolio should keep increasing dividends, helping your income grow and maintaining long-term wealth.

Why This Hybrid Approach Works

✅ Stable income from dividends (~$26,000/year).
✅ Growth from SWR withdrawals (~$28,875/year from VWRA & EIMI).
✅ A resilient portfolio that adapts to market cycles.
✅ Capital appreciation over time, allowing your net worth to grow.

By combining dividend investing with SWR-based growth, this hybrid strategy offers a well-rounded retirement plan for a Singapore-based FIRE investor.

You get the peace of mind of steady dividends, the growth potential of global equities, and the flexibility to adapt during market downturns.

Would this portfolio works for you?

Deal 1:

Interest rates are getting lower everywhere and there are usually many hoops to jump to get higher rate such as OCBC 360 and UOB ONE!
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Money just buy you the chance of freedom but can’t buy back time. In life, there is no reset button. Time is limited but money is not.

When you are young and working, you exchange time for money. When you are old, you can have lots of money but you can’t buy time back, especially the things that you have missed (your strong health, time with young child) while busying striking out in career.

Your kids grew up and they no longer need you to accompany them. They no longer want to sit on your lap to share/do things with you…all these time you spent in your 9 to 6 or even longer cubicles…can the money that you have earned by you back these?

We always thought we have more time with our old parents, but we are wrong. Time with them is ticking away every day. One day it will suddenly be gone. There is no regret medicine, no reset in time. Gone is gone and cannot come back. No matter you are billionaires or millionaires, you cannot reset this.

We always thought that we have more time with our spouse every day, but we are wrong. One day they will be gone too. When you read this, please go tell your spouse that you love him/her and he or she is the best thing that you ever had in your life.

Love your life daily. You have one less day with your spouse, parents, children and yourself. Time is ticking away.

Focusing Careyourpresent & living a fulfilling life by supercharging your mind & investment/online income. Careyourpresent Series focus on things that one MUST know in their Life.

FIRE and the Big Dilemma: Dividends vs. Safe Withdrawal Rate – Which One Helps You Sleep at Night?

Posted on March 5, 2025March 5, 2025 by careyourpresent

So, you’ve made it. After years of grinding, saving, and investing like a maniac, you finally hit your FIRE number. Financial independence is yours. No more alarm clocks. No more bosses breathing down your neck. Just freedom.

But then, reality kicks in.

“How do I actually live off my investments?”

This question keeps a lot of FIRE folks up at night. After spending so long watching your net worth grow, the idea of selling investments to fund your life can feel… well, terrifying. Nobody wants to see their nest egg shrink, even if it’s part of the plan.

That’s why many people turn to dividends—the idea of living off passive income without ever touching the principal feels safe. But is it really the best strategy? Or should you focus on total return and use the Safe Withdrawal Rate (SWR) method instead?

Let’s break it down—without all the boring financial jargon.

Dividend Investing – The “Never Sell” Approach

Imagine this: Every quarter, you get a nice little deposit in your account. Free money, right? That’s the appeal of dividend investing—build a portfolio of solid companies, collect passive income, and never worry about selling shares.

Why People Love Dividends:

✅ It Feels Like a Paycheck – You’re just living off the income, not selling anything.
✅ No Market-Timing Stress – Whether the market crashes or booms, your dividends (mostly) keep coming.
✅ Psychological Comfort – Your net worth stays intact, making it feel like you’re not “spending down” your wealth.
✅ Legacy Factor – You can leave the whole portfolio to your kids without touching the principal.

Sounds great, right? Well… hold on.

The Downsides Nobody Talks About:

❌ You Need a HUGE Portfolio – A $1M portfolio with a 4% dividend yield only gives you $40K per year. Want $80K? You need $2M. That’s a high bar.
❌ Dividends Aren’t Guaranteed – Companies cut dividends all the time—especially during recessions.
❌ Lower Growth Potential – High-dividend stocks tend to grow slower than the broader market.
❌ Sector Overconcentration – Many dividend stocks are in boring, slow-growth sectors (utilities, REITs, consumer staples).

But here’s the biggest issue: Dividends aren’t actually free money.

The Big Myth: Are Dividends Really “Passive Income”?

There’s this idea that dividends are extra money, like an interest payment. But that’s not really how it works.

When a company pays a dividend, its stock price drops by the same amount.
That’s because cash is leaving the company—it’s not magic money appearing from thin air.
Companies that don’t pay dividends often reinvest profits into growth, leading to higher share prices over time.

That’s why companies like Amazon, Google, and Berkshire Hathaway don’t pay dividends at all—they’d rather reinvest for maximum shareholder value.

So while dividends feel great psychologically, they may not actually be the best way to maximize long-term returns.

Safe Withdrawal Rate (SWR) – The “Sell a Little, Let the Rest Grow” Strategy

Now, let’s talk about the SWR method, which is a fancy way of saying:

“I’ll withdraw a small percentage of my portfolio each year and let the rest keep growing.”

How It Works:

1️⃣ In the first year, you withdraw 4% of your portfolio (if you follow the famous 4% rule).
2️⃣ Each year, you adjust for inflation.
3️⃣ Your portfolio stays invested in stocks and bonds, growing over time.
4️⃣ Based on history, this strategy has a high probability of lasting 30+ years (hello, Trinity Study!).

Why People Love SWR:

✅ Lower Portfolio Requirement – Since you’re not limiting yourself to dividend stocks, your money can grow faster.
✅ More Diversification – You can invest in index funds, growth stocks, bonds—whatever you want.
✅ Historically Proven – Research shows a 3-4% withdrawal rate works long-term.
✅ More Flexibility – In good years, you can spend more. In bad years, you can cut back a little.

The Challenges of SWR:

❌ Psychological Barrier – Selling shares feels like spending your nest egg.
❌ Market Volatility – If you hit a bad market in the early years, your portfolio could shrink too fast.
❌ Uncertainty – Nobody knows the future—will 4% really last? What if you live to 100?

But here’s where SWR really shines:

SWR is More Likely to Grow Your Net Worth Over Time

For a lot of FIRE folks, it’s not just about covering expenses—it’s about watching their net worth grow even in retirement.

If you’re invested in broad market index funds (like the S&P 500), which average 8-10% returns per year, your portfolio can keep growing, even as you withdraw money.

Real Example of SWR Using World Index Funds (VWRA):

Let’s say you have $1M invested in a globally diversified portfolio of world index funds, such as the Vanguard FTSE All-World UCITS ETF (VWRA). This ETF provides broad exposure to stocks across both developed and emerging markets, and its historical returns have averaged around 7-8% per year.

The Math Behind a 4% Withdrawal:

You start with $1M.
Withdraw 4% in year one: $40,000.
After the first year, you adjust the withdrawal for inflation.

Assuming the 7% average return holds and inflation is around 2%, here’s how your portfolio would grow over time, even with withdrawals:

Year 1: Start with $1M, withdraw $40K, leaving $960K.
Year 2: Your portfolio grows by 7% (now worth about $1.027M). Withdraw $40,800 (inflation-adjusted).
By Year 10, even with withdrawals, your portfolio could be worth roughly $1.3M if the market continues to grow at an average 7% per year.

This example shows that you’re withdrawing money, but your portfolio continues to grow. In fact, over the long run, it can even grow faster than you’re withdrawing, providing you psychological comfort that your wealth is still increasing.

What About a Hybrid Approach?

Many FIRE folks mix both strategies for the best of both worlds:

✔ Dividends cover core expenses – Helps avoid selling during market downturns.
✔ SWR supplements income – Provides flexibility and growth potential.
✔ A cash buffer (1-3 years of expenses) – Prevents the need to sell in a crash.

Example of a Hybrid Portfolio:

Total Portfolio: $1.5M

$500K in dividend stocks (generating ~$20K/year in dividends).
$900K in index funds (like VWRA) (used for SWR withdrawals).
$100K in cash (buffer for market downturns).

This setup:

Provides reliable passive income through dividends.
Lets the rest of the portfolio grow at market rates.
Reduces risk by avoiding forced selling in downturns.

So, Which Strategy is Right for You?

Go All-In on Dividends If You:

✅ Hate the idea of selling shares and want steady passive income.
✅ Have a big enough portfolio to support your expenses.
✅ Are okay with slower portfolio growth.

Go with SWR If You:

✅ Want a higher likelihood of net worth growth over time.
✅ Are comfortable selling shares as part of your strategy.
✅ Prefer more diversification and flexibility.

Do a Hybrid Approach If You:

✅ Want the security of dividends but also the upside of SWR.
✅ Like the idea of not touching assets during downturns.

At the end of the day, FIRE isn’t just about having enough money—it’s about feeling confident in your plan.

Some people sleep better knowing their dividends cover their bills. Others feel fine selling a little each year while watching their net worth grow. The best strategy? The one that lets you actually enjoy your freedom.

Which one do you prefer? 🚀

Good articles that you should read!

People are drawn to dividend investing.

Why? Firstly, dividends provide a regular stream of income, allowing investors to receive a portion of the company’s profits on a periodic basis. This can be particularly attractive for individuals seeking consistent cash flow or looking to supplement their existing income. Additionally, dividend investing is often viewed as a more stable and predictable investment strategy compared to relying solely on capital appreciation.

I always write and share articles, especially on dividends which many people love them. Do read them!

Alternatively, you can go the right side of my page, there is a search bar where you can simply search “dividend” to see all my articles related to dividends!

Of course, you can search for other things that would interest you such as “Careyourpresent”, “Reits”, “Side Hustles”, “Fixed Incomes”, “Savings” etc.

CAREYOURPRESENT

Money just buy you the chance of freedom.

When you are young and working, you exchange time for money. When you are old, you can have lots of money but you can’t buy time back, especially the things that you have missed while busying striking out in career. Of course, if you love your career, and consciously know that you are missing out the first time your child walk or talk, that’s ok, but if you are the other spectrum, please do something about it.

Your kids grew up and they no longer need you to accompany them. They no longer want to sit on your lap to share/do things with you…all these time you spent in your 9 to 6 or even longer cubicles…can the money that you have earned by you back these?

We always thought we have more time with our old parents, but we are wrong. Time with them is ticking away every day. One day it will suddenly be gone. There is no regret medicine, no reset in time. Gone is gone and cannot come back. No matter you are billionaires or millionaires, you cannot reset this.

We always thought that we have more time with our spouse every day, but we are wrong. One day they will be gone too. When you read this, please go tell your spouse that you love him/her and he or she is the best thing that you ever had in your life.

I have picked out some of the more life reflecting articles of the CAREYOURPRESENT series. Do read them:

You can read more about my articles on Careyourpresent via the Category “Careyourpresent” or simply click “Careyourpresent” via the main menu bar.

REMEMBER:

Love your life daily.

You have one less day with your spouse, parents, children and yourself.

Time is ticking away.

For each passing day,

Enjoy and Treasure your Life!

For those who are interested in regular updates of my articles, please join the others to sign up for my free newsletter to has my newest blogposts sent to your mailbox for free!

For real time exclusive updates on market news/life (especially Crypto markets where the news move fast, important news will be shared directly via tweets or telegrams), do also join the platforms below and engage with other like-minded people!

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At the same referral and ebook page, you can also download my free ebooks and other free resources.

For quick references to these resources, you can see below.

Ebooks and other useful resources on enhancing productivity (Investment, Excel, Notion etc). Currently most of it are free at this moment (subject to change).
WeBull: A powerful brokerage with nice free welcome gift. You can refer to my guide here on how to signup! 4 Simple step only! Click here to register a new account!
MoneyOwl: You can use this 6SHU-93MC to get free grab vouchers and highly safe liquid cash fund account.
Trust Bank – You will enjoy free FairPrice E-Voucher referral if you sign up via my referral code KNDBPEPT. Simply download the Trust Bank SG App on the App Store or Google Play Store. Tap on “Use referral code” immediately after you start the app and key in: KNDBPEPT
FSMOne: P0413007. Good account to keep liquid cash in autosweep and to purchase investment at low fee.
Hostinger: You can use this link for hosting your new website. 20% off hosting!
Crypto.com: Use my referral link https://crypto.com/app/h92xdfarkq to sign up for Crypto.com and we both get $25 USD 🙂

Interest Rate Cut on the Horizon…what’s next?

Posted on September 17, 2024September 17, 2024 by careyourpresent

Interest Rate Cut on the Horizon…what’s next? This must be in the mind of many investors, especially for those into sensitive to rate instruments, such as S-REITS.

Before the actual rate cut in the next few days, SREITs are up by more than 10% for the past few weeks.
Congrats to fellow investors! I think my portfolio at least up by 50k or more.

Rates are already down

Before official rate cut announced by Fed, the rates are starting to come down. One can see from the Fixed deposits offered by banks, SSB coming down, treasury yield coming down etc…

I have already locked 400k worth (together with spouse) in SSB as emergency fund… guess just collect 1k per month worth of cash for the next 10 years at average rate of 3+%.

So what’s next?

For me I will have investible cash, waiting for pound on next opportunities. Meanwhile just keep calm and enjoyed the harvests that I have planted for the past few months/years.

Let’s ask AI

This is the question that I have input
“Interest rate cut on the horizon. what is next?”

FROM MS Co-pilot.

It looks like an interest rate cut is indeed on the horizon, with the Federal Reserve expected to make its first rate cut in years, possibly as soon as September ¹ ². This potential cut is largely driven by cooling inflation and a job market that no longer threatens to overheat the economy ².

Here are a few things that might happen next:

Lower Borrowing Costs: If the Fed cuts rates, borrowing costs for consumers and businesses could decrease. This includes lower mortgage and auto-loan rates ².
Increased Refinancing: Homeowners might see an opportunity to refinance their mortgages at lower rates ¹.
Stock Market Reactions: Financial markets have already started to price in the expected rate cuts, so we might see some volatility as investors adjust their strategies ¹.
Economic Growth: Lower interest rates can stimulate economic growth by making it cheaper to borrow and invest².

FROM CHATGPT

When central banks cut interest rates, it’s typically a response to slowing economic growth or low inflation, with the aim of stimulating the economy. The implications of an interest rate cut can unfold in various ways:

Lower Borrowing Costs: Consumers and businesses benefit from reduced borrowing costs. Loans, mortgages, and credit often become cheaper, encouraging spending and investment. This can stimulate economic growth in areas such as housing, business expansion, and consumer spending.
Weaker Currency: Interest rate cuts often lead to a weaker domestic currency, as lower rates make a country’s assets less attractive to foreign investors. A weaker currency can boost exports by making them more competitive internationally, but it can also lead to higher import costs and inflation.
Stock Market Boost: Equities tend to rise in response to rate cuts because companies can finance growth more cheaply, and investors often move out of low-yielding bonds and into stocks. This can create short-term stock market rallies.
Bond Market Response: Bond prices typically rise as interest rates fall, since the existing bonds with higher interest rates become more attractive. However, future bond issuances may offer lower yields.
Real Estate Market Surge: Lower interest rates can fuel the housing market by making mortgages more affordable. This can lead to increased home sales and higher property values, although it can also increase housing affordability challenges in already hot markets.
Inflation Risk: Prolonged low interest rates can lead to inflationary pressures if demand overheats. Central banks need to balance between stimulating growth and keeping inflation in check.
Savings Impact: Lower interest rates tend to reduce returns on savings and fixed-income investments, which may affect savers, particularly retirees relying on interest income.

Next steps will depend on how the economy responds:

Further cuts or unconventional measures: If the rate cut isn’t enough to spur growth, central banks could signal more cuts or even deploy unconventional tools like quantitative easing (buying bonds to inject liquidity).
Monitoring inflation and growth data: Central banks will closely monitor economic indicators to decide if more action is necessary.
Market and investor reaction: Investors may adjust portfolios, shifting from bonds to stocks or real assets like commodities, depending on the perceived future economic conditions.

Hi AI

AI are getting more powerful each day. Maybe one day we will have Ultron taking over the world. Who know? So what do you think will happen next after rate cut?

Most importantly, what is your plan now?

Good articles that you should read!

People are drawn to dividend investing.

Why? Firstly, dividends provide a regular stream of income, allowing investors to receive a portion of the company’s profits on a periodic basis. This can be particularly attractive for individuals seeking consistent cash flow or looking to supplement their existing income. Additionally, dividend investing is often viewed as a more stable and predictable investment strategy compared to relying solely on capital appreciation.

I always write and share articles, especially on dividends which many people love them. Do read them!

Alternatively, you can go the right side of my page, there is a search bar where you can simply search “dividend” to see all my articles related to dividends!

Of course, you can search for other things that would interest you such as “Careyourpresent”, “Reits”, “Side Hustles”, “Fixed Incomes”, “Savings” etc.

CAREYOURPRESENT

Money just buy you the chance of freedom.

When you are young and working, you exchange time for money. When you are old, you can have lots of money but you can’t buy time back, especially the things that you have missed while busying striking out in career. Of course, if you love your career, and consciously know that you are missing out the first time your child walk or talk, that’s ok, but if you are the other spectrum, please do something about it.

Your kids grew up and they no longer need you to accompany them. They no longer want to sit on your lap to share/do things with you…all these time you spent in your 9 to 6 or even longer cubicles…can the money that you have earned by you back these?

We always thought we have more time with our old parents, but we are wrong. Time with them is ticking away every day. One day it will suddenly be gone. There is no regret medicine, no reset in time. Gone is gone and cannot come back. No matter you are billionaires or millionaires, you cannot reset this.

We always thought that we have more time with our spouse every day, but we are wrong. One day they will be gone too. When you read this, please go tell your spouse that you love him/her and he or she is the best thing that you ever had in your life.

I have picked out some of the more life reflecting articles of the CAREYOURPRESENT series. Do read them:

You can read more about my articles on Careyourpresent via the Category “Careyourpresent” or simply click “Careyourpresent” via the main menu bar.

REMEMBER:

Love your life daily.

You have one less day with your spouse, parents, children and yourself.

Time is ticking away.

For each passing day,

Enjoy and Treasure your Life!

For those who are interested in regular updates of my articles, please join the others to sign up for my free newsletter to has my newest blogposts sent to your mailbox for free!

For real time exclusive updates on market news/life (especially Crypto markets where the news move fast, important news will be shared directly via tweets or telegrams), do also join the platforms below and engage with other like-minded people!

Telegram Group (Chat with me and other like minded people!)
Telegram Channel (Get the latest updates on the markets/life!)
Twitter
Facebook
RSS Feed

You may also contact me via [email protected].

If you’re looking referral codes, do check out my referral and ebook page. Give it a try and who knows? You might end up loving these platforms! To be absolutely fair to all the readers, I am definitely using all these companies and they are useful to me! Likely will be useful to you too!

At the same referral and ebook page, you can also download my free ebooks and other free resources.

For quick references to these resources, you can see below.

Ebooks and other useful resources on enhancing productivity (Investment, Excel, Notion etc). Currently most of it are free at this moment (subject to change).
WeBull: A powerful brokerage with nice free welcome gift. You can refer to my guide here on how to signup! 4 Simple step only! Click here to register a new account!
MoneyOwl: You can use this 6SHU-93MC to get free grab vouchers and highly safe liquid cash fund account.
Trust Bank – You will enjoy free FairPrice E-Voucher referral if you sign up via my referral code KNDBPEPT. Simply download the Trust Bank SG App on the App Store or Google Play Store. Tap on “Use referral code” immediately after you start the app and key in: KNDBPEPT
FSMOne: P0413007. Good account to keep liquid cash in autosweep and to purchase investment at low fee.
Hostinger: You can use this link for hosting your new website. 20% off hosting!
Crypto.com: Use my referral link https://crypto.com/app/h92xdfarkq to sign up for Crypto.com and we both get $25 USD 🙂