Dear Mr Tan
I believe you have given me good advice.
I will try to put in another $8000 or $10,000 quite soon and then arrange to withdraw $400 monthly. How much would I need to invest in Growth fund in total to withdraw $500 monthly? This would be my limit.
I might sell one of my single company stocks to achieve this or just withdraw from my fixed deposit when it matures. Growth Fund is much more stable because it is so diversified.
Did you know the banks are giving less than 3% annually for fixed depoosit below $50,000?
I am glad you will be leaving many of your investments in NTUC Income even after you leave. This is reassuring.
VS
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Dear VS
If you wish to have a monthly payment of $500 for 20 years, you will need the following capital sum:
- assuming the fund earn 5% per annum: $77,000
- assuming the fund earn 5.5% per annum: $74,000
- assuming the fund earns 6% per annum: $71,000
Thank you for updating me that the banks now pay less than 3% interest. I suspect that interest rate has dropped, but I was not sure. Your information confirmed it!
Tan Kin Lian
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