In this final instalment, I will share some tips on how to administer your Bedokian Portfolio with the SRS funds factored in, using the three methods that I had shared in my previous posts, namely separate portfolios, joint portfolio and core-satellite.
Separate Portfolios
Basically this means your usually-funded (i.e. Bedokian Portfolio funded with your disposable income) and SRS-funded Bedokian Portfolios are treated separately and mutually exclusive (i.e. not mixed with each other). Each has its own asset class allocation. Dividend/coupon/interest payments from each portfolio will go back to the same portfolio, and cash injections would be allocated between the two.
The main advantage is that you have flexibility and control; you can dictate which portfolio is to provide you passive income at which stage of your life. It is natural given that the usually-funded Bedokian Portfolio could start providing you passive income at any point in your life when you want to retire ......