Following up to our previous post on Singapore Finance Minister on Personal Finance
We decided to do some statistics on how effective the method of prudent financial planning was.
He mentioned using Government Assets to generate Investment Income, and that income can be used to pay for anything as required by the country - a never ending stream of cash inflow.
We think the same would work for financial planning - using your cash/savings, invest long-term, and use the cash inflow to pay for your lifestyle.
OTHER LINKS:
GE Effect on STI
Raising of Re-Employment Age to 67
Setting
Investment in: Singapore Straits Time Index (STI)
Time frame: 26 Years, 1988 January to 2013 December (we did this research last year actually)
Investment Amount: $50 every month
Invest during last trading day of the month
Assuming 2% annual dividend rate distributed every half yearly
Dividends: Re-Invested into the STI
Conclusion:
...
