A long discussion yesterday in my Singapore Financial Independence Telegram group caught my interest. A member (let’s call him A) was wondering whether we could have a better passive income plan than the one he worked out. By better, it means the plan gives a more certain income out come for his family. I can smell that this plan can end up pretty disastrous but I thought it will be a nice exercise for us to think through together. The Very High Certainty Income Plan A gives the following scenario: Suppose you won $1 million in TOTO (our lottery) and want to create a passive income stream. The requirement for the income stream needs to be:

1. Very easy to implement, so A’s spouse, who is not into finance, can implement it.
2. Have very high-income certainty.

So A’s very high certainty income plan looks like this:

1. Take $400,000 out of the $1 million to put in Singapore Savings Bond that averages 3% yearly.

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