Retire by 45?

I have been reviewing my finances these days.

My aggressive investment strategy and savings plan had allowed me save up quite a decent amount by the age of 33. 

I was wondering, can I retire by 45? I did a quick projection using two assumptions.

1) I can maintain a dividend yield of 5% on my investment
2) I assume I can save $40,000 annual from working. 

The table below shows the size of my portfolio according to the projection. I should be able to receive S$7.8k monthly from dividends by age 45.My average monthly expenses is approximately S$5k, which means I can still save S$2.5k per month.

Financial Freedom by 45. Sounds like a good idea :) I will formulate my strategy to reach this goal. Stay tuned...

Savings Projections

Reflections of 2014

2014 went by in a flash. A new job, a new place and a new baby ! I had also completed my MBA from NUS.

Convenient excuse for my absence of blogging. Nevertheless, its time to review my investment I made for 2014.

2014 had been a relative quiet year for me.

1. For RMG, I had added additional positions when its is undervalued. This stock remains the biggest position in my portfolio.

2. I had added US ETFs in the Energy, Utilities and Consumer Staples sectors. The Energy ETFs was badly affected due to the correction of oil prices. There are many explanation for a plunge in oil prices. I will carry out more analysis on and propose a strategy for oil prices trends and way forward for the investment in Energy ETF.

3. I am adding REITs and high yield equities into my portfolio as of Nov/Dec. I am moving from a capital gains to a dividend yield strategy, this allows me to generate passive income to complement my savings plan. REITS chosen here must have adequate headroom in their capital structure for risk management and a good asset management plan.I  am planning to add Starhill Global REIT into the portfolio too. I had added HL Finance and KIT due to their dividend generating capability.

Thank you for reading my review. Have a merry xmas!

Table 1. Transactions made on SGX in 2014

Table 2. Transactions made on NYSE in 2014