Rental Income or Dividend Income

Which is better? Rental income or dividend income?

Having both rental income and dividend income,  I can say that I actually prefer to collect dividend income.

In Singapore, I don't have to pay taxes on dividends. But I have to pay taxes on my rental income.

Also, rental income is taxed at one's income bracket and that results in a lower yield from whatever rent I collect. 

If using a housing/ real estate agent, one also has to pay the agent commission ranging from 1 to 1.5 months rental.  This alone can be quite significant.

In terms of passiveness,  there is work involved too in terms of finding tenants paperwork, etc.

On the other hand,  dividend income is fairly straightforward.  No taxes,  no hefty commissions to be paid, and relative ease in terms of monitoring (assuming one is buying a good quality income).

This is not investment advice. Purely stating my preference as a very lazy investor.

Still Alive & Kicking

Haven't written in a long while. The last time I logged in to blog was probably 1-2 years back.

Everything is fine.  Just saying hi to all my readers. 

Still alive and kicking!

Starting Pay for Fresh University Graduate

So what is the starting pay for university graduates that are fresh out of university?

In 2017, the median salary for fresh graduates was $3,400. This is as compared to $3,300 in year 2016.

The top gross salary went (not surprisingly) to law degree holders from NUS and SMU, medicine from NUS, and those who did a double degree in business and computing from NTU. These earned  $5,000 per month.

Computer Science and dental surgery ranked 2nd and 3rd respectively at  $4,285 and $4,050.

The survey results are quite surprising I must admit.  But it shows that computing is probably in great demand for a variety of sectors in Singapore's economy.  With the rise of fields such as data analytics, machine intelligence and cybersecurity, these graduates are probably well - placed to take advantage of the digital economy.

The usual suspects of law, medicine and dentistry naturally command a high pay.

New Property Launch: Is Artra worth the buy?

The showroom at ARTRA was packed on Saturday. I will not be surprised if the units are almost 80 of 90% sold.

Besides boasting a really good location just beside Redhill MRT, it also has quite a hefty price.

All units are selling for around $1,5xx psf.

Indicative price:-

Type A, 2 bedroom + Study, from S$1,19X,XXX
Type B, 3 bedroom, from S$1,59X,XXX
Type C, 3 bedroom + Study, from S$1,79X,XXX
Type D, 3 bedroom + Study + Private Lift Lobby, from S$2,09X,XXX

Income Tax

"Off to pay my taxes"

Gold Prices - Are They Headed Higher?

Since the Trump election, gold prices have been slowly gaining ground. Just recently, Citigroup head of metals and research, David Wilson, gave his views that gold prices could be headed towards $1,300.

Let's take a look at this wonderful graphic below, originally from this source on gold IRAs, to see how gold prices have moved with various significant events since 2008.

Will gold prices head higher with all the uncertainty? Or is there going to be a renewed phase of economic growth that might stop gold prices from rising further? With low interest rates coming to an end, will gold prices stabilise?

Let me know your thoughts.

How Much Savings Should I Have at 35

How much savings should one have at age 35? I think that is an interesting question that demands a good answer.

I was recently browsing an article when I came across something that caught my attention.

The article was giving a rule of thumb on how much one should have saved at age 35, 45, 55 and 65.

I am not too sure whether I recall the figures correctly but it stated that these were the sums required:
- @ age 35 = 1 times your annual income
- @ age 45 = 3 times your annual income
- @ age 55 = 5 times your annual income
- @ age 65 = 8 times your annual income

Saving in gold bullion perhaps?

What this means is that if you have an annual income of say, $100,000, you should have saved the same amount by age 35. At age 45, you should have saved $300,000 (3 times annual income). And at age 55 and 65, $500,000 and $800,000 respectively. This assumes no income growth.

I am wondering whether this is a realistic sum. I personally think it sounds realistic because assuming the person retires with am annual income of $200,000 , it means that he should have saved $1.6 million. Not very high but definitely a stretched and achievable target.

What do you think?