So I received this great question from a reader:
Hi FH,
I am looking to retire soon, so I want to build up some passive income.
I have about $1.2 million that I can invest at the moment, currently spread across multiple investments.
I would like to get your views on where is the best place to park that money?
I have narrowed it down to 2 options:
Buy an investment property and rent it out for passive rental income Buy a combination of REITs / US Stocks / Dividend Stocks for dividend yield
For option 1, I can use my spouse’s name to buy the property, so there will not be ABSD.
I prefer not to take up a mortgage if possible, because of high interest rates.
For option 2, I am open to relooking my portfolio once in a while.
But I do not want to spend too much time keeping up to date with what’s going on in my portfolio.
So it should be a semi-passive buy and hold portfolio.
My concern is that property prices in Singapore are very high at the moment, and rental market is weakening, so this may not be the best time to buy.
Yet US stocks etc are at all time highs, so I am also worried to buy a lot of stocks right now.
Hence writing in to get your views on the 2 options above.
How to earn $6000+ a month in passive dividend income? Buy REITs, dividend stocks, or investment property? (as a Singapore Investor in 2024)
Very interesting question indeed.
The reader suggested 2 options:
Buy an investment property and rent it out for passive rental income Buy a combination of REITs / US Stocks / Dividend
