When Will I Turn Equities To Cash For Retirement?

🌟🌟🌟The word Retirement conjures images of taking things easy and fading into the sunset for some people but not for me.

Retirement to me means travelling the world, pursuing hobbies and living the best years of my life!  I would call it an active retirement. 

So when will I start to turn Equities into cash for retirement?  The answer really lies with how much I really need to fund my active lifestyle.   Owning Equities especially those that pay great dividends provide a great source of passive income even while I travel the world.

My favourite income generating Equities are my Singapore stocks especially the 3 Singapore banks $DBS GROUP HOLDINGS LTD(D05.SI)$  $OVERSEA-CHINESE BANKING CORP(O39.SI)$  and $UNITED OVERSEAS BANK LIMITED(U11.SI)$ 

DBS is the largest bank in Singapore with market capitalisation of SGD 89.71 billion.  It is also the best performing stock of the 3 banks.  DBS is currently up 4.1% year todate and in 2023, it is up 6.5%.  But if if I go back 5 years DBS has risen by 36%.  In the latest Q423 earnings result, DBS announced a bonus share issuance.  For every 10 shares I own, I will get 1 bonus share.  This works out to 7% dividend yield, a very attractive yield. 

OCBC is the 2nd largest bank in Singapore with a market capitalisation of SGD 60.14 billion.   OCBC is up 3.1% year todate and in 2023, it has risen to 8.6%.  In the past 5 years, OCBC is up 18%.  The current dividend yield of  OCBC is 6.16%.

UOB is the 3rd largest bank in Singapore with a market capitalisation of SGD 48.76 billion. UOB is up 1.4% year todate and in 2023 it is just up 1.3%.  If we look further back UOB has increased 14.7%.  The current dividend yield of UOB is 5.9%.

The bottom line is I do not intend to turn  my Equities to cash for retirement as I would like to keep them for dividends and a bequest for my loved ones.  Volatility is the price we pay for outsized returns in the long run.   With the magic of compounding, investing in great quality stocks will reap bountiful returns in the long term. 

 Warren Buffett is a Billionaire because he believes in value investing - Buy Wonderful Companies at Fair Price and his favourite holding period is Forever. 

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