The Unnecessary Job

I previously blogged about FCOT being a mixed bag of goodies but perhaps one that is worth the wait. It didn't take that long for the bells of good fortune to start ringing. From OCBC broker's report: Good things come to those who wait Last evening, Frasers Commercial Trust (FCOT) announced that it has entered into a lease agreement with Google Asia Pacific Pte. Ltd. (Google) for the latter to take up space at Alexandra Technopark (ATP). The total leased area will be ~344,100 sqft, or ~33.3% of ATP’s total NLA. As of 25 June, this will bring ATP’s committed occupancy rate to 93.7%. We note that Google will be signing a 5-year term starting from 1QCY20. While the average gross rent was not announced, channel checks suggest that rates could lie modestly north of $4 psf, which would indeed be in-line with recent signing rents, despite the significant amount of space leased. Main points 5- year deal. 33% of ATP total NLA. (344k sqft) Commited occupancy now 93

For the three months Apr 2019 - Jun 2019, the total amount of dividends received was: $21,592. Breakdown of Contributors: Keppel - 750 DBS - 900 FCOT - 5616 First REIT - 1075 Starhill - 990 Cache - 203 AA REIT - 3338.5 Ascendas Htrust - 7567 OCBC - 1150 Performance against Q2 2018: Dividends received in Q2 2018: 16045 Dividends received in Q2 2019: 21592 Change: +34.6% For the month ending June 2019, my total assets under management stand at: S$ 1,354,652 Breakdown of Current Portfolio: June 2019 Value AIMSAMP Cap Reit 121400 1.45 $176,030.00 Ascendas-hTrust 235000 0.985 $231,475.00 Cache Log Trust 13600 0.79 $10,744.00 CapitaR China Trust 35000 1.55 $54,250.00 DBS 1000 25.69 $25,690.00 Ezion 19500 0.044 $858.00 First Reit 50000 1 $50,000.00 FCOT 234000 1.58 $369,720.00 Keppel Corp 5000 6.49 $32,450.00 OCBC 5000 11.29 $56,450.00 SingTel 48000 3.47 $166,560.00 StarhillGbl Reit 90000 0.775 $69,750.00 (redacted) 7611 7.62 $55,675.99 Warche

Hypothetical: Say the year is 2019, you have accumulated 2M in investible assets and retired at a ripe old age of 40. Let's further say you are a somewhat conservative but competent investor, returning an average of 6% on your capital, i.e., 120k a year, or 10k a month. In 40 years time, at a 2% inflation rate, 10k a month would be more or less be equivalent to having around 5k a month in today's value. As you can see, inflation is a real issue that wipes out the true value of your passive income, and with that, the goods and services you could reasonably purchase with your income. In order to ensure that you can enjoy substantially the same purchasing power in 40 years time (at age 80), you will need a mechanism to grow your passive income to outpace, if not match, the inflation rate. In 40 years, @2% inflation rate, the future value of 10k is around 22k.  Thus, to match inflation, you would need to grow your passive income at a rate to achieve 22k a month passi