Prepared by A-J | Author brand: 盡職生活｜阿J的普通人理財筆記
About the author/site · Vocus @WUCJ ↗ · Editorial policy
Page version: 2026-08-24 | Official or primary sources are preferred for material rules and figures. AI may assist structure, translation, and code, but is not used as the sole factual source.
About the author/site · Vocus @WUCJ ↗ · Editorial policy
Page version: 2026-08-24 | Official or primary sources are preferred for material rules and figures. AI may assist structure, translation, and code, but is not used as the sole factual source.
Core idea: “Self-built monthly pension” is a cash-flow concept, not a guaranteed payment. Retirement income can combine statutory pensions, dividends/distributions, bond income and scheduled sales of fund units.
Separate stable income from portfolio income
Start with more stable pension sources, then calculate the amount the investment portfolio must provide. Portfolio cash flow does not have to come entirely from distributions.
Possible portfolio roles
| Role | Examples | Purpose | Risk |
|---|---|---|---|
| Growth | Equity ETFs / funds | Long-term growth and inflation defense | High volatility |
| Stability | Bond ETFs / funds | Lower volatility and interest income | Rate, credit and FX risk |
| Balanced | Balanced / multi-asset funds | Integrated stock-bond allocation | Fees and allocation policy |
| Cash buffer | Cash / short duration | Avoid forced selling in a crash | Low long-term real return |
High distributions are not automatically safer
Taiwan's FSC has long reminded investors that a fund's distribution rate is not its return and distributions can, depending on policy, involve capital. A cash payout should therefore be evaluated together with NAV and total return.
Three cash-flow methods
- Natural income: dividends, interest and fund distributions.
- Scheduled withdrawals: sell units when natural income is insufficient.
- Cash bucket: keep a spending reserve so risk assets do not have to be sold during a downturn.
Inflation makes a fixed monthly payment less useful over time
At 2% annual inflation, a lifestyle costing NT$50,000 a month today would require about NT$74,300 in 20 years and NT$90,600 in 30 years to maintain similar purchasing power.
Official / primary references
A self-built monthly pension is not guaranteed. Sustainable cash flow depends on returns, inflation, longevity, fees, taxes and withdrawal behavior.