Calling it quits!

On the topic of calling it quits....

I too like some others here, set certain financial goals with respect to net worth.

Having achieved them, I started wondering about the "long term" with respect to where I should live.

We've broken the 8 figure mark (barely) and this was our goal. This is enough to be comfortable in sg but the question of is sg still right for us keeps cropping up.

We've both stopped accumulation mode so have kinda called it quits from that point of view.

Question now is whether we call it quits from sg... has anyone else here ever thought about leaving as well?

$10,000,000 is no big deal. You need at least $100,000,000 to retire. So can spend $2,000,000 a year for 50 years.

Originally Posted by Unregistered

On the topic of calling it quits....

I too like some others here, set certain financial goals with respect to net worth.

Having achieved them, I started wondering about the "long term" with respect to where I should live.

We've broken the 8 figure mark (barely) and this was our goal. This is enough to be comfortable in sg but the question of is sg still right for us keeps cropping up.

We've both stopped accumulation mode so have kinda called it quits from that point of view.

Question now is whether we call it quits from sg... has anyone else here ever thought about leaving as well?

Many people here talks about retirement. How much do you really need for retirement? It all depends on your retirement lifestyle. So, what's the typical average Singaporean retired couple's profile and how much do they need? Let's explore.

A typical, average heartlander retired Singaporean couple would be staying in a 4 room HDB flat which they bought cheap, direct from HDB many years ago and would be paid off fully by the time they retire (no more mortgage). They would most likely not own a car (a car is a luxury and not a necessity, especially for a retired couple) and do not employ a maid. They would do their own housework, which is not much for just two persons. They also cook their own meals or buy food from hawker centres.

How much are their expenses (TWO PERSONS ONLY)?

Groceries, hawker food, utilities - $1000 pm
Public transport (discount with PG card) - $100 pm
Medical - $200 pm
Medical insurance premium - $400 pm
Entertainment - $100 pm
Holiday travel (pro rated) - $200 pm
Total - $2000 pm

So, if they can earn a passive income of $2500 pm or $30,000 pa, they can retire before 65. If they don't have this passive income, they will have to retire at 65.

At 65, if they choose the Enhanced CPF Life, they will get $3,600 pm or $43,200 pa.

Hi Whizzard,

I'm in situation similiar to yours, struck at a crossroads. I wanted to ask if you were still active on the site and would it okay if I dropped you a message about some questions on how you handled your decision?

Regards
CR

Originally Posted by whizzard

When I first started my career, I wanted to make my first million by the time I hit 30.

During my 30s, whilst I focused on climbing the corporate ladder, I wanted to achieve financial independence. However, the goal post kept shifting higher and higher as Singapore entered a strong period of inflation.

I remembered my ex-boss who has since retired, telling me to ensure that I have enough "FO capital" so that when the time comes, I will not be beholden to my job. Unbeknownst to him, I have been busily planning and executing my own plans towards financial independence, but it was good advice nevertheless.

Decision to call it quits is a complicated one. My major concerns in this respect are:-
(1) What do you do after quitting? How do you meaningfully occupy yourself?
(2) When do you know whether you have enough financial resources to give up your career?
(3) Am I prepared to give up on my wealth accumulation by quitting?

The first question is not that easy to answer. However, I know what activities I would like to pursue (dependent upon my health and income) when I don't have to work:-
(1) travel
(2) sports - cycling, gym, golf, scuba diving
(3) study and learn something new that is unrelated to my professional career
(4) cook
(5) write
(6) manage my investments

My thinking around the second question is focused on a cashflow perspective. As long as the cashflow from my investment portfolio is able to generate more than what my family needs (with some leftover) with a strong degree of sustainability and recurrence, I would deem it sufficient.

However, the second question is also related to the third question, am I prepared to give up on my wealth accumulation? The current growth of my investment portfolio is facilitated by recycling 100% of my investment income and the leftover from my employment income.

Haiz ..... it's pretty darn difficult to give up on my employment income by calling it quits even if my investment income is sufficient to finance my family's lifestyle.

What are your concerns when you plan for your retirement?

[whizzard]

Hi Crossroads, sure. Happy to share if I can help.

Dear Whizzard,

Are you from FHAG?

Originally Posted by whizzard

Hi Crossroads, sure. Happy to share if I can help.

[whizzard]

What's FHAG ..... For Honour And Glory? No, whatever it means.

[crossroads]

Hi Whizzard,

Much appreciated, I registered and dropped you a message instead. Hope it fine, forum post is too public imo. Thanks!

Originally Posted by whizzard

Hi Crossroads, sure. Happy to share if I can help.

Originally Posted by whizzard

Hi Crossroads, sure. Happy to share if I can help.

I miss your posting Whizzard and I am sure many others do. If you cannot post your answers to Crossroads in public (I understand there may be sensitive matters), at least share with us your latest progress towards "Calling it Quits".

My passive income stream is closing in on 2x my annual family expenses and so there is always this temptation to call it a day. But peak earnings years mean that when one does the "potential savings forgone" type of calculation, it would look very painful. I am not living a luxurious lifestyle like yours so I think my family expense will be manageable. The reason I continue working and accumulating wealth is more out of prudence to cater for unforeseen events (medical bills, relatives in need of help etc.). Of course, after working and saving so hard for the past 25 years, I also hope to indulge in a bit luxury once in a while during my retirement years. The question for you Whizzard is what is the number that you are striving for now for you to call it quits?

[whizzard]

Originally Posted by Unregistered

I miss your posting Whizzard and I am sure many others do. If you cannot post your answers to Crossroads in public (I understand there may be sensitive matters), at least share with us your latest progress towards "Calling it Quits".

My passive income stream is closing in on 2x my annual family expenses and so there is always this temptation to call it a day. But peak earnings years mean that when one does the "potential savings forgone" type of calculation, it would look very painful. I am not living a luxurious lifestyle like yours so I think my family expense will be manageable. The reason I continue working and accumulating wealth is more out of prudence to cater for unforeseen events (medical bills, relatives in need of help etc.). Of course, after working and saving so hard for the past 25 years, I also hope to indulge in a bit luxury once in a while during my retirement years. The question for you Whizzard is what is the number that you are striving for now for you to call it quits?

I really don't have a number now. I tried it some years ago. That number came and went and yet I didn't dare to pull the trigger. Looking back with perfect hindsight, I am glad (financially) that I didn't do it.

Inflation is a monster!! Being able to spend without having to think too much about it is another "luxury". A regular pay-check helps a lot with both examples.

Yes, peak earning years. They only come once and if you let it go, the opportunity costs is very high. We all work to put a few meals on the table for our family, unless your work defines who you are. We work whilst we are still able and wanted. There will come a day when we can't or don't want to. If it hasn't come yet, don't have to force the issue yet.

BTW, my lifestyle not "luxurious" lah. I am just another average Joe making his way in this world.