Whats your net worth - Page 207 - Salary.sg Forums
Salary.sg Forums  

Go Back   Salary.sg Forums > The Salary.sg Discussion Forums: > Investments and Net Worth

Investments and Net Worth Talk all about money making exploits, shares, property and building net worth




Whats your net worth

Reply
 
Thread Tools
  #2061 (permalink)  
Old 29-10-2014, 09:04 AM
Unregistered
Guest
 
Posts: n/a
Default

Since you are now rich, have you ever thought of living in a GCB with your own swimming pool and gym? GCBs are now quite cheap.

Quote:
Originally Posted by Unregistered View Post
It is not so important as to where you stand now, what is more important is your growth/career potential.

Let me explain. I grew up in a kampung at a time where if you have completed "O" level your parents expected to go out and work and support the family.

My neighbours did just that. After "O" levels they started work. Within a few years, you can see them buying new TVs, sofas and other household appliances. For us, my parents believed we should continue with our studies where our results permitted. And study we did, all the way up to our honours degree, all this while still living in our old home with all the old appliances.

When we graduated and started work, some of our neighbours even managed to own cars. In their eyes, we were very far behind in status. I remembered one of my neighbours even told my mother "what's the use of studying so much? Look at my son, got his own flat already and bought a car also".

Fast forward 30 yrs, the kampung is no longer around, all of us resettled to HDBs. We are now staying in a condo, have 2 cars and our net worth is above $5m. My neighbours are still staying in their 4 room HDBs and the sons have been drifting from job to job with long stretches of unemployment. I am not saying this to look down on them, but to highlight that measuring your success at one point in time is not indicative of where you will head in future. Your career potential, investments and health are other important factors. You may be ahead today, but tomorrow, you will fall behind.

In fact, don't compare with others, just do your best, don't rest on your laurels, but enjoy the journey!

Reply With Quote
  #2062 (permalink)  
Old 29-10-2014, 01:35 PM
Unregistered
Guest
 
Posts: n/a
Default

$5m combined net worth is nothing. $5m net worth per person is the least to be considered rich in Singapore. You need to work harder until the age of 80 before you can retire. By 80, your combined net worth should reach $20m. This is enough for you to retire. You can then leave behind $19m for your kids so they too can retire.

Reply With Quote
  #2063 (permalink)  
Old 30-10-2014, 07:00 AM
Unregistered
Guest
 
Posts: n/a
Default

A good plan is one where you start with achievable small steps. You will build up your confidence when you achieved the small targets. Also assess whether you really need that much money. Setting an unrealistic target will only mean disappointment for yourself and prevent you from enjoying the little gains you made in the process.

Thus, instead of setting a target of $20m, aim to save $100k each year. If already achieved, then raise the bar to $200k and so on.

For our case, early in our career, we were thrilled when we were able to meet our savings target of $50k pa. We then upped the target by another $50k for the next year. To cut the long story short, we are now achieving $350k savings each year. Thanks also to a healthy passive income stream.

I can imagine that we will be miserable if we stupidly set $20m as our target from the start knowing that it will be almost impossible to meet. As it is, with our small targets each year, we will always celebrate whenever we achieved one.

Try it and you will not feel so miserable and bitter.

Quote:
Originally Posted by Unregistered View Post
$5m combined net worth is nothing. $5m net worth per person is the least to be considered rich in Singapore. You need to work harder until the age of 80 before you can retire. By 80, your combined net worth should reach $20m. This is enough for you to retire. You can then leave behind $19m for your kids so they too can retire.

Reply With Quote
  #2064 (permalink)  
Old 30-10-2014, 10:33 AM
Unregistered
Guest
 
Posts: n/a
Default

The key to retirement is expenses. As long you can meet your expenses whether from your passive income or drawdown of your savings, then you can retire. However, it is recommeded that you depend on your passive income to meet your expenses since if you depend on your savings, it may be gone one day while you are still alive. So, build up your investments in high dividend yield stocks over many years and one day your dividends will be higher than your expenses. Then you can retire.

There are people who live simple lives and they need only $3k pm to retire as a couple. So if they have investments which give them dividends of more than $36k pa, they will be ok. If they want more income, they can rent out their spare rooms in their hdb flat to FTs and they can get $800 pm for each room. FTs are important for our old retirees to depend on.
Reply With Quote
  #2065 (permalink)  
Old 30-10-2014, 12:17 PM
Unregistered
Guest
 
Posts: n/a
Default How much do you need to retire?

This is such an interesting thread with plenty of good points.

Sorry if this post takes the discussion on a different track.

I was wondering what the general view was on how much one would need to retire.

From my point of view, retirement is not ceasing work. It's about taking time to enjoy life, and doing things for pleasure as opposed to being obligated to do something. Freedom perhaps.

As I examined my own situation, it boiled down to what lifestyle I would want and how much I would need to fund it via passive income. I think the net worth part is the smaller part of the equation because it's how much you would like to spend that should drive the net worth component.

In addition, I see one's primary residence as almost inconsequential in determining if one is well prepared to retire because unless one is ready to downgrade, and incur all the associated costs of making the switch, both financial and emotional, the value of your primary residence will not put food on the table.

I remember reading a book about personal wealth, and it said most prudent and down to earth "wealthy" people live in a home that is worth no more than 20% of one's total net worth. I guess in Singapore, this % gets skewed but wonder how far it should be stretched...the more you allocate to the roof over your head, the less you have to provide you with an alternative source of income.

I also recall the value of one's car should be like 5% or less of one's net worth.

So I kinda tried to apply these guidelines +/- as I was planning my own scenario, using annual anticipated expenditure to derive the size of an income generating portfolio and came up with these numbers:

Value of primary residence 1.5m
Value of income generating portfolio 7m (zero real estate)
Target yield 4% or 280k which more than covers my household expenditure.
Simple used japanese car - value probably not much now.

I am in my mid 40s now, wife is slightly younger. We've just about achieved this target and now contemplating entering the new phase of our lives which basically entails not being bound by an employment contract or obligations to business partners. We kinda know what we want to do with our time, and it won't involve chasing any more dollars.

I was wondering what general views were on how much one would need to retire comfortably, when would you stop "working", etc and perhaps, what instruments one would use to generate one's retirement income.


Primary School English Grammar and Vocabulary Drills
Primary School English Grammar and Vocabulary Drills


SG Bus Timing App
SG Bus Timing App - the best bus app - available on iOS and Android


Bursa Stocks Android App - check share prices
Bursa Stocks [Android] App - check latest share prices on the go


SGX Stocks Android App - check share prices
SGX Stocks [Android] App - check latest share prices on the go


SGX Stocks for iPad - check latest Singapore share prices
SGX Stocks [iPad] app
| SGX Stocks [iPhone] app
Reply With Quote
  #2066 (permalink)  
Old 30-10-2014, 04:06 PM
Unregistered
Guest
 
Posts: n/a
Default

You can definitely retire now. Your passive income of $280k is a lot. As you get older and your kids move out and your parents pass on, you will have less financial responsibilities. A couple can easily retire with a passive income of $100k pa provided they are debt free and do not have luxuries such as a car and a maid. Food, utilities, condo maintenance, medical, insurance, etc will be $5k pa the most. The rest of passive income can be spent on holidays and entertainment.

Can you share how do you accumulate so much at such a young age?


Quote:
Originally Posted by Unregistered View Post
This is such an interesting thread with plenty of good points.

Sorry if this post takes the discussion on a different track.

I was wondering what the general view was on how much one would need to retire.

From my point of view, retirement is not ceasing work. It's about taking time to enjoy life, and doing things for pleasure as opposed to being obligated to do something. Freedom perhaps.

As I examined my own situation, it boiled down to what lifestyle I would want and how much I would need to fund it via passive income. I think the net worth part is the smaller part of the equation because it's how much you would like to spend that should drive the net worth component.

In addition, I see one's primary residence as almost inconsequential in determining if one is well prepared to retire because unless one is ready to downgrade, and incur all the associated costs of making the switch, both financial and emotional, the value of your primary residence will not put food on the table.

I remember reading a book about personal wealth, and it said most prudent and down to earth "wealthy" people live in a home that is worth no more than 20% of one's total net worth. I guess in Singapore, this % gets skewed but wonder how far it should be stretched...the more you allocate to the roof over your head, the less you have to provide you with an alternative source of income.

I also recall the value of one's car should be like 5% or less of one's net worth.

So I kinda tried to apply these guidelines +/- as I was planning my own scenario, using annual anticipated expenditure to derive the size of an income generating portfolio and came up with these numbers:

Value of primary residence 1.5m
Value of income generating portfolio 7m (zero real estate)
Target yield 4% or 280k which more than covers my household expenditure.
Simple used japanese car - value probably not much now.

I am in my mid 40s now, wife is slightly younger. We've just about achieved this target and now contemplating entering the new phase of our lives which basically entails not being bound by an employment contract or obligations to business partners. We kinda know what we want to do with our time, and it won't involve chasing any more dollars.

I was wondering what general views were on how much one would need to retire comfortably, when would you stop "working", etc and perhaps, what instruments one would use to generate one's retirement income.
Reply With Quote

  #2067 (permalink)  
Old 30-10-2014, 04:48 PM
Unregistered
Guest
 
Posts: n/a
Default

A friend of mine, an ex investment banker, retired at 42. He now spends his time volunteering at charitable organisations. Salute.
Reply With Quote
  #2068 (permalink)  
Old 30-10-2014, 05:12 PM
Unregistered
Guest
 
Posts: n/a
Default

Hi,

thanks for the replies.

To the first respondent, I was a corporate rat for many years and made little progress with respect to wealth accumulation. I left that life in my mid 30s with perhaps 100k? of nett worth? I embarked on a few business, the first few wiped me out and more. Then I found one that worked and although it did not last very long (less than 3 years), I milked it for all it was worth.

When that business failed (it was a matter of time), I reinvested in a couple of other businesses and one did well. It wasn't really rocket science.

To the second respondent, yes, I do admire people who give back to society. I feel very fortunate as an individual and although I don't consider myself "rich", I mean there are loads of people on this forum and out there who have far more, I feel it's more than enough and it's time to give back to society.

I guess nett worth is only a number, I pursued it as I had certain goals, and now that's done, I think it's time I spend my time and energy giving back. It's how we live our lives and what good we do that matter more...at least to me...
Reply With Quote
  #2069 (permalink)  
Old 30-10-2014, 10:44 PM
Unregistered
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by Unregistered View Post
Hi,

thanks for the replies.

To the first respondent, I was a corporate rat for many years and made little progress with respect to wealth accumulation. I left that life in my mid 30s with perhaps 100k? of nett worth? I embarked on a few business, the first few wiped me out and more. Then I found one that worked and although it did not last very long (less than 3 years), I milked it for all it was worth.

When that business failed (it was a matter of time), I reinvested in a couple of other businesses and one did well. It wasn't really rocket science.

To the second respondent, yes, I do admire people who give back to society. I feel very fortunate as an individual and although I don't consider myself "rich", I mean there are loads of people on this forum and out there who have far more, I feel it's more than enough and it's time to give back to society.

I guess nett worth is only a number, I pursued it as I had certain goals, and now that's done, I think it's time I spend my time and energy giving back. It's how we live our lives and what good we do that matter more...at least to me...
Inspiring story. How much cash did you use to invest in your first few businesses?
Reply With Quote
  #2070 (permalink)  
Old 31-10-2014, 06:56 AM
Unregistered
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by Unregistered View Post
You can definitely retire now. Your passive income of $280k is a lot. As you get older and your kids move out and your parents pass on, you will have less financial responsibilities. A couple can easily retire with a passive income of $100k pa provided they are debt free and do not have luxuries such as a car and a maid. Food, utilities, condo maintenance, medical, insurance, etc will be $5k pa the most. The rest of passive income can be spent on holidays and entertainment.

Can you share how do you accumulate so much at such a young age?
Never believe everything you read here.
Reply With Quote
Reply

Bookmarks

Tags
net wealth, net worth, networth

« Previous Thread | Next Thread »
Thread Tools

Posting Rules
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Calculate Net Worth and Benchmark It Salary.sg Investments and Net Worth 16 23-09-2023 10:41 PM
legal profession not worth it? alarme Income and Jobs 3 05-04-2010 03:35 PM

» 30 Recent Threads
Is getting a PMP worth it ?
4 Replies, 7,090 Views
Q: Big4 - Yearly salary increment ( 1 2 3... Last Page)
15,309 Replies, 4,983,364 Views
Lawyer Salary ( 1 2 3... Last Page)
21,014 Replies, 10,329,376 Views
GovTech ( 1 2 3... Last Page)
5,161 Replies, 2,163,585 Views
Career as Teacher ( 1 2 3... Last Page)
10,833 Replies, 6,666,202 Views
MAS for Mid Career Professionals ( 1 2 3... Last Page)
1,801 Replies, 1,044,064 Views
LTA (Land Transport Authority) ( 1 2 3... Last Page)
679 Replies, 388,369 Views
Visa Graduate Development Program ( 1 2 3... Last Page)
207 Replies, 134,584 Views
SIM-UOL fresh grad starting pay ( 1 2 3... Last Page)
6,922 Replies, 2,902,639 Views
UOB Management Associate Program ( 1 2 3... Last Page)
1,455 Replies, 784,424 Views
Nparks ( 1 2 3... Last Page)
39 Replies, 34,376 Views
MINDEF DXO (All FAQ on it) ( 1 2 3... Last Page)
5,828 Replies, 4,656,825 Views
ITE Polytechnic Scheme ( 1 2 3... Last Page)
309 Replies, 369,022 Views
Civil Service Performance Bonus ( 1 2 3... Last Page)
5,338 Replies, 4,770,429 Views
Compare civil service salary ( 1 2 3... Last Page)
16,342 Replies, 12,455,238 Views
Civil Service Current Estimated... ( 1 2 3... Last Page)
169 Replies, 309,138 Views
Constituency Manager (People... ( 1 2 3... Last Page)
989 Replies, 813,930 Views
Julius Baer Graduate Program 2023 ( 1 2 3)
21 Replies, 14,806 Views
Roles in accenture singapore ( 1 2 3... Last Page)
7,385 Replies, 2,324,153 Views
HTX (Home Team Science and... ( 1 2 3... Last Page)
752 Replies, 358,420 Views
Shopee fresh grad pay ( 1 2 3... Last Page)
1,049 Replies, 440,572 Views
DSTA (under Mindef) ( 1 2 3... Last Page)
1,464 Replies, 1,375,219 Views
ST Electronics ( 1 2 3... Last Page)
3,767 Replies, 1,544,641 Views
IMDA (under MCI) ( 1 2 3... Last Page)
1,260 Replies, 613,588 Views
Civil Svc/ Statboard - Typical... ( 1 2 3... Last Page)
6,123 Replies, 3,738,515 Views
MX12 reappointed at MX11
8 Replies, 816 Views
Hospital (Private or Public)... ( 1 2 3... Last Page)
749 Replies, 405,529 Views
NCS (SingTel subsidiary) ( 1 2 3... Last Page)
1,329 Replies, 1,142,141 Views
MFA- Foreign Service... ( 1 2 3... Last Page)
54 Replies, 84,975 Views
Cybersecurity/Info security career ( 1 2 3... Last Page)
511 Replies, 268,601 Views
Powered by vBadvanced CMPS v3.2.2



All times are GMT +8. The time now is 04:10 AM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.3.2