Quote:
Originally Posted by Unregistered
In order to retire, we must first be debt free. No house loan, car loan, personal loan.
Next, we must have enough savings or passive income to last us for many years.
First goal - pay our HDB loan
Second goal - pay our other loans
Third goal - save money
Fourth goal - invest
How much to save? How much to invest?
It depends on how much you need when you retire.
If we need $3k per month from age 55 to 65, we will need $360k. After 65, we will get our CPF Life until we pass away. |
You are very old school.
If you know how to leverage (on cheap loans), you can retire comfortably and early as well. In Singapore, home loans are among the cheapest loans one can get anywhere.
Instead of paying up on property loans, use the money to invest for higher returns.
This is what we are doing now and making our money work for us in 3 ways simultaneously.
1. Property earning rental income
2. Money invested in bonds for 5% returns (instead of paying up property loan)
3. Property price appreciation