for this 55 year old couple, to retire is simple. sell their condo, get $1.5m. buy a condo studio unit to stay (cost only about $600k in woodlands, yishun, bukit panjang, changi) and invest $900k in 7% investments (gives $63k pa). annual spending should only be about $40k. no need car, cook simple meals and just spend relaxing in condo gym and pool. problem solved.
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Originally Posted by Unregistered
Did another case, this time for a couple living in a condo. More "atas" with higher net worth. Yah yah papaya.
Professional couple living in $1.5m condo. Retired at 55.
CPF minimum sum = $296k (total for both)
Medisave minimum = $81k (total for both)
Net worth : $2.5m
Emergency fund : $80k
cash available for investment : ($2.5m - $1.5m - $296k - $81k - $80k) = $543k
$543k Invested in stocks (Reits) @ 7% returns : $38k pa
Yearly expenses: $80k
Shortfall : $42k pa.*
To make up the shortfall, chip into emergency fund - gone in 2 years.
Start to chip into invested fund : deplete in another 8 years.
Annuity life kicks in at 65. Expected Payout for couple : $36k pa.
Shortfall : $44k pa.
Downgrade from condo to HDB to free up more cash to last remaining years
Bottomline : at the end of the day, cannot hold on to condo, but still got more room to manoeuvre than HDB couple.
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