We are in our early 40s. My decision to cash out is because my stocks are overvalued. So the best is to deploy my cash in undervalued assets such as a condo in Singapore. When we buy our condo, it will serve as two purpose - consumption since we get to enjoy it and for investment since it will appreciate over the long term. Since we will pay off in full,we will be debt free and can save a lot. We hope to save $100k pa over the next 20 years. When the stock market corrects, we will accumulate stocks again with our cash. Our combined income of $20k per month is not much but more than enough. We are not rich, just a middle income family. Our current net worth is only about $3m, just a small amount.
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Originally Posted by Unregistered
How old are you? Unless you are in your mid 30s to early 40s it is not wise to move from an investor mind set to a consumer mind set. An investor mind set is one who make their money work for them, while a consumer mind set work for their money. When younger you got a lot of time to build up another pile of money to invest but not when you are above 50.
Having said the above, it good to balance between saving and enjoying the fruits of our hard work. They are people who saved all their lives and never got the chance to enjoy their wealth.
Agreed that condo living is fantastic, but you must find the right condo (well managed, convenient location, adequate car park lots, full facilities, good security, spacious grounds, good neighbourhood, reasonable maintenance fees).
Also living in a fully paid up condo is only part of the success criteria. The other part is to earn a good salary. The average household income among condo dwellers is $19,500 pm.
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