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Old 12-08-2014, 08:25 AM
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There are many in this forum who are rich millionaires with no problem retiring. For average guys like myself, we have few options.

Here's today's average typical guy circumstance when he and wife retire at 65:

1. Owns a HDB flat, 4 room, fully paid up.
2. Has the min sum in CPF SA. Today the amount is $155k. When he reach 65, he will get $1200 pm from CPF Life. Husband and wife has SA each so can get $2400 pm in total.
3. Investments in blue chip stocks worth $240k, giving dividend of $12k pa pr $1000 pm.
4. Two children who are working and giving allowance to him and wife.

So when he and wife retire, they can get passive income from:

1. Rent out two rooms of HDB flat, gets $600 per room or $1200 for both rooms, pm.
2. CPF Life payout of $2400 pm.
3. Dividends from blue chips $1000 pm.
4. Allowance from children $1000 pm.

In total, he and wife will get $5,600 pm or $67,200 pm. This is a comfortable passive income for the retired couple provided they don't drive, don't have a maid, don't gamble, don't drink, don't smoke and don't waste money on stupid things.

Conditions required for this to be possible:

1. The property market is not mismanaged with oversupply until it crashes and that will cause rental market to crash.
2. The flow of FTs must increase so that FTs can rent the rooms.
3. The stock market do not crash and cause dividends to crash.
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