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#**5261** (**permalink**) 08-09-2014, 12:02 PM

Thanks for the effort in summarising. I have learnt a lot from the comments here.

Let me share with you our retirement plans. My wife and I will retire next year when we reach 60. Our kids are grown up and on their own with their young families. Our terrace house now feels too big for us, sometime it feels scary as there is no security. We used to live in a condo last time and we feel more secure in a condo.

We plan to sell our terrace (now worth $3mil, fully paid up) and move to a one bedroom newly TOP resort condo in Woodlands, costing only $600k. Our decision to move there is due to the big plans for the Woodlands Regional Centre. Also easy to maintain a small home.

We will invest $2m cash in blue chips that gives dividends of 4% pa or $80k pa. Our current spendings is $3k pm or $36k pa. Our kids now give us $1k each, so we get an additional income of $2k pm or $24k pa. So, our passive income will be $104k pa. We will then save $68k pa, which we will reinvest and gives us an additional income of $2.7k pa. This way, our passive income continue to grow until we die. Our kids will be very rich when we die.

Quote:

Originally Posted by Unregistered

Reading through the valuable gems from this thread, here are the summary of some retirement strategies:

1. Top up CPF SA so that you can enjoy the 4% risk free return early. If you are in your early 30s and you already have reached the min sum of $155k today, by the time you are 55, your CPF SA account will be a lot. Then when you are 65, you can collect lots of money every month until you die.

2. Downgrade to a smaller, cheaper home when you retire. You can sell your bungalow and downgrade to a smallish 2,000 sq ft condo penthouse. You then invest the rest of your cash in blue chips to give you 5% dividend yield returns. If you invest a modest $5m cash, you will get $250k pa, which is enough for you and your wife to enjoy a decent middle class retirement lifestyle.

3. Rent out your rooms in your HDB flat. If you rent out your room for $1000 per room, you will get an extra $2000 per month of passive income.

4. You do a lease buyback of your 4 or 3 room flats. You get an extra $500 - $700 per month.

5. Retire overseas. If you can generate $3k per month from your assets, you can retire in style in Chiang Mai, Thailand or in Ipoh, Malaysia. You can rent out your Queenstown flat for $4000 per month and convert to RM to get RM10,000 every month. This is a lot since you can rent a condo in Ipoh for RM1,000 per month. A 2nd hand car costs only RM10,000. With $3k per month, you can retire like a tycoon in Thailand, you can employ two maids and a gardener.

6. You can rent out your flat and live with your kids. Tell them to take care of you and you will bequeath to them your flat. You can also take care of your grandkids and enjoy their company.

So, there are many ways to retire, you just need to open your minds and don't be those who can't even retire with millions in their banks.