Our mental model on financial management is not to divide between what is mine and my spouse. We pool together for better management and investment as we find it advantageous especially when you want to go after bigger investments.

We dont have a target net worth amount. Instead we set a target for passive cash flow to sustain us in our retirement. And it is not a fixed amount, but one that must keep pace with inflation.

Our target passive cash flows are $120K pa at 55 rising to $160k at 65 (including $28K from CPF Life annuity). The amount are based on 2014 dollars, meaning they would have to keep pace with inflation! We are on target so far.

If we divide our net worth equally, it would be $2.8M each. We know we are not fully maximising the returns as $2M comes from the value of our home. As part our retirement plan, we intend to eventually rent the apartment out for rental income and stay in a smaller home when our children move out to start their own families. We could thus increase the passive cash flow without increasing our net worth.