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Old 26-12-2014, 10:03 AM
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Originally Posted by Unregistered View Post
There are a range of earners in this forum. The high income people earn as much as $800k pa while the low income people earn only $30k pa. Despite the differences in their earnings, their goal is the same, which is to prepare for retirement.

What is important is to know where you are today and what you are expected to have when you reach retirement age at 65. Based on what you are expected to have then you envisage your retirement lifestyle. What you are expected to spend during retirement will be much lesser compared to now in most cases as your retirement income is likely to be a lot lesser than what you are earning now.

For those who have a lot of assets by the time they retire can enjoy a luxurious retirement. For instance if you have $4m in investments giving you 5% dividend yield, then you get $200k pa of income which allows you to retire in comfort. You can still own a car, employ a maid, go holidays many times a year, eat at high class restaurants often, etc.

However, for those with lesser means and earn a passive income of $36k pa, then you can only retire simply. You can only eat at hawker centers most of the time, no car, no maid, short holidays once a year in cheap locations, etc.

While both have different retirement lifestyles, both can be happy because happiness is not about you have but about how contented you are in your heart. So, while you work hard now to provide for a comfortable retirement, don't work too hard until you neglect your health and family. There needs to be a balance in your life. Life is a journey.

For me, I plan to have a moderately comfortable retirement lifestyle. I envisage that I will be getting about $6k pm or $72k pa of passive income when I retire and this includes my CPF Life payout but excluding allowance from our children (it will be a bonus if they do give). I will likely be moving to a studio condo located next to an MRT station and near to amenities such as wet market, malls, hawker centers, etc. I will hence not own a car and not employ a maid. We will eat at hawker centers or cook our own meals.
Nice post.

Certainly better than the car salesperson post about using "profit" from "flipping" BTO to buy a car!!

If you make $800k pa, cars are passé. If you make 30k pa and you make a "profit" by selling your BTO, don't you think you would rather save the "profit" up??

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