Quote:
Originally Posted by Unregistered
We are the typical middle class couple, 42/ 40, earning $120k pa in total. We live in an EC and have 3 children in primary schools. We are still servicing the $450k mortgage of our EC and has about 20 years more to clear the mortgage. We also have a $50k car loan.
We manage our budget carefully and able to save $30k pa. We hope to accumulate $600k by the time we retire at 65. We will buy dividend stocks with 5% dividend yield to give us $30k pa or $2.5k pm. Our CPF Life will give each of us $1900 or $3.8k as a couple. Our 3 kids will each give us $600 as allowance, or $1800 pm. So in total passive income is $8.1k pm. This should be enough but if not we will rent out two of our rooms at $1500 pm for each room. |
Hey! In 25 years time, 15% of those male at 42 yo now will be dead, 10% female at 40 yo now will be dead. Sing dollar may not sustain its value (Just see value of HK$ vs RMB now). Cost of living will beyond normal means of subsistence. Children then will all become DINK, hardly can afford to raise a child (just compare with Belgium right now). Everybody will have to move out from CBD or half the salary will go to rental/mortgage. All will be working in Singapore but staying in JB.
CPF Life MS will be 760k for you and your wife at 65 yo in order to ge 3.8k a month. 600k will not last you 10 years!
Still expecting contribution from children? How much do you plan to spend on their education? Are your children going to stay in 400 sf ft apartment like Hongkong now?
Small income better be more prepared for your retirement. You may end up with a condo (high asset value) but not much money to spend. So don't talk too much about having how much, how much net worth. Net worth is meaningful only if all your asset minus the dwelling you intend to stay in.