Quote:
Originally Posted by Unregistered
You have done well as a millionaire couple. If you want more income at 55, you can sell your condo upon reaching 55 and then downgrade to a 4 room hdb flat. This downgrading process will give you a net proceeds of $1m. Your savings could be $1m. In total you will have $2m for you to invest in 5% dividend yield stocks. Your passive income will be $100k pa. with this income you can retire very luxuriously. You can afford to continue owning a car. |
Hi all,
I'm a young professional and have been following this thread for some time now. I'm just curious as to why so many of the replies as quoted above seem to harbour a similar theme of downgrading to
HDB upon retirement to generate cash flow to invest in revenue-generating assets.
I am not sure if it is the same person providing this advice, and I am by no means an expert on the matter, but realistically, how many people (especially in Singapore) will feel comfortable downgrading after so many years of working, saving and financial planning to afford private housing, only to retire and have to downgrade to public housing? Further, how many of them would sell their home and move to a 3rd world country like Thailand/JB just so they can convert SGD to the local currency and feel rich? These ideas seem really ridiculous and careless to me, which is why I am asking if anyone actually does and if so, are you really happy?
I mean, the ones who have paid up private housing in Singapore will probably have life insurance and reasonably large nest eggs in
CPF anyway, not to mention their cash reserves are probably already being used to produce income from stocks/FD/etc..
Will be happy to debate the issue and see what you guys think of this.. Thanks!