Excellent retirement plan. When you downgrade to a one bedroom unit, you must consider condos next to an
MRT station so that you can move around easily and you don't need to own a car. Get also condos near amenities. If you live in the West, you should consider condos such as J Gateway, Centris, Lakefront Residences and Caspian. These condos are next to
MRT stations and there are many amenities near them.
Quote:
Originally Posted by Unregistered
Married couple, 43 & 45 yo, with annual income at the lower end of the middle income group, only $170k pa. Upgraded to a cheap condo in 2006, now condo is paid up and valued at $1.2m. Other assets include some stocks, cash and CPF savings, $600k in total. Our combined net worth is $1.8m. We save $50k pa.
We are thinking of retiring at 55. We plan to sell our big condo and move to a smaller condo as our children will be working grown ups who are likely to be married by then and living in their BTO flats. With the extra cash savings of $500k over the next 10 years and plus the net proceeds of maybe $500k after selling our big condo and buying a one bedroom condo, we will have $1m cash. If we spend $50k pa (just husband and wife expenses) for 10 years, we will spend $500k in total between age 55 to 65. We still have $500k balance. At 65, our CPF Life will pay us maybe $3500 pm. Our children will each contribute $1000 pm and so in total our passive income will be $5500 pm or $66k pa. Our spending may increase to $60k pa. |