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Old 10-10-2015, 04:17 PM
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Retiring in Penang is not a bad idea at all. For a retired couple, you just need RM3,000 per month. If you can generate S$1,000 per month of passive income, you can already retire. Many Singaporean retired couple rent out their HDB flat for S$3,000 per month and when they convert to RM, they get RM9,000 per month. So they can save RM6,000 per month.

Their expenses
1. Condo rent for a 3 bedroom unit RM1,000 per month
2. Car expense RM400 per month (assume they bought a resale car for RM30k paid in cash)
3. Food and utilities RM1,000 per month
4. Medical and misc RM600 per month

So, you don't need to save up to S$1m cash to retire. Your HDB flat is your asset.


Quote:
Originally Posted by Unregistered View Post
We are not as successful as you. We are around your age. Our retirement plan is to rent out our fully paid 5 room EA for $3k pm. On top of this we have other sources of passive income giving us another $2k pm. With $5k pm, we can get RM15k pm. We will then retire in Penang, where we can rent a big bungalow with swimming pool for RM5k pm. Our other expenses will be RM3k pm so our total retirement expenses will be RM8k pm. We will save RM7k pm. We envisage our children will be working and married when we reach 58. We will retire at that time. The bungalow will have 5 rooms so our children and our future grandchildren can visit us twice a year. They can enjoy the pool with complete privacy.

So we will have a luxurious retirement in Penang and living in a big bungalow. In Spore, such bungalows will cost $20m and above.
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