Quote:
Originally Posted by Unregistered
I thank the many people here who share their finances. I'm motivated to share ours to get opinions on how our situation is.
Age: Mid 40s.
Married couple with two children.
We earn $15k pm (total annual income divided by 12). We save $3k pm.
Home: Mass market condo, less than 5 years old, worth $950k. Mortgage outstanding $190k. Mortgage instalment $1200 pm using CPF. MSR (mortgage servicing ratio) = 8% only.
Car is fully paid up in cash.
Cash and CPF savings in total $600k.
Total net worth (condo net asset value + cash + CPF + car) $1.43m.
We are almost debt free, our only loan is the $190k outstanding condo mortgage.
We save $36k pa. Our TDSR (total debt servicing ratio) is only 8%. Current ruling on TDSR is 60%.
How are we doing financially? Any financial experts here? |
You need to save more to achieve min $2m by 55yrs old. Based on your info, assuming you have zero
cpf gain (all go to service your loan), you will have $360k savings for next 10 yrs which will up your net worth to $1.8m. But wait, you shld omit the car as that's not an asset. By right your condo shld be omitted too. But for simplicity, lets put the house in. You next need to plan your retirement expenses. Have you opted for the enhanced
CPF? You will have a certain mth sum after 65yrs. Whether you need more depeneds on your lifestyle, health and your topup affordability. From 55 to 65 you also need to ensure you have adequate funds to support your lifestyle. You need to realise that one shld plan assuming your income or employability stop at 55 yrs based on the pessimistic scenario...of course any income beyond this will be a bonus. The other consideration wld be the children education fund. Setting aside $100k for each children wld be good if you can.