Quote:
Originally Posted by Unregistered
Married working couple, 53 & 50.
Total income, $200k pa.
Accommodation is a private condo, worth $940k.
Mortgage left, $179k. Spends $12k pa in mortgage payments.
Car is paid up. Spends $12k pa to maintain and operate.
Supporting parents financially, both sides. Spends $20k pa.
Holidays, twice a year. Spends $12k pa.
Total spending, $150k pa.
Total savings, $50k pa.
Total net worth, $1.2m.
Are we doing well since our total net worth is more than $1m?
When and how can we retire?
Please comment. Thank you.
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The short answer is you can retire now if you want to. The long answer is what kind of lifestyle do you expect after retirement. Work out how much you need to spend a year when you retire and start from there.
Without knowing how much disposable savings you have for investment, let's take $1m net worth as a base. At 5% returns, you will have $50k pa (and that's pretty conservative if you are a savvy investor) but I doubt you have $1m to investment since that is your net worth.
To retire now, downgrade to a
HDB and take the maximum loan you can find. Adjust your lifestyle and reduce your expenses to less than $100k pa. Put all your money in passive investment that generates >$100K predictably and you'll be fine.