Salary.sg Forums - View Single Post - How much are you earning per annum?
View Single Post
  #10943 (permalink)  
Old 27-03-2017, 11:10 PM
Unregistered
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by Unregistered View Post
Looks like we have different priorities.
My wife and I look forward to a longer retirement.
We also don't need a car and we prefer our privacy.
We also don't intend to leave so much behind for our children after our demise. Let them work hard as just like us.
There are a few subjects here, each worthy of a lengthy discourse by itself. Let me just focus on one first - retirement.

Retirement
A well planned retirement where one finds fulfillment and happiness is what we all want. It is one where we look forward to waking up each day to do something meaningful or just to have time for ourselves. Yes, I do dream of such a retired life, where I am not always rushed for time or worrying about unfinished or urgent work.

On the other hand, hurrying into retirement without any idea what one is to do or occupy your time can be detrimental to your physical and mental health. Worse if the money is inadequate. And here in lies the problem :

The earlier you retire (for eg at 50), the lower your savings, and the longer time (35 to 45 years) you have in retirement. This makes for a recipe for a financial disaster. By the time you realise your funds are inadequate, you could be too old (70s) to get back into the workforce for meaningful work.

The later you retire (eg 62), the more you can save, and the shorter your retirement life (30 to 35 years).

It is always better to outlive your savings than to have to starve and beg for money in your old age.

The more money you saved for retirement, the more options you have in retirement. Be it travelling, contributing to charity or taking up new hobbies. Money and the options it provide will give you dignity and freedom to live the lifestyle you want without always worrying money, counting every cent you spent.

For me, to avoid running out of money in my retirement years, I am doing this two things:-

1. Maximise the golden period (from age 55 to 62). This is the period where my financial obligation and liabilities taper off and my salary peaked. I see my savings rate accelerates.

2. Ensure that I invest my savings to earn passive income and that the passive income can cover my annual expenses. When this happens, my principal amount will not be eroded over time and if invested in growth instruments, the value may even appreciate over the long term.

Leaving money behind for your children is a different topic for another post.



Primary School English Grammar and Vocabulary Drills
Primary School English Grammar and Vocabulary Drills


SG Bus Timing App
SG Bus Timing App - the best bus app - available on iOS and Android


Bursa Stocks Android App - check share prices
Bursa Stocks [Android] App - check latest share prices on the go


SGX Stocks Android App - check share prices
SGX Stocks [Android] App - check latest share prices on the go


SGX Stocks for iPad - check latest Singapore share prices
SGX Stocks [iPad] app
| SGX Stocks [iPhone] app
Reply With Quote