How much are you earning per annum?

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.

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.

Had lunch with 2 other colleagues the other day. One was 36, with children in primary school and the other, a fellow mid 50s guy with one child in Poly and an older one working. We had an interesting conversation.

The 36 yo guy was sharing that once his kids grow up he would sell off his car and not drive anymore to save money. He would not want to have a maid also.

The mid 50s guy laughed, and told the 35 yo guy that his thinking will change as he gets older. The mid 50s said that he bought himself a BMW on his 55th birthday to reward himself after 30+ years of slogging. He said they will keep employing a maid so that he and the wife will have more time for themselves. They would want to travel more upon retirement.

He added that he worked hard, saved hard and invest all through his working life for this - to live a life of comfort and now in mid 50s, it is time to pamper himself. Because, after all, when you have enough you should reward yourself every now and then.

I supposed it is all about balance. For myself, I am very satisfied with my Camry and I dont have any desire to own continental cars. But I agree on having a domestic helper even in our retirement, so that we can pursue our hobbies and other activities. For our holidays, we would want to stay in good hotels and not hostels.

The more you save, the harder your money works, the more you can enjoy and pamper yourself in retirement.

Thank you for the comments and assurance. I'm looking forward to retirement. Maybe I will retire in 5 years time at 58. We hope to clear all our debts by then. In retirement, I will just need the expenses below for the two of us. Our kids should be on their own by then.

We will retire in our 3 bedder condo. We do not want to downgrade to a HDB flat as we enjoy our condo facilities, especially the gymnasium and condo pool.

Food $600 pm (mostly cook at home and occasionally go to restaurants)
Utilities, condo fees, mobile phone, etc $500 pm
Public transport $100 pm
Insurance and medical $800 pm
Holidays $400 pm ($4800 pa - enough for regional holidays in 5-star luxury hotels for two persons. Will go during non peak seasons to enjoy good bargains. Also not crowded.)
Misc $100 pm
Total $2500 pm

We will need $30,000 pa or $210,000 over 7 years before we reach 65. This will be covered by our savings. We will choose the ERS so we will get $45,600 pa from our CPF Life when we reach 65.

Originally Posted by Unregistered

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.

Originally Posted by Unregistered

Thank you for the comments and assurance. I'm looking forward to retirement. Maybe I will retire in 5 years time at 58. We hope to clear all our debts by then. In retirement, I will just need the expenses below for the two of us. Our kids should be on their own by then.

We will retire in our 3 bedder condo. We do not want to downgrade to a HDB flat as we enjoy our condo facilities, especially the gymnasium and condo pool.

Food $600 pm (mostly cook at home and occasionally go to restaurants)
Utilities, condo fees, mobile phone, etc $500 pm
Public transport $100 pm
Insurance and medical $800 pm
Holidays $400 pm ($4800 pa - enough for regional holidays in 5-star luxury hotels for two persons. Will go during non peak seasons to enjoy good bargains. Also not crowded.)
Misc $100 pm
Total $2500 pm

We will need $30,000 pa or $210,000 over 7 years before we reach 65. This will be covered by our savings. We will choose the ERS so we will get $45,600 pa from our CPF Life when we reach 65.

You will need to factor in inflation, emergencies and medical as you age. That being said, you are financially better off than most people. Stay safe.

In you're interested, check this site out and see if his methods might work for you between now and retirement.

joblessinvestor.blogspot.sg

27yo Male, 3 years HR experience

I make about 68k pa (excluding bonuses)

Bonuses ranges between 4-6 months.

Salary increment average ard 7% pa.

Any advice on future career pathways if I wanna continue on with HR consultancy?

Many of us worked very hard all our lives. From Primary school all the way to the workforce, we worked hard. So it is natural that many of us want to retire at 55, the time when we can collect our CPF. How can we retire at 55? Here is the way.

1. Study hard and work hard. Get good jobs.
2. Marry a good spouse who is also working.
3. Buy a cheap BTO 4 room HDB flat at 30. Get those costing $200k plus. Very cheap.
4. Stay in flat and pay the mortgage within 25 years time. Can pay using CPF easily.
5. Save $30k pa in cash. After 25 years, you save $750k.
6. Choose the ERS for your CPF Life. You get about $1900 pm for each person. So, you and spouse will get $3800 pm or $45.6k pa in total as a retired couple.
7. At 55, you and spouse can retire since you have $750k in cash. If you need $50k pa in expenses, you will only spend $500k from 55 to 65. You still have $250k to take care of future inflation.
8. At 65, you get your CPF Life.

How to save $30k pa in cash? Easy.

1. Don't own a car. It will cost you $2k pm or $24k pa to own and use the car. Over 25 years, you save $600k.
2. Don't employ a maid. It will cost you $1k pm or $12k pa. Over 25 years, you save $300k.
Total savings from not owning a car and not employing a maid is $36k pa. Over 25 years, you save $900k.

How to save more?

1. Don't go expensive holidays. Instead of spending $10k pa on holidays, just spend $5k pa. You save $5k pa and over 25 years, you save $125k.

2. Don't buy expensive luxury bags and shoes. Don't spend $5k pa on these. Make do with cheaper bags and shoes and spend $1k pa. You save $4k pa and over 25 years, you save $100k.

3. Don't smoke and drink. Let's say you spend $500 pm on cigarettes and alcohol. If you stop these, you save $6k pa and over 25 years, you save $150k.

4. Don't gamble. Let's say you spend $300 pm on gambling. If you stop gambling, you save $3600 pa and over 25 years, you save $90k.

So, if you follow all the above, you can save $1.365 million over 25 years.

This shows everyone with a decent salary can save a lot but most people will overspend. They want a car, they want to employ a maid, they want expensive holidays, they want luxury bags, they gamble, they smoke, they drink, they party, etc.

So it is not money not enough. Actually it is SPENDING TOO MUCH.

So, if you're not a high flyer banker, just lead a simple lifestyle. Don't act rich.

Originally Posted by Unregistered

Many of us worked very hard all our lives. From Primary school all the way to the workforce, we worked hard. So it is natural that many of us want to retire at 55, the time when we can collect our CPF. How can we retire at 55? Here is the way.

1. Study hard and work hard. Get good jobs.
2. Marry a good spouse who is also working.
3. Buy a cheap BTO 4 room HDB flat at 30. Get those costing $200k plus. Very cheap.
4. Stay in flat and pay the mortgage within 25 years time. Can pay using CPF easily.
5. Save $30k pa in cash. After 25 years, you save $750k.
6. Choose the ERS for your CPF Life. You get about $1900 pm for each person. So, you and spouse will get $3800 pm or $45.6k pa in total as a retired couple.
7. At 55, you and spouse can retire since you have $750k in cash. If you need $50k pa in expenses, you will only spend $500k from 55 to 65. You still have $250k to take care of future inflation.
8. At 65, you get your CPF Life.

How to save $30k pa in cash? Easy.

1. Don't own a car. It will cost you $2k pm or $24k pa to own and use the car. Over 25 years, you save $600k.
2. Don't employ a maid. It will cost you $1k pm or $12k pa. Over 25 years, you save $300k.
Total savings from not owning a car and not employing a maid is $36k pa. Over 25 years, you save $900k.

How to save more?

1. Don't go expensive holidays. Instead of spending $10k pa on holidays, just spend $5k pa. You save $5k pa and over 25 years, you save $125k.

2. Don't buy expensive luxury bags and shoes. Don't spend $5k pa on these. Make do with cheaper bags and shoes and spend $1k pa. You save $4k pa and over 25 years, you save $100k.

3. Don't smoke and drink. Let's say you spend $500 pm on cigarettes and alcohol. If you stop these, you save $6k pa and over 25 years, you save $150k.

4. Don't gamble. Let's say you spend $300 pm on gambling. If you stop gambling, you save $3600 pa and over 25 years, you save $90k.

So, if you follow all the above, you can save $1.365 million over 25 years.

This shows everyone with a decent salary can save a lot but most people will overspend. They want a car, they want to employ a maid, they want expensive holidays, they want luxury bags, they gamble, they smoke, they drink, they party, etc.

So it is not money not enough. Actually it is SPENDING TOO MUCH.

So, if you're not a high flyer banker, just lead a simple lifestyle. Don't act rich.

Wow you must be new to the forum. I have never heard anyone provide advice like this before. Thank you for your refreshing perspective!

Time is a precious gift that most people under appreciate. Only the wise and enlightened understand the value of time.

We spend our time at work in exchange for money. A rich person is one who has enough to have the choice of what he wants to do with his time. He doesn't have to work if he chooses to. He can still work if he chooses to. He has the choice.

As long as his passive income and wealth can sustain him and his family, he no longer has to work. This feeling of freedom is priceless. We don't want to be slaves of money, lust, pride, job titles, social status, etc.

When should you retire when you can afford to?

Let's think.

Based on stats, if you're a man, you will die by 80 years old.

At what age will most of us has limited mobility? I think from age 75 onwards, which means you will not be able to travel the world much by 75.

So, if you retire at 65, you only have 10 years to enjoy your life, care free, travelling around the world. 10 years of enjoyment after 65 years of hard work from the day you're born, go to school, raise a family, work. Not a good deal.

If I can afford to retire earlier, I should, maybe at 55 years old. So I have a full 20 years to enjoy while I'm still healthy and mobile. In fact, most of us can retire at 55 if we plan our lives properly.

Originally Posted by Unregistered

Wow you must be new to the forum. I have never heard anyone provide advice like this before. Thank you for your refreshing perspective!

I disagree but to each his own. If I were harsher, I would ask why don't this guy kill himself while he is young? Earn to live or live to earn? If you are educated, there are so many avenues to make money.

I'm 40 this year. Retired. Married with two young kids. While I track the investment market constantly, I technically "work" less than an hour a day and make between $30,000 to $45,000 a month.

We are a middle class family, living a simple but comfortable life. My spouse and I earn a combined income of $145k pa. This amount is not so high for a couple in their late forties but we are happy. We live in a humble home and drive a humble car. We're still paying for the mortgage of our home. We hope to clear the mortgage in ten years time. We can still afford cheap year end holidays as well as going out to restaurants occasionally. We also support our old parents financially, on both sides. Due to our commitments, we only save $20k pa. We should be able to have $300k in cash savings when we retire at 60 years old. By then, we will most likely have no more dependents. We will spend $30k pa ($2.5k pm) in our retirement, so we will spend $150k from age 60 to 65. Upon age 65, our CPF Life will start paying us about $45k pa until the day we decease. As inheritance, we will leave behind our home and cash savings for our children.