How much are you earning per annum?

The whole purpose of planning well for retirement is to avoid becoming one of the millions in improvised countries where you worry about where your next meal is coming from.

Imagine how tragic it would be for someone from a rich and well educated society to have to worry about his next meal. If nothing else, it will just show all the education, knowledge and wealth lead to complacency and total disregard to plan for a good retirement independent of charity.

If you plan and save well for your retirement, you would not have to sell your current home and live in another country amongst strangers.

People in third world countries are working very hard to improve their lives, and in the last 10 years or so, they have made very good progress. This means that their purchasing power is rising with the cost of living rising in tandem.

If you dont prepare well, you will find yourself running out of cheap places to hide. And you will eventually end up worrying where your next meal is going to come from.

Originally Posted by Unregistered

Retirement extraordinary

Most people here worry about retirement while millions and billions around the world worry about their next meal. We sometimes worry unnecessarily. If we have an open mind and see the world as our oyster, then we will be less worried. Good for our health and well being.

For those who wish to retire early in their 50s but do not have so much assets, don’t worry. You can still retire if you change your life’s perspectives. If you don’t have any dependants and paid up your home and have some savings, you can retire. Not here though. You can retire in cheaper locations all over the world.

Take for example Malaysia. There are good places to retire in Malaysia. Places such as Penang, Ipoh and even KL. It all depends on the kind of retirement lifestyle you desire and the amount of resources you have.

If you sell your HDB flat for $500k, you can then invest in a portfolio of good blue chip stocks giving you an annual dividend yield of 5%. This means you get $25k pa in dividends. When you convert to RM, you get RM78k pa or RM6.5k pm.

Retire in Penang at age 55, assuming no dependants

Rent a small condo in Penang RM1k pm
Food and utilities RM1.5k pm
Car petrol and expenses RM0.5k pm
Others RM1k pm
Total RM4k pm
Savings RM2.5k pm

You can also retire in other cheaper locations such as Chiang Mai, Kota Kinabalu, etc.
With budget airlines, travelling has now become cheaper.

When you reach 65, you will become very rich. CPF Life ERS will give you and wife $4k pm or RM12.6k pm. Total passive income RM19k pm. Wow!!!!! With this amount of money, you can retire like a rich tycoon!

So, don’t worry, be happy. Open your small mind. Don’t be stupid.

This is a stupid comment.

We are not saying we shouldn't be prepared for retirement. Everyone should.

What we disagree is the comment made by a moron here who said we need millions to retire. You don't need so much to retire.

Originally Posted by Unregistered

The whole purpose of planning well for retirement is to avoid becoming one of the millions in improvised countries where you worry about where your next meal is coming from.

Imagine how tragic it would be for someone from a rich and well educated society to have to worry about his next meal. If nothing else, it will just show all the education, knowledge and wealth lead to complacency and total disregard to plan for a good retirement independent of charity.

If you plan and save well for your retirement, you would not have to sell your current home and live in another country amongst strangers.

People in third world countries are working very hard to improve their lives, and in the last 10 years or so, they have made very good progress. This means that their purchasing power is rising with the cost of living rising in tandem.

If you dont prepare well, you will find yourself running out of cheap places to hide. And you will eventually end up worrying where your next meal is going to come from.

Originally Posted by Unregistered

This is a stupid comment.

We are not saying we shouldn't be prepared for retirement. Everyone should.

What we disagree is the comment made by a moron here who said we need millions to retire. You don't need so much to retire.

There is no need for insults. Your response showed you are indeed worried about sustenance in retirement, and this is a good start. Once you are complacent, you will not prepare well.

Whether you will need millions or not is entirely dependent on the lifestyle you desire or aspire to, in retirement.

The amount you will need to sustain your desired lifestyle is really just mathematics. If you need $2,500 per month, in a year thats $30,000. Without inflation, over 10 years, thats $300k and so forth. Over 30 years, you will need a total of $900k. If that include your home, you will have to downgrade some time along your retirement journey.

If you think $2,500 per is too little, and that you need $5,000 per month, you just multiply the previous amounts by 2. That is, you will need $1.8M to sustain a $5,000 a month retirement lifestyle over 30 years - without inflation. It is in the maths.

With inflation, the amount you will need will be bigger. Again its in the maths. Don't blame the messenger.

We don't blame the messenger if he is truthful.
Have you heard of CPF Life?
If you choose the ERS option, you will get $4k pm (you & spouse) when you reach 65.
$4k pm not enough? Assuming your flat is paid up and your kids are married and living in their own homes, $4k pm is more than enough for a retired couple. What do you need? Just food, bus & MRT fares (you get elderly discount) and some basic utilities. For healthcare, you got CHAS. $4k pm is much more than you need. You don't need millions to retire. Don't talk nonsense.

Originally Posted by Unregistered

There is no need for insults. Your response showed you are indeed worried about sustenance in retirement, and this is a good start. Once you are complacent, you will not prepare well.

Whether you will need millions or not is entirely dependent on the lifestyle you desire or aspire to, in retirement.

The amount you will need to sustain your desired lifestyle is really just mathematics. If you need $2,500 per month, in a year thats $30,000. Without inflation, over 10 years, thats $300k and so forth. Over 30 years, you will need a total of $900k. If that include your home, you will have to downgrade some time along your retirement journey.

If you think $2,500 per is too little, and that you need $5,000 per month, you just multiply the previous amounts by 2. That is, you will need $1.8M to sustain a $5,000 a month retirement lifestyle over 30 years - without inflation. It is in the maths.

With inflation, the amount you will need will be bigger. Again its in the maths. Don't blame the messenger.

I agree with the other guy.

I would rather make more now than to worry later. Having more money is better than not having enough.

World has changed, opportunities are getting lesser. More and more competition. Grab it while you can.

I have come across two types of people, one that works hard even though they are already financially well off. And the other who don't give a damn and have no plans at all.

I can see that among my friends, some will retire comfortably and some won't.

Even FT who comes to sg to work are better well equipped with retirement. It is not surprising that they own multiple lands and properties back home.

I won't just depend on cpf life. It is a bonus.

Originally Posted by Unregistered

We don't blame the messenger if he is truthful.
Have you heard of CPF Life?
If you choose the ERS option, you will get $4k pm (you & spouse) when you reach 65.
$4k pm not enough? Assuming your flat is paid up and your kids are married and living in their own homes, $4k pm is more than enough for a retired couple. What do you need? Just food, bus & MRT fares (you get elderly discount) and some basic utilities. For healthcare, you got CHAS. $4k pm is much more than you need. You don't need millions to retire. Don't talk nonsense.

Looks like you don't understand english. Do you agree with the moron who said you need millions to retire? That's full of crap!

Originally Posted by Unregistered

I agree with the other guy.

I would rather make more now than to worry later. Having more money is better than not having enough.

World has changed, opportunities are getting lesser. More and more competition. Grab it while you can.

I have come across two types of people, one that works hard even though they are already financially well off. And the other who don't give a damn and have no plans at all.

I can see that among my friends, some will retire comfortably and some won't.

Even FT who comes to sg to work are better well equipped with retirement. It is not surprising that they own multiple lands and properties back home.

I won't just depend on cpf life. It is a bonus.

Originally Posted by Unregistered

Looks like you don't understand english. Do you agree with the moron who said you need millions to retire? That's full of crap!

I know where your problem lies.

You do not understand what the other forummer was trying to say when he showed the calculation for the amount needed in retirement.

Let me try and explain it this way.

Supposing you spend $2,000 a month in retirement.
Assuming no inflation at all, over 10 years, you would have spent $30,000.
Over 30 years, you would have spent $900,000

Now, this $900,000 would have to come from somewhere. It can be from your wages, that is, you work as long as you can, your cash savings, your investment or your CPF Life, and worse come to worse, sell off your home. Wherever the money come from, it still has to be there to support your expenses.

You mentioned CPF Life would give you and spouse $4,000 per month and you said this should be enough. This statement shows you do not understand what inflation is. Or what inflation can do to the value of your money.

At an inflation rate of 3% pa, the $4,000 today will only be worth $2,970 in 10 years!
In 20 years, that $4,000 today is only worth $2,210! In 30 years time, it is worth only $1,650.

What the other forummer has been saying was that inflation will erode your purchasing power over the years while the payout from your CPF Life remains fixed.

Now the above example of $2,500 per month expense is for a very basic lifestyle. Many people would need at least $5,000 per month. So you will have to multiply the above numbers by 2.

Hope this explanation helps.

Again, refrain from insults. Keep the discussion civil.

I already have my millions. I am in my late 30's this year. I still have many working years ahead.

I could call it quits if I wanted to but I still want to work and contribute. Been supporting students under Financial assistance scheme for the last 5 years in various schools. Planning to donate rice next year once I work out the details.

I understand you perfectly, no one is a moron, it is your choice. You don't need millions.

But I do and I am hungry for more.

Originally Posted by Unregistered

Looks like you don't understand english. Do you agree with the moron who said you need millions to retire? That's full of crap!

Originally Posted by Unregistered

Very good insight. Much better than the moron who keep harping that we need millions to retire. If we listen to him, no one in singapore can actually afford to stop working.

I agree with you that he is a moron.

So many people out there already retired without millions.

He is actually just being greedy. Pure lust and greed.

Originally Posted by Unregistered

I agree with you that he is a moron.

So many people out there already retired without millions.

He is actually just being greedy. Pure lust and greed.

There is no need to resort to name calling or labeling others as greedy etc. Different people have different lifestyle preference and they may have different assumptions (on inflation, return on investment etc.) when making their retirement planning.

I am in my late forties and I have through careful financial planning and hardwork save up a couple of millions for retirement. However I am still working today and intend to carry on for a few more years because the additional sum saved from these peak earning years will be useful whether if inflation runs rampant in the future or if I should pursue more charitable causes when I retire. The choices from greater financial resources are many and it sure beats counting every dollar during retirement years so that one's spending does not exceed the budget.