How much are you earning per annum?

My wife and I discussed our retirement plans more now that we're nearer to 60 and nearer to retirement.

Inevitably, the discussion also covered on things that we will / might give up upon retirement. This is a little interesting. Lets see what they are.

Currently my wife and I have our own car and we pay someone $90 a month to wash our 2 cars every night. When we retire, we will give up one car and just keep one. Its very likely that we will wash the remaining car ourselves as we will have more time on our hands in retirement. So that someone will earn $90 less a month. One of my neighbors, a recent retiree totally gave up driving. The car washer lost that business as well.

In retirement we would likely do away with our domestic helper. Our present domestic helper is from Indonesia and is earning money ($650 per month) to help her family back home. She has a son and daughter who are still young and attending school. Her parents are farmers and hardly earns anything. The husband also helps out in the farm and does not bring in much income. So when we retire, our domestic helper also "lose her job".

We eat out quite a bit since we are both working. We may continue to eat out in retirement, but less frequently. Perhaps once a week compared to 3 to 4 times a week?

We donate to charities every now and then without much thought. But when we are retired, I think we will be more judicious in our donations. We may make it up by contributing our time instead. But deep in my heart, I feel the best way to help the poor is to give them jobs. Jobs give people dignity, pride and a deep sense of self worth.

When people retire, the natural tendency is to cut back on expenses. This affects demand for goods and services and directly impact jobs and income. People should continue to work when they are able and not retire and pull out from contributing to the economy.

It is not about greed and wanting to have more money for ourselves when we are working. When we work and earn an income, we also pay back directly through income taxes, and indirectly through consumption taxes. Our current income tax is over $40k per year. When retired, we will "save" that $40k+ income tax per year. Income taxes are income for Government to run the country as well as social programs.

In the bigger picture, everyone plays a part in contributing to society.

Don't think too highly of yourselves. When you both retire, there will always be someone younger, smarter, more hardworking, more resourceful, cheaper, better, etc who will replace you. Your company saves money and earn more profit and can pay higher taxes.

Your maid can always be employed by another employer who is better. The washer can always get new business somewhere else.

So, stop all your nonsensical excuses. Don't be greedy.

Originally Posted by Unregistered

My wife and I discussed our retirement plans more now that we're nearer to 60 and nearer to retirement.

Inevitably, the discussion also covered on things that we will / might give up upon retirement. This is a little interesting. Lets see what they are.

Currently my wife and I have our own car and we pay someone $90 a month to wash our 2 cars every night. When we retire, we will give up one car and just keep one. Its very likely that we will wash the remaining car ourselves as we will have more time on our hands in retirement. So that someone will earn $90 less a month. One of my neighbors, a recent retiree totally gave up driving. The car washer lost that business as well.

In retirement we would likely do away with our domestic helper. Our present domestic helper is from Indonesia and is earning money ($650 per month) to help her family back home. She has a son and daughter who are still young and attending school. Her parents are farmers and hardly earns anything. The husband also helps out in the farm and does not bring in much income. So when we retire, our domestic helper also "lose her job".

We eat out quite a bit since we are both working. We may continue to eat out in retirement, but less frequently. Perhaps once a week compared to 3 to 4 times a week?

We donate to charities every now and then without much thought. But when we are retired, I think we will be more judicious in our donations. We may make it up by contributing our time instead. But deep in my heart, I feel the best way to help the poor is to give them jobs. Jobs give people dignity, pride and a deep sense of self worth.

When people retire, the natural tendency is to cut back on expenses. This affects demand for goods and services and directly impact jobs and income. People should continue to work when they are able and not retire and pull out from contributing to the economy.

It is not about greed and wanting to have more money for ourselves when we are working. When we work and earn an income, we also pay back directly through income taxes, and indirectly through consumption taxes. Our current income tax is over $40k per year. When retired, we will "save" that $40k+ income tax per year. Income taxes are income for Government to run the country as well as social programs.

In the bigger picture, everyone plays a part in contributing to society.

I was looking at my usual excel spreadsheet and i created an extra tab for estimated retirement expenses in current dollars at the point of our retirement (eg 60 y.o).

I will save up on the following annual spending
i) our taxes - $15K atm.
ii) My daughter's expenses - $15k
iii) Tithing & offerings - $35K
iv) Work associated expenses - $5K.

So I will end up having an annual expense budget of about $90-$95K. I will still be keeping my maid. I will still be paying for my son's daycare centre.

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there is no context - other that to cause bitterness amongst others

Age 40, single income household
Total annual package excluding employer cpf contribtuion : 260k
After less income tax deduction (25k) & employee cpf contribution (20k), take home annual pay is 215k.

Total household expenditure : 100k
Total savings : 115K. Invest 1/2 in ETFs dollar averaging saving plan.

Car & owner-occupied hdb flat fully paid.

Rented out investment condo at 4.5k/mth, and mortgage is fully paid by rental with cpf. After less interest, prinicple is paid down by 35k per year.


Total cpf contribution (employee + employer + 7k personal top up) : 40k. All OA cpf is transfered to SA to earn 4%.

Total networth increase per year : 115k + 35k + 40k = 190k.
Target asset rate of return : around 4% ( 4% in cpf, 5% in etf, 1.5% in cash/short term funds, 3% in condo investment)

Did you get the high annual package in past few years?

I don't have such high package but with $7K topup I have max up the SA ceiling by the time I am 42yo. And I don't transfer OA to SA.

Originally Posted by Unregistered

Age 40, single income household
Total annual package excluding employer cpf contribtuion : 260k
After less income tax deduction (25k) & employee cpf contribution (20k), take home annual pay is 215k.

Total household expenditure : 100k
Total savings : 115K. Invest 1/2 in ETFs dollar averaging saving plan.

Car & owner-occupied hdb flat fully paid.

Rented out investment condo at 4.5k/mth, and mortgage is fully paid by rental with cpf. After less interest, prinicple is paid down by 35k per year.


Total cpf contribution (employee + employer + 7k personal top up) : 40k. All OA cpf is transfered to SA to earn 4%.

Total networth increase per year : 115k + 35k + 40k = 190k.
Target asset rate of return : around 4% ( 4% in cpf, 5% in etf, 1.5% in cash/short term funds, 3% in condo investment)

I transfer to my spouse (housewife) cpf SA account too.
Both account will reach 162k SA limit in few years too

Originally Posted by Unregistered

Did you get the high annual package in past few years?

I don't have such high package but with $7K topup I have max up the SA ceiling by the time I am 42yo. And I don't transfer OA to SA.

Looking back at what I wrote in 2014 brings back many memories.

Anyway, my updated info:

Age: 42, 40
Work: both still in financial industry, still in a support function (so not your banker, salesperson, trader etc)
Total income: $730K, $230K
Residence: moved to a terrace house in 2015, while still holding on to my hdb which I have lived for 15 years.
Car: 7-yr MPV (changed to normal plate, and driving to work now).
Income tax for FY2017: $101K, $3.6K cos of working mothers' tax relief, SRS, CPF top-up etc.
Savings: $3.2m
Networth: $6.7m currently

Made steady progress since 2014, but still some way to achieving financial independence and earning passive income to match my expenses.

Post #4008

Originally Posted by Unregistered

Ok, what do you need to be convinced. I can provide as much info as possible as long as it doesn't compromise my anonymity.

Age: 39, 37
Work: both in financial industry, in a support function (so not your banker, salesperson, trader etc)
Total income: $509K, $230K (I didn't say I earned $740K, I said "We")
Residence: 5rm HDB, our first property and lived for 14 years.
Car: 6-yr MPV (red-plated as we work downtown and don't drive to work. Use the car only on weekends to ferry kids).
Income tax for FY2014: $44.5K, $1.7K cos of working mothers' tax relief, SRS, CPF top-up etc.
Savings: $1.7m (adding around $300K per year not counting investment returns, as I mentioned we save 65% of MONTHLY income plus whatever is left over from spending the bonus)
Networth: $4.3m at end 2013.

Agree we are in a good position but as I said, I know of many people of my age who are much better financially. So I learn not to compare, but am really sincere in learning from the forumers here to increase my wealth and financial knowledge. tks.

Originally Posted by Unregistered

Looking back at what I wrote in 2014 brings back many memories.

Anyway, my updated info:

Age: 42, 40
Work: both still in financial industry, still in a support function (so not your banker, salesperson, trader etc)
Total income: $730K, $230K
Residence: moved to a terrace house in 2015, while still holding on to my hdb which I have lived for 15 years.
Car: 7-yr MPV (changed to normal plate, and driving to work now).
Income tax for FY2017: $101K, $3.6K cos of working mothers' tax relief, SRS, CPF top-up etc.
Savings: $3.2m
Networth: $6.7m currently

Made steady progress since 2014, but still some way to achieving financial independence and earning passive income to match my expenses.

Post #4008

Well done.. you and wifey have aged by 3yrs but your fantastic Red MPV has only grown by 1yr.. so did you pay 3X the COE then??