How much are you earning per annum?

Average performer, middle income couple, aged 50 and 48 years old, with two children. Our total income is not that great, we make a combined S$170k pa. This amount is considered below average among our high performing peers.

We live in a condo located in the OCR (not CCR), it is now worth only S$950k and we have paid it up in full. Our luxury continental car is also paid up.

Our main source of retirement passive income will come from our CPF Life and a bit from our investments. Our retirement needs are simple. We will retire in our condo. To save huge cost, we may give up our car and use public transport.

We will need about $4k per month in retirement expenses. We will buy food from hawker centres and cook our own meals. Cooking our own meals is healthier and more nutritious. We will go holidays once a year.

You are very humble. You are actually very successful. Here’s why:

1. You own and live in a private property. Only the TOP 20% lives in private properties.
80% lives in public housing. So you are in the TOP 20% in society.

2. You own a luxury car. Many people don’t own a car.

3. You can afford to retire in a paid up private property. There are many who need to downgrade from their private property when they retire.

Don’t compare with the Super high flyers. These are the TOP Bankers. Most of us are just earning average salaries. Be happy with your achievements.

Celebrate your success!

Originally Posted by Unregistered

Average performer, middle income couple, aged 50 and 48 years old, with two children. Our total income is not that great, we make a combined S$170k pa. This amount is considered below average among our high performing peers.

We live in a condo located in the OCR (not CCR), it is now worth only S$950k and we have paid it up in full. Our luxury continental car is also paid up.

Our main source of retirement passive income will come from our CPF Life and a bit from our investments. Our retirement needs are simple. We will retire in our condo. To save huge cost, we may give up our car and use public transport.

We will need about $4k per month in retirement expenses. We will buy food from hawker centres and cook our own meals. Cooking our own meals is healthier and more nutritious. We will go holidays once a year.

Civil servant
28 yo
100k+

There is no need to worry so much about retirement. As long as you can afford to buy a cheap 3 room HDB BTO flat and pay it up, you can retire comfortably. Make sure your CPF SA is enough for you to choose the CPF Life scheme which is enough for you and wife.

How to retire at 65

1. HDB flat paid up
2. CPF Life gives you $2k pm per person ($4k pm for a retired couple)

Plan your retirement activities well. You can do volunteer work at old folks homes, join activities in the community, take up hobbies, go short trip holidays, learn to cook, and many more things to do. Do your own house work and chores. Exercise and keep fit.

For high flyers, they can retire earlier than 65 if their condo is paid up and they have enough retirement income before 65.

How to retire at 55

1. Condo paid up
2. From age 55 to 65, must have passive income from investments to fund their daily expenses
3. CPF Life from age 65 onwards


Some highly successful high flyers such as top bankers and good entrepreneurs can retire in their 40s.

[kappa_gooner]

Been reading the last few dozen pages on this thread,
How exactly does one explain such crazy annual incomes being thrown around when the 2017 median household income in Singapore is at ~12000$. The numbers here seem ridiculous!

Originally Posted by kappa_gooner

Been reading the last few dozen pages on this thread,
How exactly does one explain such crazy annual incomes being thrown around when the 2017 median household income in Singapore is at ~12000$. The numbers here seem ridiculous!

Obviously most of the riduculous incomes are by gahmen IBs being paid to create the illusion of many rich Singaporeans, so if you're not rich its your own fault!

[tchen003]

Male, 26 yo. Single.

Work in a bank as well but doing IT.

Monthly salary 5.5k. Bonus I heard is 1-2 month but I not sure.

Recently buy a one bed room resale condo in RCR area at 750k sgd. downpayment is provided by my parents and my own small saving. Currently paying mortage by myself using cash.

Have 20k in cpf, mostly push to MA and SA for tax saving and interest rate.

Have 10k in investment

Have a little bit of saving.

Thats all.

My next 6 year goal:
1. Since my MC CPF amount will not exceed CPF annual limit of 37740. I will make VC to CPF MA first then SA. In this case, I would enjoy a tax telief as well as up to 5% interest rate on first 60k balance. Assume 37740 max contribution for 6 year, my CPF balance will be around 240k sgd.

2. I will try to save as much as I can so that me and my future wife could buy a bigger new condo when market is low. This is extremely challenging as downpayment for a 3-rm condo will shoot up to 500k sgd even based on today price!

3. Alternatively, if 2 is not possible, I will use my 6 year saving to invest in STI ETF. Possible explore into REIT as well.

I saw a lot of successful mid age people in this post. Do feedback to me on your opinions. Thanks!

Originally Posted by tchen003

Male, 26 yo. Single.

Work in a bank as well but doing IT.

Monthly salary 5.5k. Bonus I heard is 1-2 month but I not sure.

Recently buy a one bed room resale condo in RCR area at 750k sgd. downpayment is provided by my parents and my own small saving. Currently paying mortage by myself using cash.

Have 20k in cpf, mostly push to MA and SA for tax saving and interest rate.

Have 10k in investment

Have a little bit of saving.

Thats all.

My next 6 year goal:
1. Since my MC CPF amount will not exceed CPF annual limit of 37740. I will make VC to CPF MA first then SA. In this case, I would enjoy a tax telief as well as up to 5% interest rate on first 60k balance. Assume 37740 max contribution for 6 year, my CPF balance will be around 240k sgd.

2. I will try to save as much as I can so that me and my future wife could buy a bigger new condo when market is low. This is extremely challenging as downpayment for a 3-rm condo will shoot up to 500k sgd even based on today price!

3. Alternatively, if 2 is not possible, I will use my 6 year saving to invest in STI ETF. Possible explore into REIT as well.

I saw a lot of successful mid age people in this post. Do feedback to me on your opinions. Thanks!

You got to take note of funds in OA and cash. Don't put too much in your SA and MA voluntarily.

Only cash and OA can be used for the downpayment. Investment is alright but make sure you are familiar with the one you have chosen.

Also prices of private property will rise further after 6 years. Central area already 3000 psf and above now. Rest of central area is 1800 to 2300 psf average. So you really need that 500k for downpayment.

[tchen003]

Originally Posted by Unregistered

You got to take note of funds in OA and cash. Don't put too much in your SA and MA voluntarily.

Only cash and OA can be used for the downpayment. Investment is alright but make sure you are familiar with the one you have chosen.

Also prices of private property will rise further after 6 years. Central area already 3000 psf and above now. Rest of central area is 1800 to 2300 psf average. So you really need that 500k for downpayment.

Hi, thanks for your feedback.

In Chinese, there is a saying: you can get fish and bear pawn at the same time. (Forgive my noob translation haha).

Reason I VC to MA and SA is that:
1. The first 60k balance, these two accounts produce 5% risk free return.
2. These VC cash, can reduce my income tax which can equal to first year return of 7%+5%!

Above is my understanding and reason to do VC. But again, if thats the case, I may have hard time paying down new condo downpayment with my future wife.

One possible solution, just possible, is to utilize home equity loan. Say my small condo appreciate to 900k sgd after 6 years and I have 500k sgd home loan remains. I can cash out 900k*80%-500=220k sgd as my contribution to downpayment.

[tchen003]

Originally Posted by tchen003

Hi, thanks for your feedback.

In Chinese, there is a saying: you cant get fish and bear pawn at the same time. (Forgive my noob translation haha).

Reason I VC to MA and SA is that:
1. The first 60k balance, these two accounts produce 5% risk free return.
2. These VC cash, can reduce my income tax which can equal to first year return of 7%+5%!

Above is my understanding and reason to do VC. But again, if thats the case, I may have hard time paying down new condo downpayment with my future wife.

One possible solution, just possible, is to utilize home equity loan. Say my small condo appreciate to 900k sgd after 6 years and I have 500k sgd home loan remains. I can cash out 900k*80%-500=220k sgd as my contribution to downpayment.

Typo: you can get fish and bear pawn....