How much are you earning per annum?

You didn't say how old you and your husband are. If both of you are in late 30s to mid 40s, your current income and savings are quite ok. Quite like ours when we're around that age.

Our savings rate only picked up when we're in our late 40s. We are now saving 70% of our annual income. Continue working and try not to have any breaks in your career and you should see your wages go up as you become more senior in your career. People usually draw their highest salary when in their 50 - 62 age timeframe. It is a long enough period to build a solid nest egg. I consider this last stretch the golden period where your family expenses will have stabilized, and most probably reduced (because less traveling - been there, done that, children grown up, loans paid off).

Saving a $1m or more during this last stretch is definitely possible. If you and your husband can accumulate this additional $1m during this period, then no need to downgrade to 3 rm flat.

Originally Posted by Unregistered

My hubby and I have, in total, an annual income of $146,000. We own and live in a condo. We have two kids. We spend a lot on the kids, family holidays and supporting our parents (both sides) financially. We only managed to save $30,000 annually. Although our finances are tight, we are happy as we make our parents and children happy. Upon our retirement, we will downgrade to a 3 room HDB flat. We will then live on the net cash balance as well from our CPF and cash savings. If our kids give us a monthly allowance, it will be a bonus, if not, then no problem as we will not depend on it.

Take a look at this study / projection by DBS for year 2020. http://www.dbs.com/TreasuresPrivateC..._ASIA_2020.pdf

An estimated 290m people will be added to Asia's population by that time. Income & wealth expected to grow, Asia to become dominant economic force.

Demand for food and housing will be high. As people get richer, demand for quality housing will also grow.

We are only a few days from 2014, and 2014 is only 6 years to 2020. I think investment in property cannot go wrong. Singapore may be a small country, but with an open economy and open door policy for successful people to come in, property investment will likely reap you good rewards.

The current oversupply in condos may provide a good but brief window to go in and grab some units. Already the government is slowing land sales to moderate the oversupply so don't expect drastic decline in prices. Grab when there is opportunity before the wild run up repeats itself.

Originally Posted by Unregistered

You didn't say how old you and your husband are. If both of you are in late 30s to mid 40s, your current income and savings are quite ok. Quite like ours when we're around that age.

Our savings rate only picked up when we're in our late 40s. We are now saving 70% of our annual income. Continue working and try not to have any breaks in your career and you should see your wages go up as you become more senior in your career. People usually draw their highest salary when in their 50 - 62 age timeframe. It is a long enough period to build a solid nest egg. I consider this last stretch the golden period where your family expenses will have stabilized, and most probably reduced (because less traveling - been there, done that, children grown up, loans paid off).

Saving a $1m or more during this last stretch is definitely possible. If you and your husband can accumulate this additional $1m during this period, then no need to downgrade to 3 rm flat.

how much is needed in order for a retired couple to continue staying in condo?

Generally speaking, if you are retired and staying in a condo, your lifestyle is considered a comfortable lifestyle. Financial advisors have broadly grouped the lifestyle into 3 categories:

1. Basic - this is for retirees living in small HDB flats, no car, no maid, no holidays to ang moh countries. And cooking their own meals mostly or eat at hawker centers. To live this lifestyle they estimated that a retired couple would spend $1.5k - $2k pm ($18k - $24k pa)

2. Comfortable - this is for retirees living in exec HDB flats or condos. These retiree couples would have a small car, no maid, occasional holiday overseas and eating out in food courts. A couple living this lifestyle would spend $4k - $5k pm ($48k - $60k pa).

3. Luxurious - this is for couples living in high end condos or big landed properties. Have maid, car, holiday overseas, club membership, eat in restaurant. They would need $8k and above pm ($100k pa)

The above values are today's value. Have to account for inflation when planning into the future.

Take the above only as a general guide only. You have work out your own figure. For example, my condo fees already take up $300 pm. What is yours? Power, gas and water bills come to $220 pm, phone bill another $60. Property and car road taxes add a further $150 pm. Food expenses come to $400 (we eat out often). And so forth.

We are building up our passive income to hit $100k pa so that we can continue our present lifestyle when we retire. We have many more years to achieve that before we retire.

Originally Posted by Unregistered

how much is needed in order for a retired couple to continue staying in condo?

Hi,

Just wanted to share with you our retirement lifestyle. Ours is in between comfortable and luxurious. We live in a brand new 2 bedroom modern condo in a prime area. Out of our own choice, we don't have a maid nor a car as our condo is just next to an MRT station and just an MRT stop to a big shopping mall.

We get an annual stocks dividend income of $120k pa while our expenditure is $60k pa. We go for holidays twice a year to far away places and once in two months to nearby ones. We exercise regularly in the condo gym, pool to ensure our early 50s bodies can last till we reach our 80s. We are now training for a marathon.

Being debt free and having a good passive income is very important as it gives us peace of mind. We also do charity work to keep our mind and soul nourished.

Originally Posted by Unregistered

Generally speaking, if you are retired and staying in a condo, your lifestyle is considered a comfortable lifestyle. Financial advisors have broadly grouped the lifestyle into 3 categories:

1. Basic - this is for retirees living in small HDB flats, no car, no maid, no holidays to ang moh countries. And cooking their own meals mostly or eat at hawker centers. To live this lifestyle they estimated that a retired couple would spend $1.5k - $2k pm ($18k - $24k pa)

2. Comfortable - this is for retirees living in exec HDB flats or condos. These retiree couples would have a small car, no maid, occasional holiday overseas and eating out in food courts. A couple living this lifestyle would spend $4k - $5k pm ($48k - $60k pa).

3. Luxurious - this is for couples living in high end condos or big landed properties. Have maid, car, holiday overseas, club membership, eat in restaurant. They would need $8k and above pm ($100k pa)

The above values are today's value. Have to account for inflation when planning into the future.

Take the above only as a general guide only. You have work out your own figure. For example, my condo fees already take up $300 pm. What is yours? Power, gas and water bills come to $220 pm, phone bill another $60. Property and car road taxes add a further $150 pm. Food expenses come to $400 (we eat out often). And so forth.

We are building up our passive income to hit $100k pa so that we can continue our present lifestyle when we retire. We have many more years to achieve that before we retire.

Exercise regularly to maintain fitness, yes, but to run marathons is one of the surest ways to destroy your body. Marathons not for everyone. is running marathons good for you - Google Search

Have you done 21 km?

Originally Posted by Unregistered

Hi,

Just wanted to share with you our retirement lifestyle. Ours is in between comfortable and luxurious. We live in a brand new 2 bedroom modern condo in a prime area. Out of our own choice, we don't have a maid nor a car as our condo is just next to an MRT station and just an MRT stop to a big shopping mall.

We get an annual stocks dividend income of $120k pa while our expenditure is $60k pa. We go for holidays twice a year to far away places and once in two months to nearby ones. We exercise regularly in the condo gym, pool to ensure our early 50s bodies can last till we reach our 80s. We are now training for a marathon.

Being debt free and having a good passive income is very important as it gives us peace of mind. We also do charity work to keep our mind and soul nourished.

You are doing ok, earning $146k pa is good. There is someone whose family income is $120k pa but has outstanding mortgage of $1.2m !!! Crazy !!!!! Sure die !!!

Originally Posted by Unregistered

My hubby and I have, in total, an annual income of $146,000. We own and live in a condo. We have two kids. We spend a lot on the kids, family holidays and supporting our parents (both sides) financially. We only managed to save $30,000 annually. Although our finances are tight, we are happy as we make our parents and children happy. Upon our retirement, we will downgrade to a 3 room HDB flat. We will then live on the net cash balance as well from our CPF and cash savings. If our kids give us a monthly allowance, it will be a bonus, if not, then no problem as we will not depend on it.

Thanks for sharing. My wife and I are also planning to retire soon. Our terrace house is now too big for us and it is a chore to maintain it, also not cheap to upkeep a landed property. We plan to sell the house, now worth $3m, and buy a studio or one bedroom condo unit near an MRT station and shopping malls. We have shortlisted Caspian or The Lakefront Residences (now selling at $700k only), which are located next to the Lakeside MRT station and near Jurong Point mall. We look forward to jogging at the Jurong Lake park every morning. Looks like a nice location to retire.

Originally Posted by Unregistered

Hi,

Just wanted to share with you our retirement lifestyle. Ours is in between comfortable and luxurious. We live in a brand new 2 bedroom modern condo in a prime area. Out of our own choice, we don't have a maid nor a car as our condo is just next to an MRT station and just an MRT stop to a big shopping mall.

We get an annual stocks dividend income of $120k pa while our expenditure is $60k pa. We go for holidays twice a year to far away places and once in two months to nearby ones. We exercise regularly in the condo gym, pool to ensure our early 50s bodies can last till we reach our 80s. We are now training for a marathon.

Being debt free and having a good passive income is very important as it gives us peace of mind. We also do charity work to keep our mind and soul nourished.

Originally Posted by Unregistered

Generally speaking, if you are retired and staying in a condo, your lifestyle is considered a comfortable lifestyle. Financial advisors have broadly grouped the lifestyle into 3 categories:

1. Basic - this is for retirees living in small HDB flats, no car, no maid, no holidays to ang moh countries. And cooking their own meals mostly or eat at hawker centers. To live this lifestyle they estimated that a retired couple would spend $1.5k - $2k pm ($18k - $24k pa)

2. Comfortable - this is for retirees living in exec HDB flats or condos. These retiree couples would have a small car, no maid, occasional holiday overseas and eating out in food courts. A couple living this lifestyle would spend $4k - $5k pm ($48k - $60k pa).

3. Luxurious - this is for couples living in high end condos or big landed properties. Have maid, car, holiday overseas, club membership, eat in restaurant. They would need $8k and above pm ($100k pa)

The above values are today's value. Have to account for inflation when planning into the future.

Take the above only as a general guide only. You have work out your own figure. For example, my condo fees already take up $300 pm. What is yours? Power, gas and water bills come to $220 pm, phone bill another $60. Property and car road taxes add a further $150 pm. Food expenses come to $400 (we eat out often). And so forth.

We are building up our passive income to hit $100k pa so that we can continue our present lifestyle when we retire. We have many more years to achieve that before we retire.

Thanks. It seems 100k pa passive requires about $3m of investment generating a conservative 4%. So I gather that a combined net worth of about $3.5m (in today's dollar) is quite sufficient for a "luxurious" retirement?

Of course, in reality, we can always adjust our lifestyle based on the investment returns. For example, in a bad year, we can eat less in restaurants, take 1 less holiday or travel more to nearby countries.

If you can get a unit in Caspian or Lakefront Residences at $700k, you are very lucky. Must be someone who needs to sell urgently. I think they should be worth at least $850k. Just buy if you really can get at $700k and stay in it for your retirement. Prices will only go higher when the Jurong Lake District is fully developed over the next 5 - 10 years. The plan was announced in 2008 and already 5 years have passed, so expect more developments in the new Jurong Lake District growth region to be announced.

Originally Posted by Unregistered

Thanks for sharing. My wife and I are also planning to retire soon. Our terrace house is now too big for us and it is a chore to maintain it, also not cheap to upkeep a landed property. We plan to sell the house, now worth $3m, and buy a studio or one bedroom condo unit near an MRT station and shopping malls. We have shortlisted Caspian or The Lakefront Residences (now selling at $700k only), which are located next to the Lakeside MRT station and near Jurong Point mall. We look forward to jogging at the Jurong Lake park every morning. Looks like a nice location to retire.