How much are you earning per annum?

Originally Posted by Unregistered

Good idea. I did that already. I sold my landed last year and got a net of $1m cash which we then invest. My stocks dividends give me 5% pa or $50k pa or RM130k pa. More than enough for me and wife to retire in JB. We are in our mid 40s.

Wow...good for you...so glad I finally found someone who has done that..
Is your 1 million invested in stocks? Wherabouts r u retired in JB. We r awaiting state consent for our Austin Heights semid...

Couple aged 27, combined income 100k p.a. just bought a house, getting married, cannot retire yet

Single. Early 40s. No debt.

Nett worth S$4.7m
- 4 properties comprising SG condo (stay in; bought $900k current value $2m), HDB (rented out & current value $550k) and 2 foreign condos in a neighbouring country (1 rented and 1 kept as weekend and eventual retirement home; current value S$860k)
- S$ share portfolio $260k for income though I do trade for fun sometimes. $16.8k pa dividends.
- US$ share portfolio S$100k more for trading not for income
- S$ cash $670k
- CPF $250k

Employment $350k pa. Passive income from 2 rents & dividends $64.8k pa.

No car.

Strategy is to accumulate cash+stocks of $2 m (current $1m excluding CPF) and passive income of $120k. This will happen in the next few years and then I can cash it all in. Plan to spend time here and abroad. S$ and foreign currency incomes help to negate any FX movement (earn & spend in same currency). Accommodation fully paid and owned so no issue with rising rent cost.

Current passive income is sufficient to meet my expenses but I would like to have security so am aiming for income 2x expenses.

Having read here of people having > $1 m stock portfolio, I think I should be brave to put more cash into my share portfolio. Alternatively, I could buy another SG property but the prices are still relatively high and I don’t want to take a mortgage and have to continue to work to service the loan.

I'm new here. Been reading the many posts in the forum. I learn a lot about how much people earn and the retirement plans of some. Let me share you my thoughts on retirement. Many people worry about not being able to retire. Don't worry, you can definitely retire at a not so old age but you need to change your mindset.

You see, we are blessed to be Singaporeans where you can get work and own a property. In many other countries, to own your own property is very difficult. Remember, we have the highest concentration of millionaires in the world, this means most people are a lot richer than millions of people around the world. You don't have to look far, just look at our neighbouring countries, many are homeless or live in slums.

So, here are steps you can follow so you can retire early:

1. Buy HDB BTO flat. This is very cheap and affordable. Say you pay $400k for a HDB flat. Keep staying in the flat until you finish paying the loan over 30 years. In 30 years, you flat would be worth doubled at $800k.

2. Take public transport. This way you can save as much as $2000 per month. This is what it can cost to own and maintain a car. I see many stupid young people who own a car even though they actually cannot afford it.

3. Save as much as 30% of your salary.

4. After 30 years when you reach 55, assuming you bought your flat at 25, you finish paying your home loan. You now have a flat worth $800k and you would have combined cash savings with your wife of $600k (say you save $20k pa, on average over 30 years, can be more). So you would have at least $1.4m.

5. You can sell your flat and plus your cash savings, you have $1.4m cash. You can then convert to RM. The rate should be S$1=RM4 in 30 years time. So you have RM5.6m in hand. With this amount you can retire happily in Malaysia at 55 years old. When you reach 65, you CPF Life payout will give you $1k each or $2k per month or RM8k per month. So you can retire very wealthy in Malaysia. Better still, in Thailand, Phillippines or Indonesia. You will be very, very rich there.

6. So, in summary, just work hard in Singapore and pay off your HDB flat mortgage and save. Dont buy a car. YOU CAN RETIRE RICH IN ANY OF THE ASEAN COUNTRIES. Dont retiire so late, you can die as young as before 65 years old.

7. So, dont worry, be happy. You will have A GREAT RETIREMENT. JUST CHANGE YOUR MINDSET.

45, full time active investor, earning $80k pa. Wife, 38, salaried employee, earning $90k pa. Household savings, $50k pa. Resides in a 3 room condo unit, fully paid up. Drives a car, fully paid up. We lead a simple middle income lifestyle - eat at restaurants and go to movies only once a week, holidays only twice a year. We work hard to survive in this tough environment. Our total net worth, only $2.4m. We hope to retire at 65.

Average income heartlander couple, earn $210k pa in total. Lives in heartland condo, worth $1.15m with mortgage outstanding $250k. Owns a car, no loan. Combined CPF savings $730k. Combined cash savings $120k. Both in our late 40s.

Originally Posted by Unregistered

Average income heartlander couple, earn $210k pa in total. Lives in heartland condo, worth $1.15m with mortgage outstanding $250k. Owns a car, no loan. Combined CPF savings $730k. Combined cash savings $120k. Both in our late 40s.

Quite dicey to have no investment, if you don't include your primary property. With $210k pa combined income, you should strive to save at least $100k pa if you are not already doing so. Assuming you are now 47/48 that will be another 12 years to save an additional $1.2m before your retirement at 60 to give both of you a comfortable lifestyle till 85.

If you use any retirement financial calculator, you will see that to retire at 60 and live till 85 (25 years in retirement) and have a comfortable lifestyle (condo living with car) you will need about $2m - $2.5m at 60. This means that somewhere along the retirement timeframe you will need to downgrade from the condo to HDB. And at the end of it, nothing is left to bequeath to your children.

To have something to leave behind, investing in income generating assets is thus important and necessary. The passive income can reduce the draw down on your assets, thereby increasing the chance of leaving your children with something.

This topic is well discussed and there are many articles written on the topic. Unfortunately few are in our local context although the advice given in those articles are generally applicable to us here as well. Eg., we should save more, spend less, invest etc..

However, the one information that I was looking for is quite elusive - and that is how much do I need to have on retirement to last the many years and at my desired standard of living.

Most articles on this topic are catered to primarily the US and UK context. Most of the calculations assumed a retirement age of 65! Whoa! I am more looking at 55. Because of that reference age, I find that the formulae they used, and the recommended amount of savings needed are low in our context.

For eg., one article actually concluded that a savings of US$500k is sufficient to see a 65 yr old retiree living comfortably till his last days. $500k for me will be gone in 10 years or less!

And if you were to use those freely available retirement financial calculators, the numbers coming out of them are frighteningly high. Like $3m is required if I were to retire at 55 and live till 85!

It seems like only the very rich can retire early...

Not true that only the rich can retire. Ordinary Singaporeans can retire too if they make adjustments. There are retirees who sold their HDB flat, maybe get $500k, and buy the new studio flat for elderly for $70k. They have $400k to retire. If they are prudent, they will be ok. Some more with CPF Life, they can get $2k per month (couple).

As mentioned by other forumers, you can retire rich if you retire in Malaysia, Thailand. You can live in condo and own a car in these places.

Originally Posted by Unregistered

This topic is well discussed and there are many articles written on the topic. Unfortunately few are in our local context although the advice given in those articles are generally applicable to us here as well. Eg., we should save more, spend less, invest etc..

However, the one information that I was looking for is quite elusive - and that is how much do I need to have on retirement to last the many years and at my desired standard of living.

Most articles on this topic are catered to primarily the US and UK context. Most of the calculations assumed a retirement age of 65! Whoa! I am more looking at 55. Because of that reference age, I find that the formulae they used, and the recommended amount of savings needed are low in our context.

For eg., one article actually concluded that a savings of US$500k is sufficient to see a 65 yr old retiree living comfortably till his last days. $500k for me will be gone in 10 years or less!

And if you were to use those freely available retirement financial calculators, the numbers coming out of them are frighteningly high. Like $3m is required if I were to retire at 55 and live till 85!

It seems like only the very rich can retire early...

Thanks for the concern. Actually our condo is our investment. When we retire at 60, we plan to sell our condo and retire in Malaysia. Either in KL, Penang or Malacca. We should have S$2m in cash which will be RM6m (we expect the exchange rate to be S$1=RM3 in 10 years time). With RM6m, we can employ a maid, personal driver and gardener. We will retire like a rich tycoon.

Originally Posted by Unregistered

Quite dicey to have no investment, if you don't include your primary property. With $210k pa combined income, you should strive to save at least $100k pa if you are not already doing so. Assuming you are now 47/48 that will be another 12 years to save an additional $1.2m before your retirement at 60 to give both of you a comfortable lifestyle till 85.

If you use any retirement financial calculator, you will see that to retire at 60 and live till 85 (25 years in retirement) and have a comfortable lifestyle (condo living with car) you will need about $2m - $2.5m at 60. This means that somewhere along the retirement timeframe you will need to downgrade from the condo to HDB. And at the end of it, nothing is left to bequeath to your children.

To have something to leave behind, investing in income generating assets is thus important and necessary. The passive income can reduce the draw down on your assets, thereby increasing the chance of leaving your children with something.