How much are you earning per annum?

I think you are doing just fine.
Let's assume you work till 67, that's another 20 years.
By then, you would have cleared your mortgage and your condo would have gone up in value to say, $1.6m. So you have $1.6m in equity in your condo.
Since you save $40k pm, over 20 years, your additional savings will be $800k.
Your CPF, which is now $420k, would have grown since you will earn 2.5% pa on your OA and 4% on your SA and MA. Let's say it will grow to $600k.

So, at 67, your net worth will be $(1.6 + 0.8 + 0.6 + 0.1) = $3.1m.
This is sufficient for you and your wife.
You can sell your condo and downgrade to buy a 4 room HDB flat, costing say $500k, and you will have cash balance of $1.1m and plus your savings, you have $2m to invest in high dividend yield stocks, giving you 5% pa or $100k pa dividends. You will also get a CPF retirement account payout of $24k pa in total. So, you will have $124k pa or $10k pm. For an old couple, $10k pm is a lot of money to retire on, the most you would spend is $5k pm if you don't drive nor have a maid. You don't even need to depend on your children to give you both any allowances, if they do, that will be a bonus.

So, you are on your way to financial freedom at 67. Hopefully, you will still be alive to enjoy your retirement. All the best.

Originally Posted by Unregistered

47, $110k pa.
Wife, 42, $80k pa.
Savings, 40k pa.
Condo, $1.1m, loan left $300k.
Car, paid up.
Cash, $100k.
CPF, $420k.

Are we doing ok financially?
What is the best retirement plan for us?

haha. You forgot about the inflation. Most people forgot this.

The $10,000 he will get at age 67 is not the $10,000 today. If inflation is 3% a year, that $10,000 is worth only $5,500 when he reaches 67. Hopefully it will give a comfortable level of living, but it certainly not a lot of money.

Do you remember the Old Chunky curry puff when it was at $1 per piece? That wasnt too long ago, now one piece is selling for $1.40. A 40% increase!

Really in 20 years time, nobody would want to pick up a $5 note on the floor. Probably cant even pay for a cup of Kopi-O. scary isnt it?

Originally Posted by Unregistered

I think you are doing just fine.
Let's assume you work till 67, that's another 20 years.
By then, you would have cleared your mortgage and your condo would have gone up in value to say, $1.6m. So you have $1.6m in equity in your condo.
Since you save $40k pm, over 20 years, your additional savings will be $800k.
Your CPF, which is now $420k, would have grown since you will earn 2.5% pa on your OA and 4% on your SA and MA. Let's say it will grow to $600k.

So, at 67, your net worth will be $(1.6 + 0.8 + 0.6 + 0.1) = $3.1m.
This is sufficient for you and your wife.
You can sell your condo and downgrade to buy a 4 room HDB flat, costing say $500k, and you will have cash balance of $1.1m and plus your savings, you have $2m to invest in high dividend yield stocks, giving you 5% pa or $100k pa dividends. You will also get a CPF retirement account payout of $24k pa in total. So, you will have $124k pa or $10k pm. For an old couple, $10k pm is a lot of money to retire on, the most you would spend is $5k pm if you don't drive nor have a maid. You don't even need to depend on your children to give you both any allowances, if they do, that will be a bonus.

So, you are on your way to financial freedom at 67. Hopefully, you will still be alive to enjoy your retirement. All the best.

Originally Posted by Unregistered

haha. You forgot about the inflation. Most people forgot this.

The $10,000 he will get at age 67 is not the $10,000 today. If inflation is 3% a year, that $10,000 is worth only $5,500 when he reaches 67. Hopefully it will give a comfortable level of living, but it certainly not a lot of money.

Do you remember the Old Chunky curry puff when it was at $1 per piece? That wasnt too long ago, now one piece is selling for $1.40. A 40% increase!

Really in 20 years time, nobody would want to pick up a $5 note on the floor. Probably cant even pay for a cup of Kopi-O. scary isnt it?

bs king lah...try dropping $1 coin today in the street and see how long it will stay there...

Don't BS. $3.1m in 20 years time is still a lot of money. Many people may not even have a net worth of $1m in 20 years time.

Originally Posted by Unregistered

haha. You forgot about the inflation. Most people forgot this.

The $10,000 he will get at age 67 is not the $10,000 today. If inflation is 3% a year, that $10,000 is worth only $5,500 when he reaches 67. Hopefully it will give a comfortable level of living, but it certainly not a lot of money.

Do you remember the Old Chunky curry puff when it was at $1 per piece? That wasnt too long ago, now one piece is selling for $1.40. A 40% increase!

Really in 20 years time, nobody would want to pick up a $5 note on the floor. Probably cant even pay for a cup of Kopi-O. scary isnt it?

Aiyoh, not BS lah. Just using Math and past trends to "see" the future.

Last time, my parents gave me $1 per day for school. I pay 20 cts bus fare to go to school and 20cts back. Buy mee siam in tuck shop for 30cts, and 10cts for drinks. I save 20cts each day.

Today I give my children $5 per day, and they still ask for top up because take MRT what.

now kopi at food court is $1.20? last time $1.20 can buy 2 cups.

last time see doctor at downstairs HDB clinic $10, now smelly smelly $35.

Originally Posted by Unregistered

Don't BS. $3.1m in 20 years time is still a lot of money. Many people may not even have a net worth of $1m in 20 years time.

I'm 45, income $70k pa, net worth $1.7m.
Wife, 42, income $110k pa, net worth $0.7m.
Condo, worth $1m, fully paid.
Car, fully paid.

How much is enough depends on how much you have compared to other people. If everyone else is richer than you, then you need to worry. If you are better off than most people, then there is no need to worry too much.

How you manage to grow your net worth to $1.7m? Not bad for an income of $70K pa.

Assuming you worked for 20 years earning $70k every year, you will only get $1.4m.

Did your wife pay for everything - condo, car, living expenses?

Originally Posted by Unregistered

I'm 45, income $70k pa, net worth $1.7m.
Wife, 42, income $110k pa, net worth $0.7m.
Condo, worth $1m, fully paid.
Car, fully paid.

I used to earn a lot more, between $150k - $190k pa. I invested my big bonuses in stocks and properties and made a lot of money buying and selling them. Then I got very sick, my highly stressful job, with the long hours in the office, lack of sleep and frequent travel took a toll on my health. Upon my doctor's advice, I quit my job and now working in a more relaxed job with shorter working hours but with a huge pay cut. Had I continued in my previous job, I could drop dead before 50. Now I just keep most of my wealth in cash as I no longer can take the stress of holding risky assets. Bad for my heart.

Originally Posted by Unregistered

How you manage to grow your net worth to $1.7m? Not bad for an income of $70K pa.

Assuming you worked for 20 years earning $70k every year, you will only get $1.4m.

Did your wife pay for everything - condo, car, living expenses?

Still quite impressive to have achieved $1.7m net worth, as you know $150k - $190k pa is not exactly top salary. Lucky you quit that job because it is definitely not worth trading your life for that measly sum. People earn much more for much less effort.

On a per hour basis, your current job actually pays more than the previous one. So count yourself very lucky indeed.

Originally Posted by Unregistered

I used to earn a lot more, between $150k - $190k pa. I invested my big bonuses in stocks and properties and made a lot of money buying and selling them. Then I got very sick, my highly stressful job, with the long hours in the office, lack of sleep and frequent travel took a toll on my health. Upon my doctor's advice, I quit my job and now working in a more relaxed job with shorter working hours but with a huge pay cut. Had I continued in my previous job, I could drop dead before 50. Now I just keep most of my wealth in cash as I no longer can take the stress of holding risky assets. Bad for my heart.