How much are you earning per annum?

Let's say your net worth grow to $2.6m when you reach 65. You can sell your condo and buy the hdb studio flat for the elderly, only $100k. You can then have $2m cash which you can invest in 5% dividend stock, which gives you $100k pa passive income.

Originally Posted by Unregistered

Hello gurus,

Need your help to comment on our financial situation.

We are a married couple (46 & 49) with two kids. We live in a 20 year old condo (bought in 2006) which is now worth $1.1m, we have cleared the mortgage. We own an old small 1.6L car which is paid off. Our income is only $110k pa and we spend $80k pa. Our CPF (OA/SA/MA) and cash savings in total is about $500k. Our total net worth is about $1.6m.

We are happy with the fact that we are debt free - we cleared the mortgage, car loan, personal loans. However our annual savings is only $30k pa. Do you think we can retire at 60? How can we retire comfortably? If you have been in our situation, can share how you retire? Thanks.

If you can grow your net worth to $2m by 65, you should be ok. First, you both will get your CPF retirement account payout of $1k each per month. Then assuming you downgrade to a 3 room HDB flat and still have $1m cash, you can invest in high quality blue chips to give you 5% dividend or $50k dividend pa or $4k pm. So, in total, you get $6k per month. Your kids may give you both monthly allowance of $500 each. In total, as a couple you will have $7k pm to retire. If you don't drink, don't smoke, don't gamble and don't own a car, $7k pm is more than enough to retire. Many retirees retire with much lesser than this. You just need to use your money to buy groceries, eat hawker food, pay utilities and take bus. You can even save the money and you can go for short holidays.

Originally Posted by Unregistered

Hello gurus,

Need your help to comment on our financial situation.

We are a married couple (46 & 49) with two kids. We live in a 20 year old condo (bought in 2006) which is now worth $1.1m, we have cleared the mortgage. We own an old small 1.6L car which is paid off. Our income is only $110k pa and we spend $80k pa. Our CPF (OA/SA/MA) and cash savings in total is about $500k. Our total net worth is about $1.6m.

We are happy with the fact that we are debt free - we cleared the mortgage, car loan, personal loans. However our annual savings is only $30k pa. Do you think we can retire at 60? How can we retire comfortably? If you have been in our situation, can share how you retire? Thanks.

Originally Posted by Unregistered

You can retire now. Just sell your condo and downgrade to a 4 room HDB flat, which costs only $400k. So you will have $3m in cash and you can invest in good high dividend yield stocks which gives you 5% pa or $150k pa, this is enough to retire comfortably. But make sure you know how to invest or else you will also lose money. Don't buy junk stocks.

Don't risk your capital with a start-up because you will lose all your money. Confirmed.
Capital preservation is the most important when you are old and you are old.

I think he can retire even without downgrading to hdb. Many people in their late 40s net worth is less than his cash and stock asset, judging from what I been reading here.

I don't see how the logic point to the fact that he can retire just because he may have higher net worth at this point than his peers. Whether or not he can retire should be based on the kind of lifestyle he aspires to lead in retirement.

I think each generation is different. Our parents' generation (those in their 70s and above) may be contented just to see their children grow up and have their own families, and for themselves to step back and lead simple routine lives. Day in, day out doing the same boring stuff. For them, $2k - $3k a month for a couple should be comfortable.

For our generation, expectations would be higher. We are more exposed to the world at large, having travelled widely, some even studied overseas, have maids to clean up after us, have cars and hobbies, attended concerts, plays, and electronic gadgets to occupy our time. I can't imagine we can just switch back to a boring routine lifestyle upon retirement. And some more for many years at that, just whiling away the time waiting for time's up.

In my retirement, I would still want a car, a maid to tidy up the house and cook, attend concerts and performances, continue to play my tennis games, golf with my kakis and manage my stocks and property investments. This will make my retirement meaningful and make me look forward to each waking day. For this lifestyle I estimated I would need around $8k a month or $100k pa. I would need 2 more years to establish my passive income stream to reach $100k pa from the current $70k pa.

Originally Posted by Unregistered

I think he can retire even without downgrading to hdb. Many people in their late 40s net worth is less than his cash and stock asset, judging from what I been reading here.

Originally Posted by Unregistered

I think he can retire even without downgrading to hdb. Many people in their late 40s net worth is less than his cash and stock asset, judging from what I been reading here.

Yes, he can retire in his condo provided he has $2m in cash to invest in 5% dividend stocks to give him $100k pa passive income.

This worldly life is temporary, billions will be doomed to the hellfire due to their disbelief. Only the smart humans will think and reflect.

It is not too late.

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Originally Posted by Unregistered

This worldly life is temporary, billions will be doomed to the hellfire due to their disbelief. Only the smart humans will think and reflect.

It is not too late.

Read here for true guidance:

***** tube.com

Listen:

h a l a l t u b e. c o m

Originally Posted by Unregistered

I don't see how the logic point to the fact that he can retire just because he may have higher net worth at this point than his peers. Whether or not he can retire should be based on the kind of lifestyle he aspires to lead in retirement.

I think each generation is different. Our parents' generation (those in their 70s and above) may be contented just to see their children grow up and have their own families, and for themselves to step back and lead simple routine lives. Day in, day out doing the same boring stuff. For them, $2k - $3k a month for a couple should be comfortable.

For our generation, expectations would be higher. We are more exposed to the world at large, having travelled widely, some even studied overseas, have maids to clean up after us, have cars and hobbies, attended concerts, plays, and electronic gadgets to occupy our time. I can't imagine we can just switch back to a boring routine lifestyle upon retirement. And some more for many years at that, just whiling away the time waiting for time's up.

In my retirement, I would still want a car, a maid to tidy up the house and cook, attend concerts and performances, continue to play my tennis games, golf with my kakis and manage my stocks and property investments. This will make my retirement meaningful and make me look forward to each waking day. For this lifestyle I estimated I would need around $8k a month or $100k pa. I would need 2 more years to establish my passive income stream to reach $100k pa from the current $70k pa.

You are in an enviable state, to have built up a passive income of $70k. May I know how old you are now?

It is hard to tell which posts are true and which are nothing but hot air. So those visiting and reading the posts here should not feel envy nor jealousy, lest you might be unnecessarily jealous of somebody's grandiose dreams of wealth.

What I found disturbing is the poster who is self righteous, and trying pushing his religious beliefs here and sent links here and there. Making negative judgements about posters here who have made it. These wealthy posters could have made their wealth through sheer hard and honest work, and of course with some luck.

So when reading the posts here, be open minded, and read them for amusement. Dont be self righteous, dont be judgemental, dont be jealous -- all these are sinful thoughts, I think, in all religions.

34/36
combined income pa (including bonus) - 300k
savings 72k pa
NETT assets - sgd1mil

long haul holiday , once a year
owns 2 cars (may sell 1)
staying in landed

plans to retire at 55 , not sure how much we should save.. / invest
feel free to comment...