How much are you earning per annum?

As a full time trader investor, I spend my time reading a lot about the economy, stock markets, policies, etc. I have been successful in earning $100k pa (trading profits plus dividends) based on a capital of $1m. My returns are high because I trade and the risk is high but I am able to do this consistently because I am a very experienced investor unlike most people who don't know how to invest. My spouse earns $70k pa and our family expenses is $110k pa, so we save $60k pa. We live in a condo worth $2m, paid up. We also own a car, paid up. I enjoy my work and have the flexibility to spend time with my family. Our net worth is about $3m plus. We are both 40.

Your combine income level is modest. Given the lack of information on your cashflow anyone would be hard pressed to provide you some proper advice.

Just a general review of your situation, you are about 35 now, once you paid up your flat you be about 60 or so? Given the current rules and your income private property investments are outside of your immediate reach? I believe you need to either pay up your HDB first before you can buy another property.

Some on this forum will advise you to invest in stocks and what not, unless you're a guru or have a stable emotional mindset you have to decide if this is for you? One thing for sure many on this forum dish out advise on how to generate 5% or even 10% returns but no one can really provide in detail what is the right approach. Without this most of the information is garbage really.

If you're a hardworking and lead a simple lifestyle, my advice to you is to pay off your Mortgage loan sooner. 15 years if possible? This way you will be cleared by the time you hit 50 and perhaps can look to invest cash without risking you're home or maybe buy a 2nd home for investment. Or if (touch wood) you get retrenched you can at least drive a cab without stressing about lack of cash. You will be suprised how much you pay goes into interest just on that extra 10 years.

Alternatively you can retire in Malaysia which seems to be a popular subject, that's assuming Sharia law doesn't get imposed 20 years from now.

Get rich quick? Buy 4D, Toto very popular option too

Originally Posted by Unregistered

We are in our mid 30s, I earn $50k pa while spouse earns $60k pa. We live in a 5 room BTO HDB flat with mortgage of 25 years left. We don't own a car and take the bus to work. Need your advice on how to be rich. Thank you.

appreciate the advice, i think paying down our mortgage is the best option. once we finish paying, it will be ours and it becomes an asset. we can then rent it out when we reach 65, by then hdb rental would be at least $6k per month (in 30 years time) and we can retire in malaysia. i don't want to drive a taxi as this is a big insult for a highly educated degree holder. i rather retire in malaysia, thailand or even indonesia than to be seen by my senior executive peers driving a taxi. i will die out of shame.

Originally Posted by Unregistered

Your combine income level is modest. Given the lack of information on your cashflow anyone would be hard pressed to provide you some proper advice.

Just a general review of your situation, you are about 35 now, once you paid up your flat you be about 60 or so? Given the current rules and your income private property investments are outside of your immediate reach? I believe you need to either pay up your HDB first before you can buy another property.

Some on this forum will advise you to invest in stocks and what not, unless you're a guru or have a stable emotional mindset you have to decide if this is for you? One thing for sure many on this forum dish out advise on how to generate 5% or even 10% returns but no one can really provide in detail what is the right approach. Without this most of the information is garbage really.

If you're a hardworking and lead a simple lifestyle, my advice to you is to pay off your Mortgage loan sooner. 15 years if possible? This way you will be cleared by the time you hit 50 and perhaps can look to invest cash without risking you're home or maybe buy a 2nd home for investment. Or if (touch wood) you get retrenched you can at least drive a cab without stressing about lack of cash. You will be suprised how much you pay goes into interest just on that extra 10 years.

Alternatively you can retire in Malaysia which seems to be a popular subject, that's assuming Sharia law doesn't get imposed 20 years from now.

Get rich quick? Buy 4D, Toto very popular option too

Originally Posted by Unregistered

appreciate the advice, i think paying down our mortgage is the best option. once we finish paying, it will be ours and it becomes an asset. we can then rent it out when we reach 65, by then hdb rental would be at least $6k per month (in 30 years time) and we can retire in malaysia. i don't want to drive a taxi as this is a big insult for a highly educated degree holder. i rather retire in malaysia, thailand or even indonesia than to be seen by my senior executive peers driving a taxi. i will die out of shame.

Are you really a "highly educated degree holder"? Pardon my frankness as your thoughts has cast serious doubts and is worrying.
Driving a taxi gives an honest income and the flexibility to manage your life better. Your current earnings of $50k pa is not outstanding and not far off from a cab driver's pay, yet I believe your working hours are tied down by your Company. I've known of some cabbies who are property or equity investors.
If you are indeed a degree holder with such shallow thinking, then I'm not surprised that in your mid 30s, your income is only $50k. It's time you do some serious thinking.

Originally Posted by Unregistered

As a full time trader investor, I spend my time reading a lot about the economy, stock markets, policies, etc. I have been successful in earning $100k pa (trading profits plus dividends) based on a capital of $1m. My returns are high because I trade and the risk is high but I am able to do this consistently because I am a very experienced investor unlike most people who don't know how to invest. My spouse earns $70k pa and our family expenses is $110k pa, so we save $60k pa. We live in a condo worth $2m, paid up. We also own a car, paid up. I enjoy my work and have the flexibility to spend time with my family. Our net worth is about $3m plus. We are both 40.

I aspire to be like you. Trading for a living is cool as it is like doing your own business without having to get clients. You are your own boss. This is the best job in the world. Of course it is not easy but for you, since you are experienced, piece of cake.

You're welcome, yep paying off the mortgage should be a primary objective. Bonuses etc should go in immediately too which would stave off temptation to spend it.I would advise to keep your mortgage to 10 - 15 years timeframe and if anything were to happen least the roof over your head is secure.

With regard to taxi drivers don't be too quick to judge, driving a cab is a noble profession and in fact many down on their luck professionals do it. When life gives you lemons make lemonade as they say. There are also drivers who are retirees who just like to chat with many people and share their life stories (no different from the millionaires and billionaires who want to do the same). I know a guy who lives in a 10 M house and drives a taxi too so there are no one size fits all. Lets respect the taxi drivers and if we (touch wood) join their ranks we would want that respect too, if my seniors or peers snigger in my cab I would gladly drop them in the middle of the PIE and leave with a smile on my face.

Originally Posted by Unregistered

appreciate the advice, i think paying down our mortgage is the best option. once we finish paying, it will be ours and it becomes an asset. we can then rent it out when we reach 65, by then hdb rental would be at least $6k per month (in 30 years time) and we can retire in malaysia. i don't want to drive a taxi as this is a big insult for a highly educated degree holder. i rather retire in malaysia, thailand or even indonesia than to be seen by my senior executive peers driving a taxi. i will die out of shame.

43/45 professional couple, middle income, $230k pa combined.
Home is a condo in D21, worth $1.6m, paid up.
Car is a 2L German marque, paid up.
Debt free.
Cash, CPF, stocks and other liquid investments, $900k.
Total net worth, $2.5m.

Originally Posted by Unregistered

appreciate the advice, i think paying down our mortgage is the best option. once we finish paying, it will be ours and it becomes an asset. we can then rent it out when we reach 65, by then hdb rental would be at least $6k per month (in 30 years time) and we can retire in malaysia. i don't want to drive a taxi as this is a big insult for a highly educated degree holder. i rather retire in malaysia, thailand or even indonesia than to be seen by my senior executive peers driving a taxi. i will die out of shame.

wtf ? I was just like you, afraid of shame. However, whe ni was retrenched when I was 40. I was lucky enough to inherit a landed pty from my parents. Life is good now. No more office politics. I drive cab from 7am till 2-3pm. Objective is to cover cab cost + $20-50 bucks a day for living expenses.

FYI, am a degree holder with honors. Nothing to be ashamed of. Life is great. Renting out my HDB flat for $3K/month.

The advise of promptly paying down housing loans is not always good advise especially in today's low interest climate. There are such thing as good loans and bad loans. Housing loans are considered good loans and they are the only ones that come with the lowest interest rate. Banks give low interest rates because the collateral is the property the loan is taken for.

So let's say you have study loans, car loan, renovation loan and housing loan, your priority should be to pay off the ones with the highest interest rates. And after that, if you still have money left over, you should explore investing those money for higher returns than the housing loan rate.

In my case, I took a $1m loan for my condo and the interest was slightly above 1% pa. Instead of paring down the loan, I invested the money into blue chips and reits for 5% or more returns pa. Even my CPF OA gives 2.5%. Be nimble, not need to rush to pay off a good loan when you have one.

Originally Posted by Unregistered

You're welcome, yep paying off the mortgage should be a primary objective. Bonuses etc should go in immediately too which would stave off temptation to spend it.I would advise to keep your mortgage to 10 - 15 years timeframe and if anything were to happen least the roof over your head is secure.

With regard to taxi drivers don't be too quick to judge, driving a cab is a noble profession and in fact many down on their luck professionals do it. When life gives you lemons make lemonade as they say. There are also drivers who are retirees who just like to chat with many people and share their life stories (no different from the millionaires and billionaires who want to do the same). I know a guy who lives in a 10 M house and drives a taxi too so there are no one size fits all. Lets respect the taxi drivers and if we (touch wood) join their ranks we would want that respect too, if my seniors or peers snigger in my cab I would gladly drop them in the middle of the PIE and leave with a smile on my face.

Originally Posted by Unregistered

The advise of promptly paying down housing loans is not always good advise especially in today's low interest climate. There are such thing as good loans and bad loans. Housing loans are considered good loans and they are the only ones that come with the lowest interest rate. Banks give low interest rates because the collateral is the property the loan is taken for.

So let's say you have study loans, car loan, renovation loan and housing loan, your priority should be to pay off the ones with the highest interest rates. And after that, if you still have money left over, you should explore investing those money for higher returns than the housing loan rate.

In my case, I took a $1m loan for my condo and the interest was slightly above 1% pa. Instead of paring down the loan, I invested the money into blue chips and reits for 5% or more returns pa. Even my CPF OA gives 2.5%. Be nimble, not need to rush to pay off a good loan when you have one.

This is very good advice indeed.

It applies though to people who are 1. disciplined about not spending their excess cash and
2. investment savvy

Those who are prone to buying stuff to keep up with their friends / neighbours would be better off paying off their housing loan.