How much are you earning per annum?

Originally Posted by Unregistered

You are really dense. You think only must have good pension then can afford condo and send children for overseas medical course?

Throughout this forum you can see many young and not so young high earners with good passive incomes from their shrewd investments. You think they have pension?

Our teachers are competitively paid. Two graduated teachers married to each other would have a combined income at the top 10 - 15% of household incomes. By 50, they could easily afford to live in a condo and possibly have another for rental income.

Invite government pensioners to give their views.
Some pensioner may be fortunate enough to have big salary, some may not.
For those who are not having direct infor please don't build castle in the sky.
Who doesn't know some are so good in investment that make them millionaires. Li Ka Sheng's driver is just one of them.
Just give us figure that show pension and other benefits relative to the last pay.

Your example of a typical condo retired couple is not typical. Many opted for a more modest lifestyle. They no longer drive a car because it is too costly and they don't need it. They either live next to an MRT station or their condo has a shuttle bus service to bring them to the nearest MRT station if they need to travel. They also no longer need a maid as it is not difficult to maintain a two retired persons household. They may also not spend too much on eating out at restaurants.

A more realistic typical condo retired couple has these montly expenses:

Food, and food items and occasional dining out, $1000
Utilities, $250
Medical and health insurance, $700
Holiday, once a year (pro rated), $200
Condo fees (condo assumed to be paid off), $350
Misc, $500
Total, $3000 pm or $36k pa.

So, if they are able to generate a passive income of $36k pa, then they are ok. If they are lucky, their kids will give them monthly allowance of $1000 pm to each of them (assuming 2 kids, each kid give $500 to father and $500 to mother - could be more if they are luckier). They can save these allowances.

To generate $36k pa of passive income is not that difficult. You can get from the CPF Life, your blue chip investments, etc.

Originally Posted by Unregistered

Typical HDB retired couple

Food and groceries for 2, $500
Utilities, $100
Transport, $50
Health insurance, $400
Holiday (pro rated), $100
Misc, $100
Total, $1250 pm or $15k pa

Typical Condo retired couple

Food, groceries, restaurants for 2, $2000
Utilities, $300
Car (assumed no more loan) related expenses, $1000
Maid, $1000
Health insurance, $1000
Holiday (pro rated, twice a year), $1000
Entertainment, $1000
Misc, $1000
Total, $8300 pm or $100k pa

So, moral of the story is - your retirement expenses depend on your desired lifestyle.
As long as you are happy, it does not matter how much you spend.
Happiness is in the heart. I see many old uncles and aunties who are happy despite retiring with little means. I also see rich retired couples arguing or see them with long faces.

Originally Posted by Unregistered

Your example of a typical condo retired couple is not typical. Many opted for a more modest lifestyle. They no longer drive a car because it is too costly and they don't need it. They either live next to an MRT station or their condo has a shuttle bus service to bring them to the nearest MRT station if they need to travel. They also no longer need a maid as it is not difficult to maintain a two retired persons household. They may also not spend too much on eating out at restaurants.

A more realistic typical condo retired couple has these montly expenses:

Food, and food items and occasional dining out, $1000
Utilities, $250
Medical and health insurance, $700
Holiday, once a year (pro rated), $200
Condo fees (condo assumed to be paid off), $350
Misc, $500
Total, $3000 pm or $36k pa.

So, if they are able to generate a passive income of $36k pa, then they are ok. If they are lucky, their kids will give them monthly allowance of $1000 pm to each of them (assuming 2 kids, each kid give $500 to father and $500 to mother - could be more if they are luckier). They can save these allowances.

To generate $36k pa of passive income is not that difficult. You can get from the CPF Life, your blue chip investments, etc.

How do generate $36k pa of passive income? how much money to put in?

Originally Posted by Unregistered

How do generate $36k pa of passive income? how much money to put in?

Very easy. Sell the 3 room condo (which is paid up) for $1.6m and downgrade to an OCR 1 room condo selling at $600k. Retire in 1 room condo. Pay in full, no debt. Use the balance of $1m to invest in strong blue chips to give 4% dividend yield or $40k pa. When reach 65, will get $2400 pm (or $28k pa) (husband and wife) from CPF Life. So total passive income, $68k pa.

Sole bread winner, 47, middle manager, makes $110 pa, saves $50k pa.
Lives in a 3 room flat with home maker wife and a daughter. No more mortgage loan.
Goes to work by public transport.
Hope to retire by 60.

I am very happy whenever I read that retirees staying in condos are choosing not to own cars. This is because currently my condo car park space is filling up very quickly. Many of my neighbours including us are owning 2 cars. Some families are even getting their 3rd and 4th cars because their children grow up and started working and want to have their own car.

So I hope the in the steady state there will be enough lots for all with retirees giving up their lots while others need more. Unless the MCST members will have big headache.

Originally Posted by Unregistered

Your example of a typical condo retired couple is not typical. Many opted for a more modest lifestyle. They no longer drive a car because it is too costly and they don't need it. They either live next to an MRT station or their condo has a shuttle bus service to bring them to the nearest MRT station if they need to travel. They also no longer need a maid as it is not difficult to maintain a two retired persons household. They may also not spend too much on eating out at restaurants.

A more realistic typical condo retired couple has these montly expenses:

Food, and food items and occasional dining out, $1000
Utilities, $250
Medical and health insurance, $700
Holiday, once a year (pro rated), $200
Condo fees (condo assumed to be paid off), $350
Misc, $500
Total, $3000 pm or $36k pa.

So, if they are able to generate a passive income of $36k pa, then they are ok. If they are lucky, their kids will give them monthly allowance of $1000 pm to each of them (assuming 2 kids, each kid give $500 to father and $500 to mother - could be more if they are luckier). They can save these allowances.

To generate $36k pa of passive income is not that difficult. You can get from the CPF Life, your blue chip investments, etc.

45, makes $138k pa. Expenses responsible for, $98k pa. Saves $40k pa.
Spouse, 42, makes $120k pa. Expenses responsible for, $78k pa. $Saves $42k pa.
Household expenses, $176k pa. Savings, $82k pa.

Expenses include condo mortgage, car loan, food, utilities, chidlren's tuition and expenses, parents' allowances, health and medical insurance, twice a year holidays, car petrol, insurance, road tax, ERP, CBD parking, donations, dining at restaurants, etc.

Net worth (including half the equity value of condo, cash and CPF), $800k.
Spouse's net worth (including half the equity value of condo, cash and CPF), $700k.
Total combined net worth, $1.5m.

Over the next 15 years, we should save $1.23m. Our condo will be fully paid up.
When I reach 60, our combined net worth will be at least $3m.

Our retirement plan (when I reach 60) is to get a smaller two bedroom condo and invest the rest of the cash in dividend stocks which will generate about $80k pa in passive income. When we reach 65, we will get an additional $28.8k pa from CPF Life. So, our total passive income will be $108.8k pa or $9k pm. This excludes contribution from our 3 children.
Our expenses is estimated to be $4k pm or $48k pa.

I always wondered if the Condo's MCST control this issue? Or do families with additional cars rent / use lots from the neighbor who don't use them?

Originally Posted by Unregistered

I am very happy whenever I read that retirees staying in condos are choosing not to own cars. This is because currently my condo car park space is filling up very quickly. Many of my neighbours including us are owning 2 cars. Some families are even getting their 3rd and 4th cars because their children grow up and started working and want to have their own car.

So I hope the in the steady state there will be enough lots for all with retirees giving up their lots while others need more. Unless the MCST members will have big headache.

What I know (I was MCST chairman many years ago), was that we would propose a motion to be decided at the AGM. In my previous condo, there were only 5 spare lots, so we proposed a first come first serve cum balloting system for second cars. All first car owners were given priority. We also levied a charge for 2nd and subsequent cars.

I heard for some condos (pine grove?), owners without car can let neighbours use their entitlement. But I think they charge $65 for a lot for 2nd cars.

In my current mid-size condo, we don't allow this. But luckily we have sufficient (more than 20) visitor car lots. The total number of lots is over 400!

Originally Posted by Unregistered

I always wondered if the Condo's MCST control this issue? Or do families with additional cars rent / use lots from the neighbor who don't use them?

Seems there's no standard approach to such issues. Being on the MCST is no easy task I bet. Must be a lot of whining pending on who got the lot and who didn't or how much etc. 400 lot is a good size, probably have tenants who don't drive matched with families that have more than one car etc statistically the odds should least even out the available lots at any one time.

Thanks for sharing.

Originally Posted by Unregistered

What I know (I was MCST chairman many years ago), was that we would propose a motion to be decided at the AGM. In my previous condo, there were only 5 spare lots, so we proposed a first come first serve cum balloting system for second cars. All first car owners were given priority. We also levied a charge for 2nd and subsequent cars.

I heard for some condos (pine grove?), owners without car can let neighbours use their entitlement. But I think they charge $65 for a lot for 2nd cars.

In my current mid-size condo, we don't allow this. But luckily we have sufficient (more than 20) visitor car lots. The total number of lots is over 400!