How much are you earning per annum?

Originally Posted by Unregistered

26 going 27...

banker, 130k per annum excluding bonuses.

not saving much, i usually treat my friends when we go out for drinks/food.

are you married? do you own a condo?

Originally Posted by Unregistered

Total income, $216k pa. Total savings, $60k pa.
43, 45 years old working professional couple.
Home is a 3 room brand new condo, worth $1.1m, outstanding loan $241k.
Two teenage kids. Drives a continental luxury sedan, fully paid up.
Lead a comfortable lifestyle, expensive holidays twice a year.
Fine dining, once a week.
Total combined net worth, $2.2m.
We are happy with our financial achievement so far.
We aim to retire at 60.

Brand new condo ? You bought yesterday? Worth $1.1m with outstanding loan $241k. You mean 859k down payment ? What profession are you in ? Mid forties just make combine income 216k, nothing to shout.

With the huge supply of COEs coming in 2015 - 2016, COE prices will crash.

Originally Posted by Unregistered

With the huge supply of COEs coming in 2015 - 2016, COE prices will crash.

And what's your idea of a crash? Price wise

Originally Posted by Unregistered

And what's your idea of a crash? Price wise

Hope Cat A will drop to $20k and Cat B will drop to $25k.

Originally Posted by Unregistered

Hope Cat A will drop to $20k and Cat B will drop to $25k.

I doubt that will happen, realistically more like 40 to 50k range.

Government is looking to claw back some coes and a number of people I know are looking to replace their cars next year even at current Coe price. Demand is still going strong

Not unusual to have huge upfront payment for condo, especially if got HDB to trade up. We paid for our 4 bedroom condo in full when we purchased it. We only took loan for our investment condo for the 3 reasons: 1. Loan interest rate is atrociously low 2. Can claim against loan interest repayment for tax purposes. 3. Investment of cash in stocks gives high returns.

Originally Posted by Unregistered

Brand new condo ? You bought yesterday? Worth $1.1m with outstanding loan $241k. You mean 859k down payment ? What profession are you in ? Mid forties just make combine income 216k, nothing to shout.

If more seniors take up gahmen's call to work till 67, then they will still continue to buy cars. Already I see a few of my "elderly" colleagues bought new cars. They are in their late 50s. They said the cars will be their last cars. I saw that some of them have switched to smaller cc cars like the Altis, Vios but later I found out it was because they now have 2 cars. Their wives or children also have another!

Even my retired neighbors have just bought new cars. The car parks are always full.

If the COE price does drop, it will only be temporary.

Originally Posted by Unregistered

I doubt that will happen, realistically more like 40 to 50k range.

Government is looking to claw back some coes and a number of people I know are looking to replace their cars next year even at current Coe price. Demand is still going strong

I think not to worry too much as both of you are still young. As you already know, wealth is not everything, but having sufficient wealth is important. So you have to know what that "number" is and aim to make sure you achieved it before you reach retirement age.

To know what that "number" is, you need to know the lifestyle you want to lead in retirement. Do you have or plan to have kids? Let's say you worked out that both of you together needs $80k a year in retirement and you retire at 60, and spend 25 years in retirement, you will need minimally $80k x 25= $2m. I said minimally because I have not factored in inflation.

Engineers are versatile, by virtue of the degree engineering courses and training. I know as I am one. Most engineers will move on to become managers by age 35 and lead big projects and teams. Those staying on in the technical should also progress up the technical skill ladder and earn more.

I am not yet 50, but my net worth is above $5m combined with my wife. So you will get there and retire in comfort. Don't worry.

Originally Posted by Unregistered

I have started following this forum recently and got many valuable information and advise through the experience people. Here is our information

Hubby 32, Engineer, working in MNC, 7 years exp
base 89k + approx 1.5 - 2 months bonus if company revenue hit the target
Wife 31, Engineer, working in MNC, 8 years exp
Base 91k + variable bonus, but not much
Home is a small OCR condo, worth 900k, bought in 2012, no car.

We are engineers and already hit the typical engineers salary limit for our working experience, henceforth I do not see any possible fast growth of income, maybe max 3-4% annual increment over the next 10 -15 years to adjust inflation, and once we reach 45, pay most likely will be freeze. However, we are happy with our current situation and it would be acceptable to us even if the growth is slower as long as we are employed. We are planning to start doing savings in cpf and cash, later will think of low risk investment only. It is too early to decide for retirement age, if the health condition is good, we are planning to work at least till age 60.

Originally Posted by Unregistered

I doubt that will happen, realistically more like 40 to 50k range.

Government is looking to claw back some coes and a number of people I know are looking to replace their cars next year even at current Coe price. Demand is still going strong

There are many factors that will crash COE prices in 2015 & 2016:

1. 10 years ago, many in their 50s bought brand new cars, these folks are in their mid to late 60s now and retired. It is stupid for them to own cars when they are retired as they will need to spend $2k per month to own and maintain a car. This $2k per month is better utilized for them to spend for their retirement, savings or holidays.

2. TDSR - Most people who want to buy a property avoid taking loan for a car as it negatively affects their TDSR. They would rather buy an older car and lay in cash. So, not many younger people who are buying their first property would want to buy a new car as it means they would take a loan. This is especially so if they want to buy a condo.

3. Opening of DTL2 and then Thomson Line and many other lines after that. This makes traveling to work in the CBD much easier and faster. So demand for cars will plunge.

4. Most important of all, supply will increase by a huge amount with 100,000 cars deregistered next year.

So, with supply rising up high and demand crashing, COE prices will crash in 2015 & 2016.

This makes everyone happy. Good news for all.