How much are you earning per annum?

In your 60′s

In the 60′s, you have finally retired, wrinkles set in, and your children have settled and have started their own families. Money becomes extremely important to you now that you no longer have an income stream. The best case scenario would be to enjoy your golden years in relaxation and do things that you were too busy or didn’t get to choose before, when you were still climbing the corporate ladder.

Completely abandoning investments

You tend to build your funds until you retire, and then stop proactively building and start living off those funds. However, retirees can continue to maximise on their investments to stretch their retirement income through investments that offer monthly or quarterly distributions. Ensuring your investments deliver a steady income stream can help you better manage your budget and stretch your money further (Find out what are the low-risk investments that retirees can invest in).

Not maintaining a medical insurance

As you grow older, your medical insurance becomes more and more expensive. Most people would cancel it, and focus their finances in other areas of their lives. However, there is a reason why the cost of medical insurance increase in tandem with your age — people are prone to sickness as they get older and medical bills would start pouring in. That is when it will hit that you should have kept your medical insurance.

Making full use of financial opportunity at every decade of your life is important. More money handled appropriately means more opportunities and more financial security for you and your family.

Many people overspend. Youngsters nowadays like to show off. Their income may be $200k pa as a couple but they want to buy a big penthouse in D9 and take huge loans of $2m or more. Then they want to buy a big luxury car to show off again and take huge loans. They also want to go holidays to Europe. So they have to service huge debts, some may even stop giving allowance to their aged parents. Worse, they send their old parents to old folks homes.

If they lose their jobs due to restructuring or economic crisis, they panicked as their income dropped from $200k pa to zero. So it is best to be humble. If you earn $200k pa, you should just buy a 5 room flat which only cost you $450k in some areas. Clear your mortgage as fast as possible and save for your retirement. If you want a car, pay in full, don't need to take any loan. Buy good and cheap car models costing $110k or less. Don't be a fool to buy expensive car models just to show off. Instead of buying a $200k car, just buy a $100k one. You can save $100k.

You top form ah? You made all sorts of assumptions.

If those families earning $200k buy only HDB flats, you will be priced out of HDB - meaning there will no cheap HDB flats for you. If those families buy only cheap cars, those earning less will not have a chance to buy.

And if they don't spend their money, the economy will shrink and there will be fewer jobs for all. Be thankful that there are rich people who spend generously so that money goes around and create jobs.

Don't assume they take big loans to buy the big houses and cars, many actually don't have to take huge loans. Guess you are not aware, but power couples can easily save $200k - $350k each year.

Originally Posted by Unregistered

Many people overspend. Youngsters nowadays like to show off. Their income may be $200k pa as a couple but they want to buy a big penthouse in D9 and take huge loans of $2m or more. Then they want to buy a big luxury car to show off again and take huge loans. They also want to go holidays to Europe. So they have to service huge debts, some may even stop giving allowance to their aged parents. Worse, they send their old parents to old folks homes.

If they lose their jobs due to restructuring or economic crisis, they panicked as their income dropped from $200k pa to zero. So it is best to be humble. If you earn $200k pa, you should just buy a 5 room flat which only cost you $450k in some areas. Clear your mortgage as fast as possible and save for your retirement. If you want a car, pay in full, don't need to take any loan. Buy good and cheap car models costing $110k or less. Don't be a fool to buy expensive car models just to show off. Instead of buying a $200k car, just buy a $100k one. You can save $100k.

退休準備分享 - 方幼南
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44/46, total income $6k pm. One son.
Currently staying in a 3 room HDB flat, paid up. Current valuation $350k.
Planning to upgrade to a 2 bedroom new EC costing $600k. We have saved enough from our cash and CPF savings for the 20% downpayment ($120k). We intend to take mortgage loan of 80% ($480k) for the new EC.
Once our EC is ready, we will sell our flat and use part of the money to buy a new car.
What do you think of our plan?

LOL, first of all, do share with us what do you think of your plan.

Is it a good plan and why?

It is a bad idea and why?

Think through the various scenarios and you will find the answer yourself. Nobody knows you better than yourself. For eg, what jobs do you and your wife do, what is your promotion prospects, do you foresee working until 65 etc....

Living in a condo is fantastic, but only if you are not struggling daily with finances.

Originally Posted by Unregistered

44/46, total income $6k pm. One son.
Currently staying in a 3 room HDB flat, paid up. Current valuation $350k.
Planning to upgrade to a 2 bedroom new EC costing $600k. We have saved enough from our cash and CPF savings for the 20% downpayment ($120k). We intend to take mortgage loan of 80% ($480k) for the new EC.
Once our EC is ready, we will sell our flat and use part of the money to buy a new car.
What do you think of our plan?

[Joshua]

IT support - 30k

Damn little. Dont know whats happening to the market! or is it just me sobs*

Why do you laugh? Are you jealous?
We think it is a good idea.
With our pay, we can service the mortgage using our CPF and a bit of cash.
And by using the proceeds from selling our hdb flat to buy the new car in cash, we no longer need to service any car loan.
We will also have cash as stand by.

Mortgage loan $480k - monthly payment by CPF and a bit of cash
Car $130k - to pay in cash from sale of flat
Sale of flat - $350k

Originally Posted by Unregistered

LOL, first of all, do share with us what do you think of your plan.

Is it a good plan and why?

It is a bad idea and why?

Think through the various scenarios and you will find the answer yourself. Nobody knows you better than yourself. For eg, what jobs do you and your wife do, what is your promotion prospects, do you foresee working until 65 etc....

Living in a condo is fantastic, but only if you are not struggling daily with finances.

Originally Posted by Unregistered

44/46, total income $6k pm. One son.
Currently staying in a 3 room HDB flat, paid up. Current valuation $350k.
Planning to upgrade to a 2 bedroom new EC costing $600k. We have saved enough from our cash and CPF savings for the 20% downpayment ($120k). We intend to take mortgage loan of 80% ($480k) for the new EC.
Once our EC is ready, we will sell our flat and use part of the money to buy a new car.
What do you think of our plan?

Earn peanuts, live like king. Just wonder if your surname is King or Kiing or Khiing?

What is there to be jealous about?

I laughed because you are the one with the figures not us, and you expect to say whether your plan is good or not.

For eg,
1. Can you still service the loan if only one of you is working?
2. Can you and your wife work till the loan is paid up?
3. Have you considered possible rise in interest rate?
4. Living expenses in condo may be different than in HDB

Originally Posted by Unregistered

Why do you laugh? Are you jealous?
We think it is a good idea.
With our pay, we can service the mortgage using our CPF and a bit of cash.
And by using the proceeds from selling our hdb flat to buy the new car in cash, we no longer need to service any car loan.
We will also have cash as stand by.

Mortgage loan $480k - monthly payment by CPF and a bit of cash
Car $130k - to pay in cash from sale of flat
Sale of flat - $350k