How much are you earning per annum?

Lol, people who can only achieve $190k pa passive income are not rich enough to afford bungalows. Although $190k pa is not a small sum, you don't need $8m to generate this.

Let's work out the sum. The poster said he lived in a 4 bdrm condo, so let's give him $2m for that. Then supposed he derived $100k pa dividends from stocks at 5% return. This means he has $2m in stocks. And supposed he derived $50k pa rental income, let's give him $1.5m for second property. And finally $0.48m for CPF retirement amount for both he and his wife combined. The total is : $5.98m.

See, he cannot afford an $8m bungalow.

However, he may be shrewder than the guy who bought a bungalow. The bungalow doesn't generate income for him. Food for thought.

Originally Posted by Unregistered

Since you have a big family, why don't you upgrade to a bungalow? Now is a good time to buy cheap bungalows, you can get a bungalow for only $8m. Very cheap.

Yes, don't think he can afford a bungalow.

Originally Posted by Unregistered

Lol, people who can only achieve $190k pa passive income are not rich enough to afford bungalows. Although $190k pa is not a small sum, you don't need $8m to generate this.

Let's work out the sum. The poster said he lived in a 4 bdrm condo, so let's give him $2m for that. Then supposed he derived $100k pa dividends from stocks at 5% return. This means he has $2m in stocks. And supposed he derived $50k pa rental income, let's give him $1.5m for second property. And finally $0.48m for CPF retirement amount for both he and his wife combined. The total is : $5.98m.

See, he cannot afford an $8m bungalow.

However, he may be shrewder than the guy who bought a bungalow. The bungalow doesn't generate income for him. Food for thought.

We are the typical middle class couple, 42/ 40, earning $120k pa in total. We live in an EC and have 3 children in primary schools. We are still servicing the $450k mortgage of our EC and has about 20 years more to clear the mortgage. We also have a $50k car loan.

We manage our budget carefully and able to save $30k pa. We hope to accumulate $600k by the time we retire at 65. We will buy dividend stocks with 5% dividend yield to give us $30k pa or $2.5k pm. Our CPF Life will give each of us $1900 or $3.8k as a couple. Our 3 kids will each give us $600 as allowance, or $1800 pm. So in total passive income is $8.1k pm. This should be enough but if not we will rent out two of our rooms at $1500 pm for each room.

Originally Posted by Unregistered

We are the typical middle class couple, 42/ 40, earning $120k pa in total. We live in an EC and have 3 children in primary schools. We are still servicing the $450k mortgage of our EC and has about 20 years more to clear the mortgage. We also have a $50k car loan.

We manage our budget carefully and able to save $30k pa. We hope to accumulate $600k by the time we retire at 65. We will buy dividend stocks with 5% dividend yield to give us $30k pa or $2.5k pm. Our CPF Life will give each of us $1900 or $3.8k as a couple. Our 3 kids will each give us $600 as allowance, or $1800 pm. So in total passive income is $8.1k pm. This should be enough but if not we will rent out two of our rooms at $1500 pm for each room.

You are right that you are a typical middle class HH.

But you are 'over consuming' on housing. EC as a housing class is probably for the 75th-85th percentile. your HH income should be about 60th percentile or so. In addition you have 3 children. Hope your jobs ar defensiv and secure.

You shouldn't have responded to him. This poster posted the same theme over and over again under various guises. His common assertions are:

1. Typical middle income
2. Buy dividend stocks to reap returns of 5%
3. Children will give allowances
4. Rent out rooms
5. CPF Life annuity payout (now he increased it to $1,900 per month). He assumed he can hit the enhanced Retirement amount.

Originally Posted by Unregistered

You are right that you are a typical middle class HH.

But you are 'over consuming' on housing. EC as a housing class is probably for the 75th-85th percentile. your HH income should be about 60th percentile or so. In addition you have 3 children. Hope your jobs ar defensiv and secure.

just read about a guy who retired at 39. For real?

s://.drwealth.com//2015/01/27/early-retirement-feels-like/

I missed the posts by the car salesman who boast that COE will hit $80k or $90k. He must be lost for words now, probably he will become property agent next.. Haha

Originally Posted by Unregistered

We are the typical middle class couple, 42/ 40, earning $120k pa in total. We live in an EC and have 3 children in primary schools. We are still servicing the $450k mortgage of our EC and has about 20 years more to clear the mortgage. We also have a $50k car loan.

We manage our budget carefully and able to save $30k pa. We hope to accumulate $600k by the time we retire at 65. We will buy dividend stocks with 5% dividend yield to give us $30k pa or $2.5k pm. Our CPF Life will give each of us $1900 or $3.8k as a couple. Our 3 kids will each give us $600 as allowance, or $1800 pm. So in total passive income is $8.1k pm. This should be enough but if not we will rent out two of our rooms at $1500 pm for each room.

You are living in a condo and you own a car. This shows you are very successful. Only 15% of Singaporean live in condos I think. This means you are among the top few who are living in condos. Your mortgage is not large, there are people with mortgages of $1m. This is not safe even if you earn $300k pa as you might be retrenched any time, especially those working in banking and the oil and gas industries. Especially of you are a banker or engineer in your forties and fifties. Better be safe than sorry.

Originally Posted by Unregistered

We are the typical middle class couple, 42/ 40, earning $120k pa in total. We live in an EC and have 3 children in primary schools. We are still servicing the $450k mortgage of our EC and has about 20 years more to clear the mortgage. We also have a $50k car loan.

We manage our budget carefully and able to save $30k pa. We hope to accumulate $600k by the time we retire at 65. We will buy dividend stocks with 5% dividend yield to give us $30k pa or $2.5k pm. Our CPF Life will give each of us $1900 or $3.8k as a couple. Our 3 kids will each give us $600 as allowance, or $1800 pm. So in total passive income is $8.1k pm. This should be enough but if not we will rent out two of our rooms at $1500 pm for each room.

Hey! In 25 years time, 15% of those male at 42 yo now will be dead, 10% female at 40 yo now will be dead. Sing dollar may not sustain its value (Just see value of HK$ vs RMB now). Cost of living will beyond normal means of subsistence. Children then will all become DINK, hardly can afford to raise a child (just compare with Belgium right now). Everybody will have to move out from CBD or half the salary will go to rental/mortgage. All will be working in Singapore but staying in JB. CPF Life MS will be 760k for you and your wife at 65 yo in order to ge 3.8k a month. 600k will not last you 10 years!

Still expecting contribution from children? How much do you plan to spend on their education? Are your children going to stay in 400 sf ft apartment like Hongkong now?

Small income better be more prepared for your retirement. You may end up with a condo (high asset value) but not much money to spend. So don't talk too much about having how much, how much net worth. Net worth is meaningful only if all your asset minus the dwelling you intend to stay in.

The new CPF Life scheme has this enhanced option. If you are 55 this year and put in $241,500 in your CPF min sum, by the time you are 65 in 10 years time, you will get $1900 pm and your wife will get $1900 pm so in total you get $3,800 pm.

You can rent out two of your HDB flat rooms at $800 pm and so you get $1,600 pm from room rental.

Your children can each give $500 pm and if you have two children, you get $1,000 pm.

So, in total your passive income is $6,400 pm. This is more than enough for a retired couple who is debt free and do not have bad habits such as gambling, partying, drinking, smoking, womanizing, over spending on luxury goods, etc. They must also not employ a maid and must not own a car.

So, retiring should not be difficult if you have a paid up HDB flat, the enhanced CPF Life and good children. If you don't have good children, it is purely your fault for their poor upbringing. Must also not have bad, sinful activities and habits.