How much are you earning per annum?

Originally Posted by Unregistered

We both work in finance, non-revenue generating functions.

We don't subscribe to "keeping up with the joneses" just because of our HH income. have 2 kids and elderly parents to look after, and living with us. Obligations are quite substantial and trying to sock away as much as we can, so that our retirement could be assured.

We like our HDB flat and have a few invt properties, but don't feel we are much better than the average HDB heartlander. We still pinch pennies and cut out supermarket coupons, we take the mrt to work, our kids go to "non-elite" schools with some tuition. We have a maid whom we found necessary to clean the house and look after the young and old folks during the day.

You are doing the right thing since both of you work in finance, the most unpredictable jobs for any professional. Being in non-revenue generating functions is even worse since you are cost centres and can easily be replaceable by cheaper, younger, smarter and more efficient workers.

If you ever lost your jobs, you can simply retire and since you have been living in a HDB flat, it is much easier to adjust socially. You don't have to downgrade and hence avoiding all sorts of questions from relatives and friends. Imagine if are living in a big house now and you lose your jobs, you will have to downgrade as you no longer able to service the big loan and this invites queries from people.

Fyi, many from finance, esp those in FO, makes their money fast and retire in their forties.

Originally Posted by Unregistered

You are doing the right thing since both of you work in finance, the most unpredictable jobs for any professional. Being in non-revenue generating functions is even worse since you are cost centres and can easily be replaceable by cheaper, younger, smarter and more efficient workers.

If you ever lost your jobs, you can simply retire and since you have been living in a HDB flat, it is much easier to adjust socially. You don't have to downgrade and hence avoiding all sorts of questions from relatives and friends. Imagine if are living in a big house now and you lose your jobs, you will have to downgrade as you no longer able to service the big loan and this invites queries from people.

Fyi, many from finance, esp those in FO, makes their money fast and retire in their forties.

Thanks, that's good advice and precisely why we under-live, under-drive, under-wear many of our peers in order to prepare for a rainy days if and when it strikes, and that we can adapt to no-work and no-pay scenarios over an extended period of time.

As long as the economy is doing okay, we think our employers / careers should be fine. Our function while not revenue generating are essential in all financial institutions so at most we take a pay cut and take whatever jobs come our way.

having socked away savings all these years and assessing that our annual savings rate can't go up significantly going forward, our attention is turning to "asset enhancement" meaning trying to get a better return on our principal sum. Rather than just saving in a bank, or investing in unit trust, we diversify selectively in pty and hedge funds. While the latter are higher risk, we think we can ride through the ups and downs and come out better otherwise.

i used to be a high flyer in FO, got sick of the fast paced, stressful lifestyle with no family life and finally decided to quit in my early 40s. sold my landed property for a big profit, consolidated my wealth and am now retired. i downgraded to a smaller sized home, a penthouse unit which i fully paid up. i am debt free. now i manage my own investments which generates enough income for my family and i to live comfortably for many, many years.

i now lead a more meaningful, contented life with lots of time to spend with my family members, esp my kids and old parents.

Originally Posted by Unregistered

Thanks, that's good advice and precisely why we under-live, under-drive, under-wear many of our peers in order to prepare for a rainy days if and when it strikes, and that we can adapt to no-work and no-pay scenarios over an extended period of time.

As long as the economy is doing okay, we think our employers / careers should be fine. Our function while not revenue generating are essential in all financial institutions so at most we take a pay cut and take whatever jobs come our way.

having socked away savings all these years and assessing that our annual savings rate can't go up significantly going forward, our attention is turning to "asset enhancement" meaning trying to get a better return on our principal sum. Rather than just saving in a bank, or investing in unit trust, we diversify selectively in pty and hedge funds. While the latter are higher risk, we think we can ride through the ups and downs and come out better otherwise.

I'm 48 this year, my annual income is $137k pa. I save $35k pa.
My wife is 42, her annual income is $115k pa. She saves $30k pa.
We live in a condo now worth $1.5m, with mortgage outstanding $500k.
Our cash and CPF balances $500k.
Our net worth in total $1.5m.

We have 3 children who loves the condo and its facilities.
We spend our weekends going to malls and eating at nice restaurants.
We drive a one year old SUV with a loan of $60k remaining.
We go for a long holiday once a year in Dec.

We enjoy our middle class lifestyle.
We plan to retire at 60 if possible and if not possible, then at 65.
Life is good.

Originally Posted by Unregistered

Thanks for the advise. Me & my wife also would like to fulfill our dreams to own a nice car. Do you think it's affordable for us to buy a entry conti car? We are retiring and would like to enjoy our fruits of labor. That's what many of our retiring friends are doing as they cash out their retirement funds, even at today's crazy COE prices.

If you are retiring, you don't need a car. If you really want, go for the Jap or Korean smaller cars. Don't buy expensive cars, these are high profit margins cars, not for retirees. Why throw your hard earned savings away? I find Jap and Korean cars very reliable.

Originally Posted by Unregistered

If you are retiring, you don't need a car. If you really want, go for the Jap or Korean smaller cars. Don't buy expensive cars, these are high profit margins cars, not for retirees. Why throw your hard earned savings away? I find Jap and Korean cars very reliable.

Ok thanks.
me and myself have narrowed down our choice
Likely to buy a new Altis this weekend before the government starts to cold storage the quota for the famine years later.

Originally Posted by Unregistered

Ok thanks.
me and myself have narrowed down our choice
Likely to buy a new Altis this weekend before the government starts to cold storage the quota for the famine years later.

Good. I'm sure there will be claw backs to avoid a sharp spike in COE prices in 2019 and beyond to perhaps $100k and above. This is not healthy. COE prices should not fluctuate a lot like stocks. I think Cat A should be $65k - $75k in the long term.

Originally Posted by Unregistered

Good. I'm sure there will be claw backs to avoid a sharp spike in COE prices in 2019 and beyond to perhaps $100k and above. This is not healthy. COE prices should not fluctuate a lot like stocks. I think Cat A should be $65k - $75k in the long term.

Then I better buy when it is still low $60k.
dont want to caught in a situation if CatA shoots back to $75k

Thanks for the great advise

Originally Posted by Unregistered

You are the typical couple in their 40s. You own a home, dual income and own a car. Even though your net worth is not as high as those who posted here (not sure whether those claims are true any how), you both are indeed on the right track towards retirement. Here are steps to ensure you will be able to retire well.

1. Make sure both you and wife each go for the $241,500 CPF Life scheme option. This will ensure you will get $3500 pm as a couple ($1750 pm each).

2. You can rent two of your spare rooms during retirement. You should get $1000 pm for each room or $2000 pm for two rooms.

3. Save enough cash to invest in 5% dividend yield blue chips, high quality stocks. If you have $240k invested, you will get $12k pa in dividends or $1000 pm.

4. Ask your kids to each contribute $1000 pm. If you have two kids, you get $2000 pm.

So, in total your passive income as a retired couple is $8500 pm or $102,000 pa.

So, as you can see, with careful planning, you can retire well. Just make sure you don't waste money gambling, drinking, partying, womanising, expensive holidaying, etc.

Really a great advise from an unsound mind.
If H1 earning $75k now, in 20 years time he should earn 350k a year.
and H2 earn $70k now should earn 326k then.
Still need to depends on their kids ?
Still have to rent out 2 rooms for supplement?
Don't tell me all S'porean should think the way you want your life to be?
Don't tell me all S'porean don't treasure privacy?

Originally Posted by Unregistered

Then I better buy when it is still low $60k.
dont want to caught in a situation if CatA shoots back to $75k

Thanks for the great advise

Car dealer again hijacking this thread again!!
Hidden agenda, beware!