How much are you earning per annum?

Husband and wife, 46 & 44, total income $169k pa. Owns a condo, worth $1m. Cleared our mortgage. Other assets include CPF savings, cash and some equities. Total net worth $1.4m. We hope to retire at 65 with CPF Life and our cash savings.

Originally Posted by Unregistered

41 & 42 yo middle class couple. Two children, primary 1 & 3.
Total HH income $150k pa. Saves $30k pa.
Owns a HDB flat, fully paid, worth $500k.
Car, 5 year old, fully paid.
Cash, CPF & stocks, $300k.
Total net worth, $800k. Debt free.
How are we doing?
How can we prepare for retirement?

I think its good that you now don't have to worry about mortgage payment
You might need to include car replacement costs a few years down the road, and that alone will have a big influence on your retirement plan. Or if possible, start planning on how to adjust your lifestyle so you can do without a car. That alone will give a boost to your retirement, since cars are really too expensive here. But as car owner myself, and with kids, I can understand it is very tempting to continue car ownership, for convenience and comfort.

I think it is time to ensure you develop other income streams besides your salaries. Dividends from stocks, reits, rental income from investment property etc. With a fully paid HDB, you will be able to borrow a larger amount for next property, though current ABSD rule will still hit you.Your savings rate of 20% (30k/150k) alone is not very high. I understand that with 2 kids, its probably not easy to achieve 20% in the first place!

Also, try to find ways to increase your salaries while you are still strong and able to work, either by aiming for promotion/big bonus or look around for new job that can offer a jump of renumeration. Once you hit 45, its probably very hard to jump ship.


best of luck!

Originally Posted by Unregistered

Husband and wife, 46 & 44, total income $169k pa. Owns a condo, worth $1m. Cleared our mortgage. Other assets include CPF savings, cash and some equities. Total net worth $1.4m. We hope to retire at 65 with CPF Life and our cash savings.

Good to have no mortgage, so you can continue to grow CPF and cash savings each month from your incomes for the next 10-20 years. But you need to think about how to have decent income stream after retirement.

You effectively have $1million locked in your primary residence, and this is $1m not doing anything for you, except maybe capital appreciation of your condo over time, but that could have been the case regardless of whether you had paid up the mortgage.

I have a friend who have ability to clear his 800k condo mortgage (his primary residence) in cash and cpf, but instead of clearing it, he used the 800k to fully pay for a studio condo, and rented it out for about 2.5k per month. That 2.5k is now used for paying his monthly mortgage of his primary residence. And he continues to work and draw salary, so he is building up his savings/CPF while his tenant "helps" him pay his home mortgage.

Yes, market can soften and he might find it hard to find tenant if that happens, but since he has no outstanding mortgage on his studio, he can just accept any lower rent without issue, since he has ability to service his own home mortgage anyway.

There are always risks with such approach, but no risk no gain.

I hope I can do what he is doing, still need to save up for the first pot of gold!

I am 45 this year. but due to super high stress, i am seriously thinking of quitting and finding a less stress job. My condo is fully paid, new car is almost paid, and have cash balance of $500k. should i just quit and get a life?

Originally Posted by Unregistered

I am 45 this year. but due to super high stress, i am seriously thinking of quitting and finding a less stress job. My condo is fully paid, new car is almost paid, and have cash balance of $500k. should i just quit and get a life?

You've been asking this so many times in this forum. I think you're in danger of depression if your situation gets worse every day. Just quit and don't look back. You can even retire. You can retire in Thailand or Malaysia if you want.

Turning 55 next month. HDB flat paid up (market value is almost $1m).

My cash n CPF at $500k n $400k resp. Two children, one at pri and sec. Will set aside $200k of my CPF for the two children's education n balance for CPF Life.

Annual income at $140k. Will work till end this year, take a short break n find a part time job (ie. lecturer, relief taxi driver....). Just wanna step down from the demands of current job n take life slow n easy.

Will replace my current 9-yr old care with a 3-4 yr old Jap car end this year. Left spouse out of this post to see if my idea is good to go. Welcome advice.

Originally Posted by Unregistered

I am 45 this year. but due to super high stress, i am seriously thinking of quitting and finding a less stress job. My condo is fully paid, new car is almost paid, and have cash balance of $500k. should i just quit and get a life?

I can emphatise what you're going through. It's ok to quit as you don't have much liabilities and you have a healthy cash buffer. You can quit and take a year break from work and then find a more relaxed work. You have to take care of your health, especially your mental health. May I know whether your wife is working and how much is she earning? How much is your household expenses?

Originally Posted by Unregistered

Turning 55 next month. HDB flat paid up (market value is almost $1m).

My cash n CPF at $500k n $400k resp. Two children, one at pri and sec. Will set aside $200k of my CPF for the two children's education n balance for CPF Life.

Annual income at $140k. Will work till end this year, take a short break n find a part time job (ie. lecturer, relief taxi driver....). Just wanna step down from the demands of current job n take life slow n easy.

Will replace my current 9-yr old care with a 3-4 yr old Jap car end this year. Left spouse out of this post to see if my idea is good to go. Welcome advice.

Congrats for owning a million dollar HDB flat. Indeed you are among the lucky few to own a million dollar HDB flat. You should sell your flat now as it is old now, most probably 30 years old. Get a 4 room HDB flat in Jurong selling at $400k only. You then have lots of cash and can retire. How much is your wife earning and what is your household expenses?

53, 54. Debt free. Retired. We are lucky to marry young. Our children are now working and living with us in our condo. They help to cover our household expenses since they are earning good salaries. We earn passive income from our investments and this passive income more than covers our expenses. Our expenses are low as we are debt free and we no longer employ a maid nor own a car. We are living an active retired life with no worries.

Originally Posted by Unregistered

53, 54. Debt free. Retired. We are lucky to marry young. Our children are now working and living with us in our condo. They help to cover our household expenses since they are earning good salaries. We earn passive income from our investments and this passive income more than covers our expenses. Our expenses are low as we are debt free and we no longer employ a maid nor own a car. We are living an active retired life with no worries.

How lucky you are to retire at ripe age while getting to enjoy active retirement. You must have profited from the HDB asset enhancement during the 80s and 90s. I am only 45 with 10 more years to go. Sucks generation.