How much are you earning per annum?

May I ask when you guys post annual income here, do you included CPF portion from the company in the number???

Need some advises from the guru here,

Me:Age 36 , about 185k per annum gross.
my spouse: Age 30 about 50k per annum gross.

just got married 2 weeks ago, and i'm looking into preparing for retirement and also on how i can get out of debt quickly :P

and because of the imbalance annual salary between my spouse and myself + the fact that we have a combined income ceiling of > 12k per month, we couldn't go for a BTO or EC, even though that was really my preference, so in the end settled for a resale EA apartment at 620k.

Resale HDB is purely in my name as i bought it in 2014 under Single scheme, and i paid off ~ 20% using cash and CPF, rest of it is on mortgage. Outstanding loan amount ~ 445k

Currently servicing the mortgage on my own with my CPF + Cash Top up (about $900 cash top up monthly) with 24 years left on the mortage.

Have a car, with outstanding loan amount of 37K, looking to repay in full in next 3 years.

So total debt is about 445k+35k = 480k.

cash on hand about 80k and looking to build till 100k as emergency funds before i start some investment.

Can any gurus here advise whats the best thing i can do to get out of debt quickly and start planning for retirement?

My Plan is as follow, but i will need some advise to see if its feasible:

1) Make regular partial payment to the bank to reduce mortgage quickly , shorten the 24 year loan to 10 years, and by 46, house should be fully paid up.

2) Save around 50k per annum and use the 50k for investment, savings etc...

3) Look at how best to get a 2nd property, reason why i bought the house in my own name and not with my wife is purely because i'm trying to find a loophole on the 2nd property purchase.

and of course any good advise is greatly appreciated.

Originally Posted by Unregistered

May I ask when you guys post annual income here, do you included CPF portion from the company in the number???

Nope. it is just the annual gross. and not nett..

if you want to calculate nett, just take out the cpf deduction monthly from the gross package.

You have a very high HH income. How much do you save per year? Since you are just married, your commitment is not high yet. So if you save $100k pa cash, you can pay down your loan over 4 years. Then you can upgrade to a $1m condo after selling your flat after MOP. Make sure you top up your CPF SA for your CPF Life.

Originally Posted by Unregistered411

Need some advises from the guru here,

Me:Age 36 , about 185k per annum gross.
my spouse: Age 30 about 50k per annum gross.

just got married 2 weeks ago, and i'm looking into preparing for retirement and also on how i can get out of debt quickly :P

and because of the imbalance annual salary between my spouse and myself + the fact that we have a combined income ceiling of > 12k per month, we couldn't go for a BTO or EC, even though that was really my preference, so in the end settled for a resale EA apartment at 620k.

Resale HDB is purely in my name as i bought it in 2014 under Single scheme, and i paid off ~ 20% using cash and CPF, rest of it is on mortgage. Outstanding loan amount ~ 445k

Currently servicing the mortgage on my own with my CPF + Cash Top up (about $900 cash top up monthly) with 24 years left on the mortage.

Have a car, with outstanding loan amount of 37K, looking to repay in full in next 3 years.

So total debt is about 445k+35k = 480k.

cash on hand about 80k and looking to build till 100k as emergency funds before i start some investment.

Can any gurus here advise whats the best thing i can do to get out of debt quickly and start planning for retirement?

My Plan is as follow, but i will need some advise to see if its feasible:

1) Make regular partial payment to the bank to reduce mortgage quickly , shorten the 24 year loan to 10 years, and by 46, house should be fully paid up.

2) Save around 50k per annum and use the 50k for investment, savings etc...

3) Look at how best to get a 2nd property, reason why i bought the house in my own name and not with my wife is purely because i'm trying to find a loophole on the 2nd property purchase.

and of course any good advise is greatly appreciated.

Originally Posted by Unregistered

You have a very high HH income. How much do you save per year? Since you are just married, your commitment is not high yet. So if you save $100k pa cash, you can pay down your loan over 4 years. Then you can upgrade to a $1m condo after selling your flat after MOP. Make sure you top up your CPF SA for your CPF Life.

I do have family commitment (aged parents) that i am providing for. They do not live with me and have their own property (fully paid). They are both retired, not working and not well educated, but have done their best to provide for their children.

With my parents commitment and my own household bills, cars, etc, i can probably do a min of 60k per annum of saving. Is 60k per annum considered a good percentage of saving ? with this 60k , i would take out 20k per annum over 10 years which is about 200k to do partial repayment, while during that 10 years, i would also be making similar amount of monthly mortgage totalled to about another 200k to the bank to clear the housing loan in 10 years.


Also, does it make sense to pay upfront in 4 years instead ? i would prefer to have cash on hand where i can do investments (gold, stocks, bonds). Is that a better bet?

Originally Posted by Unregistered

May I ask when you guys post annual income here, do you included CPF portion from the company in the number???

of cuz no lah

that would make it grossly inflated

Originally Posted by Unregistered

of cuz no lah

that would make it grossly inflated

I beg to differ.
For citizens and PRs, the CPF contribution by the company matters.
We should include it when we do our salary calculations.
I would quote my salary as: gross salary + CPF contribution by the employer

Why?
Check with the foreigners working in Singapore. You will realise that they are paid higher salaries than us for the same job. On close scrutiny, if you do the sums, it will come out that these foreigners are paid the CPF contribution by the employer as part of take-home salary.

since you have many dependents, it then best to spread out your paying down to 10 years as per your plan. you also need to save up for emergencies or unforseen circumstances such as retrenchment or disability.

Originally Posted by Unregistered411

I do have family commitment (aged parents) that i am providing for. They do not live with me and have their own property (fully paid). They are both retired, not working and not well educated, but have done their best to provide for their children.

With my parents commitment and my own household bills, cars, etc, i can probably do a min of 60k per annum of saving. Is 60k per annum considered a good percentage of saving ? with this 60k , i would take out 20k per annum over 10 years which is about 200k to do partial repayment, while during that 10 years, i would also be making similar amount of monthly mortgage totalled to about another 200k to the bank to clear the housing loan in 10 years.


Also, does it make sense to pay upfront in 4 years instead ? i would prefer to have cash on hand where i can do investments (gold, stocks, bonds). Is that a better bet?

Originally Posted by Unregistered

since you have many dependents, it then best to spread out your paying down to 10 years as per your plan. you also need to save up for emergencies or unforseen circumstances such as retrenchment or disability.

just to add, make sure you have enough insurance coverage for your family

Originally Posted by Unregistered

How much did you pay for your GCB?

No GCB la, just a humble terrace house.

I'm happy to be debt free and about $1M in cash/stocks/cpf.