How much are you earning per annum?

Originally Posted by Unregistered

Middle class, middle income couple, total income $163k pa. Savings $40k pa.
Two kids in secondary schools. Condo, valued $1.1m, paid up. Car, paid up.
Total net worth (including condo, CPF, stocks and cash), $1.8m.

How are we doing? When can we retire? We don't mind a simpler life during retirement.
Any financial gurus here who can help to advise?
Thank you in advance.

You're doing very well. If you work for another 20 years until 65, you would have saved another $800k which you can invest in 5% dividend yield stocks to give you dividends of $40k pa. Your CPF Life will give you $42k pa. Your kids will give you $12k pa. Your passive income will be $94k pa.

Originally Posted by Unregistered

You're doing very well. If you work for another 20 years until 65, you would have saved another $800k which you can invest in 5% dividend yield stocks to give you dividends of $40k pa. Your CPF Life will give you $42k pa. Your kids will give you $12k pa. Your passive income will be $94k pa.

There are very little dependable dividend stocks with 5% yield except for those like Starhub that pay out all their earnings which limits their ability to expand without further capitalization.

REITs have good yields by using leverage & financial engineering, but history has proven that when recession hits they end up asking investors for more money which defeats the point of having them for retirement. Some small caps give good yield, but that's very risky and dividend payment can suspend for a few years if times are not good.

Currently targeting a mix of good quality blue chip stocks at 3-4% yield and investment grade bonds at 2-3% makes more sense for retirement purposes.

Are you a finance expert? You don't sound like one. If you're not an expert, go get professional advice.

Originally Posted by Unregistered

There are very little dependable dividend stocks with 5% yield except for those like Starhub that pay out all their earnings which limits their ability to expand without further capitalization.

REITs have good yields by using leverage & financial engineering, but history has proven that when recession hits they end up asking investors for more money which defeats the point of having them for retirement. Some small caps give good yield, but that's very risky and dividend payment can suspend for a few years if times are not good.

Currently targeting a mix of good quality blue chip stocks at 3-4% yield and investment grade bonds at 2-3% makes more sense for retirement purposes.

Dont make the grave mistake of benchmarking with networth and income levels of years past. Then a person earning $10k per month would be some big shot in a company or government agency. Now middle managers in big companies are taking home that kind of income. Senior middle managers nowadays are looking $12-15K pm. Also a lot more workers come with uni degrees these days.

The playing field has changed. As I see it, there are already a lot of HH with $1.5m and above networth while in their 40s. When they retire in their 60s, they could be sitting on a nest egg of $4m and above.

You should be benchmarking forward not backwards

Originally Posted by Unregistered

Many people retire at 65 with a net worth of less than $1m. If you have a net worth of $2m, you are among the top performers. You can retire at any age as long as your passive income is more than your expenses. How much is your passive income now?

You sure or not? Are you saying in the future 60% of retired couple will be multi millionaires with net worth of $4m and more? Don't BS.

Originally Posted by Unregistered

Dont make the grave mistake of benchmarking with networth and income levels of years past. Then a person earning $10k per month would be some big shot in a company or government agency. Now middle managers in big companies are taking home that kind of income. Senior middle managers nowadays are looking $12-15K pm. Also a lot more workers come with uni degrees these days.

The playing field has changed. As I see it, there are already a lot of HH with $1.5m and above networth while in their 40s. When they retire in their 60s, they could be sitting on a nest egg of $4m and above.

You should be benchmarking forward not backwards

Originally Posted by Unregistered

You sure or not? Are you saying in the future 60% of retired couple will be multi millionaires with net worth of $4m and more? Don't BS.

Nowaday $10k pm for graduate very common.

Our MNC senior engr already making $8k pm with 10 years experience.

Originally Posted by Unregistered

Nowaday $10k pm for graduate very common.

Our MNC senior engr already making $8k pm with 10 years experience.

So? Does that mean 60% of retired couple will have a net worth of $4m by 65?
Just because you see a few sample, you conclude for whole population.
Who hire you?

I'm 50 this year and am planning to retire from work next year. I'm so excited. My passive income is now $80k pa. I managed to grow my investments over 30 years since I started working, to be big enough to generate sufficient passive income. My spouse, 40, will still work as she doesn't have any passive income for now. She earns $100k pa. Since we got married, we have agreed to share our expenses so I bear $50k and she bears $50k of our total household expenses of $100k pa. She will save $50k pa and she will have $1m in cash savings in 20 years. This will then be invested to generate dividends. She will retire at 60.

In my retirement, I will be busy trading stocks using my big capital. I'm confident that with me watching stocks daily, I will be able to trade successfully. I have been a successful trader and look forward to being a serious full time trader.

Tell us what is your HH networth and how much goes into your home, and how much invested to give you $80k pa passive income. What is your income now? 50 yo and already worked 30 years? You not graduate I suppose.

Originally Posted by Unregistered

I'm 50 this year and am planning to retire from work next year. I'm so excited. My passive income is now $80k pa. I managed to grow my investments over 30 years since I started working, to be big enough to generate sufficient passive income. My spouse, 40, will still work as she doesn't have any passive income for now. She earns $100k pa. Since we got married, we have agreed to share our expenses so I bear $50k and she bears $50k of our total household expenses of $100k pa. She will save $50k pa and she will have $1m in cash savings in 20 years. This will then be invested to generate dividends. She will retire at 60.

In my retirement, I will be busy trading stocks using my big capital. I'm confident that with me watching stocks daily, I will be able to trade successfully. I have been a successful trader and look forward to being a serious full time trader.

Originally Posted by Unregistered

Tell us what is your HH networth and how much goes into your home, and how much invested to give you $80k pa passive income. What is your income now? 50 yo and already worked 30 years? You not graduate I suppose.

Our flat is paid up and worth $400k, my own investments (using my personal savings) is now worth $1.6m (big gains made when I invested during the 2008 global financial crisis) and our cash and cpf savings is $400k. Total HH net worth combined $2.4m. Did a part time degree program.