How much are you earning per annum?

If you have enough to retire at 50, then just do it. I retired in my 40s after a highly successful career. Here are some tips on what you can do during your retirement.

1. Sit on the board of charitable organisations. Given your professional standing, experience, skills and network, your voluntary service is highly appreciated and needed. It gives you a lot of satisfaction to see how you can help these organisations not by doing menial work but strategic one, befitting your stature.

2. Serious work out. You can transform your body into a trim and fit powerhouse. Exercise regularly in the gym, pool. You can also participate in marathons if you are confident.

3. Travel the world. You can plan to travel the world in a serious manner. You can devote a month to explore the bigger countries. You can choose one country per year. This makes your travel less tiring and you will look forward to travelling every year.

4. Mountain climbing. If you are the rugged type, this will be exciting. You will need to devote many hours of preparation for your climbs.

5. Reading. Read all you want to make you a knowledgeable person.

6. Write books. If you have the flair for writing, why not explore writing? Write about what interests you. Share your experiences. Your books can be best sellers. You never know.

7. Think. Explore the meaning of life and why you're created. Seek the real truth.

8. Sports. Explore sports such as tennis, badminton, bowling, etc.

9. Cooking. You had always wanted to learn to cook that special dish but didn't have the time. Now is the time to learn. Learn to cook as many dishes as you wish. Make your family happy by serving your delicious, wholesome, home cooked meals. You can create your own dishes and perhaps even write a cook book.

10. Collecting. You can collect rare stamps, coins, watches, art, etc.

There are many things you can engage yourself with when you retire and these are only possible to pursue if you have strength and time. So retiring at 50 is a very good idea if you have the financial means to do so.

Just go ahead with it.

Originally Posted by Unregistered

We have worked very hard for many, many years. We have achieved so much in our career. We sometimes feel we are not spending enough time with each other and the children.

We are millionaires but it feels meaningless if we don't find happiness in our family. We will retire when we reach 50. It is time we spend the riches that we have accumulated for so long. What is the point of living in a big house if it doesn't bring joy?

As millionaires and high flyers, we can afford to retire at 50. We are fortunate. We pity those in their 50s and 60s still working as they don't know what to do with their life if they stop working.

Originally Posted by Unregistered

I sensed that you are trying to get validation from others about your desire to retire by 50. Without giving us numbers, like how many millions you have, nobody is going to be able to comment meaningfully.

For the old folk with $5m+ networth, we know he can well retire and live comfortably without downgrading his lifestyle, but he is an advocate of working beyond 55. With conservative investment returns, he is probably earning passive income above $100k pa. Working is thus an option for him.

So what is your number? And are you generating sufficient passive income? If so, you don't need validation from anyone.

If your networth is $2m and below, you will be downgrading your lifestyle when you retire. That's a given.

With a monthly expense of $5k (for a comfortable retirement), this will require $60k pa.

In 10 years, it will be $600k
In 20, it will be $1.2m
In 30, it will be $1.8m

The above did not factor in, inflation!

What is the inflation rate you think it will be? 2%? 3%? 4%? or 10%?
If you can accumulate 5m, don't tell me you want to let your money idle.
Can you get ROI 5%? 6%? 8%? 10%?
That definitely sufficient to compensate for the inflation you may think off.
Forget about cracking your head, just go for S-Reits, that will get you consistent return of 7%.

Are you referring to the old folk with $5m+ net worth? If so, let me give you a glimpse of the kind of returns he is possibly enjoying:

1. His primary home, let's say is worth $1.6m is not earning any income, but can appreciate over the long term.
2. His second condo, let's say is worth $1.2m, generates $42K pa (gross rental). The second condo can also appreciate in value over time.
3. His portfolio of $1m in dividend paying stocks giving an average of 4.5% dividend income (or $45k) pa. His stock holdings can also appreciate in value over time. In fact, he only invested $750k in stocks but the value has grown to the $1m now

Now let's see, the above assets took out $3.8m already. He has another $1.7m in "safer" investments (bonds) and in CPF giving him a conservative 3+% return or $51k pa.

His total passive cash flow income is = $42k + $45k + $51k = $138k pa for him to spend or reinvest. Knowing people like him, he will reinvest the money.

Mind you, the above passive income does not include the possible gain in the value of the assets!

Just based on the cash flow portion, his return is about $138k/$5.5m = 2.5% only.

Factoring in the appreciation of his assets, the return will be higher.

Originally Posted by Unregistered

What is the inflation rate you think it will be? 2%? 3%? 4%? or 10%?
If you can accumulate 5m, don't tell me you want to let your money idle.
Can you get ROI 5%? 6%? 8%? 10%?
That definitely sufficient to compensate for the inflation you may think off.
Forget about cracking your head, just go for S-Reits, that will get you consistent return of 7%.

Thank you for sharing these useful pointers. You must have a very active retirement life. I didn't know there is so much we can do after retirement from corporate life. Makes us look forward of the prospects of retiring in just a few years time when we reach 50. You're our inspiration, the most successful youngest retiree we've ever known.

Originally Posted by Unregistered

If you have enough to retire at 50, then just do it. I retired in my 40s after a highly successful career. Here are some tips on what you can do during your retirement.

1. Sit on the board of charitable organisations. Given your professional standing, experience, skills and network, your voluntary service is highly appreciated and needed. It gives you a lot of satisfaction to see how you can help these organisations not by doing menial work but strategic one, befitting your stature.

2. Serious work out. You can transform your body into a trim and fit powerhouse. Exercise regularly in the gym, pool. You can also participate in marathons if you are confident.

3. Travel the world. You can plan to travel the world in a serious manner. You can devote a month to explore the bigger countries. You can choose one country per year. This makes your travel less tiring and you will look forward to travelling every year.

4. Mountain climbing. If you are the rugged type, this will be exciting. You will need to devote many hours of preparation for your climbs.

5. Reading. Read all you want to make you a knowledgeable person.

6. Write books. If you have the flair for writing, why not explore writing? Write about what interests you. Share your experiences. Your books can be best sellers. You never know.

7. Think. Explore the meaning of life and why you're created. Seek the real truth.

8. Sports. Explore sports such as tennis, badminton, bowling, etc.

9. Cooking. You had always wanted to learn to cook that special dish but didn't have the time. Now is the time to learn. Learn to cook as many dishes as you wish. Make your family happy by serving your delicious, wholesome, home cooked meals. You can create your own dishes and perhaps even write a cook book.

10. Collecting. You can collect rare stamps, coins, watches, art, etc.

There are many things you can engage yourself with when you retire and these are only possible to pursue if you have strength and time. So retiring at 50 is a very good idea if you have the financial means to do so.

Just go ahead with it.

Hello all. Would appreciate some perspectives on my situation. Currently part-time degree student working full time. 24yo, earning roughly $26K/year, close to 20K savings. Is this about average for someone of my age?

Originally Posted by Unregistered

Hello all. Would appreciate some perspectives on my situation. Currently part-time degree student working full time. 24yo, earning roughly $26K/year, close to 20K savings. Is this about average for someone of my age?

Should be around there.
I was a fresh NUS grad about 20 years back.
My first year annual pay was $30k pa. Back then...

Originally Posted by Unregistered

Hello all. Would appreciate some perspectives on my situation. Currently part-time degree student working full time. 24yo, earning roughly $26K/year, close to 20K savings. Is this about average for someone of my age?

That's considered good. I'm about twice your age and only earning $56k pa.

Originally Posted by Unregistered

Are you referring to the old folk with $5m+ net worth? If so, let me give you a glimpse of the kind of returns he is possibly enjoying:

1. His primary home, let's say is worth $1.6m is not earning any income, but can appreciate over the long term.
2. His second condo, let's say is worth $1.2m, generates $42K pa (gross rental). The second condo can also appreciate in value over time.
3. His portfolio of $1m in dividend paying stocks giving an average of 4.5% dividend income (or $45k) pa. His stock holdings can also appreciate in value over time. In fact, he only invested $750k in stocks but the value has grown to the $1m now

Now let's see, the above assets took out $3.8m already. He has another $1.7m in "safer" investments (bonds) and in CPF giving him a conservative 3+% return or $51k pa.

His total passive cash flow income is = $42k + $45k + $51k = $138k pa for him to spend or reinvest. Knowing people like him, he will reinvest the money.

Mind you, the above passive income does not include the possible gain in the value of the assets!

Just based on the cash flow portion, his return is about $138k/$5.5m = 2.5% only.

Factoring in the appreciation of his assets, the return will be higher.

What is capital appreciation for his landed property per year based on long term prospect say 20 years cycle? Can it be between 5 to 10% per year?

What is his condo (say he rented out at 1.3k per room, 3 rooms condo say 3.9k per month). What will be the return like?

Let say he put 2m in S-Reits, he will get 140k per year at 7%.

If he is going to spend 10k a month, 120k per year. What is his total income? What is the balance for reinvestment? Can it take care of inflation?

Don't underestimate the wisdom of pensioner. If they can accumulate 5m, they must be pretty good at growing their money. If you want to save 5m from your salary, you can realize it in your dream only. Also take note pensioners are not necessarily worked until 65 yo.

Originally Posted by Unregistered

Should be around there.
I was a fresh NUS grad about 20 years back.
My first year annual pay was $30k pa. Back then...

Originally Posted by Unregistered

That's considered good. I'm about twice your age and only earning $56k pa.

That's a relief to to know, thanks fellas!

A retired couple who lead a humble retirement lifestyle will need only $3k pm or $36k pa, assuming no more mortgage and debt free.

Food, groceries and utilities $800 pm
Public transport $100 pm
Condo fees $300 pm
Insurance and medical $500 pm
Holidays $300 pm ($3600 pa)
Misc $500 pm
Savings $500 pm

Originally Posted by Unregistered

What is capital appreciation for his landed property per year based on long term prospect say 20 years cycle? Can it be between 5 to 10% per year?

What is his condo (say he rented out at 1.3k per room, 3 rooms condo say 3.9k per month). What will be the return like?

Let say he put 2m in S-Reits, he will get 140k per year at 7%.

If he is going to spend 10k a month, 120k per year. What is his total income? What is the balance for reinvestment? Can it take care of inflation?

Don't underestimate the wisdom of pensioner. If they can accumulate 5m, they must be pretty good at growing their money. If you want to save 5m from your salary, you can realize it in your dream only. Also take note pensioners are not necessarily worked until 65 yo.