How much are you earning per annum?

Originally Posted by Unregistered

If you have paid off your hdb loan, you can actually retire. Here's how.

Rent out your flat S$2.5k pm
Convert to RM you get RM7.5k pm

Rent a 3 bedroom condo in JB RM1k pm
Food & utilities RM1k pm
Petrol & car related expenses RM500 pm
Misc RM500 pm
Total RM3k pm
Savings RM4.5k pm

I have no loans.
I cant live in JB. I am non-Chinese, non-malay.

How do people survive retirement with just $500k? Answer is they can't.

If they live very very simply, say spending $4k a month for a couple, then in 1 year they would spend $48k. In 10 years, they would spend $480k.

Assuming they stopped work at 60, by 70 they would have to start looking for work again.

That's why the gahmen is asking people to

1. Work as long as they can
2. Downgrade to 1/2 bedroom flats
3. Leaseback their flats
4. Rent out their spare rooms

Originally Posted by Unregistered

Don't be stupid. If you want to wait until you have $5m to retire, you will probably be working until you die. And all your wealth will then go to your wife and children, who will squander it away as it is not their hard earned money.

Many people in Singapore will retire when they reach 65. Most don't even have $500k savings. How they survive? Many rent out the two empty rooms in their HDB flat and their children give them some allowance. They have some CPF savings and they live a simple life.

Don't be stupid. They can retire with $500k cash savings if they know how to invest. Buy good blue chips which give 5% dividend yield and they get $25k pa. Rent out two of their spare rooms in their HDB flat for $800 pm each and they get $19.2k pa. They get allowance from their two children, each giving $200 pm, they get $4.8k pa. in total, their passive income will be $49k pa or $4k pm. They don't need $4k pm to retire. They just need $2.5k pm as long as they don't own a car and don't employ a helper. On top of that, they have their CPF Life which they can save $3.6k pm.

Originally Posted by Unregistered

How do people survive retirement with just $500k? Answer is they can't.

If they live very very simply, say spending $4k a month for a couple, then in 1 year they would spend $48k. In 10 years, they would spend $480k.

Assuming they stopped work at 60, by 70 they would have to start looking for work again.

That's why the gahmen is asking people to

1. Work as long as they can
2. Downgrade to 1/2 bedroom flats
3. Leaseback their flats
4. Rent out their spare rooms

A lot of "ifs". Sure die one.

Originally Posted by Unregistered

Don't be stupid. They can retire with $500k cash savings if they know how to invest. Buy good blue chips which give 5% dividend yield and they get $25k pa. Rent out two of their spare rooms in their HDB flat for $800 pm each and they get $19.2k pa. They get allowance from their two children, each giving $200 pm, they get $4.8k pa. in total, their passive income will be $49k pa or $4k pm. They don't need $4k pm to retire. They just need $2.5k pm as long as they don't own a car and don't employ a helper. On top of that, they have their CPF Life which they can save $3.6k pm.

Originally Posted by Unregistered

A lot of "ifs". Sure die one.

Don't be stupid. Your job is a big if. You can get fired today. Your life is a big if too. You can die this afternoon! LOL.

As long as your plan makes sense, just do it. Don't be stupid to work until you're 70 and only to die at 75. All your wealth will then go to your wife and children who will squander it away in no time as it is not their hard earned wealth. My advice, don't leave your big fortune to your children as they will be lazy. Use your fortune you have worked hard for and just leave behind just a little to your children. If you leave too much, they will quarrel among themselves and then squander it away. Your greatest gift to your children is not your wealth but the good upbringing and values you nurture from young. If you leave behind a gold of mountain but children who are lousy, evil souls, then you have failed miserably as a parent. Don't be stupid.

Originally Posted by Unregistered

Well done. When both of you retire at ages 51 and 49, your son will be 15. What are your sources of passive income? How do you plan to get the passive income and how much? What's your retirement plan like?

we can save more than 200k a year including the investment returns, so in 10 years the saving should reach 3.5m. Should be sufficient to support child education and our retirement expenses even with a conservative investment approach (<5%)

the risk is can we maintain the income for another 10 years. at the moment husband industry is not doing well in singapore but wife still has upside potential. so probably the risk can be balanced out

It is an eye opener for me to see so many high income earners contributing to this post. In comparison, we are definitely below average here. My wife and I are in our 30s. Annual combined salary is 260k per year. We own a 1.2M property without mortgage. I though we were doing pretty well. We have a son and plan to have another next year.

What I learn is never trying comparing to other people. There are so many reasons behind their success story. We just don't know. Age, family background, luck, right industry at right time, rising on booming of Singapore properties, etc. who actually know what is going on.

I care about two things: health and family. Anything else is a bonus.

Originally Posted by Unregistered

It is an eye opener for me to see so many high income earners contributing to this post. In comparison, we are definitely below average here. My wife and I are in our 30s. Annual combined salary is 260k per year. We own a 1.2M property without mortgage. I though we were doing pretty well. We have a son and plan to have another next year.

What I learn is never trying comparing to other people. There are so many reasons behind their success story. We just don't know. Age, family background, luck, right industry at right time, rising on booming of Singapore properties, etc. who actually know what is going on.

I care about two things: health and family. Anything else is a bonus.

Me too surprised to find so many high earners. Me and wife are in mid 40s, and our combined salary this year merely hits $500k pa mark. we have a fully paid condo and fully paid luxury car. What we care about is also health and family. Work is secondary.

Originally Posted by Unregistered

Me too surprised to find so many high earners. Me and wife are in mid 40s, and our combined salary this year merely hits $500k pa mark. we have a fully paid condo and fully paid luxury car. What we care about is also health and family. Work is secondary.

Yes, there are many families with high income. Not surprising why condo prices will go higher in the long term. Buying new cars also no big deal at all. Car buy two or even three new cars, can change cars every two or three years. Not surprising if COE prices continue to rise and perhaps even reach $200k in the years to come. $200k COE means just $20k pa which many can afford as it represent only 4% of the income of families earning $500k pa. My family earn a modest income of $200k pa and we find $60k COE cheap.

I can sense that you are panicky from your response. If you are sure your $500k can outlast your retirement then go for it. Don't need to seek confirmation here.

It is hard for some of us to understand your assumption and calculation because our anticipated lifestyles in retirement differ. We just don't understand why after working hard for so many years would one want to retreat to a very austere lifestyle in retirement. We should enjoy and live with dignity in retirement.

And it is not for you to judge if we decide / can afford to leave millions to our loved ones. Also don't feel envious of others because it is not good for your health.

Originally Posted by Unregistered

Don't be stupid. Your job is a big if. You can get fired today. Your life is a big if too. You can die this afternoon! LOL.

As long as your plan makes sense, just do it. Don't be stupid to work until you're 70 and only to die at 75. All your wealth will then go to your wife and children who will squander it away in no time as it is not their hard earned wealth. My advice, don't leave your big fortune to your children as they will be lazy. Use your fortune you have worked hard for and just leave behind just a little to your children. If you leave too much, they will quarrel among themselves and then squander it away. Your greatest gift to your children is not your wealth but the good upbringing and values you nurture from young. If you leave behind a gold of mountain but children who are lousy, evil souls, then you have failed miserably as a parent. Don't be stupid.