How much are you earning per annum?

You're right. Retirement age is very much personal. There are high flyers in the finance world who have made a lot during their career such that they are retired in their late 40s. They also decided to retire early as their job were highly stressful. The high pay comes with the high stress. They no longer find meaning in their work as it took away a lot of time from their children and old parents. They find themselves a lot happier after their early retirement. To them the additional wealth is no longer worth the extra time and stress.

Other professions however very difficult to retire early as they don't earn enough to retire early. Those in the manufacturing and engineering line usually have to retire until they are in their 50s, some even in their 60s.

Originally Posted by Unregistered

I can't answer what's the ideal retirement age. For someone like me, we derive 2 main things from working: income and giving purpose to our lives. So once we find that we don't need to depend on income from work, and find that we no longer find purpose at work, it is time for us to step aside (retire).

Financially, I can already live on my passive income. So I am working because I still derive purpose, satisfaction and meaning in my work.

CPF allows a person to withdraw the rest of the money after he has set aside the BHS ($49.8k) and the RA ($161k or $241k if you choose to top up). Or a person can choose to leave everything in CPF and continue to earn interest and let it compound.

The good thing is that once you reached 55, you can draw out the excess money or any amount at any time (with 1 month's notice). As I am still working, I am keeping my money in the CPF, with the assurance that I can always fall back on the CPF funds in an emergency.

It is good to start saving early and "exploit" the power of compounding interest. I have friends who already start contributing to their children's CPF accounts even though they are still studying! That's real forward thinking and very long term planning!

How much would they have made when they reached their 40s?

Retiring early has many pitfalls, because your savings have to last much longer and life can throw you many curve balls along the way. And you stopped contributing to your CPF at too young an age.

It is not unheard of that so-called high flying executives who retired early trying to look for jobs again when an economic downturn wiped away their investment. And they have little or no CPF monies to fall back on.

If you cannot handle the stress, you should look for a less stressful but lower paying job. To totally cop out of work early in life is a big mistake.

Many engineers are still working late into their lives because they still they can contribute and the companies still value them. Believe it or not, in some companies, fathers, sons and daughters are working side by side. Financial independence is not an issue here.

Don't make the mistake of retiring early and getting stressed everyday worrying whether your savings is enough. Worrying, thinking and cutting back your expenses day by day. First no car, then the maid has to go, next downgrade to smaller housing etc... When we should be savouring the fruits of our labour.

Originally Posted by Unregistered

You're right. Retirement age is very much personal. There are high flyers in the finance world who have made a lot during their career such that they are retired in their late 40s. They also decided to retire early as their job were highly stressful. The high pay comes with the high stress. They no longer find meaning in their work as it took away a lot of time from their children and old parents. They find themselves a lot happier after their early retirement. To them the additional wealth is no longer worth the extra time and stress.

Other professions however very difficult to retire early as they don't earn enough to retire early. Those in the manufacturing and engineering line usually have to retire until they are in their 50s, some even in their 60s.

People here have shared how they have benefited from the CPF scheme. For your personal specific circumstances, you should go to the CPF website FAQ, or call their hotlines or write them an email. They respond very promptly.

I have contributed regularly (small amount, on a yearly basis) to my children's CPF. These are non tax deductible. So, I am not sure if you can contribute one lump sum of $161k at one go.

Just call the CPF up.

Originally Posted by Unregistered

When is the earliest our children can have their CPF account? Do they have once they are born or in primary school? I'm thinking if I can top the max of $161k for them once they are born, then by compounding effect, they should have $626k by the time they are 55.

We are a middle income married couple in our early fifties. We earn $145k pa and save $30k pa. We upgraded to a condo unit some time ago and got it at a very good price. We are left with only $100k of mortgage, which we pay by our CPF. Now the condo is worth $1m. Our children is still schooling. We drive a 2 year old car with no loan. Our total net worth is close to $1.5m.

How are we doing? How do we prepare for retirement? We don't have any investments besides our condo home. We plan to downgrade to either a studio condo or a 3 room hdb flat when we retire as we prefer a smaller place as it is easier to manage.

Any advice? Thank you.

You are on the right path towards retirement.
You can do this
1. Choose the ERS option for your CPF Life. This will give you $3500 pm as a retired couple.
2. Let's say you work another 15 years. So you will have $450k in additional savings.
3. Sell your condo and buy a studio condo. After the transactions, you will have say $450k in net cash proceed.
4. So you have $900k cash. Invest in 4% dividend yield stocks to get $36k pa in dividends or $3k pm.
5. Your passive income is $6,500 pm.
6. This is enough for a retired couple.

Originally Posted by Unregistered

We are a middle income married couple in our early fifties. We earn $145k pa and save $30k pa. We upgraded to a condo unit some time ago and got it at a very good price. We are left with only $100k of mortgage, which we pay by our CPF. Now the condo is worth $1m. Our children is still schooling. We drive a 2 year old car with no loan. Our total net worth is close to $1.5m.

How are we doing? How do we prepare for retirement? We don't have any investments besides our condo home. We plan to downgrade to either a studio condo or a 3 room hdb flat when we retire as we prefer a smaller place as it is easier to manage.

Any advice? Thank you.

From ST news:

Cheapest COEs in 5 years draw shoppers, but premiums expected to rebound with demand

Customers flocked to car showrooms over the weekend following the latest drop in certificate of entitlement (COE) premiums.

Dealers said prices of cars up to 1,600cc and 130bhp were around $5,000 less after COE premiums fell to their lowest level in nearly five years on Wednesday at $45,002. But they expect prices to rebound as soon as the next round of bidding.

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Buy now before COE shoots up back!
Best is to buy with guaranteed COE
Buy within your means. Don't need to buy expensive models if you're not rich. Buy in cash, don't take any loan. Buy those models costing less than $90k. So very cheap!

Originally Posted by Unregistered

From ST news:

Cheapest COEs in 5 years draw shoppers, but premiums expected to rebound with demand

Customers flocked to car showrooms over the weekend following the latest drop in certificate of entitlement (COE) premiums.

Dealers said prices of cars up to 1,600cc and 130bhp were around $5,000 less after COE premiums fell to their lowest level in nearly five years on Wednesday at $45,002. But they expect prices to rebound as soon as the next round of bidding.

------------------

Buy now before COE shoots up back!
Best is to buy with guaranteed COE
Buy within your means. Don't need to buy expensive models if you're not rich. Buy in cash, don't take any loan. Buy those models costing less than $90k. So very cheap!

Don't come and spread fear lah.
COE will tumble to $30k by end of the year
Patience is the most important.

Originally Posted by Unregistered

We are a middle income married couple in our early fifties. We earn $145k pa and save $30k pa. We upgraded to a condo unit some time ago and got it at a very good price. We are left with only $100k of mortgage, which we pay by our CPF. Now the condo is worth $1m. Our children is still schooling. We drive a 2 year old car with no loan. Our total net worth is close to $1.5m.

How are we doing? How do we prepare for retirement? We don't have any investments besides our condo home. We plan to downgrade to either a studio condo or a 3 room hdb flat when we retire as we prefer a smaller place as it is easier to manage.

Any advice? Thank you.

No offense, but you are doing poorly if you have to downgrade when retiring.

We will be continuing to stay in our condo unit after retirement. Our passive investments should yield a total of 20k/month which will be a comfortable sum. By then, there will be no more big ticket items, hence the money can be used on living expenses.

Please don't look down on others. He is trying his best given his situation. You are arrogant.

Originally Posted by Unregistered

No offense, but you are doing poorly if you have to downgrade when retiring.

We will be continuing to stay in our condo unit after retirement. Our passive investments should yield a total of 20k/month which will be a comfortable sum. By then, there will be no more big ticket items, hence the money can be used on living expenses.

Hello folks,

Don't forget the Motorshow this weekend!

Many people rushing to buy now before COE go up again in the next bidding. Make sure to secure with guaranteed COE.

Enjoy the Motorshow! Don't be greedy and arrogant ok?