How much are you earning per annum?

You did the right thing to sell your flat and upgrade to a condo. Enjoy condo living while you are still young and make the best use of the condo facilities. Since you are both young, you should have no problem servicing your mortgage. Your salaries are also quite decent, enough to be considered as middle income. You have done well.

Originally Posted by Unregistered

40/41 married couple with 2 kids. Combined salaries, $150k pa.

Sold our BTO flat, use profits to buy a brand new car (paid in full) and downpayment for a 5 year old condo in the East. Condo now worth $1m, loan $750k. CPF and cash, $400k. Our kids love the condo as they get to swim in the pool.

Are we doing ok financially? Are we doing the right thing?

Any advice from the gurus here?

Retired 58, 59 year old couple, currently earning a passive dividend income of $90k pa. Home is a condo, paid up. No car. No maid. Household expenses, $60k pa. Even though we are retired millionaires, we lead a humble simple life. We mix around with the low income groups at coffee shops, they don't know we are millionaires.

They don't know you are millionaires just like you don't know if they are millionaires. Millionaires are quite common in Singapore because of the gahmen home ownership program and constant upgrading which not only maintain but enhanced the values of homes here.

Eating at hawker centers or coffee shops is a favorite pastimes of many old timers (millionaires and non-millionaires). Besides the good and cheap local fares, they like the fact they can dress casually (if not sloppily) while eating at such places. It thus not surprising you can't tell if you are sitting next to a millionaire

Originally Posted by Unregistered

Retired 58, 59 year old couple, currently earning a passive dividend income of $90k pa. Home is a condo, paid up. No car. No maid. Household expenses, $60k pa. Even though we are retired millionaires, we lead a humble simple life. We mix around with the low income groups at coffee shops, they don't know we are millionaires.

Here's how I see the various levels of passive income and where I am at now:

1. Level 0 - no passive income. (Like putting your already low savings in a savings deposit with almost zero interest. In real terms, your savings is actually losing value.

2. Level 1 - passive income that allow your savings to keep pace with inflation, that is, your savings is able to maintain its value each year. For eg. Buying a stock that pays dividend of 3% to your investment amount.

3. Level 2 - passive income that exceeds inflation and complements your income in some way.

4. Level 3 - passive income that equals your monthly or yearly expenses. This is the stage where technically, you are financially free.

5. Level 4 - passive income that equals your income / salary. This is financial independence - independence from work (income!)

6. Level 5 - passive income that exceeds your work income. At this point it pays to focus your energies on your investment than your day job.

I am at level 3 currently. I can survive solely on my passive income now, but I continue to work, save and invest my work income to achieve Level 4 passive income. It looks daunting although it is just another level away. :-(

[oleole]

Many people neglect starting passive income until they are retrenched. By then it is quite late.

48, full time trader, earns 100k pa (dividends - 60k pa; trading gains - 40k pa). Portfoilio value $1m. Wife, 40, earns 90k pa. Total household expenditire 100k pa. Family savings 90k pa. Debt free. Condominium unit, 3 bedroom (worth 1.5m) and car (worth 150k), both paid up. I enjoy doing my trading, will continue to trade until I die or retire at 70, whichever is earlier.

Originally Posted by Unregistered

48, full time trader, earns 100k pa (dividends - 60k pa; trading gains - 40k pa). Portfoilio value $1m. Wife, 40, earns 90k pa. Total household expenditire 100k pa. Family savings 90k pa. Debt free. Condominium unit, 3 bedroom (worth 1.5m) and car (worth 150k), both paid up. I enjoy doing my trading, will continue to trade until I die or retire at 70, whichever is earlier.

What commission rate do you pay and how long is your P&L track record?

Low middle income family, $85k pa.
Live in a 3 room hdb flat.
48/ 38 yo.

Originally Posted by Unregistered

Retired 58, 59 year old couple, currently earning a passive dividend income of $90k pa. Home is a condo, paid up. No car. No maid. Household expenses, $60k pa. Even though we are retired millionaires, we lead a humble simple life. We mix around with the low income groups at coffee shops, they don't know we are millionaires.

You have achieved financial freedom.

Originally Posted by Unregistered

Low middle income family, $85k pa.
Live in a 3 room hdb flat.
48/ 38 yo.

You are luckier than some families. You still have a job and income. In some families, both parents are jobless and they have no income. You still have a home, some families need to rent a home. Be grateful of what you have, it could have been worse.