How much are you earning per annum?

Originally Posted by Unregistered

I bet Suzy Orman will say "You are denied!"

LOL

Seriously, I agree 2m could very too stretched

Originally Posted by Unregistered

That's absolutely true. Especially so if one is married with children. I am one of those "high income households" I.e. Nearly 300k pa HH.

BUT I have a special needs boy whom I am not sure whether he will ever be able to have a 5 min verbal communication with me... Anyone wants to trade his/her 60k pa HH income with mine and swap the children's health ? Of course that is just a hypothetical question but just a reminder that there are son many things that one can get afflicted with that staying health and alive plus health children is already a feat...

Just to add my favorite phrase

" problems that money can solve are not difficult, the ones that money cannot solve are the real difficult ones"

thanks all for your words of encouragement. earning 60k pa is indeed a challenge for me but i have learnt to manage. i also learnt to appreciate the many other blessings i have and amongst these:

- good health
- good family
- good looks
- happy
- a paid up flat
- living in a safe country
- cpf
- annual holidays to neighbouring countries

and many more

60k pa is actually more than the earnings of taxi drivers, they earn on average 3k pm or 36k pa.

I noticed many posters (could well be only one poster but writing under different guises) asking for advice regarding their retirement. Many of the posts are very general without giving specifics about their envisaged retirement lifestyle. This showed they are either not sincere, totally clueless where to start, or trying to fish for ideas.

And worst, there is always this poster who would respond by telling people to downgrade to HDB studio apartment, not to womanise, sodomise, do charity etc.... I dont know about you all, but I find the response totally useless coupled with the irrelevant remarks. It does not even care to consider the person's specific circumstances and aspirations. Downgrading to a studio apartment is not for everyone. Some still have grown handicapped children to support etc....

Planning for retirement is not rocket science. It is difficult only because savings do not always match aspirations, coupled with the many uncertainties in life. There are 3 big steps to do.

The first big step is to determine / define the lifestyle one wish to have in retirement (& therefore the amount needed per year), estimate the number of years to live in retirement, and calculate the total amount needed to sustain that retirement (remember to factor in the deleterious effect of inflation). This first big step is more mathematical and thus not so subjective. For me, the sum I need to fund 30 years in retirement is $3.0m or $100k pa (not counting my home because I dont intend to downgrade from home nor my present lifestyle).

The second big step is to determine the "funding" model for your retirement. I broadly classify them into 3 models.

Model 1: Draw down model.
This is the simplest model. In step 1, you have determined your required sum to retirement. For eg, I needed $3.0m. Using this model means I need to have $3.0m before I can commence my retirement, and then upon retirement, I will just draw down from the fund till it runs out in the 30 years I planned to live in retirement.

Model 2: "Perpetual" Income model
This is the ideal model where your investment provides you with passive income throughout your retirement (like pension). Investment in stocks of solid businesses that give out consistent dividends that can keep pace with inflation is the holy grail of passive income investment. Rental income from investment properties is another possible source. For eg, if I establish a passive income of $110K pa (with some buffer) I would not need to have the full $3.0m before I commence my retirement.

Model 3: Hybrid of draw down and passive income model
This is probably the model that most people would have. Many people would not have the ability, courage to put everything into stocks or investment thus they will not be able to generate sufficient passive income.

Under model 1 and 3, your money will run out eventually leaving nothing for your loved ones who survive you.

The last big step (step 3) is to find the right investment to grow your nest egg and sustain your retirement. This is the most subjective and contentious topic. Everyone can claim they have achieved success but it is important to recognise that what works for them may not work for you. For eg, I bought a 1 kg of gold bar 15 years ago, and its value grew very nicely for me, but I dont think it will work for you if you buy it now.

Likewise people who bought properties during the 1998/99 Asian Financial Crisis are sitting on millions of capital gain but do you think property investment in today's climate will work for you?

For me, because my goal is to achieve $3.0m or a passive income of $110k pa, I came to the sobering conclusion that I better continue working past 55 although my passive income currently is $80 k pa.

So to conclude, retirement planning starts with you knowing the lifestyle you want to lead (STEP 1). Steps 2 and 3 are where you will need some expert advise and not from this kind of forum.

Actually very easy to retire, just retire overseas.

In Malaysia, you just need RM5k pm (S$2k) for a retired couple.

In Thailand, you just need S$1.2k pm for a retired couple.

No need to have S$3m. Like that can work till dead.

Another one. I rest my case.

Originally Posted by Unregistered

Actually very easy to retire, just retire overseas.

In Malaysia, you just need RM5k pm (S$2k) for a retired couple.

In Thailand, you just need S$1.2k pm for a retired couple.

No need to have S$3m. Like that can work till dead.

[Hermit]

Originally Posted by Unregistered

That's absolutely true. Especially so if one is married with children. I am one of those "high income households" I.e. Nearly 300k pa HH.

BUT I have a special needs boy whom I am not sure whether he will ever be able to have a 5 min verbal communication with me... Anyone wants to trade his/her 60k pa HH income with mine and swap the children's health ? Of course that is just a hypothetical question but just a reminder that there are son many things that one can get afflicted with that staying health and alive plus health children is already a feat...

I am sorry and hope for the best for your family. I know a friend who is in similar situation. The money helps with getting some short term help but it is the anxiety about the longer term that lingers.

Originally Posted by Unregistered

Actually very easy to retire, just retire overseas.

In Malaysia, you just need RM5k pm (S$2k) for a retired couple.

In Thailand, you just need S$1.2k pm for a retired couple.

No need to have S$3m. Like that can work till dead.

Do not perpetuate this nonsense. Have you looked into what this amount can get you in terms of the lifestyle?

I have and I can tell you for Thailand, unless you want to live in a ulu kampong house, S$1.2k is not sufficient. Even living in a city eg Chiang Mai, this amount will see u living in a Thai apartment (not a brand-new city centre condo or house), eating mostly Thai food and self-medicating when you're sick. Is this the lifestyle u want for your retirement? Try doubling the amount to stand a fighting chance.

Originally Posted by Unregistered

Actually very easy to retire, just retire overseas.

In Malaysia, you just need RM5k pm (S$2k) for a retired couple.

In Thailand, you just need S$1.2k pm for a retired couple.

No need to have S$3m. Like that can work till dead.

People are already doing this, some in their 40s and 50s. Only ignorant people work until they die.

Can you substantiate your claim on the kind of lifestyle you can enjoy in Thailand and M'sia with S$2k pm?

What of kind house, location, car, lifestyle you will be leading with S$2k pm?

Also do you know the process of getting the right papers to retire in those countries? I suspect you are just a "re-broadcaster" of unsubstantiated claims of other nameless post.

Originally Posted by Unregistered

People are already doing this, some in their 40s and 50s. Only ignorant people work until they die.