How much are you earning per annum?

Low middle income couple, 45 & 42, earning S$6k and S$5k pm respectively.
Lives in a resale EC, bought for S$800k. Loan outstanding S$300k.
Our focus now is on paying down the mortgage and raising our teenage kids as well as supporting our old parents financially. We can't save much.

Our retirement plan is two-pronged:

1. We will sell our EC when we reach 65 (in 20 years time) and convert the cash proceeds to Malaysian Ringgit. Assuming we paid off the mortgage and we can sell our condo at S$1m in 20 years time, and the exchange rate then is S$1=RM3 (the ringgit will continue to depreciate due to their huge deficits), we will get RM3 mil. We will then buy a house for RM1 mil and save the rest of the money for any emergencies.

2. When we reach 65, we will get about $2400 from our CPF Life (two persons) and after converting to RM, we will get RM7,200 pm to spend on.

We are looking at Ipoh to retire as its cost of living is much cheaper than KL or Penang.
Occasionally, we will go to KL and take the High Spreed Rail (HSR) train to Singapore to visit old friends and relatives.

Originally Posted by Unregistered

47 & 46, $190k pa combined. Stays in a $1.5m condo, paid up.
Cash, CPF combined, $500k. Total net worth, $2m.

Retirement plan at 65 is to sell condo and buy a 4 room flat and fully renovate the flat.
Will use cash to invest in high dividend stocks. Will get payout from CPF Life every month.
We hope the CPF minimum sum will rise higher so that our payout will be higher. We hope the payout will be $2000 pm for each of us when we reach 65.

Our projected passive income:

CPF Life payout (wife and I) = $4000 pm
Dividends = $8000 pm ($2m portfolio)
Total = $12000 pm

Our projected expenses = $5000 pm
We don't intend to employ a maid and will not own a car

Savings = $7000 pm

Dividend at 4.8%. That's quite high. I am not sure but I am only averaging 3 to 3.5%. Maybe I am investing in the wrong stocks.

Excellent plan. Singaporeans are very resourceful indeed.
If you want to retire really rich, go to Chiang Mai.

Originally Posted by Unregistered

Low middle income couple, 45 & 42, earning S$6k and S$5k pm respectively.
Lives in a resale EC, bought for S$800k. Loan outstanding S$300k.
Our focus now is on paying down the mortgage and raising our teenage kids as well as supporting our old parents financially. We can't save much.

Our retirement plan is two-pronged:

1. We will sell our EC when we reach 65 (in 20 years time) and convert the cash proceeds to Malaysian Ringgit. Assuming we paid off the mortgage and we can sell our condo at S$1m in 20 years time, and the exchange rate then is S$1=RM3 (the ringgit will continue to depreciate due to their huge deficits), we will get RM3 mil. We will then buy a house for RM1 mil and save the rest of the money for any emergencies.

2. When we reach 65, we will get about $2400 from our CPF Life (two persons) and after converting to RM, we will get RM7,200 pm to spend on.

We are looking at Ipoh to retire as its cost of living is much cheaper than KL or Penang.
Occasionally, we will go to KL and take the High Spreed Rail (HSR) train to Singapore to visit old friends and relatives.

[Hermit]

Originally Posted by Unregistered

Not in financial sector. I'm in FMCG and my wife's in HR. Actually already doing what you proposed. I have 3 invt properties, have already sold one given the CM. Left with 2 which I'm comfortable with.

Even if both of us were retrenched, we anticipate that we can live off savings and pay the mortgages for another 7-10 years so unless we are extremely unlucky it shouldn't be an issue.

Downgrading to a 3 room flat is definitely an option but given my family size, prefer to stay put in my current flat. Already using public transport on weekdays, car is red-plated and used for ferrying kids on weekends.

Better be safe than sorry...

At this income level, I must say you are very conservative.

Originally Posted by Hermit

At this income level, I must say you are very conservative.

Haha, there was really a tongue-in-cheek response to the forum who appears to be "suan-ing" me.

I'm trying to be more aggressive in my investment activity, and therefore looking at overseas properties, unit trust (including restricted funds) and other investments in order to boost returns.

Any good ideas, Hermit?

[Hermit]

Originally Posted by Unregistered

Haha, there was really a tongue-in-cheek response to the forum who appears to be "suan-ing" me.

I'm trying to be more aggressive in my investment activity, and therefore looking at overseas properties, unit trust (including restricted funds) and other investments in order to boost returns.

Any good ideas, Hermit?

Ah.. I see. I thought I was the most conservative person around the block !

You better get proper advice from your banker or financial advisor. I do not have a fantastic record in investing. My teenage son's paper portfolio did much better than mine over the years.

Husband & wife, 45 & 43, professionals, $200k pa income in total.
Home: Condo worth $1.8m, still servicing mortgage.
Expenses:
Big condo mortgage
Big continental car loan
High end tuition
Luxury holidays, twice a year
Luxury bags, clothings & accessories
Maid
Groceries
Car related expenses
Family insurance
Fine dining in restaurants
Parents allowance
Etc

Living the high life
Saves only $30k pa

[Hermit]

Originally Posted by Unregistered

Haha, there was really a tongue-in-cheek response to the forum who appears to be "suan-ing" me.

I'm trying to be more aggressive in my investment activity, and therefore looking at overseas properties, unit trust (including restricted funds) and other investments in order to boost returns.

Any good ideas, Hermit?

Ok, I just saw the "better safe than sorry" reply.

Hilarious.

Originally Posted by Hermit

Ok, I just saw the "better safe than sorry" reply.

Hilarious.

Glad I made your day.

I observed a lot of forumers here trying to find good invts to increase returns. I was doing the same until I realized that it is better for me to focus on my job and try to maintain or increase my income instead.

At the same time, have a thrifty lifestyle and use my savings to invest in a portfolio of unit trusts with representation from major mkts and product mix (US, Europe, Asia, Jpn, bonds etc) while at the same time minimize costs (using low cost funds e.g. Vanguard) and get market returns and not aim to be the next Warren Buffett.

Over the long term, this approach is better than searching frantically for the "best" investment and trying to avoid disasters like EcoHouse, Profitable Plots etc.

Thoughts?

49, makes $159k pa, saves $50k pa.
spouse, 48, makes $120k pa, saves $35k pa.
Condo worth $1.1m, paid up.
Total net worth, $1.6m.

By the time we retire at 65, we will get $2400 pm from CPF Life.
We will sell our condo to get cash.
We will buy a 5 room HDB flat, paid in cash (from savings).
We will invest in blue chips to get dividends.
Assuming we invest $1.5m after selling the condo, we will get $60k pa or $5000 pm. Assuming 4% dividend yield.
Our total passive income will be about $7400 pm. Spending should be $4000 pm.

Any comments from gurus here on our retirement plan above?
Thank you.