How much are you earning per annum?

Hey bro, do you have a website we can go and take a look at this spreadsheet?

You are right, it is hard to see what you were trying to share, but it sure sounds interesting.

Originally Posted by Unregistered

Many Singaporeans are asset rich and cash poor. To plan for retirement, it is best that you try to bring out an excel spreadsheet. Let me try to explain how to create this spreadsheet :

Column 1 : Year
Column 2 : Age
Column 3 : Yearly savings
Column 4 : Cumulative savings
Column 5 to 21 : Cumulative savings with added investment returns, eg stocks, unit trusts. Put in an estimated yearly % into this. I use 0% to 15%. Within each of these columns, deduct for additional special big ticket expenses (excluding usual yearly expenses in column 24) related to each year or a specific age, eg mortgage payments, children education, buy car, etc
Column 23 : Est yearly inflation (I use 3% for all years but change this figure for a specific year when the actual inflation data released the year after)
Column 24 : projected future yearly expenses (column 24 x column 25). Use your current usual yearly expenses as a baseline.

Now comes the part on knowing when can you retire right ? In columns 5 to 21, the values remaining at each age will tell you your net worth. Say you want to retire at 55, so you take the value at column 24 and deduct from each of the columns 5 to 21. Use the same foumula across all the years from 55 onwards. If it runs negative, you have to either increase savings in column 3, or postpone retirement age, or improve your targeted yearly returns before 55, or reduce expenses in column 24. It is quite complicated to explain here simply in words but the excel spreadsheet can be customised to suit your situation but you must put in your formulas correctly based on your own situation. I created such a spreadsheet to track my financial planning. I am not a financial planner trying to sell my services. I am just a working class guy with a bit more financial planning knowledge trying to.share my knowledge here.

Here is how a typical Singaporean couple can generate income when they retire at 65:

1. CPF Life - $3500 pm
2. Rent out two empty HDB flat rooms - $2000 pm ($1000 pm for each room)
3. Reverse mortgage of 4 room flat - let's say $1000 pm
4. Children's contribution - $1000 pm
Total income $7500 pm ($90k pa).

Spending

1. Food & utilities $1000 pm
2. Public transport $100 pm
3. Medical and insurance $500 pm
4. Holidays $500 pm
5. Buffer for inflation $500 pm
6. Misc $400 pm
Total $3000 pm

Savings $4500 pm ($54k pa)

Dicey. By the way, are you currently contributing to your aged parents? If so, how much?

Best not to burden your children with demands for financial support. It will get tougher for them in a globalised world with more competition of cheap labour from neighbouring countries. It will create a vicious cycle for the children - they will be already burdened with starting a family, buying a house, children's education, retirement saving. If they have to support ageing parents their own retirement will be in peril. With parents and parents-in-law to support, this will make the burden unbearable.

Renting out rooms is also not advisable. First, the rental income is not constant. Secondly the loss of privacy may "cost" more than the rental you bring in. Not to mention the danger of having strangers living in your home!

The solution really is to continue working as long as you are still able to contribute. Many elderly people are working nowadays possibly because they miscalculated that they would have enough for retirement only to find out late that they dont.

Dont make the same mistake when you are still young and able to work.

Originally Posted by Unregistered

Here is how a typical Singaporean couple can generate income when they retire at 65:

1. CPF Life - $3500 pm
2. Rent out two empty HDB flat rooms - $2000 pm ($1000 pm for each room)
3. Reverse mortgage of 4 room flat - let's say $1000 pm
4. Children's contribution - $1000 pm
Total income $7500 pm ($90k pa).

Spending

1. Food & utilities $1000 pm
2. Public transport $100 pm
3. Medical and insurance $500 pm
4. Holidays $500 pm
5. Buffer for inflation $500 pm
6. Misc $400 pm
Total $3000 pm

Savings $4500 pm ($54k pa)

What nonsense are you talking about?

Children don't contribute at all? Nonsense. I've contributed thousands of dollars to my parents for so many years even though they were working and earning and I expect my children to do likewise. If your own children don't do that, don't impose your ideas on others. That's arrogant.

At 65 and you still ask people to work? Work until when? 80? Then die at 81?

We all know that you are rich and have a net worth of $5m and you still want to work. This is up to you but don't impose your ideas on others.

Everyone has the right to decide on when they want to retire. Those who value their free time more to pursue other interests, let them do so. As long as they have the means to support their retirement, let them be. They may prefer a simple retirement lifestyle and this is their choice. If your idea of retirement is to spend and spend, then go and work until you are very old and leave your millions behind for your children to fight over when you die. Good luck!

Originally Posted by Unregistered

Dicey. By the way, are you currently contributing to your aged parents? If so, how much?

Best not to burden your children with demands for financial support. It will get tougher for them in a globalised world with more competition of cheap labour from neighbouring countries. It will create a vicious cycle for the children - they will be already burdened with starting a family, buying a house, children's education, retirement saving. If they have to support ageing parents their own retirement will be in peril. With parents and parents-in-law to support, this will make the burden unbearable.

Renting out rooms is also not advisable. First, the rental income is not constant. Secondly the loss of privacy may "cost" more than the rental you bring in. Not to mention the danger of having strangers living in your home!

The solution really is to continue working as long as you are still able to contribute. Many elderly people are working nowadays possibly because they miscalculated that they would have enough for retirement only to find out late that they dont.

Dont make the same mistake when you are still young and able to work.

[lazyplane]

Really ? You were 20 years old when chicken rice cost 25 cents ?

How long ago was that ?

Originally Posted by Unregistered

Inflation, my friend, inflation.

When I was 20 years old, chicken rice used to cost 25 cents.
Now, it is between $3 to 5.

What you have calculated is based on the CURRENT situation and requirements. lAll the stated costs will increase by the time you are at your retirement age.

Originally Posted by Unregistered

What nonsense are you talking about?

Children don't contribute at all? Nonsense. I've contributed thousands of dollars to my parents for so many years even though they were working and earning and I expect my children to do likewise. If your own children don't do that, don't impose your ideas on others. That's arrogant.

At 65 and you still ask people to work? Work until when? 80? Then die at 81?

We all know that you are rich and have a net worth of $5m and you still want to work. This is up to you but don't impose your ideas on others.

Everyone has the right to decide on when they want to retire. Those who value their free time more to pursue other interests, let them do so. As long as they have the means to support their retirement, let them be. They may prefer a simple retirement lifestyle and this is their choice. If your idea of retirement is to spend and spend, then go and work until you are very old and leave your millions behind for your children to fight over when you die. Good luck!

You have contributed thousands to your parents, that is yo say minimum two thousands. Am I right?

Just wondering whether is it for a month? For One year? Or it is the total for the past 20 years, assuming your parent still working at 65 and you start working at 23.

Are you expecting your children give you 5k each when you retire in 22 years time? Taking inflation unto consideration and the earning potential of your children. One child 5k, 2 children 10k. I believe you are not asking for too much. By the time you are 65 in 22 years time, money has already shrink so much.

Originally Posted by Unregistered

You have contributed thousands to your parents, that is yo say minimum two thousands. Am I right?

Just wondering whether is it for a month? For One year? Or it is the total for the past 20 years, assuming your parent still working at 65 and you start working at 23.

Are you expecting your children give you 5k each when you retire in 22 years time? Taking inflation unto consideration and the earning potential of your children. One child 5k, 2 children 10k. I believe you are not asking for too much. By the time you are 65 in 22 years time, money has already shrink so much.

I'm not asking much from them, just $500 from each of them. Only $1000 in total pm. I have my own sources of passive income. Their giving is not really to support us but more of a token to show filial piety. This is values we must inculcate in the younger generation. They must learn gratitude. Not just to take but also to give.

Originally Posted by Unregistered

What nonsense are you talking about?

Children don't contribute at all? Nonsense. I've contributed thousands of dollars to my parents for so many years even though they were working and earning and I expect my children to do likewise. If your own children don't do that, don't impose your ideas on others. That's arrogant.

At 65 and you still ask people to work? Work until when? 80? Then die at 81?

We all know that you are rich and have a net worth of $5m and you still want to work. This is up to you but don't impose your ideas on others.

Everyone has the right to decide on when they want to retire. Those who value their free time more to pursue other interests, let them do so. As long as they have the means to support their retirement, let them be. They may prefer a simple retirement lifestyle and this is their choice. If your idea of retirement is to spend and spend, then go and work until you are very old and leave your millions behind for your children to fight over when you die. Good luck!

I think is just a pessimistic view on the previous user. The reason why I think the user say that is because of the uncertainty of whether your children will give him/her allowance. You also not sure whether you children will give you allowance right?

Certainly everyone has the right to retire, but there are many people cannot afford to retire due to the financial burden that they have (children didnt support them, family face financial issue and etc). Also you are imposing your "ideal" future to the other people here as well. So please say yourself first before saying others.

Also, it is right not to include allowance for children for your retirement plan. Because one day you wouldnt know that your children face difficulty in their finance, then instead they need your help. like that how you handle?

Do think thoroughly in your retirement plan, think of all the possible scenario.

If you look at the post carefully, the income is $7500 & expenses is $3000. Children allowance is only $1000. So even without the allowance, income is still higher than expenses.

Originally Posted by Unregistered

I think is just a pessimistic view on the previous user. The reason why I think the user say that is because of the uncertainty of whether your children will give him/her allowance. You also not sure whether you children will give you allowance right?

Certainly everyone has the right to retire, but there are many people cannot afford to retire due to the financial burden that they have (children didnt support them, family face financial issue and etc). Also you are imposing your "ideal" future to the other people here as well. So please say yourself first before saying others.

Also, it is right not to include allowance for children for your retirement plan. Because one day you wouldnt know that your children face difficulty in their finance, then instead they need your help. like that how you handle?

Do think thoroughly in your retirement plan, think of all the possible scenario.

Originally Posted by Unregistered

If you look at the post carefully, the income is $7500 & expenses is $3000. Children allowance is only $1000. So even without the allowance, income is still higher than expenses.

cannot count like that de, the medical bill only $500 per month? (you sure?) unexpected expenses? (got count it in?)

It is always safer to have at least 2.5 times of the expenses if you want to retire, unless you have million dollar saving. Also the insurance for elderly is not that cheap. (I presume is for two person). Also what if the room cannot rent out?

See there is a lot of what if, not sure whether he got consider. If he got then ok, but by the looks of it, he didnt think is through thoroughly.