How much are you earning per annum?

Originally Posted by Unregistered

I am more concerned some crazy driver will hit her and cause a headache for us to settle the accident claims. Even worse if she is badly injured as she will not be able to provide for her family back home. Hence, we have bought some private insurance for her in the event of unforeseen circumstances. 1 million SGD should be a lifetime of riches for her family should anything go wrong.

No amount of money can replace the loss of limbs, sights, etc.

Better don't risk her safety. You should just drive to the market, don't let her drive.

Originally Posted by Unregistered

No amount of money can replace the loss of limbs, sights, etc.

Better don't risk her safety. You should just drive to the market, don't let her drive.

Are you saying he should risk his own safety instead by driving?

Originally Posted by Unregistered

Are you saying he should risk his own safety instead by driving?

He is not stupid, he is used to driving but not the maid.

We've cleared our mortgage and no more debt. Well insured. 54 & 56 yo.
Earning a passive income of $100k pa. Current household expenses $60k pa (no maid, no car, no dependents).

We will retire next year. Looking forward to spending more time studying our faith, doing charity work and some adventures trekking and traveling the world. Planning to write a book too. We will be busy pursuing interests which we have postponed for so long.

Originally Posted by Unregistered

He is not stupid, he is used to driving but not the maid.

If so, then I wonder how anybody learned how to drive. Everyone has to go through the beginner phase. That is what the P plate is for, so other drivers know you are new and give way to you.

If that is your attitude I wouldn't be surprised if you have stagnated at your career due to a fear of trying new things.

Originally Posted by Unregistered

We've cleared our mortgage and no more debt. Well insured. 54 & 56 yo.
Earning a passive income of $100k pa. Current household expenses $60k pa (no maid, no car, no dependents).

We will retire next year. Looking forward to spending more time studying our faith, doing charity work and some adventures trekking and traveling the world. Planning to write a book too. We will be busy pursuing interests which we have postponed for so long.

Good to know that you have clear plans of what you and spouse want to do in retirement. This is the most important aspect of retirement, not so much the finance part. Many people are ok to retire when you look at their finances but they are not prepared to retire mentally. They just don't know what to do in retirement so it is not surprising why some people choose to work even though they are old millionaires. Their work defines them. They can't let go of their professional status. They pride over the fact that they are so and so in so and so company when asked by old friends and relatives.

However, if you know what you want to do in retirement and financially fully adequate, then go for it. Pursue your interest and be happy. Don't let anyone tell you don't retire because of this and that. He is actually the one who cannot let go, too hung up over status and recognition. Let him be. He will likely retire at 80 and die soon after, leaving his millions to his children who will fight in court over his wealth.

We should be objective and try and appreciate the message the old multi millionaire was telling us. Here are the key points I distilled from his various postings:

1. From 50 to 55 years old onwards - with financial commitments reduced or completed, it is the best time to accumulate retirement funds. By stopping work, you are thus missing out this "Golden" period.

2. Savings come from spending less than your income and saving alone is insufficient because of inflation. You need to invest to ensure your capital growth can beat or keep pace with inflation.

3. Aim higher when planning your retirement goals. If you aim low, you will certainly end up downgrading your lifestyle upon retirement and have to constantly worry about finances and make sacrifices like giving up your privacy in renting rooms of your home.

4. You are your most important asset. Once you stop work, you are losing the most important income generator - yourself. Most people, if not all, are not able to generate a passive income to replace their work income. The lucky and good ones are only able to have a passive income cover their expenses. And many have had to downgrade their lifestyles.

5. At 55, your children would have grown up and want to lead their own lives. Your wife, if she was a housewife would probably want to work, now that the children are grown. Retiring to spend time with them doesn't make sense. If on the other hand your children are still schooling whether in JC or Uni, the more reason to continue working as the expenses will still be high, especially if they want to study overseas.

6. Things that you planned to do while in retirement would probably be completed within 1 year of retirement or even shorter. The old millionaire was speaking from experience, having seen his former senior colleagues coming back to work as consultants after just 6 months of retirement.

7. People say inflation only affects the rich as they buy properties and cars etc.. This is totally wrong in today's situation. This one to two years, inflation was low for the wealthy because home and car prices were actually suppressed by the government. But on the other hand, food prices and other basic necessities are actually costlier. This makes up the core inflation which went up! So the lower middle income and the lower income actually paid more for their basic necessities.

8. Planning is very different from actual outcome. People said they planned to do this and that in their retirement but many don't actually carry them out. Let's hope that the reasons for not carrying out their plans were not that their funds ran out or that they fell sick, but because they found something else better to do.

9. Having more funds mean having more options in life. Don't short change yourself because you wanted the easy way out.

10. Do not underestimate the effect of core inflation. The old millionaire has done his calculations and has a good idea how far his millions can last him. He doesn't want to leave things to chance. 30 years in retirement is a very long time.

11. Finally, don't envy others. Envy and jealousy make your life miserable.

There are more points, but I think the above 11 are recurring in his messages.

Originally Posted by Unregistered

Good to know that you have clear plans of what you and spouse want to do in retirement. This is the most important aspect of retirement, not so much the finance part. Many people are ok to retire when you look at their finances but they are not prepared to retire mentally. They just don't know what to do in retirement so it is not surprising why some people choose to work even though they are old millionaires. Their work defines them. They can't let go of their professional status. They pride over the fact that they are so and so in so and so company when asked by old friends and relatives.

However, if you know what you want to do in retirement and financially fully adequate, then go for it. Pursue your interest and be happy. Don't let anyone tell you don't retire because of this and that. He is actually the one who cannot let go, too hung up over status and recognition. Let him be. He will likely retire at 80 and die soon after, leaving his millions to his children who will fight in court over his wealth.

7. People say inflation only affects the rich as they buy properties and cars etc.. This is totally wrong in today's situation. This one to two years, inflation was low for the wealthy because home and car prices were actually suppressed by the government. But on the other hand, food prices and other basic necessities are actually costlier. This makes up the core inflation which went up! So the lower middle income and the lower income actually paid more for their basic necessities.


I think you are deluded. Inflation affects the poor more than the rich. The rich have no qualms about paying 90k for a COE. The poor have to struggle when the price of chicken rice goes up by $1.

Thanks for the advice. We have decide to retire sooner rather than later. As a multi millionaire couple living in a nice condo and having a growing passive income, we can afford to retire from paid work to pursue our interests. We don't want to be old multi millionaires who work until the day he die and leaving his fortune to fighting children.

We know of people who retired at 65 and died immediately after. His wife and children happily squandered his fortune. There are people who even gamble away inheritance at casinos because they don't value the fortune as they didn't work for them.

Originally Posted by Unregistered

Good to know that you have clear plans of what you and spouse want to do in retirement. This is the most important aspect of retirement, not so much the finance part. Many people are ok to retire when you look at their finances but they are not prepared to retire mentally. They just don't know what to do in retirement so it is not surprising why some people choose to work even though they are old millionaires. Their work defines them. They can't let go of their professional status. They pride over the fact that they are so and so in so and so company when asked by old friends and relatives.

However, if you know what you want to do in retirement and financially fully adequate, then go for it. Pursue your interest and be happy. Don't let anyone tell you don't retire because of this and that. He is actually the one who cannot let go, too hung up over status and recognition. Let him be. He will likely retire at 80 and die soon after, leaving his millions to his children who will fight in court over his wealth.

45, sole bread winner, total income $108k pa.

Expenses
1. Condo mortgage $2000 pm (10 more years to pay)
2. Car instalment and other car expenses $1200 pm
3. Children tuition, pocket money, enrichment, etc $1000 pm
4. Household expenses $2000 pm
5. Others $1300 pm

Savings $1500 pm