How much are you earning per annum?

Originally Posted by Unregistered

Pump 7K into Special Account every December. This can help u retire a lot earlier. If u start now, compounding potential is immense.

Hello there,

Thanks for the advice. But why 7K? How did u derive that figure? Will it help if I can put in more?

We are in our late 40s, with a total earnings of $168k pa. We live in a three bedroom condo which is fully paid up. Now the condo is worth $950k. We own a two year old car which we paid in full cash.

We are now embarking on our retirement journey. We plan to retire at 60, which means we have about 12 years to prepare for it. We envisage our children will be working, married and living in their own flats when we're 60.

Here is our plan:

1. Save $35k pa cash for retirement, which means we save $420k cash over 12 years.
2. Spend on average $4k pm or $48k pa or $240k over 5 years from age 60 to 65.
3. At age 65, our Enhanced CPF Life will pay us $3600 pm in total (two persons).
4. Buy annuities at 60, with cash, giving us $500 pm, until we die.
5. Our filial children will give us $200 pm from each of them (not much as we don't want to burden them). Total = 2 x $200 = $400 pm.
6. So our total passive income from 65 = $4500 pm or $54k pa.
7. We retire in place in our condo. Our children and grandchildren can enjoy the condo facilities every weekend. We get to see them every weekend.
8. No need to employ maid as we will do our own simple household chores. This is also a form of light exercise for us. And to keep our mind active.
9. No need car as our condo is near bus stop and an MRT station.
10. Holidays during non peak seasons, 2 times a year.
11. Total expenses $4k pm or $48k pa.

Basically we will be drawing down on our savings for our retirement. The only asset we will leave for our children when we die will be the condo where we are currently residing in. We don't want to leave too much wealth for our children. They must work hard for their own life and retirement, just like what we are doing now.

Retirement routine and activities (healthy ageing):

1. Workout in the condo gym.
2. Swimming in the condo swimming pool.
3. Play tennis in the condo tennis court.
4. Walk at nature parks. Explore all the many nature parks in Singapore.
5. Volunteer at charities.
6. Attend health and wellness talks.
7. Participate in activities at community centres.
8. Reading lots of books and learn new knowledge.
9. Watching TV and movies.
10. Holidays.
11. Household chores.
12. Grocery shopping.
13. Cooking.
14. Learn new recipes.
15. Trading stocks.
16. Bring grandchildren to the zoo, bird park, science centre, museums, etc.
17. Take care of grandchildren, when necessary, to help out our busy children.
18. Many more activities.

Originally Posted by Unregistered

Yes, I am aware I am very lucky and am very grateful for being able to live comfortably for now.

I do not wish to retire at this age... however due to my unique situation of having a majority of my networth skewed towards my current residential property vs my liquid assets, I am wondering how I can leverage upon my networth to grow my liquid assets in order to live in relative comfort when I do retire at 60.

I have been thinking of selling my private apartment and moving into a condomium at Kovan Melody. The asking price is $1.6m. That will leave me with around $1.7m in cash to push into investments with a 20 year horizon. Am not a big fan of managed portfolios, due to a bad experience in the past with a reputable wealth management firm. Are there any other alternatives for passive income? I know property is the most common suggestion... if so any countries in particular that could possibly have an upward trend?

U can consider Cambodia commercial property buy local developer Oxley. They are offering fixed yield and high potential capital appreciation. i can pass you some info if you are keen

It's going to be an interesting COE bidding situation
With government relaxing the loan rules
How much will the COE shoot up this round?

+$3k or +$5k?

Looks like the only way for next few months is Up Up Up

COE price will definitely be up.

This week Cat A should be up by $6k.

Cat B should be up by $8k.

Should reach $75k by year end.

Once COE supply starts shrinking, it will go to $100k at least.

Huat Ah !!!!!!

If you need to buy a new car, buy now with guaranteed COE.

Originally Posted by Unregistered

COE price will definitely be up.

This week Cat A should be up by $6k.

Cat B should be up by $8k.

Should reach $75k by year end.

Once COE supply starts shrinking, it will go to $100k at least.

Huat Ah !!!!!!

If you need to buy a new car, buy now with guaranteed COE.

It's scary. I can't imagine after year 2018 when the quota start to shrink. COE will skyrocket back above $100k. You are spot on with your predictions. You are truly the COE guru!

Originally Posted by Unregistered

Hi,

May I ask do you factor CPF annual interest as passive income though you have not reach 55yo and is unable to withdraw and touch it till retirement age.

I am 45yo and has CPF annual interest of $10.4K based on last year. My SA is max up and could not top up further and thinking on how to grow safe passive income.

Besides CPF interest, my alternative passive income is from SD and UT(using SRS money). Didn't keep track of my shares dividend as the sum is min.

Total passive income (including CPF $10.4K) estimated at $27K (-10% should SD rate doesn't fall within the knock in and knock out).

Come year 2019, I would have additional $21K passive income from insurance payout. Therefore from 2019 total passive income is expected to be $48K (exclude the compounding effect from CPF and contribution)

I am aiming for a $96K passive income by the time I reach 50yo.

Wonder how should I invest as I have lost about $200K on wrong investment, and this time rather be safe and contribute or pay back whatever being withdrawn from CPF for housing mortgage to increase my CPF account.

My income is about $90K so hope to achieve passive higher than my salary.

Thanks

How do you get $21k passive income from insurance payout? You paid very high annual premiums?

Yes, it is about a million policy which I leverage and downpayment $300K.

I would be getting estimated return of $21K after 5 years and minus the leverage interest payment (I am projecting realistic average interest of 3%, so if average interest is lower< I would be getting higher payout).

Originally Posted by Unregistered

How do you get $21k passive income from insurance payout? You paid very high annual premiums?

Where is the stupid guy who said COE will crash to $10k? LOL.

[lazyplane]

Originally Posted by Unregistered

Yes, it is about a million policy which I leverage and downpayment $300K.

I would be getting estimated return of $21K after 5 years and minus the leverage interest payment (I am projecting realistic average interest of 3%, so if average interest is lower< I would be getting higher payout).

R you referring to the insurance plan like TM Infinite VIP Single premium plan ?

If so, your policy is good as i only get $15k passive income pa for a 350k lump sum . To get $21k , the premium is approx $500k.