How much are you earning per annum?

Hi Lazyplane,

You are knowledgeable about the product.

Question is how can we grow more passive income.

Do you consider CPF interest as passive income though it can't be withdrawn till retirement age.

Originally Posted by lazyplane

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.

[lazyplane]

Originally Posted by Unregistered

Hi Lazyplane,
You are knowledgeable about the product.
Question is how can we grow more passive income.
Do you consider CPF interest as passive income though it can't be withdrawn till retirement age.

Since we are looking into products etc, let me rephrase your question.

can you let me know if there is any product that gives u guaranteed returns without any lock in period ?

FD ? Nope
Insurance linked investment - definitely nope.
Equity - u run the market risk . and definitely not guaranteed.
bonds - nope.
Business - even harder to extract money once in.

The only one that really give guarantee returns without any lock in period is cash. And we know how GENEROUS banks are in giving us returns. LOL.

The point i am stating is that if you treat CPF as any product above say like insurance , then passive interest from cpf is passive income.

But of course, dont be a fool and lock everything in the CPF basket lah unless you are very very near retirement. only then u can pump the CPF like bank account and do it aggressively ! cos the returns are very attractive for short term . There is definitely no product in SG market that gives better returns during say for 3 year time horizon.


The rest of us.. since we have more time, and what textbooks finance says "higher" risk thresholds (which i disagree strongly for this pt) , then we need to diversify and look at all the products i mentioned earlier. No magic formula. No single one bullet .

Middle class family, 50 & 49 year old.
Car paid up.

Our expenses
Condo mortgage $1100 pm or $13,200 pa
Car petrol, road tax, car insurance, parking, etc $700 pm or $8,400 pa
Groceries, restaurants & utilities $2000 pm or $24,000 pa
Medical insurance $1700 pm or $20,400 pa
Holiday travels $800 pm or $9,600 pa
Children $500 pm or $6,000 pa
Parents allowance & gifts $1600 pm or $19,200 pa
Others $500 pm or $6,000 pa
Total expenses $8,900 pm or $106,800 pa

Total income, including bonuses $136,800 pa
Total savings $30,000 pa

Net worth
Condo net value (value minus mortgage) $760k
Cash & CPF $650k
Stocks $50k
Total net worth $1.46 mil

How are we doing? How do we fare compared to our contemporaries?
How can we prepare for our retirement?

Me 45 yrs old. Wife 39 yrs old.

Single income. Wife not working.
No kids.

Home equity - Singapore $2.2m (excluding mortgage)
Home equity - Abroad $1m (fully paid)
Cash and equivalent $1m
Stock $0.3m
Other investment (mostly artwork) $0.5m

Total net worth $4.8-5m (may fluctuate depending on value of shares and artwork)

You have done very well financially. You are in the upper class group. Why?

1. You own and live in a condo. Only 15% of the population here live in condos. 80% lives in public housing. On top of that your condo is almost paid up, this is a big achievement.

2. You own a car, which makes you among the lucky ones.

3. Your household net worth is higher than the median household net worth.

4. Your household income is higher than the median household income.

Congratulations. Well done. You can retire well in a few years time.

Originally Posted by Unregistered

Middle class family, 50 & 49 year old.
Car paid up.

Our expenses
Condo mortgage $1100 pm or $13,200 pa
Car petrol, road tax, car insurance, parking, etc $700 pm or $8,400 pa
Groceries, restaurants & utilities $2000 pm or $24,000 pa
Medical insurance $1700 pm or $20,400 pa
Holiday travels $800 pm or $9,600 pa
Children $500 pm or $6,000 pa
Parents allowance & gifts $1600 pm or $19,200 pa
Others $500 pm or $6,000 pa
Total expenses $8,900 pm or $106,800 pa

Total income, including bonuses $136,800 pa
Total savings $30,000 pa

Net worth
Condo net value (value minus mortgage) $760k
Cash & CPF $650k
Stocks $50k
Total net worth $1.46 mil

How are we doing? How do we fare compared to our contemporaries?
How can we prepare for our retirement?

Originally Posted by Unregistered

You have done very well financially. You are in the upper class group. Why?

1. You own and live in a condo. Only 15% of the population here live in condos. 80% lives in public housing. On top of that your condo is almost paid up, this is a big achievement.

2. You own a car, which makes you among the lucky ones.

3. Your household net worth is higher than the median household net worth.

4. Your household income is higher than the median household income.

Congratulations. Well done. You can retire well in a few years time.

Most importantly, no kids. So no long term 'liabilities'.

Don't worry.

For those retrenched ex-PMETs out there, such as ex-engineers and ex-bankers, do not be sad. Instead of worrying so much, you can just retire assuming you no longer have any dependents at age 55.

Good retirement plan in KL or Penang for a 55 years old retired couple.

Passive income
Rent out fully paid HDB flat S$2.5k pm or RM7.5k pm
(Note: let's hope our Singapore property market will not crash and there is enough FTs working here, or else our HDB rents will also crash and this will cause our old retirees to suffer as they will not be able to get good rents)

KL or Penang cost of living
Rent a 2 bedroom condominium RM1.5k pm
Car expenses RM500 pm (assume buy used car in cash RM30k)
Food, groceries and utilities RM1.5k pm
Misc RM1k pm
Total spending RM4.5k pm
Savings RM3k pm

This retirement plan allows you to live in a condo and drive a car.

Your key retirement asset: HDB flat (we are very fortunate since we all get to buy cheap BTO HDB flats when we got married)

Originally Posted by Unregistered

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

Huat ah!! COE breach $55k upon first bidding when government relaxes it's loan rule. We are going to hit back $80k COE soon. Congrats to all bros who had secured the COE at low times $40k+....

I TOLD YOU SO.

As I have predicted, COE price went up BIG TIME today. Congrats to those smart ones who listened to me to buy earlier, especially those who got the $38K COE. If you listened to the fool who said COE will drop to $10k or $30k, then too bad.

COE prices will continue to rise. If you bought with GUARANTEED COE, then good for you. I said many times buy with GUARANTEED COE because COE prices is on an uptrend.

HUAT AH !!!!!!!!!!!

Originally Posted by Unregistered

I TOLD YOU SO.

As I have predicted, COE price went up BIG TIME today. Congrats to those smart ones who listened to me to buy earlier, especially those who got the $38K COE. If you listened to the fool who said COE will drop to $10k or $30k, then too bad.

COE prices will continue to rise. If you bought with GUARANTEED COE, then good for you. I said many times buy with GUARANTEED COE because COE prices is on an uptrend.

HUAT AH !!!!!!!!!!!

I regret not booking when it hit all time low $38k
I thought it would go below $30k
Looks like I can only dream new car
The quota is going to shrink and COE premium will hit above $100k!