How much are you earning per annum?

Originally Posted by Unregistered

married with two teenager kids, paid up condo and luxury car, no debt
generating passive income 35k last year, cash+cpf $1mil, condo worth $1.5mil
we are both 45
can we retire early?

You can retire now if you sell your condo for $1.5m and buy a $400k HDB flat. You have $1.1mil in net cash for you to invest to generate additional passive income. If you get say 5% dividend yield, your additional dividends will be $55k pa. Your total passive income will be $90k pa. If you manage your finances well, this amount is enough. There are many families surviving with less than $90k pa.

You can also sell your luxury car and buy a cheaper car which is less costly to maintain. For instance, you can sell your luxury car for $200k and then buy a new cheap car for $100k. You can use your $100k balance for paying road tax, fuel, insurance, etc for the next 10 years.

Retirement is always about your retirement lifestyle. If you choose a lavish retirement lifestyle, you will have to work until you are 70 years old and then pass away maybe at 80 years old or earlier. You may not even enjoy your retirement as you will be too weak and unhealthy to enjoy at 70. Travelling the world at 70 is very tiring and not enjoyable.

If you choose a modest retirement lifestyle, you don't need so much money to retire. As long as your home is paid up and you don't lavish with owning a car and employing a maid, then you can retire.

A retired couple don't need so much. $2.5k pm should be enough if you watch your spendings. You must also not gamble, drink, smoke and party as these are money wasters and bad for your health and well being.

Originally Posted by Unregistered

You can retire now. Enjoy yourself and do some volunteer work to help the needy.

You can travel the world while you're still young and healthy. No need to wait until you're so old at 50.

Thanks for the advice.

Originally Posted by Unregistered

You can retire now if you sell your condo for $1.5m and buy a $400k HDB flat. You have $1.1mil in net cash for you to invest to generate additional passive income. If you get say 5% dividend yield, your additional dividends will be $55k pa. Your total passive income will be $90k pa. If you manage your finances well, this amount is enough. There are many families surviving with less than $90k pa.

You can also sell your luxury car and buy a cheaper car which is less costly to maintain. For instance, you can sell your luxury car for $200k and then buy a new cheap car for $100k. You can use your $100k balance for paying road tax, fuel, insurance, etc for the next 10 years.

Thanks for the advice.

Mid 30s, single.
Currently ~$140K per annum, mortgage on condo $1mio, value of condo $1.8mio, cash ~$1-ishmio, 5yo luxury car fully paid. No other real debt or investment.
Considering paying off mortgage up to the point where monthly mortgage is from cpf with no cash outlay (preference to max out cpf). Or not... thoughts?

Originally Posted by Unregistered

Mid 30s, single.
Currently ~$140K per annum, mortgage on condo $1mio, value of condo $1.8mio, cash ~$1-ishmio, 5yo luxury car fully paid. No other real debt or investment.
Considering paying off mortgage up to the point where monthly mortgage is from cpf with no cash outlay (preference to max out cpf). Or not... thoughts?

what is your definition of Luxury car? what make?

Originally Posted by Unregistered

what is your definition of Luxury car? what make?

Mine is a Volkswagen beetle

Originally Posted by Unregistered

Mid 30s, single.
Currently ~$140K per annum, mortgage on condo $1mio, value of condo $1.8mio, cash ~$1-ishmio, 5yo luxury car fully paid. No other real debt or investment.
Considering paying off mortgage up to the point where monthly mortgage is from cpf with no cash outlay (preference to max out cpf). Or not... thoughts?

I think it depends on whether you intend to invest your spare cash and the returns that you are confident of getting from investing. If you can get returns above what CPF is giving, 2.5%, I think you should use CPF to service your mortgage. If I were you, I would use some of the cash to pay down some of the loan (I'm risk-averse) and use CPF to service the reduced mortgage payments.

Originally Posted by Unregistered

I think it depends on whether you intend to invest your spare cash and the returns that you are confident of getting from investing. If you can get returns above what CPF is giving, 2.5%, I think you should use CPF to service your mortgage. If I were you, I would use some of the cash to pay down some of the loan (I'm risk-averse) and use CPF to service the reduced mortgage payments.

Was thinking to do that... because I'm not particularly savvy with investments... even though apparently that's not the best way to grow the cash...

Car is a 5 series m

So many good stories here. Glad that many succeeded.
But we assume year in year out everyone is making +ve returns.
What happens when the economy is down, people lose jobs and many has to dip into savings during rainy days.

I actually think that only dual income families can retire comfortably.
Most single income average families would tend to struggle more when they age.