How much are you earning per annum?

Hi,

I would not suggest investing thru bank as typically they charge higher fees 2-3%.

You may consider buying from online platform such as FSM, Philip Securities.

Unless you wanted to leverage, then going to the bank would be the way.

Diversify to 2-3 funds might be good.

Originally Posted by Unregistered

Thanks for the sharing. I'm mid 50s and have $200k for investment. My criteria wld be stable sustainable fixed income funds of ard 4 to 5%, that preserve my funds. Someone recommend to look at City Spring, JPMorgan and Allianz. As this is my first time buying, wld like to ask:
a) Do I need to consider the mgmt fees?
b) How and where do I buy and sell such funds? Through bank or broking firm?

Tks.

Many of us worked very hard all our lives. From Primary school all the way to the workforce, we worked hard. So it is natural that many of us want to retire at 55, the time when we can collect our CPF. How can we retire at 55? Here is the way.

1. Study hard and work hard. Get good jobs with good salaries.
2. Marry a good spouse who is also working.
3. Buy a cheap BTO 4 room HDB flat at 30. Buy those costing only $200k plus. Very cheap.
4. Stay in your flat and pay the mortgage within 25 years time. Can pay using CPF easily. If you're not a high flyer investment banker, don't upgrade to a condo. You shouldn't be a mortgage slave all your life.
5. Save $30k pa in cash. After 25 years, you save $750k.
6. Choose the ERS for your CPF Life. You get about $1900 pm for each person at 65. So, you and spouse will get $3800 pm or $45.6k pa in total as a retired couple.
7. At 55, you and spouse can retire since you have $750k in cash. If you need $30k pa in retirement expenses, you will only spend $300k from 55 to 65. You still have $450k to take care of future inflation.
8. At 65, you get your CPF Life.

How to save $30k pa in cash? Easy.

1. Don't own a car. It will cost you $2k pm or $24k pa to own and use the car. Over 25 years, you save $600k.
2. Don't employ a maid. It will cost you $1k pm or $12k pa. Over 25 years, you save $300k.
Total savings from not owning a car and not employing a maid is $36k pa. Over 25 years, you save $900k.

How to save more?

1. Don't go expensive holidays. Instead of spending $10k pa on holidays, just spend $5k pa. You save $5k pa and over 25 years, you save $125k.

2. Don't buy expensive luxury bags and shoes. Don't spend $5k pa on these. Make do with cheaper bags and shoes and spend $1k pa. You save $4k pa and over 25 years, you save $100k.

3. Don't smoke and drink. Let's say you spend $500 pm on cigarettes and alcohol. If you stop these, you save $6k pa and over 25 years, you save $150k.

4. Don't gamble. Let's say you spend $300 pm on gambling. If you stop gambling, you save $3600 pa and over 25 years, you save $90k.

So, if you follow all the above, you can save $1.365 million over 25 years.

This shows everyone with a decent salary can save a lot but most people will overspend. They want a car, they want to employ a maid, they want expensive holidays, they want luxury bags, they gamble, they smoke, they drink, they party, etc.

So it is not money not enough. Actually it is SPENDING TOO MUCH.

So, if you're not a high flyer investment banker, just lead a simple lifestyle. Don't act rich.

If you're spending beyond your means and has little savings, get ready to be working all your life.

How much does a retired couple today need per month? Assuming the couple is debt free and has no dependents at 55. Retire in place in their 4 room HDB flat.

Food, groceries, eating out $1000
Utilities $100
Public transport $100
Recreation $100
Medical and insurance $600
Holidays (pro rated) $200
Miscellaneous $400
Total $2500 pm (or $30k pa)

Plan your life carefully. You can retire comfortably at 55.

Originally Posted by Unregistered

Many of us worked very hard all our lives. From Primary school all the way to the workforce, we worked hard. So it is natural that many of us want to retire at 55, the time when we can collect our CPF. How can we retire at 55? Here is the way.

1. Study hard and work hard. Get good jobs with good salaries.
2. Marry a good spouse who is also working.
3. Buy a cheap BTO 4 room HDB flat at 30. Buy those costing only $200k plus. Very cheap.
4. Stay in your flat and pay the mortgage within 25 years time. Can pay using CPF easily. If you're not a high flyer investment banker, don't upgrade to a condo. You shouldn't be a mortgage slave all your life.
5. Save $30k pa in cash. After 25 years, you save $750k.
6. Choose the ERS for your CPF Life. You get about $1900 pm for each person at 65. So, you and spouse will get $3800 pm or $45.6k pa in total as a retired couple.
7. At 55, you and spouse can retire since you have $750k in cash. If you need $30k pa in retirement expenses, you will only spend $300k from 55 to 65. You still have $450k to take care of future inflation.
8. At 65, you get your CPF Life.

How to save $30k pa in cash? Easy.

1. Don't own a car. It will cost you $2k pm or $24k pa to own and use the car. Over 25 years, you save $600k.
2. Don't employ a maid. It will cost you $1k pm or $12k pa. Over 25 years, you save $300k.
Total savings from not owning a car and not employing a maid is $36k pa. Over 25 years, you save $900k.

How to save more?

1. Don't go expensive holidays. Instead of spending $10k pa on holidays, just spend $5k pa. You save $5k pa and over 25 years, you save $125k.

2. Don't buy expensive luxury bags and shoes. Don't spend $5k pa on these. Make do with cheaper bags and shoes and spend $1k pa. You save $4k pa and over 25 years, you save $100k.

3. Don't smoke and drink. Let's say you spend $500 pm on cigarettes and alcohol. If you stop these, you save $6k pa and over 25 years, you save $150k.

4. Don't gamble. Let's say you spend $300 pm on gambling. If you stop gambling, you save $3600 pa and over 25 years, you save $90k.

So, if you follow all the above, you can save $1.365 million over 25 years.

This shows everyone with a decent salary can save a lot but most people will overspend. They want a car, they want to employ a maid, they want expensive holidays, they want luxury bags, they gamble, they smoke, they drink, they party, etc.

So it is not money not enough. Actually it is SPENDING TOO MUCH.

So, if you're not a high flyer investment banker, just lead a simple lifestyle. Don't act rich.

If you're spending beyond your means and has little savings, get ready to be working all your life.

How much does a retired couple today need per month? Assuming the couple is debt free and has no dependents at 55. Retire in place in their 4 room HDB flat.

Food, groceries, eating out $1000
Utilities $100
Public transport $100
Recreation $100
Medical and insurance $600
Holidays (pro rated) $200
Miscellaneous $400
Total $2500 pm (or $30k pa)

Plan your life carefully. You can retire comfortably at 55.

What kind of boring life is that. Save to not enjoy at all

29 yo. 105k p.a (bonus and allowances all in).
Single income. Wife not working and have one kid.
Have a 350k HDB mortgage. No car (can't afford).

Currently struggling to save despite a 105k p.a income because baby monthly expenses are quite high, and every month need to use 1k cash to pay mortgage. Hoping that expenses will come down in a year or two.

Assets

- HDB worth $900k with $300k o/s loan remaining
- Cash ~ $300k
- Combined CPF ordinary account ~$90k
- Combined income of $230k pa including bonus - $16k combined income per mth


With the above assets on hand, which of the following options would you go for at this current moment?;

i) sell HDB for $900k and buy new EC $1+mil (720psf) and flip after 5 year MOP for >$1.3mil (820psf)
ii) hold on to HDB - buy new private condo worth $1 mil and pay absd
iii) sell HDB for 900k - buy 1 private condos each under our name to avoid absd
iv) hold on to HDB and wait for removal of ABSD

Not sure why you r so obsessed with buying a condo when your cash on hand is so low and a mortgage outstanding. How old are you? Bet u must be a kiddo with a big ego. Stay in your flat n save till you have min $400k b4 u even think abt buying a condo.

Originally Posted by Unregistered

Not sure why you r so obsessed with buying a condo when your cash on hand is so low and a mortgage outstanding. How old are you? Bet u must be a kiddo with a big ego. Stay in your flat n save till you have min $400k b4 u even think abt buying a condo.

A private condo (not EC) gives you high prestige and a high social status.

You need to own a private condo costing at least $3m and located in the prime district.

A private condo costing less than $3m is common, not prestigious.

Successful couple, 50 & 51. We have successfully cleared the mortgage of our flat. As a couple, we earn an active income from work amounting to $164k pa and a passive income (from stocks dividends and CPF interest) amounting to $23k pa. In total, we earn $187k pa.

We don't have any debt and can retire in a few years time. Our couple net worth, which includes our flat, cash, stocks and CPF, is close to $1.5m. Ideally, we hope to retire when we reach 58. Our savings, passive income and CPF Life will finance our retirement.

Originally Posted by Unregistered

Successful couple, 50 & 51. We have successfully cleared the mortgage of our flat. As a couple, we earn an active income from work amounting to $164k pa and a passive income (from stocks dividends and CPF interest) amounting to $23k pa. In total, we earn $187k pa.

We don't have any debt and can retire in a few years time. Our couple net worth, which includes our flat, cash, stocks and CPF, is close to $1.5m. Ideally, we hope to retire when we reach 58. Our savings, passive income and CPF Life will finance our retirement.

Actually given your financial resourcses, can retire now and teach tuition 8hours a week at 100ph. More than enough to sustain your lifestyle.

Go for option

First
iii) sell HDB for 900k - buy 1 private condos each under our name to avoid absd
Sceond
ii) hold on to HDB - buy new private condo worth $1 mil and pay absd


But you must able to have holding power to support the mortgage for at least 10 years.

Good luck to you young chap.

Originally Posted by Unregistered

Assets

- HDB worth $900k with $300k o/s loan remaining
- Cash ~ $300k
- Combined CPF ordinary account ~$90k
- Combined income of $230k pa including bonus - $16k combined income per mth


With the above assets on hand, which of the following options would you go for at this current moment?;

i) sell HDB for $900k and buy new EC $1+mil (720psf) and flip after 5 year MOP for >$1.3mil (820psf)
ii) hold on to HDB - buy new private condo worth $1 mil and pay absd
iii) sell HDB for 900k - buy 1 private condos each under our name to avoid absd
iv) hold on to HDB and wait for removal of ABSD