How much are you earning per annum?

Looks like we have different priorities.
My wife and I look forward to a longer retirement.
We also don't need a car and we prefer our privacy.
We also don't intend to leave so much behind for our children after our demise. Let them work hard as just like us.

Originally Posted by Unregistered

What you listed below is quite accurate for a simple lifestyle. For us, in addition to what you listed, we have the following items:

1. Maid - $1000 pm (salary, levy, insurance, medicals and air tickets)
2. Car - $1,800 pm (depreciation, road tax, insurance, petrol, maintenance, erp). We dont have to pay for car park in our condo.
3. Life concerts and shows - $100 pm (averaged out - maybe 2 such shows a year)
4. Parents allowance - $400 pm

We estimated we would need $7k pm or $84k pa. to support our retirement lifestyle. Currently our passive income is almost $150k pa, but we are not retiring yet as we are in the accelerated savings stretch of our working life. Where our liabilities and financial obligations are tapering off and our salaries have peaked. We will try and maximise this golden period for as long as we can. Imaging saving $350k to $400k a year is a lot to give up.

Originally Posted by Unregistered

Looks like we have different priorities.
My wife and I look forward to a longer retirement.
We also don't need a car and we prefer our privacy.
We also don't intend to leave so much behind for our children after our demise. Let them work hard as just like us.

I totally agree with you. We should not spoil our children. They should strive and accumulate their own wealth. One cent you earn from your own hard work is better than a million dollars given to you.

I have also inculcated this value in our children. Even though we are considered well off in our local context, I don't spoil my children. I give them the best education and that will set the stage for them to excel in their lives.

Parents who spoil their children will only make them soft. They are the ones responsible for creating the strawberry generation. Don't blame the children. It's all about good parenting.

Originally Posted by Unregistered

Looks like we have different priorities.
My wife and I look forward to a longer retirement.
We also don't need a car and we prefer our privacy.
We also don't intend to leave so much behind for our children after our demise. Let them work hard as just like us.

There are a few subjects here, each worthy of a lengthy discourse by itself. Let me just focus on one first - retirement.

Retirement
A well planned retirement where one finds fulfillment and happiness is what we all want. It is one where we look forward to waking up each day to do something meaningful or just to have time for ourselves. Yes, I do dream of such a retired life, where I am not always rushed for time or worrying about unfinished or urgent work.

On the other hand, hurrying into retirement without any idea what one is to do or occupy your time can be detrimental to your physical and mental health. Worse if the money is inadequate. And here in lies the problem :

The earlier you retire (for eg at 50), the lower your savings, and the longer time (35 to 45 years) you have in retirement. This makes for a recipe for a financial disaster. By the time you realise your funds are inadequate, you could be too old (70s) to get back into the workforce for meaningful work.

The later you retire (eg 62), the more you can save, and the shorter your retirement life (30 to 35 years).

It is always better to outlive your savings than to have to starve and beg for money in your old age.

The more money you saved for retirement, the more options you have in retirement. Be it travelling, contributing to charity or taking up new hobbies. Money and the options it provide will give you dignity and freedom to live the lifestyle you want without always worrying money, counting every cent you spent.

For me, to avoid running out of money in my retirement years, I am doing this two things:-

1. Maximise the golden period (from age 55 to 62). This is the period where my financial obligation and liabilities taper off and my salary peaked. I see my savings rate accelerates.

2. Ensure that I invest my savings to earn passive income and that the passive income can cover my annual expenses. When this happens, my principal amount will not be eroded over time and if invested in growth instruments, the value may even appreciate over the long term.

Leaving money behind for your children is a different topic for another post.

I know we have many more mature audience here and you would like to discuss on retirement plans etc. But this topic is "How much are you earning per annum".

If we could stay on topic please.

Originally Posted by Unregistered

What you listed below is quite accurate for a simple lifestyle. For us, in addition to what you listed, we have the following items:

1. Maid - $1000 pm (salary, levy, insurance, medicals and air tickets)
2. Car - $1,800 pm (depreciation, road tax, insurance, petrol, maintenance, erp). We dont have to pay for car park in our condo.
3. Life concerts and shows - $100 pm (averaged out - maybe 2 such shows a year)
4. Parents allowance - $400 pm

We estimated we would need $7k pm or $84k pa. to support our retirement lifestyle. Currently our passive income is almost $150k pa, but we are not retiring yet as we are in the accelerated savings stretch of our working life. Where our liabilities and financial obligations are tapering off and our salaries have peaked. We will try and maximise this golden period for as long as we can. Imaging saving $350k to $400k a year is a lot to give up.

Your passive income is almost double your expenses. Even if you retire now, your wealth should continue to grow. You would be to able to reinvest half of your passive income. It sounds to me a worry-free retirement. What's stopping you from retirement? Is it purely the idea of giving up $350k-$450k? This is not a post about greed or materialism - I'm sure most will find it difficult to give up this kind of income. I'm just curious about the motivation of people working towards retirement.

Originally Posted by Unregistered

Your passive income is almost double your expenses. Even if you retire now, your wealth should continue to grow. You would be to able to reinvest half of your passive income. It sounds to me a worry-free retirement. What's stopping you from retirement? Is it purely the idea of giving up $350k-$450k? This is not a post about greed or materialism - I'm sure most will find it difficult to give up this kind of income. I'm just curious about the motivation of people working towards retirement.

I'm cannot understand a couple saving $350K-$450K annually only gives $400pm allowance to the parents...

Originally Posted by Unregistered

I'm cannot understand a couple saving $350K-$450K annually only gives $400pm allowance to the parents...

Haha, well spotted. Tells you what kind of people they are, and how they are treating their poor parents.

Originally Posted by Unregistered

I'm cannot understand a couple saving $350K-$450K annually only gives $400pm allowance to the parents...

Poor parents. They should be given at least $2k pm in allowance EACH.

Originally Posted by Unregistered

Poor parents. They should be given at least $2k pm in allowance EACH.

This ridiculous couple only give 1% of their savings to parents. I think many who save lesser give more than 400 pm to their parents.

It is important not to jump to conclusion and throw judgement without finding out more.

My parents are well advanced in age (both above 90) and have been staying with us since they were in their 60s when my children were born. Their every need - food, medical care, outings, and the occasional holidays abroad were all taken care of by us.

Allowance at this point of their lives are symbolic. My parents at this advanced age need care, companionship and love more than anything else. The money we gave them go directly into ang pows for our children and their cousins (their other grand children) and great grand children during CNY, birthdays etc..

We have a full time maid just to care for them. We bring them out for whenever we go during weekends. My parents are thankfully healthy, but weak and tended to be absent minded.

I am very thankful that my wife accommodates my wish to have my parents stay with us, and that we have the financial means to see them through their old age. It is the least I could do after they brought me up, as well lended us a helping hand in bringing up our children.

You will understand only if you come to this stage of your life when you have to take care of your aged parents, their every needs, take care of their medical bills, have a maid to look after them, and so forth.