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How much is your annual passive income?

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  #71 (permalink)  
Old 26-03-2017, 05:50 PM
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Maybe he had a cash cpf infusion at young age and that was transferred from OA to SA.

Agree that maybe unlikely someone to have so much cpf interest now but I think not the same next time as I have heard of well off parents giving up to FRS for their toddler.

So never say never

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Originally Posted by Unregistered View Post
Hello, $20k is a big world of difference from $34k. And dear AK71 is 46 yo not 43.

Why is $20k a big world of difference from $34k?

Assuming the fake 43yo has $215k in his SA, he will have the same interest from SA as AK71 at $8,800

His MA, lets say is $52k, will give him an interest of $2.08k

That means the rest of his interest has to come from his OA. ($34k - $8.8k - 2.08k = $$23.12k)

With the CPF interest for OA at 2.5%, this means he has to have $924k in his OA.

I already showed that a person contributing to max ($37,740) each year for 20 years will only have $750,800 - below the $924k needed to generate the $23.12k of interest.

Dont forget this $750,800 has to be distributed to the other accounts (SA and MA) as well.

AK71 figures are real. And if he continues to make maximum contribution of $37,740 each year till he is 55, he will likely achieve more a than $1million in his CPF.

AK has 9 more years to go. So he can contribute 9 x $37,740 = $339,660

Adding to his current amount of $457.4k (OA) + $215.8k (SA) + $52k (MA) will give him a total of $1.064m. With 9 years of interest at $20k per year = 9 x $20k = $180k

So at 55, AK should have $1,244m!

And AK's case validates my point that an individual can have more than $1m in his mid 50s.

My CPF amount, total of all accounts, is slightly higher than that. Even if we want to contribute more, CPF does not allow.

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  #72 (permalink)  
Old 26-03-2017, 06:15 PM
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It is of course possible to give your offspring a cash infusion amounting to FRS in his SA.
Read that again - SA. We did that for our children by the way.

Now, go and read post #45 again. The fake 43 yo said he used his CPF money to buy property thereby reducing his CPF interest from $34k to $18k. This money has to come from his OA not his SA. That is $16k of OA interest or $640k of OA money. And I am already assuming he is contributing the max every year since day 1 of working life. Most people dont even earn that much per year in their early years of working, not to mention contribute $37,740 to their CPF!

Go figure if the numbers add up!

Quote:
Originally Posted by lazyplane View Post
Maybe he had a cash cpf infusion at young age and that was transferred from OA to SA.

Agree that maybe unlikely someone to have so much cpf interest now but I think not the same next time as I have heard of well off parents giving up to FRS for their toddler.

So never say never


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  #73 (permalink)  
Old 27-03-2017, 10:51 AM
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In this day and age I am surprise there are some degree educated PMEs out there who cannot even reach their first million net worth by 40. Some are even worse, relying on just downgrading from condo to HDB at 62-65 just to unlock that miserable 700k for retirement for both couple, i.e. 350k per pax is their main retirement fund. Crazy...
Have you reached 40 years old? Most Singaporean men who graduate with a degree will have about 15-16 years of working before he reach 40 years old. To accumulate $1m in 15 years, he needs to accumulate $66.7K per year of savings for 15 years. How many people can do that unless he has been very successful or lucky in investing - be it stock market or property investment. You are either an impressionable young man who believes that having a degree will automatically make you a successful millionaire at the young age of 40. If that is the case, you will probably feel miserable and sore when you grow up in the real world. If you had already accumulated $1m before 40, it is either you had some luck or success in your investment or career. Good for you and there is no need to brag or "feel surprised" why some PMEs cannot reach. The reality is most people will not reach their $1m by 40.

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  #74 (permalink)  
Old 28-03-2017, 06:54 AM
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Quote:
Originally Posted by Unregistered View Post
Have you reached 40 years old? Most Singaporean men who graduate with a degree will have about 15-16 years of working before he reach 40 years old. To accumulate $1m in 15 years, he needs to accumulate $66.7K per year of savings for 15 years. How many people can do that unless he has been very successful or lucky in investing - be it stock market or property investment. You are either an impressionable young man who believes that having a degree will automatically make you a successful millionaire at the young age of 40. If that is the case, you will probably feel miserable and sore when you grow up in the real world. If you had already accumulated $1m before 40, it is either you had some luck or success in your investment or career. Good for you and there is no need to brag or "feel surprised" why some PMEs cannot reach. The reality is most people will not reach their $1m by 40.
what about a successful singaporean couple by age 40?


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  #75 (permalink)  
Old 28-03-2017, 07:50 AM
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what about a successful singaporean couple by age 40?
You need to define what is "successful".

My take is that you dont need to be "successful" to attain some wealth, you just need the following (or to be more precise, to attain a $1m by your 40s):-

1. Upon graduation, start work immediately in a company that pays you a decent salary (eg. $4k pm)
2. Do not have any employment gap. That is, work continuously from 23 or 25 to your 40s.
3. Save at least 25% to 40% of your salary each year.
4. Get married early, and to a working wife. Here, you will realise why "1 + 1 > 2". Here if you both work, you will find that you can save much more, take less loan etc..
5. Enjoy the subsidies and grants of a BTO
6. Invest your savings

My and wife did all the above 6 steps and our networth hit $2.5m when we were in our early 40s. We dont consider ourselves as successful in any way. If I had remained single I doubt I could even accumulate $1m in my 40s.

When we were in our late 40s, we were able to just survive on one salary, meaning we could save the other person full salary every year!

Now in our mid 50s, we are able to survive on just our passive incomes, meaning both our salaries are saved!


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  #76 (permalink)  
Old 28-03-2017, 04:00 PM
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Quote:
Originally Posted by Unregistered View Post
You need to define what is "successful".

My take is that you dont need to be "successful" to attain some wealth, you just need the following (or to be more precise, to attain a $1m by your 40s):-

1. Upon graduation, start work immediately in a company that pays you a decent salary (eg. $4k pm)
2. Do not have any employment gap. That is, work continuously from 23 or 25 to your 40s.
3. Save at least 25% to 40% of your salary each year.
4. Get married early, and to a working wife. Here, you will realise why "1 + 1 > 2". Here if you both work, you will find that you can save much more, take less loan etc..
5. Enjoy the subsidies and grants of a BTO
6. Invest your savings

My and wife did all the above 6 steps and our networth hit $2.5m when we were in our early 40s. We dont consider ourselves as successful in any way. If I had remained single I doubt I could even accumulate $1m in my 40s.

When we were in our late 40s, we were able to just survive on one salary, meaning we could save the other person full salary every year!

Now in our mid 50s, we are able to survive on just our passive incomes, meaning both our salaries are saved!
Your advice is good but the above 6 steps is not enough.

To save 30% of salary from age 24 to 40 for 16 years, you need to make $200K from Year 1 -16 to save $960K.

If we just look back 25 years ago, starting salary is only $2K pm.

You probably achieve your net worth through property gain, good career (makes >$100k in your early 30s, 25 years ago) or been successful in investing your $. (Not those safe 3-4% return type of investment but riskier one.
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  #77 (permalink)  
Old 29-03-2017, 05:36 AM
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Quote:
Originally Posted by Unregistered View Post
You need to define what is "successful".

My take is that you dont need to be "successful" to attain some wealth, you just need the following (or to be more precise, to attain a $1m by your 40s):-

1. Upon graduation, start work immediately in a company that pays you a decent salary (eg. $4k pm)
2. Do not have any employment gap. That is, work continuously from 23 or 25 to your 40s.
3. Save at least 25% to 40% of your salary each year.
4. Get married early, and to a working wife. Here, you will realise why "1 + 1 > 2". Here if you both work, you will find that you can save much more, take less loan etc..
5. Enjoy the subsidies and grants of a BTO
6. Invest your savings

My and wife did all the above 6 steps and our networth hit $2.5m when we were in our early 40s. We dont consider ourselves as successful in any way. If I had remained single I doubt I could even accumulate $1m in my 40s.

When we were in our late 40s, we were able to just survive on one salary, meaning we could save the other person full salary every year!

Now in our mid 50s, we are able to survive on just our passive incomes, meaning both our salaries are saved!
Well done!
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  #78 (permalink)  
Old 31-03-2017, 10:42 AM
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Singapore is a famous playground for the rich. There are so many investment opportunities be it properties, stocks, derivatives, alternatives, online businesses etc. If one has as stable and decent well paying job, it shouldn't be hard to reach at least 1 mil before 40 at all.

The problem is many people are just too lazy too care. They either spend most of their money with little savings or worse still, save money diligently every month but too lazy to even figure out what to do with the savings. Either leave it to rot in the banks or just dump everything to garbage like life insurance, endowments or mutual funds.

Then when they are fired in their 40s and 50s, go around whining about foreigners, "stupid HR/boss", uncaring government and default to another brain dead overwork underpaid option like driving Uber/Grab. Worse still some get jealous and lash out at similar people like them who have succeeded by labeling them as just simply lucky in investment or have rich parents.
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  #79 (permalink)  
Old 31-03-2017, 11:02 AM
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Quote:
Originally Posted by Unregistered View Post
Singapore is a famous playground for the rich. There are so many investment opportunities be it properties, stocks, derivatives, alternatives, online businesses etc. If one has as stable and decent well paying job, it shouldn't be hard to reach at least 1 mil before 40 at all.

The problem is many people are just too lazy too care. They either spend most of their money with little savings or worse still, save money diligently every month but too lazy to even figure out what to do with the savings. Either leave it to rot in the banks or just dump everything to garbage like life insurance, endowments or mutual funds.

Then when they are fired in their 40s and 50s, go around whining about foreigners, "stupid HR/boss", uncaring government and default to another brain dead overwork underpaid option like driving Uber/Grab. Worse still some get jealous and lash out at similar people like them who have succeeded by labeling them as just simply lucky in investment or have rich parents.
It shouldn't be hard to reach at least 1 min is very subjective. For those who reach (10%?), it is not hard at all. For those who couldn't reach (90%?), it is very hard. If more than half (50%) can reach 1 mil, what do you think will happen?
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  #80 (permalink)  
Old 31-03-2017, 11:21 AM
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It shouldn't be hard to reach at least 1 min is very subjective. For those who reach (10%?), it is not hard at all. For those who couldn't reach (90%?), it is very hard. If more than half (50%) can reach 1 mil, what do you think will happen?
What crap logic is this? Might as well say it's very easy to be PM is subjective since it is not hard at all if you happen to be Lee Hsien Loong.
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