How much savings do you have?

If you really earn that much, why do you still live in a HDB flat? A flat is meant for the lower income in society, so please to not hoard it. Sell it off and donate the proceeds to charity.

With such high income, you should buy a big bungalow costing at least $10m.

Originally Posted by Unregistered

39, 37
Combined employment income plus bonus for 2013 = 740k pa
Combined savings= $1.7m (and adding around $300K per year not counting the returns from investments)
CPF OA / MA / SA = $383,000
Live in a 5-room HDB (paid up, worth around $800K)
half-share in 2 condos (partner with relative) = equity stake around $700K
1 Japanese second-hand car (paid up)
Combined networth at end 2013 = $4.3m

Feels contented but still have young kids to support so can't stop working till at least 55 in my opinion.

Originally Posted by Unregistered

If you really earn that much, why do you still live in a HDB flat? A flat is meant for the lower income in society, so please to not hoard it. Sell it off and donate the proceeds to charity.

With such high income, you should buy a big bungalow costing at least $10m.

I do not think the posting is true as they would not have qualified for HDB in the first place unless you believe they were low income earners and their salaries shot up so exponentially which is quite unbelievable. And if they are earning such high salaries why would they still stay ina 3 room flat? It does not befit their status.

Agreed that the posting was likely a troll posting without any truth in it. Having said that I have colleagues who could not qualify to buy new HDB flats because their salaries far exceed the limit, but they chose to buy resale flats for whatever reasons.

Some gave the reason that they want to buy a condo to rent out while staying in a HDB flat, because they cannot afford to have 2 condos. Others cited the reason of wanting to be near their parents.

Originally Posted by Unregistered

I do not think the posting is true as they would not have qualified for HDB in the first place unless you believe they were low income earners and their salaries shot up so exponentially which is quite unbelievable. And if they are earning such high salaries why would they still stay ina 3 room flat? It does not befit their status.

everything in my last posting is true.

My HDB is in Bishan, bought in year 2000 for around $4xxK, resale. At the time my wife and I have started work for only 2 years and had to borrow $20K from our parents for the down payment. Combined salary then was slightly lower than $8k which was the cap.

Through aggressive savings along the way, and fortunate to be both working in the financial sector and with salary increases, got to where we are. Every cent earned was blood and tears.

Having said that, we don't think of ourselves as "real" millionaires, we take the mrt to work (car is red-plated, only drive on weekends), go to neighbouring countries for holiday, eat at foodcourt / hawker centre, etc. We are just your normal HDB heartlanders who want to earn a decent living and hope for a better life for the next generation.

We do count ourselves fortunate to be in a fairly comfortable financial position, and take effort to give back through donations and other means (but not to the extent of selling my flat and donating the whole sum).

A lot of what we achieved it through the lessons thought in the book, The Millionaire Next Door, where we strive to be frugal but not miserly.

It's up to readers here whether they choose to believe what I said. If you think our situation is good, I can tell you there are many financial services folks who earn much more than me and are equally (or more) nondescript.

If what you wrote is true, my sincere advice is to upgrade to a D9 condo or a landed which cost $5m. With salary of $700k pa, you will have no problem at all. You must sell your HDB flat as it is a big sin to hold on to a flat, which is meant for lower income Singaporeans and PRs. My wife and I only earn $150k pa combined and we already own a condo and we drive a car. We are younger than you.

Originally Posted by Unregistered

everything in my last posting is true.

My HDB is in Bishan, bought in year 2000 for around $4xxK, resale. At the time my wife and I have started work for only 2 years and had to borrow $20K from our parents for the down payment. Combined salary then was slightly lower than $8k which was the cap.

Through aggressive savings along the way, and fortunate to be both working in the financial sector and with salary increases, got to where we are. Every cent earned was blood and tears.

Having said that, we don't think of ourselves as "real" millionaires, we take the mrt to work (car is red-plated, only drive on weekends), go to neighbouring countries for holiday, eat at foodcourt / hawker centre, etc. We are just your normal HDB heartlanders who want to earn a decent living and hope for a better life for the next generation.

We do count ourselves fortunate to be in a fairly comfortable financial position, and take effort to give back through donations and other means (but not to the extent of selling my flat and donating the whole sum).

A lot of what we achieved it through the lessons thought in the book, The Millionaire Next Door, where we strive to be frugal but not miserly.

It's up to readers here whether they choose to believe what I said. If you think our situation is good, I can tell you there are many financial services folks who earn much more than me and are equally (or more) nondescript.

Thanks for the advice. I have not looked upon myself as inferior because I live in a HDB and I don't intend to upgrade to a condo merely because I can afford it. The reasons why I'm in HDB are:

a) convenience - J8 and mrt are just minutes away, my kids learn swimming at Bishan complex, my parents can just walk to a kopitiam for coffee, etc.

b) learning one roots - I grow up in a HDB and have lived in HDB all my life. I want my children to grow up (at least their first few years) in a HDB so that even if we upgrade to a private pty in the future, they know their roots are in HDB and to not take their privileged life for granted.

c) risks - both of us work in the financial sector which is inherently risky - every few months there will be RIFs going on. Now I may be earning $700K the next day it could be zero. No one owes me a living, and no one is going to pay for my condo mortgage if I can't pay for it one day.

It's your personal choice on where you live, and whether to own a car. To us, what's important is a home that is suitable for our needs rather than the type of dwelling. A car is a good to have, but as we work in Raffles Place it does not make sense to drive into CBD with the ERP / season parking etc, so we take the train and use the car to drive the family out on weekends.

Agree that the risk for you and your wife is SUPER HIGH. You both can be next in line to be retrenched due to "organisational restructuring", esp since both of you are getting older and very expensive to keep. Unless the bank owners are your relatives, be ready for the D Day.

Yes, you make the right decision not to upgrade.

Originally Posted by Unregistered

Thanks for the advice. I have not looked upon myself as inferior because I live in a HDB and I don't intend to upgrade to a condo merely because I can afford it. The reasons why I'm in HDB are:

a) convenience - J8 and mrt are just minutes away, my kids learn swimming at Bishan complex, my parents can just walk to a kopitiam for coffee, etc.

b) learning one roots - I grow up in a HDB and have lived in HDB all my life. I want my children to grow up (at least their first few years) in a HDB so that even if we upgrade to a private pty in the future, they know their roots are in HDB and to not take their privileged life for granted.

c) risks - both of us work in the financial sector which is inherently risky - every few months there will be RIFs going on. Now I may be earning $700K the next day it could be zero. No one owes me a living, and no one is going to pay for my condo mortgage if I can't pay for it one day.

It's your personal choice on where you live, and whether to own a car. To us, what's important is a home that is suitable for our needs rather than the type of dwelling. A car is a good to have, but as we work in Raffles Place it does not make sense to drive into CBD with the ERP / season parking etc, so we take the train and use the car to drive the family out on weekends.

The underlying theme of the responses to my posts so far is that if you earn $XXX, you must be living up, you must be in a D9/10/11 condo, you must be driving a conti car. I have never known a causal relationship between the two.

Originally Posted by Unregistered

The underlying theme of the responses to my posts so far is that if you earn $XXX, you must be living up, you must be in a D9/10/11 condo, you must be driving a conti car. I have never known a causal relationship between the two.

It all depends on how durable the income is. If the income is high but risky, then it is prudent not to lavish. For instance, if you are working in your dad's big company, you are confident that your pay will remain high and you can live it up. But if you are just a cog in the wheel, then don't do your sums with the assumption that the high pay will remain forever.

I have a friend who used to earn $200k per year, he led a lavish life. Then one day, without him expecting it, he was let go. He couldnt get a new job. He had to sell his condo and bought a HDB flat. His rich friends left him. He is now a different man, he is humbled to the core.

Yesterday's Straits Times reported that the gahmen may raise the re-employment age to 67 allowing people to work till 67 if they chose to. That is, companies are obliged to continue to employ these older workers till they are 67.

This changes my thinking and plan suddenly. Before, I was planning to retire when I am 57 or 58 when my youngest child enter the workforce. That would be 3 more years to go. But now, suddenly I can work for another 10 years after that!

10 more years of work means 10 more years of income. How will it change my plans?

1. I can plan to buy another new car. Before, I was planning to use my current car till the COE runs out (in 3 years time) and be car-less.

2. Can still invest in another property. 10 years is a long time to accrue a lot of savings especially when the children are no longer financially dependent on you.

3. Can renovate current home and upgrade household appliances. Previously, was resigned to be stuck with current condition of home and appliances.

4. Instead of wondering what to do in retirement, now that worry will be pushed further down the road.

5. Can spread the holidays instead of cramping them up in the few years of retirement as previously planned. In fact, if we go visit those places during our working life in the next 10 years, we will not need to visit them anymore when we retire eventually, further saving us more money.

6. Medical bills will at least be covered by the company for another 10 years!