How much savings do you have?

Singapore has one of the highest savings rate in the world

Rate is pegged at 24%.

According to Barclays, despite Singapore’s higher level of household debt to GDP, they believe Singapore households are more defensive than Hong Kong households in the event of liquidity outflow and potential asset quality deterioration of the consumer book.

This is because of Singapore’s high savings rate, access to CPF funds to repay housing debt and high proportion of liquid household assets (in currency and deposits).

Here's more from Barclays:

Singapore has one of the highest savings rates in the world at 24%, behind China and India, which arguably have less developed social security systems and pension schemes.

In comparison, Hong Kong’s savings rate is only 14%. As a result, we believe Singaporeans are better positioned to better tap into accumulated wealth to repay debt.

While property assets account for the bulk of household assets (49% of total), the proportion of liquid assets, namely cash and deposits, continues to rise and accounted for 19% of total household assets in Singapore in 2013.

Household cash and deposits relative to household debt has risen from 0.8x in 2002 to 1.2x, implying that households have a much stronger capacity to repay debt with liquid assets.

Singapore’s strong liquidity household assets to debt position provides an additional buffer to a potential debt servicing problems in the event of an economic downturn or when interest rates rise, in our view.

[Fin]

Both husband & wife in Early 40's.

Cash = 16k
CPF = 155k
Stocks = 100k

Combine income = 96k per annum

4 room HDB (fully paid)
Car loan = 1k per month (fully paid in another 4yrs time)

Recently bought a shoe box unit at 680k for investment.
How healthy are we in our finances?

You have done pretty well since you own two properties. Not many families own multiple properties. How much loan did you take for your condo? Are you both local graduates?

Originally Posted by Fin

Both husband & wife in Early 40's.

Cash = 16k
CPF = 155k
Stocks = 100k

Combine income = 96k per annum

4 room HDB (fully paid)
Car loan = 1k per month (fully paid in another 4yrs time)

Recently bought a shoe box unit at 680k for investment.
How healthy are we in our finances?

[Fin]

Yes, both of us are local Graduates.
We took a 80% loan.

Originally Posted by Fin

Yes, both of us are local Graduates.
We took a 80% loan.

Your combined net worth would be about $800k assuming your flat is now worth $400k. By the time you retire in 25 years time, your sources of passive income are:

1. Rental from condo (paid up at 65) maybe $3k pm.
2. CPF Life maybe $1.5k each or $3k pm combined.
3. Allowance from children $1k pm combined.
4. Room rental from HDB flat, $1k per room or $2k for 2 rooms.
5. Stocks dividends $12k pa or $1k pm.

Total passive income $10k pm.
Expenses (just two retired persons) $4k pm (assume no maid and no car).
Savings $6k pm (reinvested in dividend stocks to give higher dividend income).

Summary: You are a high achiever and will retire well.

Husband and Wife :Early 40s (Both Working)

Combine Cash : 1.8M
CPF (OA and SA) :450K
House : Loan 2.4 M, Value 5 M (Paper Profit from properties about 2M after flipping 2 properties to the current one)

Looking to diversify into passive income (Mixture of bonds, fd and trading). Time to let the money work for us instead of the other way round.

Originally Posted by Unregistered

Husband and Wife :Early 40s (Both Working)

Combine Cash : 1.8M
CPF (OA and SA) :450K
House : Loan 2.4 M, Value 5 M (Paper Profit from properties about 2M after flipping 2 properties to the current one)

Looking to diversify into passive income (Mixture of bonds, fd and trading). Time to let the money work for us instead of the other way round.

You can both retire or be your own boss so that you don't have to be a slave to someone else, worse if he is younger than you.

Sell your landed and downgrade to a $850k condo. Invest the balance of $4m in 5% dividend yield blue chip stocks to give you a passive income of $200k pa. If your expenses is $100k pa, you can save and reinvest $100k pa. By the time you reach 65, your net worth will be $10m. You will be a multi millionaire.

[Fin]

Originally Posted by Unregistered

Your combined net worth would be about $800k assuming your flat is now worth $400k. By the time you retire in 25 years time, your sources of passive income are:

1. Rental from condo (paid up at 65) maybe $3k pm.
2. CPF Life maybe $1.5k each or $3k pm combined.
3. Allowance from children $1k pm combined.
4. Room rental from HDB flat, $1k per room or $2k for 2 rooms.
5. Stocks dividends $12k pa or $1k pm.

Total passive income $10k pm.
Expenses (just two retired persons) $4k pm (assume no maid and no car).
Savings $6k pm (reinvested in dividend stocks to give higher dividend income).

Summary: You are a high achiever and will retire well.

Sounds cool... What if there is another scenario:

We sell the shoebox condo in 5 to 6 years time & re-invest in a much higher property.. say approx. 900k.

Bearing in mind our current age & the reduction in CPF contribution comes 55 years. What would our financial health status be like?

Originally Posted by Fin

Sounds cool... What if there is another scenario:

We sell the shoebox condo in 5 to 6 years time & re-invest in a much higher property.. say approx. 900k.

Bearing in mind our current age & the reduction in CPF contribution comes 55 years. What would our financial health status be like?

Not a good idea. The more expensive the condo the higher the risk. Focus on clearing the mortgage. Once you own the shoebox without any loan, you can sleep in peace even if you both lost your jobs.

What are you both working as? Which sectors? How secure are your jobs?

I put $38k to stock in 2012. Now my portfolio has grown to $130k. I have done some shifting here and there.
So i think it is better to put more "idle" cash into stock to let it grows.