No wonder they say Singapore has the most millionaires per capita. Quite a few are in this forum.

Yeah, only different is millionaire in Singapore stay in HDB and walk in foot. While millionaire in another country stay in bungalow and drive lux car.

Health should come before wealth. With good health, hard work and diligence, wealth will follow. On the other hand, poor health will erode your wealth.

So if your health is poor now, best to take a break and nurse yourself back to health. 55 is not exactly a young age, neither is it old nowadays. You can still go back into the work force after 1 to 2 yrs break, but may not be at your old job.

The other thing is with only $1.2m, it will not last long. A simple calculation using a yearly expense of $50k, moderate inflation of 3.5%, and assuming you are able generate a return of also 3.5% on your $1.2m, the $1.2m will at most last you close to 20 yrs. Meaning in 20 yrs when you are 75 yrs old, it will all be depleted, leaving you just your flat. Your savings will go down faster if you have sudden big medical expense.

A safe amount to retire and to last 30 yrs (till 85 yrs old) is $3.5m. No bull. Many people are not aware, and end up having to go back to work at 65, or older... There are simple retirement planning calculators on the Internet. Try them out.

Agree that health should come before wealth. But I beg to differ on the safe amount to retire. I think it depends to a large extent on how much you spend. 3.5% returns on $1.2M will give you $42K a year. Some can be ploughed back into investment if spending is less. Not sure if the person is single or married. If single, can rent out one room for extra money.

Bro, Annual spending $35k is additional to what u normally spend right ?

u are simply amazing to be spending $3k per month with 2 kids.....

Rough breakdown
Utilities (electricity, hp , property tax etc) = 200
Food (with kids) = $5 per x 3 pax (considering 2 kids = 1 pax) x 30 days= 450
Milk powder + vitamins / nutrients = 150
Transport = $4 x 3 x30 = 360 assuming u take public transport and lugging your kids all the way.
Education for kids = 150
Insurance - $200 - $400
Parents - $300- $500 (both sides)

Above already around $2k.
Add on those exception expenses like clothes , shoes, baby toys , doctor visit, repair house hold items, holiday overseas, go see movie, enrichment classes etc

I think you should sell your HDB flat and buy a cheaper flat costing $300k+, you can get such a flat in the west and north regions. Then you could have about $1.5m of investment funds which you can invest in things such as REITs which will give you 5% pa. Hence you will get $75k pa, which is more than enough to retire in Singapore. You don't need $3.5m to retire, only crazy people think like that. There are many retirees retiring with much lesser.

$1.2m is probably sufficient when you are 65 but not for a 55 yr old. Even if you are prepared to live very frugally say at $36k pa, just to maintain the same purchasing power, with 3.5% inflation rate, the amount you need to spend is :

At 55 (now) : $36k pa
At 65 (10 yrs later) : $50.8k pa
At 70 : $60.3k pa
At 75 : $71.6k pa.

Your money runs out in 20 yrs. Mind you, at $36k, we are talking about a subsistence kind of living. Very basic for a couple. So if you increase the expense to $50k, you can start to see that the $1.2m is not going to see you far.

Your best bet is to continue working, if you can, till you are 65. In the meantime, invest and grow your $1.2m but Watch out for risks too.

Bro, agree to some extend but my costs structure is different.

i dont have a car(& phone bill as well) to burden bcoz i have company car with all expenses covered.
insurance , to me, is an investment with return at maturity & medical coverage, thus not expenses to me.

Bro, to each his own structure, cant compare. i guess most singapore spend alot lot more than i do and earn alot more too.

Singapore living standard is quite substantial if you dont take care.

This is the best advice. I checked propertyguru and found there are many older HDB flats selling at $300k plus or lower. You can retire with $75k pa and focus on your health.

You are assuming he spends his $1.2m capital until he dies. He should invest instead in things like REITs which can give him 5% pa or $60k pa. His capital will remain intact and may even rise over the next 35 years. He should die by the end of 35 years.