Whats your net worth

31 yrs old
male
married

car loan = -75k
car worth = 85k
ppt loan = 725k
ppt worth = 1.2mil
stock/unit trust = 0k
cash < 10k
cpf < 5k

is this foolish?

[lazyplane]

I am assuming your share is 50% of what you posted below. At 31 you are still young and your networth is already around 200k. So all things considered , you are not too bad. You must also be earning rather well to be able to get a loan of 700k. I should think your combined income with your wife is no less than 200k pa. So all things considered, well done. (ignore those who brag that they have much more than you)

If i was to further postulate why you are in this financial situation, this is because you used your cash,cpf and savings to buy your property (within the last 1 -2 years) when you got married. This is a very singaporean problem for young couples because our property prices are so high and they keep increasing thereby killing nearly all other disposable investment for couples wishing to own their own little home.

But in financial risk review stance, you have just made a very large single leverage bet on property in singapore.
And the risks you need to start thinking are :

1. This is a single focus bet- ie your "investment" portfolio is not divesified.
2. This is a Large bet - Your property investment consist of many years of loans payment and seriously no one can say they will always be employed.
3. Leverage - your portfolio gains is due to a significant leverage of loan interest and the increase in property price.

You need to make an assessment on whether in the future, property prices will continue to climb, and if your interest rate for your loan will continue to reman low.

If you think this will be true, then all you need to do is keep paying down your loan to around 2xcombined annual salary and you will see your networth appreciate moderately and it is a relatively sure bet. Once your loan is down to that kind of size, you can consider 2nd property loan/investment again or buying stock etc.

If you dont think this is true, then you need to aggressively save up cash and build an investment portfolio on where you think the money will be, ie stock , bonds etc.

Also make sure you are adequately covered for insurance. Take term insurance if you wish to do your own investing instead of getting insurance companies do for you. Also very very much cheaper. The good thing is nowadays a lot of independent financial advisors to help you do this. So get one to help you analyse what you need and one that you can trust.

I wish you well .

Originally Posted by Unregistered

31 yrs old
male
married

car loan = -75k
car worth = 85k
ppt loan = 725k
ppt worth = 1.2mil
stock/unit trust = 0k
cash < 10k
cpf < 5k

is this foolish?

here's mine:

age 33, married with 2 kids:

condo : 1.57M (paid-up)
car : 30K (paid-up)
cash : 210K
cpf : 140K

retirement seems a long way off, and not much idea what to invest in right now as the stock and property market seems quite high.

Originally Posted by salaried worker

here's mine:

age 33, married with 2 kids:

condo : 1.57M (paid-up)
car : 30K (paid-up)
cash : 210K
cpf : 140K

retirement seems a long way off, and not much idea what to invest in right now as the stock and property market seems quite high.

1.57M condo paid up and still with 360K cash+cpf? I'm impressed. Well, maybe if you are an investment banker, or you inherited something, I'd be more envious than impressed. (read sour grapes, haha) ;-)

I think there are always opportunities in the stock market, especially Singapore, just that in a high market, you have to be more careful.

Property : 460K
Loan : 260K
CPF : 100K
stocks : 10K
overseas property : ~150K
Credit card loan : 0
Cash savings : 0
SRS : 10K

Age : 33

All above for a family of 4 (wife & 2kids)

now the more credible posts have surfaced.

Originally Posted by lazyplane

I am assuming your share is 50% of what you posted below. At 31 you are still young and your networth is already around 200k. So all things considered , you are not too bad. You must also be earning rather well to be able to get a loan of 700k. I should think your combined income with your wife is no less than 200k pa. So all things considered, well done. (ignore those who brag that they have much more than you)

If i was to further postulate why you are in this financial situation, this is because you used your cash,cpf and savings to buy your property (within the last 1 -2 years) when you got married. This is a very singaporean problem for young couples because our property prices are so high and they keep increasing thereby killing nearly all other disposable investment for couples wishing to own their own little home.

But in financial risk review stance, you have just made a very large single leverage bet on property in singapore.
And the risks you need to start thinking are :

1. This is a single focus bet- ie your "investment" portfolio is not divesified.
2. This is a Large bet - Your property investment consist of many years of loans payment and seriously no one can say they will always be employed.
3. Leverage - your portfolio gains is due to a significant leverage of loan interest and the increase in property price.

You need to make an assessment on whether in the future, property prices will continue to climb, and if your interest rate for your loan will continue to reman low.

If you think this will be true, then all you need to do is keep paying down your loan to around 2xcombined annual salary and you will see your networth appreciate moderately and it is a relatively sure bet. Once your loan is down to that kind of size, you can consider 2nd property loan/investment again or buying stock etc.

If you dont think this is true, then you need to aggressively save up cash and build an investment portfolio on where you think the money will be, ie stock , bonds etc.

Also make sure you are adequately covered for insurance. Take term insurance if you wish to do your own investing instead of getting insurance companies do for you. Also very very much cheaper. The good thing is nowadays a lot of independent financial advisors to help you do this. So get one to help you analyse what you need and one that you can trust.

I wish you well .

Thanks for your reply. It makes a lot of sense.
Yes, you are right, i only own 50% of the property and around 200k for combined

I am trying very hard to save sufficient cash to buy a second HDB (maybe 4 room) and rent it out. Lets say i can accomplish this in a few years time, i would then again be depleted of my savings again.
Then i worry about medical bills (touchwood) for parents etc... I will definitely have to take care of them.
What would you do?

[lazyplane]

Hi,

i dont think you can buy a 2nd HDB unless you have other means to meet the family criteria. Your only choice is to buy another private residential unit which at current prices is way way too expensive and i am really not sure if you should risk so much on 1 single area..

I will do the following :
1. Ensure you have sufficient insurance coverage first.I am the kind who when i reach a new level, i dont want to have any negative event that will reduce my family and dependents to poverty. I want to ensure that the "base level" has also move up. My view is in life, there are lots of unexpected. Even the mighty and rich will and can fall hard. But there is also unexpected good things as well.

2. Build a min cash holdings to at least 12 months of expenditures. (some say 6 months of monthly salary)
This is a rainy + cashflow fund that will help provide whatever insurance cannot cover and big expense items. Eg loved one medical bill, job security etc. This fund should be adjusted to your own cashflow planning as well. Eg, children education, buying new car etc.

3. Whatever is the left over , you can choose to invest in equity/ bonds or unit trust. You need to decide where the money is and when to invest. I cant offer much here because i also learning and while i do make some good calls, i am not sure if i am just fortunate or just happen to be there.

4. Finally AND to me this is most important. It is part of why i am trying to help others here in this forum which i feel can be more balanced.

After planning/investing/spending so much on yourself and family , always make sure you give back to society. Make sure you give more when you have more. That will keep you in touch with reality.

Dont expect to give when you are richer because it will never happen. You start to give when you can and when you have more, you give more. If you think you only give when you are rich, it becomes very difficult because the human side of rationalisation will come in. Like, why should i give my hard earned money to others, or why are they so stupid to do this so i need to help them etc.

It is normal that the richer you are, you will it harder to identify with those who are poor and the situation they face.

And the world really doesnt need another rich man.
It only needs one that cares.

Something to think about right..

Originally Posted by Unregistered

Thanks for your reply. It makes a lot of sense.
Yes, you are right, i only own 50% of the property and around 200k for combined

I am trying very hard to save sufficient cash to buy a second HDB (maybe 4 room) and rent it out. Lets say i can accomplish this in a few years time, i would then again be depleted of my savings again.
Then i worry about medical bills (touchwood) for parents etc... I will definitely have to take care of them.
What would you do?

I 'really doubt the credibility of the net worth provided by some forumer over here if they have accumulated their net worth by sheer hard work and foresight or inheritance.

If i am already a multi-millionaire, do i care to surf websites like salary.sg and see how average people earn their money? I will be happily retiring and enjoying life....

No, I think that those who have been successful want to

(1) feel good, by telling others how they made it
(2) genuinely want to help others