Whats your net worth

Awesome! You have done well. I think you are among the top 5% of the Singapore population in terms of net worth. Your retirement plan is excellent.

Originally Posted by Unregistered

50, 51, couple, income $168k pa combined.
We bought our current condo in 2005 at $900k, now it is worth $1.7m. Paid off the mortgage.
Our cash & CPF $600k in total
Total net worth $2.3m

Our retirement plan

CPF Life at 65, $1900 pm x 2 = $3800 =$45.6k pa
Sell condo and downgrade to smaller condo. Raise cash $1m (including savings)
Invest $1m cash in blue chips with 5% dividend yield $50k pa
Allowance from children ($500 pm x 2 kids) = $1k pm or $12k pa
Total passive income $107,600 pa or $8,966 pm

Husband, 48. Wife, 50. Middle class family.

Total income $208k pa.
Total spendings $163k pa.
Total savings $45k pa.

We support our two school going children and aged parents financially.
We also buy health insurance for the family.
We go overseas holidays twice a year.

Our home is a 3 bedroom condo worth $1.3m. Loan outstanding $300k.
Our car is a 2L European car, paid up.
Our cash and CPF $800k.

Our total net worth (excluding the car) $1.8m.

How are we doing?
How can we prepare for our retirement?

I think you are the envy of many. You both have achieved what more than 80% of the local population can only dream. You are living the Singapore dream - owning an almost paid up condo, a continental car, cash, children (cannot take for granted) overseas holidays twice a year. You should be grateful for the good life you are enjoying.

As for you retirement, looking at your healthy cash and CPF balances, you should go for the highest payout CPF Life scheme. You and wife should each have $241,500 put in your CPF retirement account at 55 so that each of you will get a monthly payout of $1750. As a retired couple, the amount will be $3500 pm. Your children should each contribute $1k each (note: this is not now but in 15 years time) so you will get $2000 pm as a couple.

In 15 years time, you would also have saved and let's say your total cash savings by then is $500k. If you invest in blue chips giving 5% dividend yield, you will get $25k pa in dividends or $2000 pm.

So your total passive income will be about $7500 pm. This should be enough for you and wife since by then you would have paid off your mortgage. You can save money by not employing a maid (if you are both healthy and fit, why need a maid as the household chores should be manageable, just don't be lazy) and not owning a car. You can use your savings to go for longer holidays during non peak seasons.

Originally Posted by Unregistered

Husband, 48. Wife, 50. Middle class family.

Total income $208k pa.
Total spendings $163k pa.
Total savings $45k pa.

We support our two school going children and aged parents financially.
We also buy health insurance for the family.
We go overseas holidays twice a year.

Our home is a 3 bedroom condo worth $1.3m. Loan outstanding $300k.
Our car is a 2L European car, paid up.
Our cash and CPF $800k.

Our total net worth (excluding the car) $1.8m.

How are we doing?
How can we prepare for our retirement?

Husband - 480k sgd per year (including bonus of 50k), age 40
Wife - housewife, age 33
Cash - 1.1m
House - worth 3.5m today but loan of 1.9m
CPF - practically zero
Car - porsche fully paid up
Kids - 2 kids still in pre school

Question: can both husband and wife contribute to CPF upon reaching 55 to enjoy their CPF life annuity scheme, even though wife has no contribution now? Can we just use our cash to put into CPF later?

Should we get passive income during our golden years from property or dividends? Isn't there a risk that the company that we invest in will go belly up?

Originally Posted by Unregistered

You are right, there are many in this forum doing stupid things and giving foolish advice. Better be safe than sorry. Just focus on buying one condo and pay off once you reach retirement. Then when you reach 65, sell the condo and then buy a HDB studio flat for the elderly. This cost only $100k. If you sell your condo at $3m, you can then have $2.9m to invest in the stock market to give you dividends.

Eeeeks!! This recommendation is rather sad! The whole point of building passive income now or retirement plans when we are younger is to ensure we can maintain same standard of living when retired! I don't wanna sell my house and live in hdb or downgrade!! Sounds like PAP talking when you recommend that hahaha!!

Originally Posted by Unregistered

Husband - 480k sgd per year (including bonus of 50k), age 40
Wife - housewife, age 33
Cash - 1.1m
House - worth 3.5m today but loan of 1.9m
CPF - practically zero
Car - porsche fully paid up
Kids - 2 kids still in pre school

Question: can both husband and wife contribute to CPF upon reaching 55 to enjoy their CPF life annuity scheme, even though wife has no contribution now? Can we just use our cash to put into CPF later?

Should we get passive income during our golden years from property or dividends? Isn't there a risk that the company that we invest in will go belly up?

Frankly, the questions asked certainly did not fit the profile of the person above who is earning almost half a million pa. Another Shakespeare act?

Husband 42, Wife 38, $200k income pa combined, with 2 kids still in full day child care.

Home : HDB EA, Value $580k, mortgage $425k
Car : Bread & butter Japanese car, fully paid up.
CPF : OA $330k combined, SA $178k combined.
Cash & Liquid assets : $1.4M combined
Investment Properties : None

To achieve our retirement goal, we've decided to live and maintain an exceedingly middle income lifestyle despite having salary increments along the way and our investments doing relatively well (Of course using the difference to grow our net worth further). I must say it's not easy to resist the temptation of consumerism, it's almost impossible to avoid. Your friends telling you about their latest holidays at exotic places, their latest tech or fashion purchases, media constantly brainwashing you to buy stuff. But I strongly believe in delayed gratification, spend less now so that I can spend more later. Retirement should be a celebration and not downgrading of lifestyle.

From an investment standpoint, we didn't do anything special. Just accumulate capital by maximizing savings and reinvesting gains, identify an asset class that we understand and am comfortable with the risk level, invest when everyone's scared shitless (which was what happened during the last mortgage crisis), exit when everyone's euphoric.

[lazyplane]

Can you explain how you have so much money in OA CPF ?

Generally, most people OA CPF will be wiped upon purchase of HDB and from there , while you can build it up, it will be hard for one to raise OA CPF to 330k as your post as CPF contributions are relatively capped.

Did you do some massive OA investment that reaped big rewards eg stock trading ?

Originally Posted by Unregistered

Husband 42, Wife 38, $200k income pa combined, with 2 kids still in full day child care.

Home : HDB EA, Value $580k, mortgage $425k
Car : Bread & butter Japanese car, fully paid up.
CPF : OA $330k combined, SA $178k combined.
Cash & Liquid assets : $1.4M combined
Investment Properties : None

To achieve our retirement goal, we've decided to live and maintain an exceedingly middle income lifestyle despite having salary increments along the way and our investments doing relatively well (Of course using the difference to grow our net worth further). I must say it's not easy to resist the temptation of consumerism, it's almost impossible to avoid. Your friends telling you about their latest holidays at exotic places, their latest tech or fashion purchases, media constantly brainwashing you to buy stuff. But I strongly believe in delayed gratification, spend less now so that I can spend more later. Retirement should be a celebration and not downgrading of lifestyle.

From an investment standpoint, we didn't do anything special. Just accumulate capital by maximizing savings and reinvesting gains, identify an asset class that we understand and am comfortable with the risk level, invest when everyone's scared shitless (which was what happened during the last mortgage crisis), exit when everyone's euphoric.

You are a millionaire couple. Why not upgrade to a condo and enjoy a more luxurious lifestyle as well as enjoy the prestige, privacy and safety? You can always downgrade to a hdb flat when you retire. Why live in a flat all your life? You have to reward yourself by moving into a condo. You will get a boost in your social status. You can use your cash and assets to pay for a condo in full. Get a $1.2m condo will do.

Originally Posted by Unregistered

Husband 42, Wife 38, $200k income pa combined, with 2 kids still in full day child care.

Home : HDB EA, Value $580k, mortgage $425k
Car : Bread & butter Japanese car, fully paid up.
CPF : OA $330k combined, SA $178k combined.
Cash & Liquid assets : $1.4M combined
Investment Properties : None

To achieve our retirement goal, we've decided to live and maintain an exceedingly middle income lifestyle despite having salary increments along the way and our investments doing relatively well (Of course using the difference to grow our net worth further). I must say it's not easy to resist the temptation of consumerism, it's almost impossible to avoid. Your friends telling you about their latest holidays at exotic places, their latest tech or fashion purchases, media constantly brainwashing you to buy stuff. But I strongly believe in delayed gratification, spend less now so that I can spend more later. Retirement should be a celebration and not downgrading of lifestyle.

From an investment standpoint, we didn't do anything special. Just accumulate capital by maximizing savings and reinvesting gains, identify an asset class that we understand and am comfortable with the risk level, invest when everyone's scared shitless (which was what happened during the last mortgage crisis), exit when everyone's euphoric.

hard to believe so many rich people are clueless about retirement. guess some guys spend their time imagining their fantasy life where they live in condo, drive cars and buy investment properties.