Whats your net worth

Mid 40s couple.
My net worth $1.7m, my wife's net worth $0.7m.
Lives in a condo, paid up.
Hope to work for another 20 years.
Target net worth at 65, $4m.
Retirement plan - We will sell our big condo and then buy a small condo next to a MRT station and invest the rest.
Hope to get a modest passive income of $150k pa. This would be enough for food, water, electricity bills, doctor fees, some travel and entertainment.
We are just a couple of average, middle income workers in Singapore.

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.

Originally Posted by Unregistered

Thanks for the advice, but we won't do that as it is too risky. If the market crash and if i have no tenant and if I and my wife both lose our jobs, we will be screwed and become bankrupts. Better be safe than sorry. I read many become bankrupt cos they overleverage and own multiple leveraged properties when the Asian crisis hit.

You have done well for yourself. Your combined net worth of $2.4m is above average for a couple in the mid 40s. I think most of your contemporaries have net worth of less than $1m. You can retire at 55 if your combined net worth reach $3m by then. You can sell your condo and buy a HDB studio apartment for the elderly, which cost only $100k. You can invest $2.9m in stocks. If you can get 5% dividend, you can get $145k pa in dividends. If you spend $45k pa, you can reinvest $100k pa and your net worth will grow further until you die. Then you can donate your wealth to the poor when you die.

Originally Posted by Unregistered

Mid 40s couple.
My net worth $1.7m, my wife's net worth $0.7m.
Lives in a condo, paid up.
Hope to work for another 20 years.
Target net worth at 65, $4m.
Retirement plan - We will sell our big condo and then buy a small condo next to a MRT station and invest the rest.
Hope to get a modest passive income of $150k pa. This would be enough for food, water, electricity bills, doctor fees, some travel and entertainment.
We are just a couple of average, middle income workers in Singapore.

Originally Posted by whizzard

Hi GR45, looks like you can probably retire any time you want.

I would suggest you open some private banking accounts, if you have not done so already and get the bankers to sit down with you to evaluate your financial goals and your risk profile and for them to advise you on what suits you. Don't rely on just one bank because you need to compare notes and compare the quality of the advice. Then mull over their advice and talk with trusted friends. You don't need to invest immediately.

Secondly, invest in only what you fully understand. Forget about the esoteric stuff with high returns if you don't really understand what they are all about. I buy stocks but I don't buy speculative stocks because I believe they are prone to being manipulated by insiders. They may offer spectacular returns but that is a risk I am not comfortable to take. At least with blue chips, if you get the timing wrong, you can still wait for it to rebound and collect your dividends in the meantime.

Also, if you have no idea, leave the cash sitting in the bank. At least it's safe there. I have left my cash sitting in the bank because I have no conviction at the moment on where the markets are headed. We don't need to be invested at all times unlike the professional fund managers who need to beat the index. I remember during the recent global financial crisis, stocks were so cheap but as I was already invested, I didn't dare to buy too much even when I had some spare cash to do so because I was already sitting on a portfolio which has just fallen in value. However, if I was lightly invested then, I would jump in to scoop up shares on the cheap. This taught me to always have some gunpowder on hand and that it's OK to stay out of the market because they will always go up and down and if you miss one round, there's always the next round.

No one person, even if he is a professional investor, knows everything in the investment world. You will have your own biases and favourites. Stick to your winning formula that has gotten you to where you are today.

Lastly, good luck!

P/S: If you need someone to refer you to some private bankers, you can PM me. At least I get to receive some introduction gifts!

Dear Whizzard,

Grateful you took time to reply this newbie. : )

Private banks sound great but I am sure they will find me too dumb and conservative. On the other hand I have had it with fresh faced 20-something RMs who have been lecturing me about the world economy, reciting from the same play book and in the end, there is always a "special" investment product created for people "just like me".

Full and total retirement is not going to happen anytime soon. Ours is a small and personal business and we have to be at least partly hands-on for things run smoothly. But that said, we do have experienced staff taking care of the daily routines. We are not overworked and have time to exercise, shop, eat, travel and do stuff with the kids. I do not mind our life as it is now. As you pointed out, it takes discipline not to do something with the cash. That is one of the reasons I ended up with my properties. And collecting rent is getting to be boring. I never thought I would say that, but it is true. Properties are incredibly illiquid and there is not much you can do with them (except to sell them and get back more cash !). My tenants pay their rental regularly and I no longer check on them.

And seeing you started the topic "Calling it Quits!", what do you think can be done in semi-retirement with, say $10M or $20M and reasonable returns on your investments. One can only travel or scuba-dive/ski/golf so much. ; )

You can set up orphanages and soup kitchens for the millions of poor in Asia. Stop being a selfish person who spends his wealth for his own needs only.

Originally Posted by GR45

Dear Whizzard,

Grateful you took time to reply this newbie. : )

Private banks sound great but I am sure they will find me too dumb and conservative. On the other hand I have had it with fresh faced 20-something RMs who have been lecturing me about the world economy, reciting from the same play book and in the end, there is always a "special" investment product created for people "just like me".

Full and total retirement is not going to happen anytime soon. Ours is a small and personal business and we have to be at least partly hands-on for things run smoothly. But that said, we do have experienced staff taking care of the daily routines. We are not overworked and have time to exercise, shop, eat, travel and do stuff with the kids. I do not mind our life as it is now. As you pointed out, it takes discipline not to do something with the cash. That is one of the reasons I ended up with my properties. And collecting rent is getting to be boring. I never thought I would say that, but it is true. Properties are incredibly illiquid and there is not much you can do with them (except to sell them and get back more cash !). My tenants pay their rental regularly and I no longer check on them.

And seeing you started the topic "Calling it Quits!", what do you think can be done in semi-retirement with, say $10M or $20M and reasonable returns on your investments. One can only travel or scuba-dive/ski/golf so much. ; )

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.

Different advice doesn't mean foolish advice. Involves a risk, yes. If 'better safe than sorry' is your mantra, I also respect that. But doesn't mean the guy who is less risk-averse is "doing stupid things".

Anyway, if the condo (which at present costs about $1 m) will cost $3m by the time he is 65, there is no way the studio will remain at 100k. Inflation/time value of money etc. So, well-meaning advice, but not becessarily sound either.

Originally Posted by GR45

Hi Whizzard et al. Thanks for the education for the rest of us. Any suggestions for a couple in 40s with S$3M income a year, pre-tax? We are not financial instruments-savvy and hold only properties (2 residential and 2 commercial). We are still working and the cash is just piling up in various banks. Very negligible equities etc. Any uncomplicated pointers will be much appreciated. Zero debt. 2 paid up Japanese cars.

For me, it's buying a GCB. I've been saving about S$1m a year for the last few years, but can't seem to get there. The cheapest GCBs' in Windsor Park are going for $25m, and my total net worth isn't even there. If I want a proper D10/11 GCB, its going to cost $50m so despite already having a bungalow and $1m savings per year, it seems to get further away as time goes on... sigh....

However, if I had S$3m a year in steady income, I think a bank might lend me enough...

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.

With risk comes reward my friend, fortune favors the bold.

Originally Posted by Unregistered

You can set up orphanages and soup kitchens for the millions of poor in Asia. Stop being a selfish person who spends his wealth for his own needs only.

There is this person who talks a lot of nonsense visiting this forum everyday.. giving a lot of useless opinions as if he is multi billionaire teaching ppl how to leverage... and also donate all their well like the few richest men on Earth... I think he is a school boy with what he is saying..

Originally Posted by GR45

Dear Whizzard,

Grateful you took time to reply this newbie. : )

Private banks sound great but I am sure they will find me too dumb and conservative. On the other hand I have had it with fresh faced 20-something RMs who have been lecturing me about the world economy, reciting from the same play book and in the end, there is always a "special" investment product created for people "just like me".

Full and total retirement is not going to happen anytime soon. Ours is a small and personal business and we have to be at least partly hands-on for things run smoothly. But that said, we do have experienced staff taking care of the daily routines. We are not overworked and have time to exercise, shop, eat, travel and do stuff with the kids. I do not mind our life as it is now. As you pointed out, it takes discipline not to do something with the cash. That is one of the reasons I ended up with my properties. And collecting rent is getting to be boring. I never thought I would say that, but it is true. Properties are incredibly illiquid and there is not much you can do with them (except to sell them and get back more cash !). My tenants pay their rental regularly and I no longer check on them.

And seeing you started the topic "Calling it Quits!", what do you think can be done in semi-retirement with, say $10M or $20M and reasonable returns on your investments. One can only travel or scuba-dive/ski/golf so much. ; )

Have about 20M now. My advice is to allocate it after some leverage. After leverage say have 30M. 33% leverage is quite conservative.

25% or 7.5M property - 1 for staying. Another 2-3 1+M each ones for investment and rental. Cheaper so more liquid. Would suggest not all in SG. Sorry but i think with networth 20M cannot afford to stay GCB. I will only stay GCB only if my networth is 100M as i believe in at most 20% networth in home.

33% or 10M bonds yielding about 4.5-5%.Do your own 7 year ladder. Can own about 40 bonds. Don't fall into trap of all SGD. Buy the more liquid USD, GBP, EUR, AUD ones. Borrow if you don't want currency risk.

The bond coupons are my daily expenses. About 0.5M should be enough for most people unless you must fly 1st class and change cars, birkins and pp/ap watches regularly.

30% or about 9M. Global equity portfolio. Just dont buy all local stocks. Watch your geographcal distribution too. Watch your equity dont have too much REITs or property. Duplicates with property allocation.

10% or 3M alternatives. For me this is 1M speculative for all those structured notes, EM speculative bonds, currency plays etc. 2M Private equity funds and VCs or even own business assets?

2% or 600K on wants and not needs - 2 cars, watches, jewellery... dont go crazy here.

Hope this helps. Would be good if others share what they do. Like Whizzard?