Whats your net worth

total combined bank with wife $45k; cpf combined $52k.
no car, no other valuables.
we both mid forties. 2 children studying primary.
3 room hdb flat outstanding debt $220k.

Both 40s with combined ~195k
Cash - $210k
CPF - $541k
Investment - $202k
Fully paid 4-room HDB
Fully paid COE car
30% downpayment made 4 $1.1m condo

Both late 40s with combined income ~ $175k pa
Cash $100k
CPF $500k
Fully paid condo $1m
Fully paid car
Combined net worth $1.6m

Originally Posted by Unregistered

Both late 40s with combined income ~ $175k pa
Cash $100k
CPF $500k
Fully paid condo $1m
Fully paid car
Combined net worth $1.6m

Singapore's average wealth per adult is S$363k. Your wealth is S$800k each. So you are above average couple. You're in the top in society.

28 years old, single.
Cash: 70K
CPF: 80K
No investment, property.

hould I exit the rat race?

The past 3 years I had been contemplating exiting the rat race and go to my dream job - Full Time trader. I had been honing my experiences in trading for the past 7 years. I think in terms of practices, it should be sufficient. Am confident of getting a 120-200K return pa on trading.

Current Situation
Age : 42
Dual income : 600K pa ( 300K each for both me and spouse)
Cash : 1.6 M ( FD)
Shares : 100K
Investments : 300K (4% pa)
CPF : 200 K ( OA) 350 k (SA)
Value of property : 4.5m
Existing Loan : 2m (10K monthly payment)

Strategy
Assets
1) Reduce to 1 income (300Kpa)
2) Trading profits ( FX / Stocks / Etc) (120Kpa)
3) Increase passive income ( Dividend stock / bonds ) from 400 K to 1 M
3.5% return - 35 K pa

Gross income : 455K

Liabilities
1) Reduce Housing loan to 1M (5 K pa or 60Kpa)
2) Income Tax - 30 K
3) Household Expenses : 60 K pa (Inclusive of car)
4) Holidays : 20K
5) Emergency Funds : 20K
6) Charity : 20K

Net Expenses : 210K

Savings : 240K pa ( To add to passive income yearly . Aim to pay off housing loan in 10 years)

I figured even without trading income, it might still work. Would not downgrade property as it is meant to be a heirloom for kids (I do not intend to leave them too much cash)

Am I missing any variables?

Stepping off the rat race is scary . Not only would you lose you income, but you would also lose your safety net (CPF contribution, medical insurance, etc)
Nonetheless, I figured I should do it when my mind is still nimble and I have the energy to monitor positions.

Too ambitious or a realistic dream?

My take is that you should rework the scenario based only on one (your wife's) income. Why? Because trading is risky. Net income could be zero for the year. Worse, you could lose big.

So if you are comfortable with the reworked scenario, then carry on.

Also where is the passive income of $400k to $1m coming from?

If I were in your shoes, I would continue with the current situation. $600k income - $210k expense. Net saving = $390k.

Every 3 years = $1m added to net worth. This was our situation when we were in our late 40s. Now we are 56. Go figure.

Originally Posted by Unregistered

hould I exit the rat race?

The past 3 years I had been contemplating exiting the rat race and go to my dream job - Full Time trader. I had been honing my experiences in trading for the past 7 years. I think in terms of practices, it should be sufficient. Am confident of getting a 120-200K return pa on trading.

Current Situation
Age : 42
Dual income : 600K pa ( 300K each for both me and spouse)
Cash : 1.6 M ( FD)
Shares : 100K
Investments : 300K (4% pa)
CPF : 200 K ( OA) 350 k (SA)
Value of property : 4.5m
Existing Loan : 2m (10K monthly payment)

Strategy
Assets
1) Reduce to 1 income (300Kpa)
2) Trading profits ( FX / Stocks / Etc) (120Kpa)
3) Increase passive income ( Dividend stock / bonds ) from 400 K to 1 M
3.5% return - 35 K pa

Gross income : 455K

Liabilities
1) Reduce Housing loan to 1M (5 K pa or 60Kpa)
2) Income Tax - 30 K
3) Household Expenses : 60 K pa (Inclusive of car)
4) Holidays : 20K
5) Emergency Funds : 20K
6) Charity : 20K

Net Expenses : 210K

Savings : 240K pa ( To add to passive income yearly . Aim to pay off housing loan in 10 years)

I figured even without trading income, it might still work. Would not downgrade property as it is meant to be a heirloom for kids (I do not intend to leave them too much cash)

Am I missing any variables?

Stepping off the rat race is scary . Not only would you lose you income, but you would also lose your safety net (CPF contribution, medical insurance, etc)
Nonetheless, I figured I should do it when my mind is still nimble and I have the energy to monitor positions.

Too ambitious or a realistic dream?

Originally Posted by Unregistered

My take is that you should rework the scenario based only on one (your wife's) income. Why? Because trading is risky. Net income could be zero for the year. Worse, you could lose big.

So if you are comfortable with the reworked scenario, then carry on.

Also where is the passive income of $400k to $1m coming from?

If I were in your shoes, I would continue with the current situation. $600k income - $210k expense. Net saving = $390k.

Every 3 years = $1m added to net worth. This was our situation when we were in our late 40s. Now we are 56. Go figure.

The passive income is going to come from FD. Convert FD to dividend stocks or bonds for higher yields.

I would love to continue for 3 years too, however situation at the work front had changed to a point where work becomes painful psychologically. Job security is a big question mark as there are mines in every direction you step. I had been fighting this 'fear' of work for over 3 years. If I were to go on with the same , I might just go insane.

Granted it pays well, but I am willing to sacrifice it for a happier life.

I agreed on the trading as well. It's not 100% foolproof compared to a salary. I think it is also prudent to work on one income. My goal is to be completely debt free in 5 years with some extra savings to generate a passive income. Hopefully I can achieve that...

Then say so earlier. Your consideration with the info you just provided is so different from what you had presented before. To me, its not just financial versus having more time consideration, in your view, it's about your health and sanity. It's a very different question altogether.

You should know better how to decide. If it was just wealth vs having more "me" time, I have already given you the answer.

For us that 6 - 7 years of working have translated to our networth growing an additional $2m+.

Originally Posted by Unregistered

The passive income is going to come from FD. Convert FD to dividend stocks or bonds for higher yields.

I would love to continue for 3 years too, however situation at the work front had changed to a point where work becomes painful psychologically. Job security is a big question mark as there are mines in every direction you step. I had been fighting this 'fear' of work for over 3 years. If I were to go on with the same , I might just go insane.

Granted it pays well, but I am willing to sacrifice it for a happier life.

I agreed on the trading as well. It's not 100% foolproof compared to a salary. I think it is also prudent to work on one income. My goal is to be completely debt free in 5 years with some extra savings to generate a passive income. Hopefully I can achieve that...

Originally Posted by Unregistered

Also where is the passive income of $400k to $1m coming from?

I think he meant a total investment of $400k to $1m. The passive income will come from this investment.