retirement 101

[Logisex]

Many people try to ease their way into self employment by keeping their day job and dabbling in business on the side or going into "partnership" with some hustler. It never works.

In order to succeed, you must have the guts to simply QUIT! and proceed to put your heart and soul into making the enterprise of your choice a success.

By all means plan ahead and save up sufficient capital while working as an employee. However, self employment requires 110% effort for at least 2 to 3 years. It can't be done on a part time or "sleeping partner" basis.

What are some of the enterprises that can be set up with a small capital apart from running a porn site?

 

[Leongsam]

What are some of the enterprises that can be set up with a small capital apart from running a porn site?

Service related enterprises that target a niche market.

EG : This niche has been a money spinner in recent years. Because I hate working on databases, I sub contract all the work out whenever any of my projects involves database management.

There are many others... custom air brushing, antique restoration, Personal trainer, personal shopper, 1-900 phone services, office equipment leasing, manufacturers representative, resume service, secretarial service etc.

Manufacturers' rep in particular can be very lucrative, I actually did the job for a couple of years.. lots of travel and many dead ends but all it took was one good deal and it made me USD200,000 in commissions in 18 months. You have to know the industry though or you won't have credibility.

 

[zhihau]

thanks for the replies, i can only foresee that most Singaporeans are fucked

 

[Leongsam]

thanks for the replies, i can only foresee that most Singaporeans are fucked

What a cop out! There goes the "enterprise" gene theory.

 

[middaydog]

Sam, unlike you most people are married

so now we know, Sam is gay

 

[theDoors]

thanks for the replies, i can only foresee that most Singaporeans are fucked

I reckon you asking if a salaried person can retire in Singapore.

I not too sure if I can retire at 55 in 21 years time. But this is what I have done so far.

Paid off my HDB 4 room flat which cost $125,000 at 28.

After 5 years, I have accumulated the current CPF minimum sum of $117,000. Transferred the lump sum into Special account leaving it to compound at 4% interest. The required minimum sum when I hit 55 in 2031, will be $249,000. Leaving it in the special account, the current $117,000 compounding at 4% will generate the $249,000 required.

For the next 21 years, what ever I accumulate in CPF, I will be should be able to withdraw it as cash when I am 55. (Unless the goal post is shifted again). I calculated it should be around $420k. ( I have been working in the same company for 11 years; assumptions: there is no increase in the current remuneration package)

If the HDB 4 room flat gets En Bloc when I am age 50-54, I will pledged it as half the minimum sum required, in order withdraw more cash out of the system.

So far, my colleague who is the same age as me, who inherited a HDB 4 room from his parents, also parked $117,000 in his special account leaving it to compound at 4% interest.

Inherit the HDB from your parents, that should give you a head start.

As he did not purchase a HDB flat, he calculated he can withdraw $550,000 from CPF when he hit 55 in 2031.

 

[Leongsam]

As he did not purchase a HDB flat, he calculated he can withdraw $550,000 from CPF when he hit 55 in 2031.

Assuming an inflation rate of 4%, $550,000 will be worth only $251,000 in today's money.

It won't get him very far.

It is very hard to save sufficient $$$ on a salary in the money isn't invested to return a rate which is at least 1.5 times the rate of inflation.

The best place to invest ones saving is in a company that YOU own. That way, you have complete control of how the company runs.

 

[theDoors]

Assuming an inflation rate of 4%, $550,000 will be worth only $251,000 in today's money.

It won't get him very far.

It is very hard to save sufficient $$$ on a salary in the money isn't invested to return a rate which is at least 1.5 times the rate of inflation.

The best place to invest ones saving is in a company that YOU own. That way, you have complete control of how the company runs.

Thanks on the tip.

Will work on generating better returns.

 

[zhihau]

What a cop out! There goes the "enterprise" gene theory.

what an iDiot! i said most Singaporeans, i'm minority :p:p:p