The RETIREMENT thread

[AhMeng]

KNN becas he has not been a high income earner and most of it has been used up to purchase the pigeon hole and the rest transferred to the sa KNN

Oh I see. Solly... I thought he never work much. ..

Hokay lah, got roof to live under, got lots savings for between 55 to 65 and got cpf life for after 65. What's the worry??? As long as he keeps healthy, he's fine.

 

[sweetiepie]

Oh I see. Solly... I thought he never work much. ..

Hokay lah, got roof to live under, got lots savings for between 55 to 65 and got cpf life for after 65. What's the worry??? As long as he keeps healthy, he's fine.

KNN again waiting for boss reassurance before breaking the good news to uncle KNN

 

[AhMeng]

KNN again waiting for boss reassurance before breaking the good news to uncle KNN

No need to hear his fear mongering lah. To me, your uncle is fine. Better than most sinkies as he has diligently saved money of half million plus over the years.

520k divide 3650 days (for 55 to 65) = 142 bucks a day.

I cant even spend an average of 50 bucks a day ah. Not bad liao.

 

[sweetiepie]

No need to hear his fear mongering lah. To me, your uncle is fine. Better than most sinkies as he has diligently saved money of half million plus over the years.

520k divide 3650 days (for 55 to 65) = 142 bucks a day.

I cant even spend an average of 50 bucks a day ah. Not bad liao.

My uncle say KNN it is quite scary to rely solely on cpf life at 65 KNN so he say cannot count this way KNN he also say better to allocate some money to 65 onwards hence he projected a $2k per mth survival money KNN

 

[AhMeng]

My uncle say KNN it is quite scary to rely solely on cpf life at 65 KNN so he say cannot count this way KNN he also say better to allocate some money to 65 onwards hence he projected a $2k per mth survival money KNN

I am sure he wouldn't finish spending 520k in 10 years unless he is a gambler.

 

[sweetiepie]

No need to hear his fear mongering lah. To me, your uncle is fine. Better than most sinkies as he has diligently saved money of half million plus over the years.

520k divide 3650 days (for 55 to 65) = 142 bucks a day.

I cant even spend an average of 50 bucks a day ah. Not bad liao.

KNN btw it should be 520k divide 5475 days from 50 to 65 yo KNN per day $94.90 KNN

 

[AhMeng]

KNN btw it should be 520k divide 5475 days from 50 to 65 yo KNN per day $94.90 KNN

Uncle already stop working meh? Work for a few years more lah.

 

[sweetiepie]

Uncle already stop working meh? Work for a few years more lah.

KNN uncle is tired of leeporting to work KNN also can refer to previous reply to boss KNN

For now while still earning a take home salary of approx $2500 to $3000 he spends about $1500 and save the rest KNN but he is contemplating to quit the job due to some personal reasons KNN but he is unsure should he still go for some other own time own target type of jobs or he can just forget about working if he plan to live as status quo for the rest of his life KNN

 

[AhMeng]

KNN uncle is tired of leeporting to work KNN also can refer to previous reply to boss KNN

Just keep healthy. Got health Got money and no worries. No health, got money also wil! spend finish. That's my motto.

 

[Leongsam]

KNN again waiting for boss reassurance before breaking the good news to uncle KNN

I don't know what you mean by "reassurance" as expectations regarding retirement can vary considerably. This uncle has enough money for a "no frills" retirement but he'll be living a frugal life with not much left for emergencies or holidays.

My advice for those wanting to retire and live life to the full is $5,000,000. With this amount life is good ie annual holidays abroad, new car every few years, eating out regularly with cash to spare for unexpected setbacks.

However I have friends who have retired on far less and they are content.

Uncle has to "reassure" himself after doing the math. I can't do it on his behalf because I'm not living his life.

 

[sweetiepie]

I don't know what you mean by "reassurance" as expectations regarding retirement can vary considerably. This uncle has enough money for a "no frills" retirement but he'll be living a frugal life with not much left for emergencies or holidays.

My advice for those wanting to retire and live life to the full is $5,000,000. With this amount life is good ie annual holidays abroad, new car every few years, eating out regularly with cash to spare for unexpected setbacks.

However I have friends who have retired on far less and they are content.

Uncle has to "reassure" himself after doing the math. I can't do it on his behalf because I'm not living his life.

Boss appreciate your feedback KNN reassurance in this case is feedback specifically looking towards the +ve and from the feedback uncle can further do another round of review KNN shall tell uncle the 2 key points KNN
1. retirement can vary considerably.
2. uncle has enough money for a "no frills" retirement

 

[Leongsam]

Yesterday I reached a milestone. My net worth, excluding the house I live in, has finally reached $10 million.

It was a long haul and not as easy as I thought it would be. While there were no major setbacks or reversal of fortunes, it turned out to be a marathon rather than a sprint to the finish because of plunging returns since 2009.

I therefore had no choice but to remain productive rather than simply relying on capital gain and compound interest to reach the goal I had set myself a decade ago.

The most satisfying part of this journey is that I managed to do with pretty much with zero risk. I stuck to property (40%), term deposits (35%) and a variety of investments funds including CPF (25%). Thank you Mdm Ho for the excellent returns despite the low interest environment that has enveloped the world.

Property was the best performing of all followed by investment funds. Term deposits have been steady but very slow because of the very low interest rates that have prevailed over the last decade.

With hindsight, which is always 20/20, I should have put a lot more into property but because managing tenancies is such a pain I stopped at 4 and have not had the energy to go house hunting in recent years. There are many dodgy buildings out there as a result of wishy, washy and inconsistent building codes plus in NZ there are always compliance issues eg earthquake proofing that can result in additional capital outlays to get the properties up to scratch.

Finally my work contributed to the portfolio growth by paying all the bills and therefore removing the need for me to dip into the portfolio to cover my overheads.

Looking back my biggest regret has been setting my goals way too low. I wanted to accumulate sufficient capital to enable me to lead a comfortable middle class existence ie, house, car, dog, hobbies, sports, holidays etc and that is exactly what I got. Would more money have made me any happier? I actually doubt it but it would have been great to have been able to afford a small private jet as it would have removed all the restrictions and hassle that I have to put up with at airports. However I have worked out that I would need a net worth of at least $40 million the enter the league of private jet/yacht owning elite. In my next life perhaps.

It's been a great journey. I'll cruise for a couple of years and hope that my health holds up. I'll then decide how I'm going to give away the money.

In the meantime if anyone in the USA can advise me how to donate to the Trump re-election campaign I'd be extremely grateful. He is the best President ever.

PS: I have to add this footnote. I owe everything to the PAP. They taught me that there is no such thing as a free lunch and also the motto "you die your business". It instilled a value of self reliance that has kept me in good stead till today.

 

[Leongsam]

For those who want to fiddle around with financial numbers required to achieve their dream retirement there is a simple calculator at https://www.msn.com/en-us/money/tools/retirementplanner

It will tell you how much you can spend annually if you want to preserve your capital. eg $10,000,000 at 4% means you have $400,000 annually before taxes without spending a cent of your nest egg.

However if you spend more than the yield you'd be surprised how quickly funds can run out.

Give it a go and see what you come up with for your set of circumstances.

 

[sweetiepie]

However if you spend more than the yield you'd be surprised how quickly funds can run out.

KNN my uncle believes that only those who has intention to pass on their wealth needs to be aware of this KNN as for him his retirement plan is to spend on the little yield together with the principal sum in a downwards controlled manner KNN but there isn't any calculator on this sort of plan KNN

 

[AhMeng]

KNN my uncle believes that only those who has intention to pass on their wealth needs to be aware of this KNN as for him his retirement plan is to spend on the little yield together with the principal sum in a downwards controlled manner KNN but there isn't any calculator on this sort of plan KNN

Well said. Cannot bring money to your next life!

 

[sweetiepie]

Well said. Cannot bring money to your next life!

KNN most people are working along boss sam direction I.e to accumulate enough nest egg to build up to live on the yields and endup having to work till ripe old age to achieve the nest eggs KNN

 

[AhMeng]

KNN most people are working along boss sam direction I.e to accumulate enough nest egg to build up to live on the yields and endup having to work till ripe old age to achieve the nest eggs KNN

Comfortable can Liao. Not really necessary to be rich or ultra comfie lah.

 

[sweetiepie]

Comfortable can Liao. Not really necessary to be rich or ultra comfie lah.

KNN actually when we workout e.g per day allowable expenditure+entertainment to be $50 it also won't mean everyday it will be this amount KNN 1 day you cbl at home next day budget will increase to $100 liao KNN those cbl unused money can still be used for cheap holidays ongoing basis KNN

 

[Leongsam]

Here's what the graph looks like with $9,500,000 million of 3% yielding assets for a Sinkie who retires at 67 yrs of age.

 

[AhMeng]

KNN most people are working along boss sam direction I.e to accumulate enough nest egg to build up to live on the yields and endup having to work till ripe old age to achieve the nest eggs KNN

If you spend 50 years of your life eating at hawker centres, you will find eating in a restaurant uncomfortable after a few times, even if you can afford it everyday. Habits seldom change. You will be most comfortable with hawker food. If you plan your retirement on restaurant food, is it realistic? I don't know the answer though I am inclined to say no.