How much do u need to go slow/retire in singapore?

[Wind30]

I see that there are some retired people in MCF. I am wondering how much do a person need to retire and support what sort of lifestyle?

 

For my case, I am thinking like

 

1 paid freehold terrace house and 1 paid 99yr condo at maybe AMK area. 1 paid car. 200k cash.

 

Then I will "retire" by getting a simple, stress free job that pays maybe 4k/month, enough to cover my expenses, travel twice a year. The condo can rent out and be sold when my single kid needs to go uni.

 

When my kid get married, sell off the terrace and get 2 small place and rent one out.

 

u you guys think it is enough to retire like that? please note I am not going to full retirement but rather getting a simpler job so I will probably still get some income.

 

 

[Roh96]

For my case, I am thinking like

 

1 paid freehold terrace house and 1 paid 99yr condo at maybe AMK area. 1 paid car. 200k cash.

 

May i know how old are u and how far are you to your target?

[Wind30]

May i know how old are u and how far are you to your target?

 

34 this year. maybe around 45% there. Target completion date is 45. I am curious about the retirement plans of other people...

[Mockngbrd]

ur gonna need alot to get there before going slow i thinks

[Kxbc]

1 fully paid FH terrace + 1 fully paid AMK condo + $220k cash = $2.2m easily. Right?

 

If your family is 45% there, means you still have debt of approx $1.2m (and not yet counting interest exp on your housing).

 

Therefore, your savings + CPF pa will need to be min $100k from now till age 45. Assuming you can save (inc CPF) 50% of gross pay, that means your family's gross pay needs to be at least $200k every year for the next 11 years.

 

Simplistic calculation without taking account time value of money but in a way offset by the disregard for int exp in this calculation.

 

Is my calculation right?

Edited July 31, 2009 by Kxbc

[Friendstar]

personally, i feel that ur cash is too little

 

$200k is nothing in Singapore

 

want to play safe, minimum must have 1million + 1 terrace house fh + 1 rented out condo + any 2litre and below car + CPF + simple job

[Wind30]

1 fully paid FH terrace + 1 fully paid AMK condo + $220k cash = $2.2m easily. Right?

 

If your family is 45% there, means you still have debt of approx $1.2m (and not yet counting interest exp on your housing).

 

Therefore, your savings + CPF pa will need to be min $100k from now till age 45. Assuming you can save (inc CPF) 50% of gross pay, that means your family's gross pay needs to be at least $200k every year for the next 11 years.

 

Simplistic calculation without taking account time value of money but in a way offset by the disregard for int exp in this calculation.

 

Is my calculation right?

 

yup, the calculation is roughly correct. I based on the assumption of roughly family income of more than 200k/year which is pretty reasonable for 2 working professionals at the age of 40. But there is no debt of $1.2m. I don't buy everything now what.... if I have one mil, I just maybe buy the freehold terrace first with maybe 400k loan and clear the loan within 5 years and save around 200k. then go after the 99yr condo which is worth around 600k for smaller/older condos.

 

 

[Wind30]

personally, i feel that ur cash is too little

 

$200k is nothing in Singapore

 

want to play safe, minimum must have 1million + 1 terrace house fh + 1 rented out condo + any 2litre and below car + CPF + simple job

 

what is the 1 million for?? Other than medical stuff there really isn't any need for that much money right?

 

If I really get terrible disease, maybe just die lor... even if try hard to save, the quality of life is not there and sometimes it is really not worth it.

 

To get the extra 800k will take quite a fair bit longer....

[Kxbc]

I am assuming that your family has 45% of $220k cash + paid up for 45% for both properties now and therefore, will need to make good the other 55% which uses up $100k pa (either for loan servicing or cash accumulation). Even if you have$1m cash and none of the properties now which will bel only acquired later, there is still a need to service the housing loan of $1.2m (cash paid is approx $1m) and fully pay up by age 45. Either way, think still the same.

 

And if family income is < $200k pa now, means you are hedging on the fact that your future income will more than cover the shortfall now.

[Kxbc]

If got terrible disease, I hope I will die straight away so that my family no need to spend more on my medical and then after death, they still can get my insurance money.

[Roh96]

There are many successful and rich ppl in this forum, they should be able to advise your concern. But i kind of agree that 200k cash for retirement is too little. Have you factor in your kid's education, aging parents to take care etc?

[Wind30]

I am assuming that your family has 45% of $220k cash + paid up for 45% for both properties now and therefore, will need to make good the other 55% which uses up $100k pa (either for loan servicing or cash accumulation). Even if you have$1m cash and none of the properties now which will bel only acquired later, there is still a need to service the housing loan of $1.2m (cash paid is approx $1m) and fully pay up by age 45. Either way, think still the same.

 

And if family income is < $200k pa now, means you are hedging on the fact that your future income will more than cover the shortfall now.

 

ya there is a need to earn $1.2Mil more in the next 11 years but not servicing a housing loan of 1.2mil as the interest alone will kill me. I don't expect to take more than 400k loan at anytime.

 

Well, it is a nice target to aim for right? rather than work until 65...

 

[Wind30]

There are many successful and rich ppl in this forum, they should be able to advise your concern. But i kind of agree that 200k cash for retirement is too little. Have you factor in your kid's education, aging parents to take care etc?

 

the kids education is taken care by the condo. Sell it if I need to send overseas. Our parents can take care of themselves financially. So is there really a need to keep higher cash during retirement? as the housing assets are probably a better guard against inflation.

 

 

[Louisckp]

I see that there are some retired people in MCF. I am wondering how much do a person need to retire and support what sort of lifestyle?

 

For my case, I am thinking like

 

1 paid freehold terrace house and 1 paid 99yr condo at maybe AMK area. 1 paid car. 200k cash.

 

Then I will "retire" by getting a simple, stress free job that pays maybe 4k/month, enough to cover my expenses, travel twice a year. The condo can rent out and be sold when my single kid needs to go uni.

 

When my kid get married, sell off the terrace and get 2 small place and rent one out.

 

u you guys think it is enough to retire like that? please note I am not going to full retirement but rather getting a simpler job so I will probably still get some income.

 

if you can think this way at yr age, then sg is not the place for u, move up north (malaysia, thai) or south (indon) easier and better for u. the truth is you can nvr retire here for rest of yr life w/o worrying...

 

all job got stress even for the cleaners...

[Louisckp]

but the fact you already achieved 45% of the plan shows that you can easily manage your life with ease. either you are very sucessful in what you doing or you got strong family supports....

 

to me if i see you that's already retirement success to me. even if you sell off one of your house, still can buy HDB house to stay...

 

imagine those who have to struggle to pay their house loan for HDB flat or put food on the table!

[Maxus-MIFA9]

I see that there are some retired people in MCF. I am wondering how much do a person need to retire and support what sort of lifestyle?

 

For my case, I am thinking like

 

1 paid freehold terrace house and 1 paid 99yr condo at maybe AMK area. 1 paid car. 200k cash.

 

Then I will "retire" by getting a simple, stress free job that pays maybe 4k/month, enough to cover my expenses, travel twice a year. The condo can rent out and be sold when my single kid needs to go uni.

 

When my kid get married, sell off the terrace and get 2 small place and rent one out.

 

u you guys think it is enough to retire like that? please note I am not going to full retirement but rather getting a simpler job so I will probably still get some income.

chow chow.... $500,000 (in bank, your HDB house fully paid & CPF) plus a simple & no stress job of maybe $1500/- per month......

Edited July 31, 2009 by Picnic06

[Porker]

Why don't you aim for at least 5,000sf of built up area (FH) in district 10 all rented out? And have another 1,000sf for your own use. All paid up.

 

5,000sf rental shld avg $3psf per month so you get $15,000 per month just collecting rent. Free go kopi tiam drink coffee, read newspaper and sian go toilet PCC abit. People still call you easy going retireee! Best life.

[GoodCar]

 

Wind30,

 

You very good in Singapore liao.

Got time go grass root walk walk and feel the ground.

You will feel a lot riches.

 

Anyway, keep building on your dream, you will get there one day......