How much should a 40-year-old have to consider early retirement?

[klarklar]

Assuming he has a wife and 2 kids to support. Debt free with a HDB. Also assume that kids will borrow from banks to finance tertiary education.

 

[*marimo*]

Depends on his monthly expenditure?

 

[Aerial86]

Assuming he has a wife and 2 kids to support. Debt free with a HDB. Also assume that kids will borrow from banks to finance tertiary education.

Retirement means to stop employment COMPLETELY. So if there is a wife and 2 kids to support, you have to calculate the expenses needed for the whole family, multiply by the number of years you will need to support them.

With that being said, I don't think you're referring to retirement, but semi-retirement instead.

 

[holysmokes]

8K per month net passive cash flow.
I prefer not to draw down on savings. At 40, too far from death and 2 kids probably still young.

 

[Aerial86]

8K per month net passive cash flow.
I prefer not to draw down on savings. At 40, too far from death and 2 kids probably still young.

Which is about 1.9mil for my clients who is investing for a recurring income

 

[Shiny Things]

Assuming he has a wife and 2 kids to support. Debt free with a HDB. Also assume that kids will borrow from banks to finance tertiary education.

$2-3 million should do it. With a conservative 3% withdrawal rate, that'll give you a $60k-$80k annual income with very little risk of blowing through the principal.

 

[dork32]

i have 2 kids, i live in old condo (fully paid). i drive a old car (fully paid) and i can survive on 3.5k a month for the whole family. even if my kids can make it to local uni, expenses will go up to 5k a month.

it depends on your lifestyle. i know of families that can survive on 1.5k a month.

financial advisers like to tell u that u need more than it is needed such that you buy their products.

Too me 8k a month is a lot of money already. Many households do not even earn that amount when they are not retired.

for my lifestyle, if i were to live for another 30 years and my investment earns 2% above inflation, and i spend 5k a month. i will need 1.3 million.

 

[whizzard]

It all depends on the lifestyle that you want to have during your retirement and how healthy you and your family are. Therefore, the range varies widely.

Someone said that a family can survive on $1,500 monthly. Even with zero debt, that's an extremely low budget of $50 per day. What about internet, handphone and utilities bills? Impossible even for me alone to live on, and that's not including my family members yet.

For me personally, it's difficult to retire early because my lifestyle choice is an expensive one. The longer I work and use my salary to finance my family's lifestyle, the more time I buy for my investment portfolio to grow since the returns are re-invested. The compounding effect is a great thing if used correctly and I am grateful that I started investing early. I have set a goal on achieving a target recurring passive income per year and am working towards it.

My previous boss told me that it is very important to accummulate F*** Off money. I took his advice fairly early on in my career. Today, I can walk off anytime I want and it's a great feeling to come to work everyday knowing that I am not hard up for the job but that I want it.

 

[dork32]

It all depends on the lifestyle that you want to have during your retirement and how healthy you and your family are. Therefore, the range varies widely.

Someone said that a family can survive on $1,500 monthly. Even with zero debt, that's an extremely low budget of $50 per day. What about internet, handphone and utilities bills? Impossible even for me alone to live on, and that's not including my family members yet.

For me personally, it's difficult to retire early because my lifestyle choice is an expensive one. The longer I work and use my salary to finance my family's lifestyle, the more time I buy for my investment portfolio to grow since the returns are re-invested. The compounding effect is a great thing if used correctly and I am grateful that I started investing early. I have set a goal on achieving a target recurring passive income per year and am working towards it.

My previous boss told me that it is very important to accummulate F*** Off money. I took his advice fairly early on in my career. Today, I can walk off anytime I want and it's a great feeling to come to work everyday knowing that I am not hard up for the job but that I want it.

you are lucky that you can earn quite a lot.

there are people that seriously surviving on that amount. I know some of them. Internet, play computer in school lah. utilities got vouchers from financial assistance schemes to help out. handphone use hi-card and dont any how call. school fees also financial assistance + bursary.

 

[holysmokes]

If a person no salaried job but have $10k/mth stock dividends,

1) Need to pay income tax?
2) Need to pay CPF?
3) Forms that require declaration of "income" can put $0? What about "salary"?

 

[highsulphur]

If a person no salaried job but have $10k/mth stock dividends,

1) Need to pay income tax?
2) Need to pay CPF?
3) Forms that require declaration of "income" can put $0? What about "salary"?

Dividends in Singapore are not taxable. Period.

Cpf contribution is up to you if you are not working.

 

[cscs3]

Depends on his monthly expenditure?

AND living life style.

 

[frenchbriefs]

im currently early retired,in my twenties.unemployed and living a lifestyle of $400 a month.

of course if i was living in australia or uk,my lifestyle could be expanded to $800 a month.

now trying to figure out how to make 20 to 30 million to fund my retirement lifestyle for the next 60 years....and also start a massive political campaign against PAP.

 

[alexchia01]

im currently early retired,in my twenties.unemployed and living a lifestyle of $400 a month.

of course if i was living in australia or uk,my lifestyle could be expanded to $800 a month.

now trying to figure out how to make 20 to 30 million to fund my retirement lifestyle for the next 60 years....and also start a massive political campaign against PAP.

I wish you good luck, but please don't bring politics into this forum.

 

[frenchbriefs]

I wish you good luck, but please don't bring politics into this forum.

no no of course not,yes i believe in secular state and religion and finance and government should be kept seperate,but just want to say **** THE PAP!!!

 

[homer123]

I think if u have kids in Spore, you can forget about retirement.. I believe in the next 20 years.. most of yourchildren will become like the current boomerang kids in the US.. They will come back to stay with you,leech on you because there is not much good-paying job that can sustain them. Good luck!

 

[focus1974]

RENT OUT THE HDB for $2.5ksgd min.

Convert to Rinngit equals $6.25k Rinngit.

Rent a Horizon Hills, GATED and Guarded 2-stry Terrace for $2.5Kk rinngit..(IF CAN buy, LAGI BEST!)
2-storey Terraced House For Rent - Horizon Hills, Nusajaya Iskandar (THE GATEWAY), Jalan Ambang X, 79100 Malaysia, 2-storey Terraced House, 4BR, 1845sqft, #5272604 Rent can go as low as $1000rinngit if you dont mind the local community. Horizon Hills is basically like your "expats" town with SINGAPOREANS ..lol

Buy a 4yr old Proton Wira for $23k rinngit on FULL 10yrs LOAn at monthly installment of less than $400 rinngit.

You are left with roughly $3.25k rinngit of spending money.

Congrats.. You can work part-time and use the part-time money to live on and save the 3.25k rinnggit for emergency

 

[econsmagic]

3 millions i think is enough for retirement. Of course continue to grow the 3 millions 4% a year. If u enjoy what u are doing, u don't need to retire.

 

[antonpoh]

RENT OUT THE HDB for $2.5ksgd min.

Convert to Rinngit equals $6.25k Rinngit.

Rent a Horizon Hills, GATED and Guarded 2-stry Terrace for $2.5Kk rinngit..(IF CAN buy, LAGI BEST!)
2-storey Terraced House For Rent - Horizon Hills, Nusajaya Iskandar (THE GATEWAY), Jalan Ambang X, 79100 Malaysia, 2-storey Terraced House, 4BR, 1845sqft, #5272604 Rent can go as low as $1000rinngit if you dont mind the local community. Horizon Hills is basically like your "expats" town with SINGAPOREANS ..lol

Buy a 4yr old Proton Wira for $23k rinngit on FULL 10yrs LOAn at monthly installment of less than $400 rinngit.

You are left with roughly $3.25k rinngit of spending money.

Congrats.. You can work part-time and use the part-time money to live on and save the 3.25k rinnggit for emergency

Sounds like one of our MP.. keep asking us to move out of sg to retire.

 

[antonpoh]

For me, i think with 600k invested with 10% return per annual.

Should get aro 5k passive income per month. Enough if don't drive.