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Old 06-04-2019, 05:54 PM   #1135
Extech
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Mum wants dad to retire. How can they optimise their savings?

Dad is an engineer who draws 7k/month and had his 55th Birthday last year. Did not read about CPF shielding then. Now he has:
-175k in RA(Has option for property pledge)
-75k in OA
-42k in SA

Mum is a homemaker aged 54. 55th Birthday this year October. She has:
-51k in SA(Due to regular 7k top up)
-4k in OA
-housing amount withdrawn 47k

CPF has informed her that she is not eligible for property pledge

Currently have some spare cash on hand, about 100-120k

Dad is drawing 7k/month
Rental giving 2k/month



Mum wants dad to retire and is looking at drawing 180k(90k from savings, 90k from his CPF) and putting it as a single premium into a NTUC ILP policy which yields about $100/month for every 30k - they will be looking at $600/month. The sum can also act as a bequest as upon death as it would be returned at 105% of premium paid.

Expenses:
10% for church offering
600/month on groceries
300/month Utilities and telco(TV, Mobile, Broadband)
300/month transport
400/month Condo maintenance fee

How can they better optimise their finances for retirement?
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