Retiring before 40?

[starfish.starfish]

well if u are single, I think 1 million in cash is more than enough to "retire" if used sparingly even without investing any of it. Just put in safe places also can get 1% a month at least, that be around $1k a month.. then just work part-time etc to supplement a bit of extra income.

I just double checked my planning.
My expenses per month is 3200.
This is excluding income tax (assuming no work so no tax)
$1k where got enough.

 

[starfish.starfish]

My SO earns 5x more than me and pay much more tax than me, but I have to bear all our living and dating expenses/gift and housing loan myself.

Question is - why ?

 

[Sinkie]

Ern, this is quite common actually.

If she has no name on the house, I think it is fair for her not to pay.

If I die, this house will also go to her

 

[starfish.starfish]

How would u have a fully paid hdb if u are single?? Even if u buy a resale hdb under the forever alone scheme, u will need at least $500k to fully paid for it, and together with your $500k cash, indirectly you also need $1m saving minimum?

$500k on the high side lah. If buy 3 rm can be much cheaper.

 

[Sinkie]

HDB can pay with cpf, at least partially. I am single and targeting to fully pay off my HDB when I'm 40. My flat is in one of the cheapest areas though but near the MRT. I have single friends who also paid off their HDB within a few years after buying it.

Do you do any other form of investment like equity etc

 

[Sinkie]

$500k on the high side lah. If buy 3 rm can be much cheaper.

My resale mortgage debt alone already more than $500k

 

[starfish.starfish]

My resale mortgage debt alone already more than $500k

Yours is high SES kind mah. Where’s your location ?
Am sure it’s central and 5rm?

 

[Sinkie]

Yours is high SES kind mah. Where’s your location ?
Am sure it’s central and 5rm?

Around 60 min walk to Takashimaya

 

[OngHuatHuat]

I think for mortgage loan, only the interest component can be counted as pure expenses.

But for HDB, you may need to account for depreciation after Lawrence Wong comment.

I just double checked my planning.
My expenses per month is 3200.
This is excluding income tax (assuming no work so no tax)
$1k where got enough.

 

[Sinkie]

I think for mortgage loan, only the interest component can be counted as pure expenses.

But for HDB, you may need to account for depreciation after Lawrence Wong comment.

Depreciation only occurs at the 43 years mark for hdb and 99 years condo

 

[OngHuatHuat]

My aunt’s flat after selling keep dropping in price despite of more than 55 years old and near MRT. She was lucky to sold it after she got her BTO few years back.

Depreciation only occurs at the 55 years mark for hdb and 99 years condo

 

[Sinkie]

Question is - why ?

Because she has no saving as her spending on herself is more than 5x my net spending each month and that’s why I let her accumulate her saving first while I take on the expenses

 

[Sinkie]

My aunt’s flat after selling keep dropping in price despite of more than 55 years old and near MRT. She was lucky to sold it after she got her BTO few years back.

Sorry is 43th mark of the lease

Yeah, I think once my hdb hit 30th year of lease, I will start to find buyer le

 

[Perisher]

Citi maxigain, uob one and Dbs multiplier are saving accounts that gives 2% and more interest

All you need is $400k can get about 2% interest $660 per month le

They all max out at around 60k no?

 

[Sinkie]

They all max out at around 60k no?

Citi Maxigain -$150,000 each account (can have single + joint at 2.3%)
Dbs mutliper - $50,000 (mortgage + credit card + salary + dbsv trading >$30,000= 3.3%)
Uob one - $50,000 (3 giro + $500 cc spending = 2.4% for $50k)

$300,000+$50,000+$50000 = $400,0000

Easily around $800+ per month interest

 

[Sinkie]

I just double checked my planning.
My expenses per month is 3200.
This is excluding income tax (assuming no work so no tax)
$1k where got enough.

$3200 per month excluding tax!!

Woman 就是 woman

 

[havetheveryfun]

Citi Maxigain -$150,000 each account (can have single + joint at 2.3%)
Dbs mutliper - $50,000 (mortgage + credit card + salary + dbsv trading >$30,000= 3.3%)
Uob one - $50,000 (3 giro + $500 cc spending = 2.4% for $50k)

$300,000+$50,000+$50000 = $400,0000

Easily around $800+ per month interest

well but if in "retirement" mode, cc spending and salary criteria will be harder to hit

 

[SBC]

Such “high interest, conditional” account should not be considered for retirement planning. UOB One still got chance.

 

[Sinkie]

well but if in "retirement" mode, cc spending and salary criteria will be harder to hit

The Dbs multiplier criteria only need $1 min spending on cc which u can set for ezlink and salary criteria can be easily set by setting a joint account and get the other holder to credit his salary in or maybe can setup a shell company and ownself credit ownself salary also can

Yes, the $500 minimum spending for Uob one is quite tough for a retiree who has to stringently control his spending

 

[highsulphur]

The Dbs multiplier criteria only need $1 min spending on cc which u can set for ezlink and salary criteria can be easily set by setting a joint account and get the other holder to credit his salary in or maybe can setup a shell company and ownself credit ownself salary also can

Yes, the $500 minimum spending for Uob one is quite tough for retiree

You end up paying income taxes if you do that