FIRE (Financial Independence, Retire Early) Movement

[sohguanh]

In my case it was even more dramatic because I was in India until the age of 30 and my career started during the dotcom bust and 9/11. Also my wedding happened when I was 28 and in India, wedding expenses take away a big chunk out of your networth. So at the age of 30(in 2009) my networth was like 30k SGD. in 2023 my networth grew by 270K SGD.

I believe @BBCWatcher 's story is quite exceptional, but most people's 20s is pretty much a washout, in financial terms.

You have a dotter. Just remember the monies to that area is not cheap as they grow older and if they keep studying instead of working. Also your spouse as grow older just like you need healthcare aka monies. Factor those into your plan. Readers who are single will have it much easier.

 

[revhappy]

How can this be true? IT support engineer salary same as Redmart delivery:

https://theindependent.sg/it-suppor...s-ive-grown-tired-having-to-rack-up-my-brain/

 

[limster]

How can this be true? IT support engineer salary same as Redmart delivery:

https://theindependent.sg/it-suppor...s-ive-grown-tired-having-to-rack-up-my-brain/

redmart delivery driver doesn't necessarily mean employed by redmart. May be some sort of freelance job like PHV, so no CPF contribution, whereas his IT job got CPF.

The 'engineer' term is probably title inflation because company cannot pay him. "Real" software engineers, I think most of them will be earning $10k by age 40.

Basic IT support job is under $3k a month so that's probably what he's doing. Maybe because of his medical condition (someone with gout probably has other medical conditions) he cannot advance far, cannot job-hop as other employers don't want him (may be something to do with their company insurance etc).

 

[ctan84]

You have a dotter. Just remember the monies to that area is not cheap as they grow older and if they keep studying instead of working. Also your spouse as grow older just like you need healthcare aka monies. Factor those into your plan. Readers who are single will have it much easier.

Think he forgot still need to pay dowry for his daughter. That one another big money bomb for him.

 

[DevilPlate]

Think he forgot still need to pay dowry for his daughter. That one another big money bomb for him.

He is still working ….no worries lah.

Unless he strike big lottery, any sane man will continue to work till kids all start working.

 

[ctan84]

He is still working ….no worries lah.

Unless he strike big lottery, any sane man will continue to work till kids all start working.

Which means all his posts about looking at retirement now etc are all fantasy plans

 

[DevilPlate]

Which means all his posts about looking at retirement now etc are all fantasy plans

Talk only mah….
My ex coy also got many paper tiger generals that every year talking about resign and retire but still working today!

end up i retire earlier than them whahahaha

 

[wira]

Think he forgot still need to pay dowry for his daughter. That one another big money bomb for him.

i think in this day and age, dowry is just a formality now right ?

even for chinese, whatever dowry the mon groom family gives to bride family, bride family usually 'return' back most of the dowry monies.

 

[ctan84]

i think in this day and age, dowry is just a formality now right ?

even for chinese, whatever dowry the mon groom family gives to bride family, bride family usually 'return' back most of the dowry monies.

Still taken very seriously in Indian culture, esp over in India. Is very diff from us Chinese where in sg dowry is more yi4 si4 yi4 si4.

 

[DevilPlate]

Still taken very seriously in Indian culture, esp over in India. Is very diff from us Chinese where in sg dowry is more yi4 si4 yi4 si4.

Marry a modernised Indian family whahaha

 

[limster]

https://www.cnbc.com/2024/02/29/how...o-join-the-1percent-club-in-your-country.html

Singapore: US$5.2m

Their definition of Net Worth includes residence (because Knight Frank is a property company? )

Which means Singapore's amount is inflated by property prices. Buy property sure huat!

 

[celtosaxon]

$5.2m = S$7m ought to be enough for most people to retire comfortably here… assuming at least 20% is tied up in a primary residence (nothing fancy). The rest probably invested 60/40 in VWRA+MBH, take a $15k withdrawal rate. Enough to wine and dine, enjoy at least one expensive hobby, have hired help, take business class on occasion, and own a car or two (provided it’s nothing too exotic). The 1% here still have to watch their spending!

 

[limster]

The rest probably invested 60/40 in VWRA+MBH, take a $15k withdrawal rate. Enough to wine and dine, enjoy at least one expensive hobby, have hired help, take business class on occasion, and own a car or two (provided it’s nothing too exotic). The 1% here still have to watch their spending!

I have difficulty figuring how to spend $15k a month.

I can fly business and own my car on much less than $15k a month passive income. While you still need to pay cash for some tickets, other tickets can be upgraded to biz using your points (if you spend say $7.5k a month using credit card, thats a fair amount of potential points, depending on card)

Fortunately I don't drink alcohol as I hear some of types alcohol are really expensive. I guess thats another reason not to fly first class, I don't drink expensive champagne that 1st class pax get offered

 

[highsulphur]

I have difficulty figuring how to spend $15k a month.
I can fly business and own my car on much less than $15k a month passive income.
Probably because I don't drink alcohol as I hear some of types alcohol are really expensive. I guess thats another reason not to fly first class, I don't drink expensive champagne that 1st class pax get offered

15k isn't that much if your residence is expensive to maintain. Condo maintenance fee 1 to 2k. Property tax 500 to 1k. Car 3 to 4k. Biz class ticket 5k albeit don't travel every month?

But you are right. Discretionary spending is the key. If one wants, can splurge a few thousand one night for dinner

Anyway the 15k mentioned was from swr rather than passive income which will require a higher capital outlay

 

[polyglob]

$5.2m = S$7m ought to be enough for most people to retire comfortably here… assuming at least 20% is tied up in a primary residence (nothing fancy). The rest probably invested 60/40 in VWRA+MBH, take a $15k withdrawal rate. Enough to wine and dine, enjoy at least one expensive hobby, have hired help, take business class on occasion, and own a car or two (provided it’s nothing too exotic). The 1% here still have to watch their spending!

15k/mth = 180k pa. When retired, one is no longer saving for retirement, meaning the 180k is meant to be spent! Considering median individual income in SG is 62k pa, 180k is a solid number in retirement.

20% of 7m being housing = 1.4m, too high for 5rm HDB, too low for decent sized condo

 

[BBCWatcher]

$5.2m = S$7m ought to be enough for most people to retire comfortably here… assuming at least 20% is tied up in a primary residence (nothing fancy). The rest probably invested 60/40 in VWRA+MBH, take a $15k withdrawal rate.

20% of S$7 million (S$1.4 million) is now at the upper end of HDB resale flats. Which would be pretty smart, actually. But a lot of people in the 1% cohort don’t do that. If for example 40% of their household net worth (S$2.8 million) is tied up in their home then the lifestyle-financial math shifts quite dramatically. And that’s at 40%, but many of these few households go higher than that. Don’t cry for that household of course, but I sometimes wonder about certain lifestyle decisions.

 

[BBCWatcher]

20% of 7m being housing = 1.4m, too high for 5rm HDB, too low for decent sized condo

There are a few upper tail end HDB resale flats at S$1.4 million now. At that price you can buy essentially any HDB resale flat you wish as long as you don’t run into quota barriers.

On edit: In January, 2024, a HDB flat in The Peak (Toa Payoh) sold for S$1,568,888. That’s the current record high at last report.

 

[limster]

Long time ago, , I wasn't thinking about retirement stock portfolio, because I was more concerned about the quality of the roof over my head, and whether it was a good location for work. Things like 'safe withdrawal rate' can worry about later after settling housing.

I just bought the biggest property I could afford, because in Singapore buy property sure huat! Also the bigger the property, the cheaper the psf, so it feels like a bargain versus smaller unit with higher psf.

If my parents ever need to move in so I can take care of them, then at least my place has the space, won't feel too cramped.

Loan was like 0.98%+SOR, so basically 1% housing loan. Because of leverage, the ROI is more than 100%

 

[revhappy]

Long time ago, , I wasn't thinking about retirement stock portfolio, because I was more concerned about the quality of the roof over my head, and whether it was a good location for work. Things like 'safe withdrawal rate' can worry about later after settling housing.

I just bought the biggest property I could afford, because in Singapore buy property sure huat! Also the bigger the property, the cheaper the psf, so it feels like a bargain versus smaller unit with higher psf.

If my parents ever need to move in so I can take care of them, then at least my place has the space, won't feel too cramped.

Loan was like 0.98%+SOR, so basically 1% housing loan. Because of leverage, the ROI is more than 100%

Singapore has really boomed in the last 20 years, in terms of it's attractiveness and stature as financial hub.

Singapore some 20 years ago was a outsource destination for many EU and US banks.

But my salary in a EU bank in Singapore is now 128k base+pension+1.2 month bonus easily taking it to 150k+ IRAS filing.

I am looking for job in Europe and nowhere it is easy to find a job of this salary. Even 50k EUR is considered high salary, lol. Ireland has 100-110k EUR salary but extremely difficult for me to get.

A couple of my colleagues took internal transfer to our EU HQ with a promotion and salary match. But they are not happy there. The weather is bad, language is not English outside office, they own nice houses and cars, but they had a maids(helper) over here and there they have to do their own work and the wife cannot go to work because child care is very expensive.

The reason they left Singapore is because they were not given PR. Now in Europe they can easily get PR, but they are not happy and planning to just return back to India.

 

[highsulphur]

Singapore has really boomed in the last 20 years, in terms of it's attractiveness and stature as financial hub.

Singapore some 20 years ago was a outsource destination for many EU and US banks.

But my salary in a EU bank in Singapore is now 128k base+pension+1.2 month bonus easily taking it to 150k+ IRAS filing.

I am looking for job in Europe and nowhere it is easy to find a job of this salary. Even 50k EUR is considered high salary, lol. Ireland has 100-110k EUR salary but extremely difficult for me to get.

A couple of my colleagues took internal transfer to our EU HQ with a promotion and salary match. But they are not happy there. The weather is bad, language is not English outside office, they own nice houses and cars, but they had a maids(helper) over here and there they have to do their own work and the wife cannot go to work because child care is very expensive.

The reason they left Singapore is because they were not given PR. Now in Europe they can easily get PR, but they are not happy and planning to just return back to India.

You have pension working for a EU bank here in Singapore?