Financial goals for retirement

[limster]

http://www.rightmove.co.uk/property-for-sale/property-52314697.html
Buy an modest house in UK next to the Marina where you park your yacht. Reasonably fast rail connection to London, or sail to Belgium (I like Belgium more than France) for wine and cheese whenever you like.

 

[Perisher]

Debt free
Paid up car to maintain
2 to 3 budget holidays a yearly within Asia
Groceries for 5. Most meals r home cooked
Domestic helper
Common hobby that they picked up. Requires lessons that do not cost much
Kids are financially independent

I guess the car+maid took up the bulk of the cost.
Groceries for 5 too...
5-6k for 2 is fine but to support family of 5 and pay for maid+car...

I would say having a maid+car+paying for 5 people's groceries is the extravagant part but that's just me.
Singaporeans are use to having car+maid so much they don't see it as something extra.

 

[Shiny Things]

This is interesting, how do you get a visa to retire in the USA? Would you be able to work part-time jobs? I did my college in the US but I dont think cost of living is cheaper than Singapore?

What Wondrdoggie wrote is 100% bang on. Housing and cars are vastly cheaper over here; food is slightly more expensive at the very low end and flat everywhere else.

How does the investment track work?

It's also true that it's not easy to move here without a job already lined up (and that's kind of how they want it; the USA deliberately makes it hard to move here).

The general idea of the investor visa is that investing $1mio into projects that employ people (or $500k if you're doing it in a less-developed part of the country) gets you a visa in the "EB-5 investor" category, and then two years later you can get a green card; the thing to be wary of is that there are a lot of scams around the EB-5 program, where they basically take your money and run off to Belize.

You really want to talk to an immigration lawyer if you're thinking of doing this (I can hook you up with the guys handling my green card, they're quite good).

 

[greddy88]

I guess the car+maid took up the bulk of the cost.
Groceries for 5 too...
5-6k for 2 is fine but to support family of 5 and pay for maid+car...

I would say having a maid+car+paying for 5 people's groceries is the extravagant part but that's just me.
Singaporeans are use to having car+maid so much they don't see it as something extra.

For example us, we don't have maid and don't intend to.
Everything DIY and showing the kids the example from young.

Car is the other major expense that will be sold off if for whatever reason I lose that allowance of 1k.

House is fully paid, so next target is either a second property or some other investment means.
(Insurance excluded) Maxed out the SA and been doing sti etf via SRS, should be quite comfy for both of us when we retire, of course, provided the gov don't screw us by then.

My only issue is children's education which my wife cannot let go.. Currently spending around a k on their tuition and enrichment classes.

 

[havetheveryfun]

For example us, we don't have maid and don't intend to.
Everything DIY and showing the kids the example from young.

Car is the other major expense that will be sold off if for whatever reason I lose that allowance of 1k.

House is fully paid, so next target is either a second property or some other investment means.
(Insurance excluded) Maxed out the SA and been doing sti etf via SRS, should be quite comfy for both of us when we retire, of course, provided the gov don't screw us by then.

My only issue is children's education which my wife cannot let go.. Currently spending around a k on their tuition and enrichment classes.

the money spent on tuition n enrichment classes.. think if saved up instead for a 2-3% yield, your child will have a much better life when he 20 +

1k every month for 20 years at 3% yield... is 332k.. kind of shocking if you think that way. compared to even ur child get a first class honors and get a good job starting with 5k pay... I would rather choose the 332k , but that's just me.

 

[highsulphur]

We need to limit our "financial commitments" to our kids (eg overseas education, housing etc), otherwise there will never be retirement for us.

 

[starfish.starfish]

We need to limit our "financial commitments" to our kids (eg overseas education, housing etc), otherwise there will never be retirement for us.

My parents have never promised me overseas education or money to buy house etc. however they have always tried their best to provide love and stability at home and experiences during growing up. These experiences do not need to be expensive nor exotic, kids have very simple needs. Never had tuition but lots of free ECA in school and some arts and swim classes.

And I think I turned out alright

I think certain activities will help to build and mold the child's character but should be selective and not just blindly follow the crowd.

 

[Bedokian]

It is very hard to draw a line on how much to spend on enrichment and extra tuition. In parenting forums most would say they are worth it. I remember there was a local current affairs TV program aired early this year talking about the balance of spending on a kid's enrichment and managing one's retirement.

I have seen some kids turning out well academically without all these things, but I have also seen others who remained as they were even with all the extra coaching and tuition.

 

[dork32]

Never had tuition but lots of free ECA in school and some arts and swim classes.

And I think I turned out alright

i also turned out quite alright. but i want my kids to be outstanding.

swimming lessons in school will probably teach you to swim to the other side of the pool.
my 9 year old son can do it it 40 s and my 11 year old daughter can do it it 36 s. when they go for competitions, both of them are soundly beaten.
i had free swimming lesson when i was a kid. i was a top swimmer then during the swimming lessons. At my very peak when i was 21 years old, i was able to do 36 s.
I put in 500 a month for swimming lessons a month. my kids lost to the other kids whose parents join expensive clubs such that they can receive better training

i also put in 1000 a month for my kids tuition. their results do improve. both my kids, though did not win any prizes, but are in the top 10% of their cohort in their school. my kids lost to the other kids whose parents are able to put in more money in them

it is not a level playing field these days. parents that can put in more for their kids tends to do better.

 

[Genosis]

i also turned out quite alright. but i want my kids to be outstanding.

i also put in 1000 a month for my kids tuition. their results do improve. both my kids, though did not win any prizes, but are in the top 10% of their cohort in their school. my kids lost to the other kids whose parents are able to put in more money in them

Wow.....no wonder DW divested his portfolio and set up tuition business. Parents are really willing to spend huge on education in Singapore!

 

[dork32]

1k every month for 20 years at 3% yield... is 332k.. kind of shocking if you think that way. compared to even ur child get a first class honors and get a good job starting with 5k pay... I would rather choose the 332k , but that's just me.

i choose to give my kids first class honors with a 5k starting pay.

i do not even come close to a first class honors but i earn 130k last year. but i very uncle already. what is the return on investment for the 332k?

if you want to have kids and do not want to help develop them, might as well dont have kids.

i am sure you do not have kids

 

[dork32]

yes i do spend a lot of time with my kids as well. i do believe in this.

my 500 only allows my kids to swim twice a week with the coach. i will swim with my kids three more times. it is good to train your kids in cca that you can participate in as well.

tuition is only twice a week. i do spend time to help my kids with their school work as well.

despite that my kids still have at least 2 hrs a day on their favorite activities, computer games on week days. on weekends and school holidays, it is 4 hrs per day.

 

[dork32]

Wow.....no wonder DW divested his portfolio and set up tuition business. Parents are really willing to spend huge on education in Singapore!

you are right that tuition is big business. but it is not easy to earn my money. i do check on their activities and my kids results. if it is not good, i will change.

 

[Genosis]

We really need more parents like bro dork.

Singapore has a bright future after all!

 

[highsulphur]

My parents have never promised me overseas education or money to buy house etc. however they have always tried their best to provide love and stability at home and experiences during growing up. These experiences do not need to be expensive nor exotic, kids have very simple needs. Never had tuition but lots of free ECA in school and some arts and swim classes.

And I think I turned out alright

I think certain activities will help to build and mold the child's character but should be selective and not just blindly follow the crowd.

It's easy to say all the above until you are a parent yourself, especially when you have the means.

 

[dork32]

We really need more parents like bro dork.

Singapore has a bright future after all!

my kids are good but not great.
they are beaten soundly in their cca.
they are beaten soundly in their studies.

we should just try to make our kids better.

 

[Seannie]

if you want to have kids and do not want to help develop them, might as well dont have kids.

Sounds like a tough choice. But wife and MIL wants kids leh. Can i say NO? Will get beaten to a pulp and looked down by the relatives. Not as easy as you say lar. 人在江湖身不由己

 

[dork32]

It's easy to say all the above until you are a parent yourself, especially when you have the means.

you are so right.

it is demoralizing when you see the kids, the ones that you loved the most, the ones that you place your hopes in, being beaten by other kids.

you are right that i would try to put in a bit more to help them instead of indulging in extravagance.

 

[highsulphur]

you are so right.

it is demoralizing when you see the kids, the ones that you loved the most, the ones that you place your hopes in, being beaten by other kids.

you are right that i would try to put in a bit more to help them instead of indulging in extravagance.

It's normal to feel this way but it is also unhealthy if it goes overboard by imposing too much stress on them. Hard to balance. Bottomline is that we want them to be happy.

 

[dork32]

Sounds like a tough choice. But wife and MIL wants kids leh. Can i say NO? Will get beaten to a pulp and looked down by the relatives. Not as easy as you say lar. 人在江湖身不由己

the thing about developing your kids is this. everything is very expensive

gynae is expensive
hospital is expensive
confinement is expensive
milk powder is expensive
diaper is expensive
infant care is expensive
child care is expensive.

after spending so much on your kids and your kids dont turn out well. isnt it very sad? for me, after spending so much, i might as well as put in a bit more such that they turn out better.