48 and in a job rut, wondering if I have enough for frugal retirement/FIWOOT

[NutMan]

About me: 48M this year, wife freelances but has reduced her work to care and tutor (she's amazing) our son who's in Sec 1 this year.

Job situation:

• Been in the same sector for over 10 years, now quite sick of the relentless chasing of KPI's that I increasingly do not find meaningful.
• With the promotions over the years and the accompanying role expansions, I've grown to dislike my job scope over time. Job involves being always on a contactable in case of crisis.
• My bosses are perfectionists, one of them OTs daily until 12-2am to clear work. They are good, but their high expectations have made juniors leave.
• Been regularly OT-ing until 9pm for the past 4 years, due to volume of work and the fact that one does slow down with age.
• Right now, I feel quite done with my job. Hardly get to see my family during the week due to OT, and I bring work home over the weekends. Haven't been sleeping well either; bosses keep bugging the team and I about things that have not been done.

Finances:

• Am not financially savvy and have currently have nothing in investments.
• Wife and I are quite risk-averse, due to past investments that did not work out during a past market crash.
• HDB fully paid for, no car, no outstanding loans at all.
• Salary and promotion where I am is quite slow. Started with around $4K ten years ago, now drawing $9K p/m.
  Thankfully, I have been able to consistently save more than half of my monthly salary over the past decade or so.
• CPF OA is ~$310K, SA is ~$174K. Cash savings ~$300K are in various banks (FD, savings accounts with slightly higher interest rates).
• Have some life insurances and endowment plans that I'm still paying off, yearly premiums around $20K. Bulk of the premiums to be cleared by 2028. Can expect ~$450K when these mature when I'm 65 (still 17 more years to go).

Lifestyle:

• Generally we've been spending within our means and prioritising saving.
• We're quite frugal, but still enjoy eating out at family restaurants during the weekends and public holidays.
• Annual travel for holidays is limited to regional destinations.
• Basic household expenditure around $2.2K p/m (but may be a lower-end estimate).

Am looking to leave my job soon for the sake of my health and sanity, but I know my son is still young so I won't (and can't) go into full retirement mode. Thankfully, wife is supportive of a move to a less stressful job, as we're both not young and we've seen our peers get sick and family members pass on - there's got to be something more to life than working and being constantly stressed out.

Would like to work on my own terms, and take up employment that I find more meaningful in other sectors and industries, and am cognisant that this will come with substantially lower pay. Will take up some WSQ courses and explore career options with less stress and the ability to truly drop work after hours.

My target is to minimally cover my family's monthly expenses and perhaps a bit more, so that I can minimise the draw-down on my savings and make it last until CPF Life kicks in. My target is to at least hit the Full Retirement Sum (should be around $280K++?? by then), which should not be a problem given the sum in my OA. ERS is out of the question, I feel.

Been looking to grow my CPF OA and looking at some safe options in Endowus, such as their Cash Smart Secure that seems to be able to beat the CPF OA interest rate.

Being a newbie to this, would it be better to go with a larger lump sum and smaller monthly contributions, or the DCA approach with a smaller upfront lump sum but larger monthly contributions?

Thank you.

 

[hwmook]

About me: 48M this year, wife freelances but has reduced her work to care and tutor (she's amazing) our son who's in Sec 1 this year.

Job situation:

• Been in the same sector for over 10 years, now quite sick of the relentless chasing of KPI's that I increasingly do not find meaningful.
• With the promotions over the years and the accompanying role expansions, I've grown to dislike my job scope over time. Job involves being always on a contactable in case of crisis.
• My bosses are perfectionists, one of them OTs daily until 12-2am to clear work. They are good, but their high expectations have made juniors leave.
• Been regularly OT-ing until 9pm for the past 4 years, due to volume of work and the fact that one does slow down with age.
• Right now, I feel quite done with my job. Hardly get to see my family during the week due to OT, and I bring work home over the weekends. Haven't been sleeping well either; bosses keep bugging the team and I about things that have not been done.

Finances:

• Am not financially savvy and have currently have nothing in investments.
• Wife and I are quite risk-averse, due to past investments that did not work out during a past market crash.
• HDB fully paid for, no car, no outstanding loans at all.
• Salary and promotion where I am is quite slow. Started with around $4K ten years ago, now drawing $9K p/m.
  Thankfully, I have been able to consistently save more than half of my monthly salary over the past decade or so.
• CPF OA is ~$310K, SA is ~$174K. Cash savings ~$300K are in various banks (FD, savings accounts with slightly higher interest rates).
• Have some life insurances and endowment plans that I'm still paying off, yearly premiums around $20K. Bulk of the premiums to be cleared by 2028. Can expect ~$450K when these mature when I'm 65 (still 17 more years to go).

Lifestyle:

• Generally we've been spending within our means and prioritising saving.
• We're quite frugal, but still enjoy eating out at family restaurants during the weekends and public holidays.
• Annual travel for holidays is limited to regional destinations.
• Basic household expenditure around $2.2K p/m (but may be a lower-end estimate).

Am looking to leave my job soon for the sake of my health and sanity, but I know my son is still young so I won't (and can't) go into full retirement mode. Thankfully, wife is supportive of a move to a less stressful job, as we're both not young and we've seen our peers get sick and family members pass on - there's got to be something more to life than working and being constantly stressed out.

Would like to work on my own terms, and take up employment that I find more meaningful in other sectors and industries, and am cognisant that this will come with substantially lower pay. Will take up some WSQ courses and explore career options with less stress and the ability to truly drop work after hours.

My target is to minimally cover my family's monthly expenses and perhaps a bit more, so that I can minimise the draw-down on my savings and make it last until CPF Life kicks in. My target is to at least hit the Full Retirement Sum (should be around $280K++?? by then), which should not be a problem given the sum in my OA. ERS is out of the question, I feel.

Been looking to grow my CPF OA and looking at some safe options in Endowus, such as their Cash Smart Secure that seems to be able to beat the CPF OA interest rate.

Being a newbie to this, would it be better to go with a larger lump sum and smaller monthly contributions, or the DCA approach with a smaller upfront lump sum but larger monthly contributions?

Thank you.

Granted you already have 310k in OA, I don't think ERS is out of the question. You should be able to meet ERS, it's a matter of choice as you will be able to withdraw from OA when you reach 55. If you are just looking at endowus cash smart secure then I would suggest you don't waste your time. Current returns should be very close to 2.5% and will likely go below that by end of the year so no point. If you willing to take a bit more risk then we can suggest other alternatives else with your 100% cash portfolio then I would suggest stay status quo. You can transfer some OA to SA if you don't use it so you can get more interest.

 

[fr33d0m]

How is your wife's CPF situation?

also how are elderly parents?

since you have decided to quit the rat race, at minimum you can top up your SA to FRS with your CPF OA and you wife SA to her FRS, too. no reason to earn 2.5% when you can earn 4%

 

[BBCWatcher]

How is your wife's CPF situation?
also how are elderly parents?

Somewhat relatedly, what about higher education expectations for the Secondary 1 child?

 

[NutMan]

Wife has no CPF due to freelance work, minimal savings too.

Elderly parents are thankfully financially stable and independent, with no major health concerns.

 

[maumu]

personally think it's best to have enough savings to make it work hard enough to cover the daily essentials and a comfortable life, aka. passive income.

no guarantee that there'll be enough runway to realise the profits in funds and stocks. also need to take into account inflation... COL... etc.

 

[BBCWatcher]

Wife has no CPF due to freelance work, minimal savings too.

She’s in bonus interest territory then (could be earning 5% interest p.a.), and statistically she has more longevity risk than you have. Have you thought about helping her get her CPF SA out of the starting blocks?

And she should have some CPF MA (by the way) since she’s self-employed. What’s up with that?

 

[hwmook]

Wife has no CPF due to freelance work, minimal savings too.

Elderly parents are thankfully financially stable and independent, with no major health concerns.

If that is the case then what is stopping you from transferring your OA to your wife? 2.5% become 4%, no need to put into low returns "safe investment".

 

[BBCWatcher]

If that is the case then what is stopping you from transferring your OA to your wife? 2.5% become 4%, no need to put into low returns "safe investment".

5% actually. It seems she's still well within CPF bonus interest territory.

 

[JuniorLion]

Because her money is not his money.

 

[artncraft]

About me: 48M this year, wife freelances but has reduced her work to care and tutor (she's amazing) our son who's in Sec 1 this year.

Job situation:

• Been in the same sector for over 10 years, now quite sick of the relentless chasing of KPI's that I increasingly do not find meaningful.
• With the promotions over the years and the accompanying role expansions, I've grown to dislike my job scope over time. Job involves being always on a contactable in case of crisis.
• My bosses are perfectionists, one of them OTs daily until 12-2am to clear work. They are good, but their high expectations have made juniors leave.
• Been regularly OT-ing until 9pm for the past 4 years, due to volume of work and the fact that one does slow down with age.
• Right now, I feel quite done with my job. Hardly get to see my family during the week due to OT, and I bring work home over the weekends. Haven't been sleeping well either; bosses keep bugging the team and I about things that have not been done.

Finances:

• Am not financially savvy and have currently have nothing in investments.
• Wife and I are quite risk-averse, due to past investments that did not work out during a past market crash.
• HDB fully paid for, no car, no outstanding loans at all.
• Salary and promotion where I am is quite slow. Started with around $4K ten years ago, now drawing $9K p/m.
  Thankfully, I have been able to consistently save more than half of my monthly salary over the past decade or so.
• CPF OA is ~$310K, SA is ~$174K. Cash savings ~$300K are in various banks (FD, savings accounts with slightly higher interest rates).
• Have some life insurances and endowment plans that I'm still paying off, yearly premiums around $20K. Bulk of the premiums to be cleared by 2028. Can expect ~$450K when these mature when I'm 65 (still 17 more years to go).

Lifestyle:

• Generally we've been spending within our means and prioritising saving.
• We're quite frugal, but still enjoy eating out at family restaurants during the weekends and public holidays.
• Annual travel for holidays is limited to regional destinations.
• Basic household expenditure around $2.2K p/m (but may be a lower-end estimate).

Am looking to leave my job soon for the sake of my health and sanity, but I know my son is still young so I won't (and can't) go into full retirement mode. Thankfully, wife is supportive of a move to a less stressful job, as we're both not young and we've seen our peers get sick and family members pass on - there's got to be something more to life than working and being constantly stressed out.

Would like to work on my own terms, and take up employment that I find more meaningful in other sectors and industries, and am cognisant that this will come with substantially lower pay. Will take up some WSQ courses and explore career options with less stress and the ability to truly drop work after hours.

My target is to minimally cover my family's monthly expenses and perhaps a bit more, so that I can minimise the draw-down on my savings and make it last until CPF Life kicks in. My target is to at least hit the Full Retirement Sum (should be around $280K++?? by then), which should not be a problem given the sum in my OA. ERS is out of the question, I feel.

Been looking to grow my CPF OA and looking at some safe options in Endowus, such as their Cash Smart Secure that seems to be able to beat the CPF OA interest rate.

Being a newbie to this, would it be better to go with a larger lump sum and smaller monthly contributions, or the DCA approach with a smaller upfront lump sum but larger monthly contributions?

Thank you.

It is very hard to change job at your age for a similar pay if you do not have guan xi.

 

[asiafrenz]

if u still need to work to bring in $ for yourself and the family, then look for another job first before leaving current one else you will just +1 to the numerous unemployed or under-employed here, or unless you are so confident in getting another job shortly after then can leave current one without one already lined up

 

[wira]

with TS relatively low mpnthly expenses of $2.2K/mth can afford to take on a less stressful job albeit with lower pay.

Probably try to take up some skillsfuture classes that will equip you for an industry change that can give you a less stressful job. Probably even if get a $5k/mth job is still comfortable given low expenses and wife also draws some $$ doing freelance work.

Given TS is risk averse, no point to invest the $$ as it will give you more stress. just leave it in safer instruments like T bills, SSB or FD bah

 

[revhappy]

Take a break, recharge and then look for job which is more reasonable in terms of timings and deadlines.

We usually think in extremes and prepare for worst case scenario. But you can take a step back, relax and take it as a short 6 months to 1yr sabbatical and I am sure it will do you a lot of good and you will be able to bounce back.

All the best!

 

[Sauron]

Don't quit w/o a job. See if you can move to a less stressful role in your company first.

 

[BBCWatcher]

Because her money is not his money.

That's only because she doesn't seem to have much.

However, his money is her money, to a considerable degree anyway. If he'd like to test this reality, Singapore's Family Courts can oblige. Even if (or especially if?) he'd like less of his money to be her money, an excellent way forward is 5.0+% interest instead of 2.5% interest p.a. More money for the household thanks to CPF's generous offer means more money for both spouses.

 

[qhong61]

with TS relatively low mpnthly expenses of $2.2K/mth can afford to take on a less stressful job albeit with lower pay.

Probably try to take up some skillsfuture classes that will equip you for an industry change that can give you a less stressful job. Probably even if get a $5k/mth job is still comfortable given low expenses and wife also draws some $$ doing freelance work.

Given TS is risk averse, no point to invest the $$ as it will give you more stress. just leave it in safer instruments like T bills, SSB or FD bah

Lower pay doesn't mean less stress

 

[qhong61]

Take a break, recharge and then look for job which is more reasonable in terms of timings and deadlines.

We usually think in extremes and prepare for worst case scenario. But you can take a step back, relax and take it as a short 6 months to 1yr sabbatical and I am sure it will do you a lot of good and you will be able to bounce back.

All the best!

Not easy

 

[RetiredBoomer]

Nutman, I just wanted to say that 48 is not old, you have at least a good 10 years of productive employment ahead of you. My personal story is similar except that I was retrenched at 45, with 2 kids and stayed home wife to feed. I was fortunate to find a job 6 months later and stayed on till I retire in my late 50s.

On a longer term, perhaps you will have to sit down and work through your finances, take a closer look your expenses in detail, plan out how to cover your expenses when you take a lower salary. For a reference point, my son graduated this year from a local university, the total expenses for 4 years was S$100K all in. He stayed in hostel for a year, went on relatively cheaper overseas internship programme and generally he is frugal like me. Research all the financial help local U provide, there are very helpful for lower income family. Then there are also other fund you need to prepare, I called it a personal sinking fund for situation like major expenses that you can't avoid in the future.

I have no specific investment advice for you since I am also risk averse. I planned my returns based on compounded 2.5% OA interest so anything above will be a bonus to me. I loaded up me and my wife's RA to ERS each year since I feel it is quite important to have a predictable income when we are older.

I wish you all the best and hope you worked out a way forward.

 

[highsulphur]

How much is TS salary? Is it hard to get similar one outside?