Can I FIRE?

[FuNKySoULyBrO]

Unless u are getting free meals, eg staying with mum who cooks, otherwise $600 per mth quite hard to sustain leh....

 

[HumHum22]

Everybody's expenses are different and let's say I live a spartan life. I do cook. Yup getting around And going overseas are definitely my options. Can let out my hdb and earn more. I think being overseas as a singaporean is the best hehe

 

[lifeislonggamma]

Eating well in terms of nutritional content is important as diet is a key determinant of health and longevity.

Unfortunately, given our current supply chains and cost structures, cheap food tend to be of lower quality.

Perhaps that's why there is a mini boom in people growing their own vegetables.

Living simply is highly commendable, but sometimes I see recommendations with regard to saving money on food which appear to ignore long-term, hidden health risks.

 

[Shiny Things]

I've a fully paid flat, $150000 savings, $150000 stocks and meet the minimum sum for CPF. My annual dividends from stocks is around $6000. I've a term insurance worth $100000. My monthly expenses is at most $600. Can I stop working full time at 40 years old? No dependents.

It's going to be really tight. The most you can safely withdraw from a $300k portfolio is about $6k-$9k a year.

The other thing I'd say is: aren't you going to be a bit miserable? You've still got 40 or 50 years in front of you, and you're going to be living on twenty bucks a day for all of that time. By any reasonable standard I'd say that's below the poverty line.

 

[tangent314]

Ok, so you have

$150k cash
$150k stocks
$171k+ in CPF

First, thing I would make sure your BHS is maxed out, and move all of your OA into SA. You will want to make sure your RA is nice big and fat when you reach age 65 in 25 years.

With the $150k cash and $150k stocks, I would use them all and buy into MBH (Nikko AM SGD Investment Grade Corporate Bond ETF) minus $12000 (4%).

Every year, redeem $12000 (after dividends) of this ETF, increasing by 2.4% per year to combat inflation. For the first year, this allows you to live on $1000/month.

On the 25th year, this ETF will be almost depleted (I calculate $5k+ remaining assuming a conservative IRR of 2.8% for MBH). This is when CPF Life takes over for the rest of your life.

Calculations here: https://goo.gl/z5qPLJ

 

[havetheveryfun]

If you have at least a 4-room flat fully paid on top of all those which you are staying alone in, then will be good.

So at least if you run out of money, you can choose to rent 1 of the rooms out. Or just rent it out at the start to raise your monthly passive income stream.

 

[BBCWatcher]

With the $150k cash and $150k stocks, I would use them all and buy into MBH (Nikko AM SGD Investment Grade Corporate Bond ETF) minus $12000 (4%).

That’s an odd combination of too conservative and too concentrated, in my view. I’d mix that up with about 30% equities (split evenly between global and local) and 70% bonds, with most of the bonds in MBH but a few in SSBs.

This is when CPF Life takes over for the rest of your life.

Has to be the Escalating Plan, though.

This is tough math to square at these levels, as everyone is pointing out — I agree. More “altitude” would be quite helpful.

 

[rrr2015]

with bond ETF, i thought may or may not get back full principal?

On the 25th year, this ETF will be almost depleted (I calculate $5k+ remaining assuming a conservative IRR of 2.8% for MBH). This is when CPF Life takes over for the rest of your life.

Calculations here: https://goo.gl/z5qPLJ

 

[rrr2015]

wow ... $600 monthly includes oversea trips?
$600 probably just enough for my bare basic (i.e no travels, entertainment etc). can share how your spending are like?

your saving better be 7.2K x 25yr = 180K @ 40yo
passive income from 150K stock holding can be use to buffer & makeup for inflation or discretionary spending

just another 2 cents

Everybody's expenses are different and let's say I live a spartan life. I do cook. Yup getting around And going overseas are definitely my options. Can let out my hdb and earn more. I think being overseas as a singaporean is the best hehe

 

[Toni90]

I've a fully paid flat, $150000 savings, $150000 stocks and meet the minimum sum for CPF. My annual dividends from stocks is around $6000. I've a term insurance worth $100000. My monthly expenses is at most $600. Can I stop working full time at 40 years old? No dependents.

How much your flat? Market value.

 

[spiritGate]

Just work a few more years, save a bit more, stocks hit $250k earning 4% dividends and savings around $350k. Based on your description on your expense Budget, should be an issue on hitting this target

 

[maple96]

I've a fully paid flat, $150000 savings, $150000 stocks and meet the minimum sum for CPF. My annual dividends from stocks is around $6000. I've a term insurance worth $100000. My monthly expenses is at most $600. Can I stop working full time at 40 years old? No dependents.

1. How many more years have u to 40?
2. 150k stock is market value? What if market "crash"? What's impact on dividend, guaranteed 6k forever?
3. CPF meet FRS? in SA? how much in OA and MA? U will need max in MA to cover medical since looks like u are depending on medishieldlife?
4 150k in savings account? low interest?

 

[Oldnerd79]

TS has no dependents and spend v little. If he is comfortable w this lifestyle he definitely can stop working full time and just do part time or freelancing for extra pocket money.

But the fact that you can doesnt mean you should. My advice is to work a few more years to build up a bigger buffer.

 

[Minimalists]

My personal experience tells me that you are ready to set off and live happily ever after. There is no need to keep working for others so that you can have a big buffer of cash in order to stop working, there is no end to this accumulation mindset. Time is our most precious thing, not money. I have recently started reading a book called "The Surrender Experiment" by Michael A. Singer. In the book, I learnt very important truths about life, things come when you need it, there is no need to worry. Start doing what is most important to you.

 

[hwmook]

Let me explain why your $600/mth will not be possible.

Assuming you are thrifty..
Haircut = $10
Breakfast = $1 × 30 =$30(3 Slides of bread + kaya/nutella/jam + 1 glass of milk from milk carton)
Wi-Fi = $39
Utilities = $40 (elect) + $15 (water) + $10 (gas) + $14sanitary charges = $89
S&C = $70
Data plan =$19
Transport = 2 trips of $1 each x 30 = $60
Toothpaste/facial cream/soap/shampoo = $15
Doctor consultation and medicine (once in 2 mths on avg) = $40/2 =$20
Meals $3.50 x 2 x 30 = $210
Newspaper = $30
Toilet paper = $5

That's a grand total of $600 already..
No insurance. No replacement cost of anything spoil. No red bomb. No white bomb.. and you better hope that you don't get any sicker than ordinary cold and flu..

At the risk of sounding offensive, I would say that I typically see this kind of post in EDMW....

Wi-Fi =$39? You can get 300mbps fibre for $29.
Utilities $89 for 1 pax is high.
Toothpaste etc for $15 per month? More like $5.
See doctor once every 2 months? That's very frequent. I don't even see doctor once a year.
Nobody buy newspaper nowadays.
Toilet paper $5 a month, you got diarrhoea everyday?

I can easily cut $100-150 off your estimate. You are overestimating the basic needs. I personally can survive on $600 a month.

 

[HumHum22]

I did not expect the Masters to respond to my posts. Deeply humbled. Actually when I said "FIRE" it is more to fire my crappy boss or going off work for a while without a job. But seeing how tough the job market is nowadays it is a risky move so I could really be retired early due to the circumstances. Anyway if I work for a few more years I could double the numbers I've. Just one question- I mentioned I bought term insurance but Somebody mentioned as a single I dun need any insurance. My question- do I need an insurance?

 

[HumHum22]

My personal experience tells me that you are ready to set off and live happily ever after. There is no need to keep working for others so that you can have a big buffer of cash in order to stop working, there is no end to this accumulation mindset. Time is our most precious thing, not money. I have recently started reading a book called "The Surrender Experiment" by Michael A. Singer. In the book, I learnt very important truths about life, things come when you need it, there is no need to worry. Start doing what is most important to you.

Will check out the book. By the way are you an early retiree? Someone who has FIRED

 

[HumHum22]

Wi-Fi =$39? You can get 300mbps fibre for $29.
Utilities $89 for 1 pax is high.
Toothpaste etc for $15 per month? More like $5.
See doctor once every 2 months? That's very frequent. I don't even see doctor once a year.
Nobody buy newspaper nowadays.
Toilet paper $5 a month, you got diarrhoea everyday?

I can easily cut $100-150 off your estimate. You are overestimating the basic needs. I personally can survive on $600 a month.

My wifi costs $24.90. My pack of 3 toothpastes costs $7.90. I hardly see a doctor unless necessary lol

 

[HumHum22]

Ok, so you have

$150k cash
$150k stocks
$171k+ in CPF

First, thing I would make sure your BHS is maxed out, and move all of your OA into SA. You will want to make sure your RA is nice big and fat when you reach age 65 in 25 years.

With the $150k cash and $150k stocks, I would use them all and buy into MBH (Nikko AM SGD Investment Grade Corporate Bond ETF) minus $12000 (4%).

Every year, redeem $12000 (after dividends) of this ETF, increasing by 2.4% per year to combat inflation. For the first year, this allows you to live on $1000/month.

On the 25th year, this ETF will be almost depleted (I calculate $5k+ remaining assuming a conservative IRR of 2.8% for MBH). This is when CPF Life takes over for the rest of your life.

Calculations here: https://goo.gl/z5qPLJ

Why would you recommend this bond? I think it is a new product.

 

[hwmook]

I did not expect the Masters to respond to my posts. Deeply humbled. Actually when I said "FIRE" it is more to fire my crappy boss or going off work for a while without a job. But seeing how tough the job market is nowadays it is a risky move so I could really be retired early due to the circumstances. Anyway if I work for a few more years I could double the numbers I've. Just one question- I mentioned I bought term insurance but Somebody mentioned as a single I dun need any insurance. My question- do I need an insurance?

A term insurance is usually for dependents in case you pass away or get permanently disabled. Since you have no dependents then there are no real needs for term insurance. Something like a disability insurance that pay you in case you can no longer work make more sense for you.