EDMW Retirement Thread

[cyke69sg]

how much to retire

Varies for every person. Too many variables personal requirements and circumstances.

 

[cyke69sg]

I willing to give up only if the country offers pension scheme for residents. Otherwise, just hold on to SG citizenship

No need citizenship also got pension. PR also have.

But I do find that still being dependent on SG by way of HDB CPF is psychologically for me not a positive. I still feel beholden to SG that way. I guess is different for others.

I calculated it to be around $1.37M for me, but still have many years left to go.

1.37M portfolio value? Generating passive income?

 

[d3n]

User @Little turtles banned in this thread for 7 days.

Thanks for clearing that sh it stirrer disturbing the peace in this thread

 

[d3n]

Sounds more like bed and breakfast business model. Maybe not even that scale. More akin to like when friends come to visit and you host and cook for them.

That one is much simpler. As you said something to do.

You should try it then bro!

Normal FNB biz got a lot more headaches.

Yah last time when i was younger i visited taiwan and stayed at this min su (homestay akin to airbnb) , the concept is very similar. Besides providing accommodation, the host also provide simple food for the guest.

then later i stayed at this airbnb in bkk before also similar concept.

i think as a traveller it brings so much warmth and not the usual check in hotel then eat their buffet breakfast that kind of travelling.

 

[cyke69sg]

Yah last time when i was younger i visited taiwan and stayed at this min su (homestay akin to airbnb) , the concept is very similar. Besides providing accommodation, the host also provide simple food for the guest.

then later i stayed at this airbnb in bkk before also similar concept.

i think as a traveller it brings so much warmth and not the usual check in hotel then eat their buffet breakfast that kind of travelling.

It's a very small scale FNB.

 

[byfun]

No need citizenship also got pension. PR also have.

But I do find that still being dependent on SG by way of HDB CPF is psychologically for me not a positive. I still feel beholden to SG that way. I guess is different for others.

1.37M portfolio value? Generating passive income?

Hdb is not bad .. if sinkie choose to live overseas with the rental income from their hdb. Another way to add to passive income overseas. Even lousy 3 room flat can command $3k rental in sg nowadays.

If have own passive income of 3k mean have 6k passive income overseas.

If living in Asia country with the strong sgd and $6k can get good quality of life.

 

[stanlawj]

I think the big reason is also very low taxes

It is cheap to retire in Singapore if you consider taxation.

This is the most important reason to be a Singapore tax-resident as retiree. Zero capital gains tax.

 

[stanlawj]

Dalat, 3 hrs from nha trang

how long do you stay in Vietnam?

 

[Wanderer123]

how long do you stay in Vietnam?

The longest anyone can stay in vietnam as a tourist is 3 months, apply evisa online, 25usd

 

[cyke69sg]

This is the most important reason to be a Singapore tax-resident as retiree. Zero capital gains tax.

It's good to have. But not a necessity.

Personally I like that I am free from being dependent on Singapore.

Freedom is my thing in retirement.

If I am retiring in Singapore then ok. But if I choose to be elsewhere but then still have to think about Singapore HDB rental landlord stuff, Singapore bank accounts, filing taxes, CPF all from abroad or have to keep going back to Singapore it is to me a hassle I rather not go through.

With taxes there are various ways to manage it. It is about being familiar with the laws and how-to manage it. No one is taxed 100%

Always got trade offs. Freedom and peace of mind is my goal.

 

[stanlawj]

It's good to have. But not a necessity.

Personally I like that I am free from being dependent on Singapore.

If you don't need zero capital gains tax, then investment portfolio needs to be large enough to accommodate the G7's capital gains tax.

For a theoretical $300,000 capital gain based on 30% profit from a $1 million portfolio growing to $1.3 million via buying and selling listed stocks within about one year, ending in cash), here is the approximate capital gains tax under each G7 country’s rules for an individual resident taxpayer (AI estimation):

Tax on $300k capital gains

• Japan ≈ $61k
• United States ≈ $71k (federal only; + state possible)
• United Kingdom ≈ $72k
• Italy ≈ $78k
• Germany ≈ $79k
• Canada ≈ $80k (province-dependent)
• France ≈ $90k

Leaving only approx $220k nett.

In Singapore, capital gains tax is zero, which means, you only need a $733k portfolio to generate the same after-tax net gains as $1M in G7, i.e. can retire much earlier as Singapore tax resident.

But if you don't need zero capital gains tax, then no need Singapore anymore. No nature, horrible hot weather all-year round, crowded.

 

[stanlawj]

The longest anyone can stay in vietnam as a tourist is 3 months, apply evisa online, 25usd

Sounds like a great idea.

 

[cyke69sg]

If you don't need zero capital gains tax, then investment portfolio needs to be large enough to accommodate the G7's capital gains tax.

For a theoretical $300,000 capital gain based on 30% profit from a $1 million portfolio growing to $1.3 million via buying and selling listed stocks within about one year, ending in cash), here is the approximate capital gains tax under each G7 country’s rules for an individual resident taxpayer (AI estimation):

Tax on $300k capital gains

• Japan ≈ $61k
• United States ≈ $71k (federal only; + state possible)
• United Kingdom ≈ $72k
• Italy ≈ $78k
• Germany ≈ $79k
• Canada ≈ $80k (province-dependent)
• France ≈ $90k

Leaving only approx $220k nett.

In Singapore, capital gains tax is zero, which means, you only need a $733k portfolio to generate the same after-tax net gains as $1M in G7, i.e. can retire much earlier as Singapore tax resident.

But if you don't need zero capital gains tax, then no need Singapore anymore. No nature, horrible hot weather all-year round, crowded.

I don't need the zero capital gains tax.

There are also other accounts like TFSA and RRSP that have no tax in capital gains. It's a little complicated so I won't go into details.

Also with corporate investment accounts there are various ways to reduce tax eg owning a participating life insurance owned under corporate. Distributions are also taxed differently can be eligible dividends, capital gains or return of capital. All taxed differently.

In Singapore this is not something people think much about since it is zero tax. But that doesn't mean everyone in G7 countries don't work with accountants to make use of various tax management schemes.

For your example in Canada only 50% of capital gains are taxable. Meaning 50% is tax free.

So for a 300k capital gain, $150k is withdrawn tax free.

Tax is on the other half ie $150k. Which is at marginal rates ie depends what tax bracket you're in.

$150,000 taxable income — bracket by bracket​

Portion of income	Federal	Alberta	Combined marginal rate	Approx. tax on that slice*
$0–$58,523	14%	8%	22%	$12,875
$58,523–$61,200	20.5%	8%	28.5%	$763
$61,200–$117,045	20.5%	10%	30.5%	$17,033
$117,045–$150,000	26%	10%	36%	$11,864
Total before credits				~$42,535

A retiree who has no other income would thus only have to pay tax on the $150k and according to the various tax brackets for each amounts as above. (It's of course different for a high income earner with salary that puts them in high tax brackets already. But for this discussion we are talking about retirees who more likely have no other income besides their investments)

Total Taxes on a capital gains of $300k is $42,535. An effective total tax rate of 14.18%

What people do is to not realize excessive amounts of capital gain at a time. Draw what you need or use only. And across various tools and accounts. Eg TFSA is tax free. Which means if you grow your TFSA to millions all gains and withdrawals are tax free. And the room is always there. Can reinvest using the room.

So instead of taking all $300k from the non registered accounts take some from TFSA (tax Free) and the other accounts. There is also capital loss harvesting you can use to reduce the capital gains. Eg sell ETF that has $300k capital gains and sell ETF that has $100k capital loss then total net capital gains is $200k. So then only $100k is taxable.

It's complicated and one needs to understand how the tax works in their country but it is true that not everyone pays the same taxes across the board on the same capital gains amounts.

I am more than glad I no need Singapore anymore. No nature, horrible hot weather all-year round, crowded!

 

[jumpthepig]

Freedom and peace of mind and still be able to have fancy things (anytime you want) is the IDEAL.

I'm no saint—I treat myself to fancy stuff once in a while. 'fancy' is a moving target. A billionaire’s fancy is $200 million; the man on the street’s fancy is an ATAS café coffee.

Always remember - Peace of mind comes from not letting someone else’s baseline define yours.

 

[ramlee]

I am the 天下无敌 of lao tikos

you ain't see the best of me yet
gimme time and i'll make you forget the rest

 

[d3n]

It's a very small scale FNB.

Easier to manage. At 50+ years old with no fnb exp, this the best liao haha

 

[d3n]

Hdb is not bad .. if sinkie choose to live overseas with the rental income from their hdb. Another way to add to passive income overseas. Even lousy 3 room flat can command $3k rental in sg nowadays.

If have own passive income of 3k mean have 6k passive income overseas.

If living in Asia country with the strong sgd and $6k can get good quality of life.

Thats why no scare.

why scare of congested traffic, language problems, weeds and guns issue (?!) , etc etc

your good quality of life in these countries already outweighed your life in sg (if continuing staying in sg to retire - you probably constantly worrying when your $$ will run out, then have to continue to work part time to make sure it don’t happen)

 

[cyke69sg]

I'm no saint—I treat myself to fancy stuff once in a while. 'fancy' is a moving target. A billionaire’s fancy is $200 million; the man on the street’s fancy is an ATAS café coffee.

Always remember - Peace of mind comes from not letting someone else’s baseline define yours.

Totally agree!

Fancy as in fancy to me not others.

 

[cyke69sg]

Easier to manage. At 50+ years old with no fnb exp, this the best liao haha

I don't know about you. But in retirement I want less headaches. Less problems.

And one of the greatest source of headaches is having to deal with people.

Different people have their own ideas and interpretations and preferences. Inevitable to meet someone where it clashes with your own.

People also tend to want to have what they want.

I'd rather not be a in a position of weakness to have to serve people.

 

[d3n]

I don't know about you. But in retirement I want less headaches. Less problems.

And one of the greatest source of headaches is having to deal with people.

Different people have their own ideas and interpretations and preferences. Inevitable to meet someone where it clashes with your own.

People also tend to want to have what they want.

I'd rather not be a in a position of weakness to have to serve people.

yes i get what you mean. face it often already on forum.

see how it goes next time.