Is this sufficient for retirement?

[sarduakar2000]

hi guys need a bit of help trying to plan for my retirement and my son education. i have set up this plan to save 22.5 percent of my takehome pay. 1k into SRS every month. Fund invested is INFINITY GLOBAL STOCK INDEX, First Sentier Bridge fund and AM Nikkon Shenton Income fund. 500 to Stashaway. Moderate risk of 18 percent risk and 300 cash into DBS multiplier account. Is this portfolio ok? any advice is welcome

 

[polyglob]

Take retirement to mean no active income (except occasional pocket money type work), and living on passive income including drawing down on savings/capital.

Let's say you retire at 55. SG life expectancy currently is 80-85. Depending on how old you are now, by the time you are 55, life expectancy is probably higher.

Simple arithmetic case first - In retirement you need 100k p.a. for your desired lifestyle. From age 55-85, that's 100k * 30 = 3 mil.

Then you factor in inflation, up/down of your investment portfolio, sequence of returns risk, CPF Life payout, etc.

Treat your son's education as part of the 100k you need if you intend to retire before he is able to make a living himself. Otherwise, it is part of your financial planning while you are earning active income.

 

[Value.Matrix]

hi guys need a bit of help trying to plan for my retirement and my son education. i have set up this plan to save 22.5 percent of my takehome pay. 1k into SRS every month. Fund invested is INFINITY GLOBAL STOCK INDEX, First Sentier Bridge fund and AM Nikkon Shenton Income fund. 500 to Stashaway. Moderate risk of 18 percent risk and 300 cash into DBS multiplier account. Is this portfolio ok? any advice is welcome

You should ask yourself what is your end goal for retirement.

These are able to give some numbers. Unable to comment whether it is enough because there is no number to compare with? Its like saying whether $1,800 savings a month is enough for hawker food vs resturant food?

E.g if the combined yield is 6%, that's about $1,800 with 6% yield. in 20 years time, that gives you about 800k. What can 800k in 20 years future do?

This is what a financial planner should ask you, not what products because that is the last thing.

 

[limster]

This is what a financial planner should ask you, not what products because that is the last thing.

thats very true, many of these so-called agents/consultants/planners are just salespersons pushing products.

 

[s0crates]

TS never state age, desired retirement age and retirement income

 

[Cookie Muncher]

Depends what kind of lifestyle and needs u have ma. Who can define for u.

The more u want the more money u need. The less u want the less money u need

 

[zoneguard]

Simple arithmetic case first - In retirement you need 100k p.a. for your desired lifestyle. From age 55-85, that's 100k * 30 = 3 mil.

Then you factor in inflation, up/down of your investment portfolio, sequence of returns risk, CPF Life payout, etc.

Expenses = Retirement Sum x Withdrawal Rate
Rearranging,
Retirement Sum = Expenses / Withdrawal Rate
Withdrawal Rate < Portfolio Returns - Inflation Rate