Need advice on Retirement Plan

[kohkindachi]

Hello guys, I've been looking around for a good retirement plan for myself which I can pay/deposit on a monthly basis with my take-home income.

Make. Non-smoker
Year Born: 1988
Retirement Age: 55
Payout Period: 55-85
Amount ~$1.5K/month

Thanks

 

[akwl88]

Hello guys, I've been looking around for a good retirement plan for myself which I can pay/deposit on a monthly basis with my take-home income.

Make. Non-smoker
Year Born: 1988
Retirement Age: 55
Payout Period: 55-85
Amount ~$1.5K/month

Thanks

CPF alr there for u

 

[parallelyy]

Retirement income of $1.5k a month or can put it $1.5k a month?

 

[BBCWatcher]

Payout Period: 55-85

I'm also confused about this part. Do you have some other income or windfall already scheduled for your 85th birthday, or do you plan to commit suicide as part of your 85th birthday celebrations?

....What are your needs? Is lifetime income one of them? Start with that. Don't start with what an insurance company sales rep or advertisement told you.

 

[crimsontactics]

CPF!

Sent from . using GAGT

 

[computers70]

Hello guys, I've been looking around for a good retirement plan for myself which I can pay/deposit on a monthly basis with my take-home income.

Make. Non-smoker
Year Born: 1988
Retirement Age: 55
Payout Period: 55-85
Amount ~$1.5K/month

Thanks

wow, you are planning really early man. Please look into your immediate needs and short term goals. Maybe consider a 25 years endowment plans. I do not think it is a right option to go to Annuity now maybe a hybrid life and annuity

 

[kohkindachi]

Hello guys thanks for your reply

- I'm looking at retirement income of $1.5k a month
- I don't think there is such things as 'lifetime' income right? That's why I stopped at 85 when I can rely on children and grandchildren
- I don't think CPF alone is sufficient for me to have $1.5k a month after 55 yr old

 

[kohkindachi]

wow, you are planning really early man. Please look into your immediate needs and short term goals. Maybe consider a 25 years endowment plans. I do not think it is a right option to go to Annuity now maybe a hybrid life and annuity

Planning early to retire early

what 25 years endowment plans can you recommend?

 

[xtwis7]

Looking at your intended retirement age which is in 26 years time, it’s actually shorter than the planned years of retirement (30 years).

Unless you’re comfortable with much higher risk options whether done on your own or through someone, you’ll need to put much more than $1.5k/mth if you want to hit $1.5k during retirement.

You can also consider staggering your retirement payouts. It’s very good to plan early but do you foresee any upcoming commitments in the next 5-10 years which are of more immediate concerns as compared to retirement?

Hello guys thanks for your reply

- I'm looking at retirement income of $1.5k a month
- I don't think there is such things as 'lifetime' income right? That's why I stopped at 85 when I can rely on children and grandchildren
- I don't think CPF alone is sufficient for me to have $1.5k a month after 55 yr old

 

[kohkindachi]

You can also consider staggering your retirement payouts. It’s very good to plan early but do you foresee any upcoming commitments in the next 5-10 years which are of more immediate concerns as compared to retirement?

I'm already married and planning to have have kids.
I do have some savings set aside in my bank for rainy days.

Apart from that, I feel that I can still contribute some of my income for retirement plans or others.

Looking at your intended retirement age which is in 26 years time, it’s actually shorter than the planned years of retirement (30 years).

Unless you’re comfortable with much higher risk options whether done on your own or through someone, you’ll need to put much more than $1.5k/mth if you want to hit $1.5k during retirement.

For this, I'm looking for someone to advise. No knowledge about stocks

 

[computers70]

Planning early to retire early

what 25 years endowment plans can you recommend?

Almost all insurance companies will have a 25 year endowment. You can go around, to deal with somebody you are comfortable.

 

[intime]

Hello guys thanks for your reply

- I'm looking at retirement income of $1.5k a month
- I don't think there is such things as 'lifetime' income right? That's why I stopped at 85 when I can rely on children and grandchildren
- I don't think CPF alone is sufficient for me to have $1.5k a month after 55 yr old

Maybe you can consider accumulating your CPF to reach Enhanced Retirement Sum (ERS) which will give you monthly $1860 - $2000 as of now.

Sinkie insurance agencies do have lifetime income policies, e.g. ntuc guaranteed life annuity, great eastern prime life rewards 5, Family3 or Prestige Life Rewards.
Foreign insurance agencies also have similar policies that last up to age 99 and may also be transferable.

 

[unhinged_loon]

Hello guys thanks for your reply

- I'm looking at retirement income of $1.5k a month
- I don't think there is such things as 'lifetime' income right? That's why I stopped at 85 when I can rely on children and grandchildren
- I don't think CPF alone is sufficient for me to have $1.5k a month after 55 yr old

1.5k in 2016 dollars or 1.5k in 2046 dollars?

 

[TabascoSauce]

assuming inflation of 2%... $1500 has a real value of $900+ when u are at the age of 55. at age 85, the real value is $500+.

u can survive with 500-900 per month? note that health care expenses will be higher when u r old.

 

[highsulphur]

CPF is your best bet like what many have already mentioned

 

[computers70]

There is always a policy risk when dealing with cpf.
I am sure many of us did not expect that we cannot take out our cpf now at 55.
Just carry on with the flow. Cpf will continue to evolve.

 

[BBCWatcher]

There is always a policy risk when dealing with cpf.

Not unique. Within the next 5 minutes the government could announce their intention to tax "retirement plans" at 26.8%, and almost as quickly that tax policy change could be put into force.

To answer the original question, here's your retirement plan:

1. Have a household budget, revise it periodically, and stick to it. Avoid high cost debt, and (if you have it) retire high cost debt first.

2. Then, after accounting for an emergency reserve fund and reasonable insurance (the "big three" insurance coverages for most people), save.

3. Direct your savings into low cost, passively managed, at least reasonably well diversified investments. Buy those investments on a dollar cost averaging basis using a long-term program, and stick to it. Favor tax advantaged investments first. (CPF is a notable example.) Do not actively trade.

4. There is no step 4. That's it.