Reflection time - retirement financial goals

[ocs_woodlands]

Off for the year already

Time to ponder on Long term financial goals.

I did a financial briefing for my Wife on Tuesday to tell her our family financial position and etc.

I am hoping to retire around 60/62 with my Wife. I am in my mid 40s. I estimate that (without exhorbitant and childish returns projections) that my HH will hit 6m net worth at retirement.

I am hoping that OUR net worth (in today's dollars) will be distributed in the following manner:

1 HDB
1 intermediate terrace
(Collectively 3m).

0.5m sg equities
0.5m SSB bond ladder
0.5m US equities/bonds
1m cpf (RA, SA, OA)
0.5m in cash/FD

If I can retire at 60 and leave till 80, I still have 20 years of leisure to enjoy. Coupled with the first 20-25 years of my life, more than half of my life won't entail me working. I will be satisfied..

What are your fantasies aka retirement financial goals?

 

[JuniorLion]

What are your fantasies aka retirement financial goals?

1. To be financially stable without having to work - i.e. perhaps receive a post-expenses income of $2000 per month.

2. To do something I love - hopefully it will also bring in some income.

I will rely on CPF + savings to try to achieve (1).

 

[highsulphur]

Off for the year already


Time to ponder on Long term financial goals.

I did a financial briefing for my Wife on Tuesday to tell her our family financial position and etc.

I am hoping to retire around 60/62 with my Wife. I am in my mid 40s. I estimate that (without exhorbitant and childish returns projections) that my HH will hit 6m net worth at retirement.

I am hoping that OUR net worth (in today's dollars) will be distributed in the following manner:

1 HDB
1 intermediate terrace
(Collectively 3m).

0.5m sg equities
0.5m SSB bond ladder
0.5m US equities/bonds
1m cpf (RA, SA, OA)
0.5m in cash/FD

If I can retire at 60 and leave till 80, I still have 20 years of leisure to enjoy. Coupled with the first 20-25 years of my life, more than half of my life won't entail me working. I will be satisfied..

What are your fantasies aka retirement financial goals?

how to buy 500k of SSB? limit is 100k per pax or 200k per couple?

 

[sg_investor]

Why do you need so much money?

 

[ocs_woodlands]

how to buy 500k of SSB? limit is 100k per pax or 200k per couple?

BBC watcher shared with me the bond ladder idea.

Basically just every month buy 3k. After 170 months (around 14 years) you will have 500k in SSB..

Sent from Common Sense using GAGT

 

[ocs_woodlands]

Why do you need so much money?

Despite the fact that my financial status is rosy, I have some other non financial burdens which I shall not disclose.... In actual case, my life is a lot tougher than a happy & healthy middle income Singaporean...

Sent from Common Sense using GAGT

 

[BBCWatcher]

Basically just every month buy 3k. After 170 months (around 14 years) you will have 500k in SSB..

Well, you can’t quite do that because SSBs are limited to $100K per person. In a married household you can get up to $200K that way.

You can add to that $200K SSB ladder using ordinary bonds (SGSs). For example, buy $30K of the 10 year bond every year it comes up for auction, and in 10 years you’ll have $300K worth (with the first of those 10 year bonds maturing). You cannot quite hit that number exactly due to deviations from face value versus auction price, but you can get close.

 

[ocs_woodlands]

Well, you can’t quite do that because SSBs are limited to $100K per person. In a married household you can get up to $200K that way.

You can add to that $200K SSB ladder using ordinary bonds (SGSs). For example, buy $30K of the 10 year bond every year it comes up for auction, and in 10 years you’ll have $300K worth (with the first of those 10 year bonds maturing). You cannot quite hit that number exactly due to deviations from face value versus auction price, but you can get close.

Oh.... Thanks for telling me that. I was already into the 3rd SSB auction...

Sent from Common Sense using GAGT

 

[BBCWatcher]

Oh.... Thanks for telling me that. I was already into the 3rd SSB auction...

Also, because there’s a $2 transaction fee to buy SSBs, you might consider laddering at $6K/month alternating month-to-month between the two adult members of the household. That effectively cuts the transaction fees in half versus $3K/person/month.

You can send me half of your transaction fee savings if you like.

 

[limster]

Why do you need so much money?

Why not? Can always put in will to give any extra to charity after ensuring that dependents are taken care of.

 

[Buzy_bee]

Off for the year already

Time to ponder on Long term financial goals.

I did a financial briefing for my Wife on Tuesday to tell her our family financial position and etc.

I am hoping to retire around 60/62 with my Wife. I am in my mid 40s. I estimate that (without exhorbitant and childish returns projections) that my HH will hit 6m net worth at retirement.

I am hoping that OUR net worth (in today's dollars) will be distributed in the following manner:

1 HDB
1 intermediate terrace
(Collectively 3m).

0.5m sg equities
0.5m SSB bond ladder
0.5m US equities/bonds
1m cpf (RA, SA, OA)
0.5m in cash/FD

If I can retire at 60 and leave till 80, I still have 20 years of leisure to enjoy. Coupled with the first 20-25 years of my life, more than half of my life won't entail me working. I will be satisfied..

What are your fantasies aka retirement financial goals?

Nice plan. What's the estimated monthly passive income you expected for two?

 

[Perisher]

Find undervalued stocks giving 5-6% dividends... there are quite a number in US/HK/SG. Combine with a world/US etf, it should work fine.

Complement it with bonds be it retail bonds/ssb or even bank savings account and cpf.

Those 2 combined should be capable of generating a good return over decades.

I’m doing it myself.

 

[ocs_woodlands]

Nice plan. What's the estimated monthly passive income you expected for two?

All in today's dollars
Hdb rental income = $2500 × 12 = 30k
0.5m sg equities yield @ 2.5% = 12.5k
0.5m SSB @ 2% = 10k
0.5m in cash/fd @ 1.5% = 7.5k
0.5m in RA ON ERS = 1.85k × 2 × 12 = 45k
0.5m in SA (hopefully can avoid it being stuck in OA) = 20k
Annual = 80k pa from 60 to 65
After 65 = 125k pa.

Sent from Common Sense using GAGT

 

[BBCWatcher]

0.5m SSB @ 2% = 10k

This isn’t possible unless you have 5 individuals in the household. Each individual is limited to $100K of SSBs.

After 65 = 125k pa.

You can defer CPF LIFE payouts to age 70 if you wish. If you don’t need the money at that point, deferring is a good option.

I would note that the picture you’ve sketched is 100% Singapore, and I’d be uncomfortable with that national concentration. A Japan-like scenario (persistently low domestic interest rates) would hurt, and that could happen. If you can get some global diversification into that picture, I think it’d be a stronger footing.

 

[revhappy]

60 years old a bit difficult to walk far, like climb great wall of China or yellow mountain?

Retire at 55 years old or 50 years old would be better, still can climb hills!

Exactly my thought! Why would anyone have to plan retirement at 60 with so much wealth? If you going to have so much wealth, there no planning needed you can just dump it in an FD and you will still do fine. Someone who has or can have that much wealth should either plan to retire early or doesn't need to plan at all.

Sent from Xiaomi REDMI NOTE 4 using GAGT

 

[chopra]

60 years old a bit difficult to walk far, like climb great wall of China or yellow mountain?

Retire at 55 years old or 50 years old would be better, still can climb hills!

r u assuming that he is not doing it (travelling) already?

but really, a qn for every1, what are some common retirement goals? buy a SIA RTW TICKET? do social work? go east coast do taiji every morning? surf edmw?

 

[revhappy]

r u assuming that he is not doing it (travelling) already?

but really, a qn for every1, what are some common retirement goals? buy a SIA RTW TICKET? do social work? go east coast do taiji every morning? surf edmw?

Travel around the world in a cruise. Live in another country and enjoy a relaxed slow life in a rural setting. Singapore too hectic.

Sent from Xiaomi REDMI NOTE 4 using GAGT

 

[hwmook]

60 years old a bit difficult to walk far, like climb great wall of China or yellow mountain?

Retire at 55 years old or 50 years old would be better, still can climb hills!

Why do you need to climb mountains? I also plan to retire at 60 or later. I rather work as long as I can, male should be living till 82 years old so 20 years of retirement is more than enough IMO. My wife is already going cranky after not working for a year to take care of baby.

 

[ocs_woodlands]

60 years old a bit difficult to walk far, like climb great wall of China or yellow mountain?

Retire at 55 years old or 50 years old would be better, still can climb hills!

I guess I am a bit atypical.

I have no great desire to travel. My idea of a great vacation (thus far) is to sleep without any itinerary in a room with a good bed and 100% black out curtains.

I have gone to NY/Chicago/SF/Melbourne/Sydney/BKK/Taipei/Hualien/Wuhan/Shanghai/HK/Frankfurt/phuket/bali/msia and a few other places. I am not very impressed by my experiences in these places.

Perhaps I liked Hualien the best when I faced the Pacific ocean which was roaring. I could pretend for a while to be the only person around cos I can't hear anyone/anything else.

NY was terrible. So many potholes at the roads around times square. Very cosmopolitan - or as I put it, very complicated.

I am looking for peace and rest. Not travel experiences, tbh...

Sent from Common Sense using GAGT

 

[limster]

why not plan to be still physically fit when you turn 60? one of the best investments you can make now is in your health.

got people who spend all sorts of money to be private hospital insurance, but never take care of their health and don't lead a healthy lifestyle