Retire at 42. Possible?

[pai000000]

Hi

Would like to hear some opinions on my retirement adequacy.

I am male, 42 years old, single living with parents, with no intentions of getting married.
I hope to retire in a few months time.

My assets are as follows:
- About 400k in cash, fixed deposits, Singapore saving bonds
- About 50k in bonds, (astrea iv 4.35, nikko corporate bond etf etc)
- About 480k in SG and HK equities, diversified across 20+ companies
- Whole life insurance with surrender value of about 40k
- CPF OA and SA total of about 400k

I have no debts, and no property. I plan to live in my parent's property permanently. The lease is sufficient to cover my lifespan.
After retirement, I have thoughts of purchasing a 2-room flexi BTO and selling it for a profit.
That would leave me with one more chance to buy a BTO, in case I need it.

My monthly expenditure are as follows:
- 1k: Home contribution
- 1k: Personal expenses. Reducible to 600 if I live like a hermit
- 600: Travels. (First item to be cut in hard times)
----
Total: 2.6k in good times, 2k in bad times, 1.6k in very bad times

I do not plan to work after retirement.
If forced by circumstances to do so, I will try to find some translation job for about 2-3k per month.

 

[BBCWatcher]

As a pure financial matter, yes, you’re probably fine. You’ll likely want to bridge between now and age 65 (or age 70) to an ERS-level CPF LIFE Escalating Plan lifetime retirement income for safety and financial security.

....But are you happy with the arrangement? If you’re happy with your lifestyle, fabulous, rock on! If you’re not, then work on that, and align your financial plan to your happiness plan.

Regarding your BTO plan, you’ll probably want to execute on that before retirement if you do, not after, so that you can take out a low cost mortgage (a HDB loan if eligible). I don’t like the idea of paying cash when home financing is available at 2.6%, assuming you’re a prudent, responsible investor/saver. Once the ink is dry on the mortgage (income verification), you’re free to stop work if you wish. Take the longest loan term offered as long as there’s no prepayment penalty, and enjoy the cheap loan for as long as it’s cheap.

 

[BBCWatcher]

Another caveat here is whether you will need to support your parent(s) financially at some point in the future. If there’s no reasonable (or even unreasonable) prospect of that situation, fair enough, but you’ll want to be clear eyed about that.

If you end up hanging onto an inherited HDB leasehold, the unit you’re currently living in, then you’ve got a couple future options after your parents pass. One is to rent out a portion of the unit, and the other is to sell the unit and downsize. Either way that should help improve the financial picture in the out years. Of course it’s up to your parents, in their sole discretion, whether to pass the unit onto you. That’s not something you can count on with certainty, or at least I wouldn’t. You might consider renting out the 2 room BTO after MOP (if you buy one) and see how it goes, since that would also be consistent with downsizing anyway.

 

[Mecisteus]

What do you plan to do when you retire?

 

[Mecisteus]

After retirement, I have thoughts of purchasing a 2-room flexi BTO and selling it for a profit.
That would leave me with one more chance to buy a BTO, in case I need it.

I think you are better off buying a property at a good location and renting it out.

 

[pai000000]

Hi BBCWatcher, thanks for the useful advises.
My parents have good medical coverage (old batch of civil servants), and their money is enough to last them without help from me.

Unfortunately my current salary slightly exceed the limit for BTO, so I need to resign before I can buy.

Hi MikeDirnt78, my plan is August this year, earliest.

 

[pai000000]

I think you are better off buying a property at a good location and renting it out.

I have observed my parents having bad experience with their tenants. For example, have to keep chasing for rent, non-payment, getting lawyer to write letters, etc.

Maybe they are just more unlucky than usual, but due to these experiences, I prefer more impersonal way of buying equities without all these human drama. Better for my mental health.

 

[pai000000]

What do you plan to do when you retire?

I am creating a todo list. Some items I have so far:
- Learn how to cook
- Travel more
- Visit some Singapore islands I never been to
- anime/game backlog
- Learn more about investing
- Visit malls in Singapore I usually don't go to
- Maybe do homestay, or host homestay

 

[addict951]

I am creating a todo list. Some items I have so far:
- Learn how to cook
- Travel more
- Visit some Singapore islands I never been to
- anime/game backlog
- Learn more about investing
- Visit malls in Singapore I usually don't go to
- Maybe do homestay, or host homestay

I dun think Mike ish asking about the next 6 months-1 year wor.
Say, erm, this person same age as you, and lives to 90. From now till 90, do what ****?

 

[pai000000]

I dun think Mike ish asking about the next 6 months-1 year wor.
Say, erm, this person same age as you, and lives to 90. From now till 90, do what ****?

Good question. That's something I need to discover gradually.
But one thing for sure, I don't want to spend it in a cubicle.. haha

 

[kelhot2001]

I am creating a todo list. Some items I have so far:
- Learn how to cook
- Travel more
- Visit some Singapore islands I never been to
- anime/game backlog
- Learn more about investing
- Visit malls in Singapore I usually don't go to
- Maybe do homestay, or host homestay

Definitely possible and healthier, the study believe retiring at 55 live longer while retiring at 65 die earlier. LOL


https://www.cnbc.com/2018/03/27/how-research-shows-you-can-live-longer-if-you-retire-early.html

https://www.forbes.com/sites/reneemorad/2018/03/31/report-retiring-early-could-help-you-live-longer/#45bec28c1bc6

https://corpath.org/retire-at-55-and-live-to-80-work-till-youre-65-and-die-at-67/

 

[eric3743]

Good question. That's something I need to discover gradually.
But one thing for sure, I don't want to spend it in a cubicle.. haha

How about semi-retirement instead.

 

[pai000000]

How about semi-retirement instead.

I am open to that, if I can find a part time job that suits my interest, and does not pay peanuts.

Its not easy to find, so I just leave it out of my calculations for the time being.

 

[BBCWatcher]

Unfortunately my current salary slightly exceed the limit for BTO, so I need to resign before I can buy.

Is there any possibility you could shift to 4 days per week in your current employment? Then you’d be able to slide under the BTO income limit (presumably) and qualify for a mortgage, such as a HDB loan. Then, when the ink is dry (BTO keys, loan), make another employment-related adjustment if you wish.

Yes, the knife edge BTO income limit is rather silly, but I don’t make the rules.

 

[Prof. Utonium]

Very doable but should allocate the equities portion to something more stable.

Do take note that your expenses would increase for a period of time when you start your retirement unless you just stay at home.

 

[hanayorisg]

Hi

Would like to hear some opinions on my retirement adequacy.

I am male, 42 years old, single living with parents, with no intentions of getting married.
I hope to retire in a few months time.

My assets are as follows:
- About 400k in cash, fixed deposits, Singapore saving bonds
- About 50k in bonds, (astrea iv 4.35, nikko corporate bond etf etc)
- About 480k in SG and HK equities, diversified across 20+ companies
- Whole life insurance with surrender value of about 40k
- CPF OA and SA total of about 400k

I have no debts, and no property. I plan to live in my parent's property permanently. The lease is sufficient to cover my lifespan.
After retirement, I have thoughts of purchasing a 2-room flexi BTO and selling it for a profit.
That would leave me with one more chance to buy a BTO, in case I need it.

My monthly expenditure are as follows:
- 1k: Home contribution
- 1k: Personal expenses. Reducible to 600 if I live like a hermit
- 600: Travels. (First item to be cut in hard times)
----
Total: 2.6k in good times, 2k in bad times, 1.6k in very bad times

I do not plan to work after retirement.
If forced by circumstances to do so, I will try to find some translation job for about 2-3k per month.

After you profit from the HDB 2 room flat. I think you should buy a 4 or 5 room resale flat. HDB rental income is a good investment, besides you can always have a backup place to live, in case you need to, like find a girl in pub, etc.

 

[hanayorisg]

Another thing is after quit job don’t you feel boring?
I believe you have enough money for you to live, but you should find something meaningful. Maybe a family?
When you become old, money can not get you a person like family

 

[spikeling]

Single only have 1 chance to buy BTO

 

[havealaughclown]

Possible. How is your financial journey tho?

 

[Thoreldan]

If u suddenly fall in love, got married, have kids, would u get out of retirement ?