Retirement Planning

[ELKYme]

Bro,

1) Instead of buying into STI (especially with your mindset on how you intend to “invest” in STI) may I humbly suggest you go to either shiny things or BBC watcher’s thread.

If you don’t want to search through all the posts, maybe can try:

“Hi, I’m new to investing, really appreciate it if you can share on how to start a portfolio”.

A) You will get a balanced local/worldwide portfolio that minimises risk.
B) DCA at FIXED regular intervals irregardless of market performance into the portfolio till you’re 55 (17 years).

2) It’s also good thing that you topped-up 7K cash into your SA.
As you’re allowed to transfer from your OA to SA up to 171K can really consider doing it (2.5% to 4%)

3) As to why the maths don’t make sense, let me reply you tonight as I’m getting ready...going out for dinner with friends

I'm open to all and willing to learn and explore



Good suggestion, did not think of this previously and would have benefited from it previously but i did top up 7k p.a to my SA to enjoy tax savings and i just did a quick simulation and it no longer make sense for me to do now (comparing the extra interest gain in SA vs the tax savings i will be getting). Will definitely be doing for my wife



Can elaborate why the maths does not make sense at this moment?

 

[Knight_Rider]

The 4% interest. Better than my current 2% interest in bank. For retirement wise for my situation is worthwhile.

The wealth accumulation part may have an issue if you set aside too much in CPF. You can't withdraw so you can't used it as part of the plan. You only can used it to maybe supplement the children's education. Talking about that it's wise to start a RSP like DCA a good ETF or fund instead of putting it in the bank or buy an endowment plan. It will be a line that they can draw from in every stage of their life. Education, marriage, anything. Nowadays endowment return is jialat and once mature you are back to sq one.

 

[BuiBuiZai]

Thanks ELKYme for the comments. Decided to take the shortcut by posting direct to BBCW thread. Hope he has some advice for me...

 

[BuiBuiZai]

The wealth accumulation part may have an issue if you set aside too much in CPF. You can't withdraw so you can't used it as part of the plan. You only can used it to maybe supplement the children's education. Talking about that it's wise to start a RSP like DCA a good ETF or fund instead of putting it in the bank or buy an endowment plan. It will be a line that they can draw from in every stage of their life. Education, marriage, anything. Nowadays endowment return is jialat and once mature you are back to sq one.

Agrees. Surely it is high time for me to get vested into shares n bonds...

 

[Knight_Rider]

Agrees. Surely it is high time for me to get vested into shares n bonds...

Two children two individual account. So it's easier to assign to them later.

First State Bridge and diva are not bad funds to start with for yourself. Fidelity also a good fund house.

 

[Knight_Rider]

Thanks ELKYme for the comments. Decided to take the shortcut by posting direct to BBCW thread. Hope he has some advice for me...

Probably some std answers like IWDA and VUSD with some in CORP.

 

[JuniorLion]

Probably some std answers like IWDA and VUSD with some in CORP.

It's IWDA and when your portfolio reaches 6 figures, add in EIMI.

Or just go VWRD.

 

[BuiBuiZai]

Two children two individual account. So it's easier to assign to them later.

First State Bridge and diva are not bad funds to start with for yourself. Fidelity also a good fund house.

Probably some std answers like IWDA and VUSD with some in CORP.

Many new terms for me to catch up with. Coming into hwz really was beneficial over the last few days

 

[Knight_Rider]

It's IWDA and when your portfolio reaches 6 figures, add in EIMI.

Or just go VWRD.

I try not to touch EM
I already in 7 figures
And I dun follow Shiny

 

[JuniorLion]

I try not to touch EM
I already in 7 figures

There is already a person here who has more EIMI (in value) than IWDA

 

[Knight_Rider]

There is already a person here who has more EIMI (in value) than IWDA

https://www.theedgesingapore.com/gl...agged-emerging-markets-china-oxford-economics

They are always in the news for the wrong reason. In good times or bad they are not performing but that etf is ok. Just not my cup of tea.

 

[BuiBuiZai]

It's IWDA and when your portfolio reaches 6 figures, add in EIMI.

Or just go VWRD.

I try not to touch EM
I already in 7 figures
And I dun follow Shiny

There is already a person here who has more EIMI (in value) than IWDA

It's all about personal preference and risk appetite I suppose? I believed for beginner like me it makes not much difference as either 1 will beat my 2% savings yield in bank anytime.

 

[Knight_Rider]

It's all about personal preference and risk appetite I suppose? I believed for beginner like me it makes not much difference as either 1 will beat my 2% savings yield in bank anytime.

Risk profile, choosing between the better of the two evil and time horizon. Then we have market risk fx risk and unnatural mkt cycle.

 

[ELKYme]

Saw your question over at BBC’s thread, good for you, diversified ETFs is the way to go...got to be patient, didn’t see BBC around here the whole day.

The reason why I personally don’t think the condo is a good idea at this point is because:
1) It is not financially possible to make it as a 2nd property investment (about 600K cash upfront needed to make it as a 2nd home).

2) Selling your current home in order to buy this 1.5 million condo and make it home is the only option.
Though you may be able to fulfil both the upfront costs as well as the monthly instalments, I do not like this idea because:

1) Maybe it’s just me, but I don’t count my home as a “financial investment” like shares or bonds. Would rather plan my retirement where I can continue to stay put and still have adequate finances to retire with.
2) As this condo would make up a sizeable part of your retirement plan, it doesn’t give you the flexibility to retire if the housing market at the point you desire to retire isn’t favourable for you to sell and downgrade.
3) Likely you & your wife will not be transferring funds in OA to SA anytime soon if you were to proceed.

 

[JuniorLion]

It's all about personal preference and risk appetite I suppose? I believed for beginner like me it makes not much difference as either 1 will beat my 2% savings yield in bank anytime.

Short-term wise, not really. But if your investment horizon is ~20 years, it has a very good chance of beating the 2%.

 

[existential_reality]

Currently property is quite peakish, there is a higher chance of the market just plateauing or going downwards as oppose to upwards given rising interest rate environment and various other sentiments.

En Bloc parties as you say for those who really huat would opt for landed (i.e sold 5 - 6M types), those who sold for 2 - 3M would be abit more conservative and prob look to buy two properties.

Not saying its a bad investment but buying property can also look something more value for money i.e older developments that are 999 leasehold/freehold
this way even market takes a hit you won't be too badly hit and you don't have to be overtly concern of the depreciation in 20 years on a 99 year prop.

Dear all,

Needed some advice/suggestion on how to go about having an earlier retirement together with wife 20 years from now. I registered a new account for this purpose to avoid exposing myself. Will try to provide as much info to allow you to form a better advice/suggestion. Below values all in SGD

Age: Me Sporean Wife SPR both in mid 30s, 2 Kids Sporean < 5
Annual Income: 230k combined
Asset: Coming 5 years 4br HDB (fully paid via cash with current market value of at least 300k i guess)
Cash: 320k combined thru hard savings (distributed across multiple bank account to maximine interest of about 2% p.a weighted avg)
CPF: Me 210k (OA) 83k (SA) 55k (MA), Wife 103k (OA) 37k (SA) 33k (MA)
SRS: Me 30k (top up twice to enjoy some tax benefits, funds not invested yet)
Insurance Edu plans for kids: 24k p.a for 5 years starting from 2018 mature in 17 years for 160k
Investment: None but intend to enter share maket if STI drop 50% with 50% of current cash and regular 10x interval 5% average down/up with balance cash on hand and continue to buy when monthly wage received
Debt: None
Car: None (takes public transport thou always wanted to buy a car since 18 years ago, with current low COE and govt announcing more COE for next 3 months, its really tempting to buy myself a Attrage)

Current plan is to sell HDB and buy 3br (maybe Whistler Gran of 1.5m+/- provided CDL accept reissue of option required due to HDB MOP) with myself 1% share and wife 99% share (this is to minimise ABSB in future if we intend to go for a 2nd pte property) in hope of some capital appreciation 10 to 20 years down the road and at the same time giving my family a better living environment. We do not mine staying in HDB at all and have been staying in HDB all along.

Some mentioned property investment should be kept at 20% of investment portfolio for diversification purpose and I'm wondering if i'm taking the wrong path in selling HDB and buying a pte condo.

I do felt that the property price is on the high side now but looking at the number of en bloc in the recent 2 years and many yet to receive their money, chances are it will continue to go up but at a slower pace. Furthermore, intention is for long term stay and not for flipping say in 3 years time therefore should be pretty safe? If proceed to buy pte condo, should we be using cash or cpf for the 1st 25% and subsequent monthly repayment?


Welcome all genuine comments so that i can take a better action moving forward. Feel free to ask anything in case i missed out some vital information above. Thanks

 

[mummy1234]

For me, I invested in properties and have managed to in time to come, own one freehold 3 bedder condo in Sg and one freehold semid in JB. Both will be paid up soon as we r selling our investment shoebox mickey mouse condo apartment.

So with one property in Sg and one in JB, we r kinda financially free as we can rent out our Sg one and stay in JB. Hopefully rental yield will improve with the increasing population. Since PWP already passed and so many mrt lines already built, I believe our population will increase.

Only problem now is our kids' education. Better to let them study in Sg perhaps and safer to let them stay in Sg till they r older.

TS, u cannot truly retire till yr kids r independent I believe. As is the case for most of us ordinary folks.

Continue to save and invest wisely for yr kids' sakes.

 

[mummy1234]

TS, if u wanna buy, buy a freehold or 999 private. It stores value and will capital appreciate better than a 99 year old condo.

But don't sell yr HDB. Rent it out and use its rental to help pay for yr private house.

Cause once u sell yr HDB you cannot buy back unless you sell yr private. So don't sell yr HDB. That is what I feel you should do but of course, discuss with yr family members better.

 

[Happy_kk]

I fully agree with ELKYme view, although property to majority people will be see it as appreciate investment item, but it is not if you are long stay in the house. And you will be very stressful if you need to fork out that large sum of money through hard earn and saving. You will have long sleepless night if market crash in short term and property might under water and there is a chance you need to top up(bear in mind). If I am you, I would rather design alternative retirement plan, which you have sufficient large capital to starts with.

Saw your question over at BBC’s thread, good for you, diversified ETFs is the way to go...got to be patient, didn’t see BBC around here the whole day.

The reason why I personally don’t think the condo is a good idea at this point is because:
1) It is not financially possible to make it as a 2nd property investment (about 600K cash upfront needed to make it as a 2nd home).

2) Selling your current home in order to buy this 1.5 million condo and make it home is the only option.
Though you may be able to fulfil both the upfront costs as well as the monthly instalments, I do not like this idea because:

1) Maybe it’s just me, but I don’t count my home as a “financial investment” like shares or bonds. Would rather plan my retirement where I can continue to stay put and still have adequate finances to retire with.
2) As this condo would make up a sizeable part of your retirement plan, it doesn’t give you the flexibility to retire if the housing market at the point you desire to retire isn’t favourable for you to sell and downgrade.
3) Likely you & your wife will not be transferring funds in OA to SA anytime soon if you were to proceed.

 

[ELKYme]

Congrats Mummy1234! After the funds from the sale of the MM unit is used to redeem the 3BR condo loan, there’s a lawyer fee of $400-$500 to get the documentation back from the bank, trust me, that will be the happiest cheque writing experience you’ll ever have! So happy for you

For many of us, property & cars are the biggest-ticket items in our lives. YOLO-ing in either one will set our retirement back by many years.

The other 2 things that would de-rail retirement plans are:
1) Children’s education, not all are smart enough to get into local U, need to save early in case (U also mentioned).
2) Medical bills if inadequately insured.

Hi TS,
Please also note these 2 points should you choose to still get the property:
1) Have an emergency fund of 3-6 months stashed away. (57.5K if 3 months) in case Mr Murphy look for us.
2) Adequate insurance for the portion of the housing loan for yourself as well as your wife as both will be contributing to the repayments.