Retirement Planning

[8zaoyu]

If really low income, then has to be diligent. Take all opportunities to earn more income, eg more part-time.
Upgrading skills and getting certifications is one way to get a higher pay.

Govt only help SGreans above 35 yr old with the Workfare supplement if yr total income is less than $2.3K average per month (Low pay blue collar jobs) However, i feel that if above 45 n earn btw 2.3K to 3K and have elderlies/kids financial dependents, then should have Govvt supplements in the form of Healthcare$ for MedishieldLife premiums or Education Fees$ for kids studying diploma or 1st degree. Work partime after working from dawn to dusk, is not healthy.
Get certifications? Most Sgreans already have at least O levels or diplomas working in offices. Make them all Graduates? Most non graduates would rather join the gig-economy businesses with own flexible own time and target pay.

 

[decibel.]

I just resigned after working for 11 years and is currently 39 years old .. I had savings of around $350k .. Have no property.

I am still single and already hit my CPF Full retirement sum ..

I am currently living off with my passive income of about $600 per month and spend less than $3,000 per year and thinking of retirement ..

Is it advisable to do so at age 39 ?

At what age did u hit FRS? Can share passive income coming from what source?

Sent from HUAWEI VOG-L29 using GAGT

 

[Shiny Things]

I just resigned after working for 11 years and is currently 39 years old .. I had savings of around $350k .. Have no property.

I am still single and already hit my CPF Full retirement sum ..

I am currently living off with my passive income of about $600 per month and spend less than $3,000 per year and thinking of retirement ..

Is it advisable to do so at age 39 ?

BBCW is right, so I'm just going to put it more bluntly because I'm the resident mouthy angmoh around here: retiring at 39 is insane, and you'd be condemning yourself to a life of monk-like deprivation.

If by "retiring" you mean switching to another job that's less stressful but still pays decent money: that's different. That's just a mid-life job change, and that's completely normal. Heck, I did that myself. But it's not "retirement".

 

[Gitaro]

I just resigned after working for 11 years and is currently 39 years old .. I had savings of around $350k .. Have no property.

I am still single and already hit my CPF Full retirement sum ..

I am currently living off with my passive income of about $600 per month and spend less than $3,000 per year and thinking of retirement ..

Is it advisable to do so at age 39 ?

Do you have adequate medical coverage? If so, just retire

 

[Kaypohji]

Those retirement income insurance plans good to buy?

Looks not bad guaranteed 2++ % returns and no guaranteed possible too

Capital guaranteed

 

[BBCWatcher]

Those retirement income insurance plans good to buy?

Looks not bad guaranteed 2++ % returns and no guaranteed possible too

Capital guaranteed

In short, no. They are extremely high cost ways to save for retirement. The only time they really make any financial sense is when the person buying them would not save (or would save much less) for his/her retirement if not for the fact there are premium bills.

 

[Kaypohji]

High costs? What do u mean ?

I think putting my money in fd also 2++% only

Unless u mean invest in stocks ?

In short, no. They are extremely high cost ways to save for retirement. The only time they really make any financial sense is when the person buying them would not save (or would save much less) for his/her retirement if not for the fact there are premium bills.

 

[BBCWatcher]

High costs? What do u mean ?

I mean high costs. The insurance company's sales distribution channels are expensive (agents paid commissions), the insurance company has its overheads, and the insurance company expects at least a reasonable profit. All of these costs are factored into the retirement plan.

They're not quite guaranteed, by the way. The insurance company is the one making the guarantee, but it's possible the insurance company collapses. (Unlikely, but there are varying degrees of unlikely. The insurance companies with higher credit worthiness are less prone to collapsing.) The government has SDIC protection for insurance policies such as retirement plans, up to a limit, but you could end up with only the surrender value, not even the premiums paid. Also, there's no guarantee the Singapore dollar-based insurer's guarantee will hold its real purchasing power to any particular degree. Inflation erodes the purchasing power of any fixed nominal sum, so if inflation rises then the insurer's guarantee is less valuable.

 

[ThinkCarefully]

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

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wondering if you followed through with your plan.

whistler is one of the most huat projects that we know today.


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[Nofear40]

In short, no. They are extremely high cost ways to save for retirement. The only time they really make any financial sense is when the person buying them would not save (or would save much less) for his/her retirement if not for the fact there are premium bills.

Hi, can you elaborate?

 

[Mephist0pheLes]

Hi, can you elaborate?

There are layers and layers of fees whenever u invest through an insurer. The fees are substantial and adds up to a significant amount in the long term.

So like BBC said, unless u have a condition that makes u spend impulsively and excessively, and u need to find a way to prevent urself from spending, otherwise there's really no good reason to buy these financial plans.