Retiring before 40?

[minamikaze]

Does anyone know of someone who retired before 40?
By retiring, I mean that they do not work full-time jobs anymore, instead just relying on their investments and savings (they might still do ad-hoc stuff just for fun). I'd like to hear about their experience retiring early, and how they managed to pull it off.

Assuming a fairly generous (in my opinion) monthly expenditure of say, $6000 (for a couple with no kids), how much in assets, investments and savings would be required to be able to retire?

The following would need to be taken care of, I suppose:
- Insurance needs (how much?)
- Food ($1000)
- Transport ($200)
- Utilities ($200)
- "Fun": Travel, movies, etc
- Income tax and property tax, if relying on property for passive income

And if a kid does come into the picture, as a rough gauge how much more would need to be added to that monthly $6000 allowance?

 

[Tired&Weary]

Simple approach is to use a retirement calculator

Assuming you "semi retire" for 45 years I,e stop working at 40 and live to 95 and generate a annual return 2.5% (very very conservative)

@ 6k - need about 2M
@9k - need about 3M

All depends how much ROI you can generate from your investments, play around with the calculators available and you get an idea.

1 Kid can cost about 0.8 - 1.5k additional per month, factor the 9k per month to be safe


http://www.fncalculator.com/financialcalculator?type=retirementIncomeAnalysis

Does anyone know of someone who retired before 40?
By retiring, I mean that they do not work full-time jobs anymore, instead just relying on their investments and savings (they might still do ad-hoc stuff just for fun). I'd like to hear about their experience retiring early, and how they managed to pull it off.

Assuming a fairly generous (in my opinion) monthly expenditure of say, $6000 (for a couple with no kids), how much in assets, investments and savings would be required to be able to retire?

The following would need to be taken care of, I suppose:
- Insurance needs (how much?)
- Food ($1000)
- Transport ($200)
- Utilities ($200)
- "Fun": Travel, movies, etc
- Income tax and property tax, if relying on property for passive income

And if a kid does come into the picture, as a rough gauge how much more would need to be added to that monthly $6000 allowance?

 

[friedprawns]

Know someone with $1m assets not including hdb fully paid up, semi-retired.

Always tell him to go back and work though, $1m not enough especially if got wife and kids next time. Also, to offset inflation need 6% returns and that is assuming all invested.

Probably need $3m per person to be somewhat worry-free if really want to retire at that age. Then again, if can make $3m by that age, shouldn't retire.

 

[Solano]

I retired at 37, not spending 6k a month though.

When retired:
1. You tend to cook more and eat out less, so don't need 1k on food.
2. Not going anywhere, most of time stay at home watch stocks so no need transport spend.
3. Other items like Insurance, property tax less than 1k a year...
4. No income tax since no income.
5. Kid depends on age, before primary school and after secondary high expenses, primary/secondary less expenses.

 

[minamikaze]

I retired at 37, not spending 6k a month though.

Care to share more about how you achieved that? And yes, 6K is a pretty generous amount, definitely more than enough for a comfy lifestyle
Also, how did you continue leading fulfilling life after retirement?

 

[OngHuatHuat]

Tried rest for one whole month and went Europe for half a month, still think decent amount of work is the best. Won’t be retiring as long as my body allows.

 

[revhappy]

I am used to money coming into my account and then I can do investment mistakes and it is okay since money is still coming into the account. If no money coming into the account then I afraid to do anything.

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[Perisher]

I retired at 37, not spending 6k a month though.

When retired:
1. You tend to cook more and eat out less, so don't need 1k on food.
2. Not going anywhere, most of time stay at home watch stocks so no need transport spend.
3. Other items like Insurance, property tax less than 1k a year...
4. No income tax since no income.
5. Kid depends on age, before primary school and after secondary high expenses, primary/secondary less expenses.

Initially I thought gains from investment need to be taxed if it's your sole source of income but I saw this,

https://www.iras.gov.sg/IRASHome/In...f-Property--Shares-and-Financial-Instruments/

Gains from Sale of Shares and Financial Instruments
Generally, profits or losses derived from the buying and selling of shares or other financial instruments are viewed as personal investments. Payouts from insurance policies are also not taxable as they are capital receipts.

These profits are capital gains and are not taxable. You need not report such gains in your tax return.

 

[havetheveryfun]

I retired at 37, not spending 6k a month though.

When retired:
1. You tend to cook more and eat out less, so don't need 1k on food.
2. Not going anywhere, most of time stay at home watch stocks so no need transport spend.
3. Other items like Insurance, property tax less than 1k a year...
4. No income tax since no income.
5. Kid depends on age, before primary school and after secondary high expenses, primary/secondary less expenses.

how u spend less than 1k on insurance per year? a simple term life of 200k with CI already costs around 800-120k a year

 

[Perisher]

how u spend less than 1k on insurance per year? a simple term life of 200k with CI already costs around 800-120k a year

You mean $800-$1200 a year?

 

[HWZ1973]

$2million can last 40 years if you spend $4k or less a month.
Doable but must watch spending and risky investment is a no no.

For a single and no financial commitments .

 

[crimsontactics]

$2million can last 40 years if you spend $4k or less a month.
Doable but must watch spending and risky investment is a no no.

For a single and no financial commitments .

So good?

Need to hit how many % pa to last 40 years?

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[HWZ1973]

So good?

Need to hit how many % pa to last 40 years?

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No need...
2,000,000 ÷ 40 ÷ 12 = 4,000

Any extra is a bonus

 

[OngHuatHuat]

2 millions, invest in high yield securities, 6 % per annum, every year 120k, one month spend 4 k, 6 k to buy other high yield stocks again.

So good?

Need to hit how many % pa to last 40 years?

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[HWZ1973]

2 millions, invest in high yield securities, 6 % per annum, every year 120k, one month spend 4 k, 6 k to buy other high yield stocks again.

This one must learn from you, if really can get 6% shake legs low, shares risky I dun dare.

 

[OngHuatHuat]

Current environment only shares able to generate this kind of yield. Bonds that is generating 6 % is even more dangerous than shares with 6 % dividend yield.

This one must learn from you, if really can get 6% shake legs low, shares risky I dun dare.

 

[starlight318]

Before 40 is too early imo, unless u already have plans on what to do with your free time.

Imagine everyone around you busy working and u sit at home doing nothing.. Most of the ppl I know would not retire even if they have enough money to do so.

I think for married couple with no kids, should need at least 2-3 million assets excluding primary residence.

 

[ocs_woodlands]

I think it's not a matter of whether one can retire at 40 or not.

It's a matter of whether one should retire at 40.

For many of us, we hit our max pay @ 50 or so.

MoSt degree holders should hit at least 150k @ 50 or so. So 150k x 10 years (retire at 60) is 1.5m leh...

Between 40-50, @ average pay of 120k for 10 years is 1.2m leh...

So a person retire at 40 earns 2.7m leh...

Why would anyone want to throw away 2.7m???

Common sense is unfortunately not common at all.. HardwareZone Forums app

 

[HWZ1973]

I think it's not a matter of whether one can retire at 40 or not.

It's a matter of whether one should retire at 40.

For many of us, we hit our max pay @ 50 or so.

MoSt degree holders should hit at least 150k @ 50 or so. So 150k x 10 years (retire at 60) is 1.5m leh...

Between 40-50, @ average pay of 120k for 10 years is 1.2m leh...

So a person retire at 40 earns 2.7m leh...

Why would anyone want to throw away 2.7m???

Common sense is unfortunately not common at all.. HardwareZone Forums app

Job may be too stressful to continue...

 

[crimsontactics]

No need...
2,000,000 ÷ 40 ÷ 12 = 4,000

Any extra is a bonus

Wah!

Like that just work another easy $2000 a month job, can hit $6000 siol!

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