Retiring before 40?

[Sinkie]

I hope to retire from a full time job when I’m 50

 

[highsulphur]

Hoping to be financially free by 35.
And after reading the replies here, will continue working since I like my day job and side gigs. If I ever get sick of those, will look for something new without any worry

It's an arbitrary number? Any reason for 35?

 

[swordsly]

It's an arbitrary number? Any reason for 35?

I suppose at 35, still young enough to do what you want (that is reasonable) and can decide whether a work/project that comes along is worthy of your time rather than "I have all these bills to pay so..."; young enough to enjoy choices.

 

[minamikaze]

I suppose at 35, still young enough to do what you want (that is reasonable) and can decide whether a work/project that comes along is worthy of your time rather than "I have all these bills to pay so..."; young enough to enjoy choices.

That's exactly it.
I love mountains and may decide to climb a few of the higher ones, just taking my time. For example an Everest base camp hike alone takes more than 2 weeks. Can still do it in my 40s, but would be easier to do it in my 30s.
It just opens up a lot more opportunities to explore different ideas and have the energy to execute at a younger age, instead of just grinding through life.

 

[swordsly]

That's exactly it.
I love mountains and may decide to climb a few of the higher ones, just taking my time. For example an Everest base camp hike alone takes more than 2 weeks. Can still do it in my 40s, but would be easier to do it in my 30s.
It just opens up a lot more opportunities to explore different ideas and have the energy to execute at a younger age, instead of just grinding through life.

I guess it heavily depends on the line of work you are in (or what your skillsets are) and also how much commitment you have.

My monthly expenses are 900-1000 (every single bill and personal expenses). Doesn't seem like I'll be able to churn out enough passive income to pay for it by 35 =\

 

[rrr2015]

thanks for sharing ... i see so it's paleo diet lah low carbs, no grains, no diary, no wheat. fish & museli more expensive, but actually museli can do yourself, basically toasted oats + dried fruits + nuts

My staple food are mainly fish, beef, chicken, pork. I have fruits in every meal and in between meal. All the stuff can be found in NTUC.

I do not have a diet plan. I learn a lot from H&F in HWZ and I choose to eat those that fits me.

The before yesterday. My meal was

Breakfast: Muesli with rice milk, 2 eggs and apple

Lunch: Tofu with green vegetable and apple

Break : Banana

Dinner: Cod fish with broccoli, stir fry bitter god, corn soup and kiwi

kuehteow has well summarised the attitude towards retirement. I advocate a higher retirement sum as I do not foresee myself adjusting my diet and food that I am accustomed. I prioritize health over money.

It is easy to do this on paper, thinking how life can be so perfect and work seamlessly with the planned budget. Heck, if it is, I bet half of the forumer here can retire before 40s.

 

[Sinkie]

Targeting for 1m cash, cpf untouched, 1 condo in msia fully paid, 1 inherited hdb , (considering 1 more condo in bkk with cash) at age 45.

How near are you to your target so far

 

[OngHuatHuat]

It is always good to settle property pArt first, since most of the time, it is on uptrend and it is easier for you to get loan when you are younger too.

Furthermore, property purchase involve high stamp duty and tax, it will be better for you to manage if you purchase it earlier.

currently on track in 11 years time, but bkk ppty is unbudgeted for yet, may have 1 work 1 -2 extra yrs if i insist on it.

1.assuming continued employment, excluding promotion raises and increments.
2.assuming similar lifestyle as now ( high % of savings)
3.Got spouse but no plans for kids

One thing i have not yet to catered for is aging parents in 11 yrs time.

 

[grenoble]

It is always good to settle property pArt first, since most of the time, it is on uptrend and it is easier for you to get loan when you are younger too.

Furthermore, property purchase involve high stamp duty and tax, it will be better for you to manage if you purchase it earlier.

Thanks yyhwin, however foreign ppty loans rates are very high, i would prefer to buy with cash if possible. Even now im considering to fully paid down the msia ppty loan.

 

[Sinkie]

Thanks yyhwin, however foreign ppty loans rates are very high, i would prefer to buy with cash if possible. Even now im considering to fully paid down the msia ppty loan.

So planning to retire in BKK or Malaysia?

 

[BBCWatcher]

One thing i have not yet to catered for is aging parents in 11 yrs time.

You raise a really important point.

I'm quite fortunate in so many ways. I was quite lucky to be financially independent from my 22nd birthday, with the caveat that having a strong family "backstop" prudently, safely allows you to do things you might not otherwise do -- there's a lot of insurance value in that. So a big thanks to mom and dad from me, always. Moreover, it's very hard to imagine that either of my parents will ever be financially dependent on me. Nor my in-laws, for that matter. Nor my siblings, who all seem to be solid.(*) So, quite lucky all around.

If you're not so lucky in this way, then I would highly recommend an early start to nailing down your parents' financial security if you can. Forgive me if I sound like a broken record here, but it really is true that CPF (and CPF LIFE) work(s) fabulously well to accomplish this goal. Moreover, if you're the nominated CPF heir then some money might come back to you anyway. (Don't count on it, but it's quite possible, particularly with residual Medisave balances.) There are also some tax reliefs available, and that's unique. Potentially a couple points of bonus interest, too, depending on where your parents are at.

(*) However, I have an arrangement with them. In lieu of toys and other ephemeral gifts (which are already in abundance), every month I chuck some dollars into university savings accounts (called "529s," but that's a U.S. thing) for my nieces and nephews. Everybody wins, and I'm happy to do it.

 

[agau168]

You raise a really important point.

I'm quite fortunate in so many ways. I was quite lucky to be financially independent from my 22nd birthday

Oh my ... I read enough of your posts to know you are not telling a cool story but a true story. You sound like the typical ultra-rich, humble and helpful person. Could you share how you did it by 22nd birthday? What tips can you spare to those of us who yearn to be like you?

Did you do a Mark Zuckerberg or were you born to a Walton?

 

[BBCWatcher]

You sound like the typical ultra-rich, humble and helpful person.

Ultra-rich, no, but thanks. Comfortable, yes, fortunately.

Could you share how you did it by 22nd birthday?

Quite a bit of luck, as I mentioned. One key bit of luck was getting paid (a very little, but enough, with that "insurance backstop") to go to a really excellent graduate school.

What tips can you spare to those of us who yearn to be like you?

Hmmmm.... I certainly haven't done everything perfectly and have missed some opportunities, but I think these parts work for me:

1. Maintain good family relations if you can.

2. Find something you're curious and passionate about, something that you love to learn about. That may or may not be school-related, but if you stay curious and love (or at least like) to learn, that should help. (I'm endlessly curious about the world, still. I just love to learn new things and be surprised. I think it helps. And what a wonderful time to be alive, really. Would you pick any other time in human history over this one?)

3. Relatedly, be flexible. If something's working, great, but make a change if it's not. That could be a country, a profession, a hobby, a boyfriend or girlfriend (or girlfriend to boyfriend?), etc.

4. Don't smoke, don't drink much, don't overeat (or eat only the same bad things), don't be sedentary, don't do drugs, don't gamble, don't ride motorcycles, look both ways twice and carefully before crossing the street, don't have unprotected sex until you're really sure you want to bring a child into this world (and with the right partner), don't get in trouble with the law. Basically, don't screw up the big things.

5. Be content with simple living in your individual way. If you haven't met the right partner yet, that's OK. If you don't have your first house (and mortgage!) yet, that's OK. If your buddy at work has an iPhone X and you don't, that's OK. This part is quite hard since there's enormous pressure to conform in various ways, especially (but not only) in Singapore. However, sometimes the world is wrong (and it's not really the whole world).

6. Laugh. It shouldn't be forced, but come on, isn't the world funny at least once a day? And mostly at yourself, not at others.

7. Treat everybody with respect as much and as often as you can, and don't prejudge. Individuals are individual, and they're all unique. Even genetically identical twins are each unique.

8. Basic personal hygiene is important.

9. Keep trying to communicate better. Effective communicators tend to do well.

Did you do a Mark Zuckerberg or were you born to a Walton?

Definitely not the latter. Zuckerberg and I have at least one thing in common, although I graduated, so better for him.

 

[minamikaze]

Very very impressive, financially independent at 22. I was still in the 1st year of university at that time!
So based on your replies, I presume you continued to work in a job that you love, and haven't retired yet?

 

[BBCWatcher]

So based on your replies, I presume you continued to work in a job that you love, and haven't retired yet?

Yes, that's right. Which is not to say every working minute is delightful, but I like the gig. I would like many gigs, fortunately.

 

[SBC]

Very difficult to stay fully employed till 50 these days. Few colleagues were gone recently.

 

[Toni90]

Ultra-rich, no, but thanks. Comfortable, yes, fortunately.


Quite a bit of luck, as I mentioned. One key bit of luck was getting paid (a very little, but enough, with that "insurance backstop") to go to a really excellent graduate school.


Hmmmm.... I certainly haven't done everything perfectly and have missed some opportunities, but I think these parts work for me:

1. Maintain good family relations if you can.

2. Find something you're curious and passionate about, something that you love to learn about. That may or may not be school-related, but if you stay curious and love (or at least like) to learn, that should help. (I'm endlessly curious about the world, still. I just love to learn new things and be surprised. I think it helps. And what a wonderful time to be alive, really. Would you pick any other time in human history over this one?)

3. Relatedly, be flexible. If something's working, great, but make a change if it's not. That could be a country, a profession, a hobby, a boyfriend or girlfriend (or girlfriend to boyfriend?), etc.

4. Don't smoke, don't drink much, don't overeat (or eat only the same bad things), don't be sedentary, don't do drugs, don't gamble, don't ride motorcycles, look both ways twice and carefully before crossing the street, don't have unprotected sex until you're really sure you want to bring a child into this world (and with the right partner), don't get in trouble with the law. Basically, don't screw up the big things.

5. Be content with simple living in your individual way. If you haven't met the right partner yet, that's OK. If you don't have your first house (and mortgage!) yet, that's OK. If your buddy at work has an iPhone X and you don't, that's OK. This part is quite hard since there's enormous pressure to conform in various ways, especially (but not only) in Singapore. However, sometimes the world is wrong (and it's not really the whole world).

6. Laugh. It shouldn't be forced, but come on, isn't the world funny at least once a day? And mostly at yourself, not at others.

7. Treat everybody with respect as much and as often as you can, and don't prejudge. Individuals are individual, and they're all unique. Even genetically identical twins are each unique.

8. Basic personal hygiene is important.

9. Keep trying to communicate better. Effective communicators tend to do well.


Definitely not the latter. Zuckerberg and I have at least one thing in common, although I graduated, so better for him.

Very good advices. U graduated from Harvard? Why u want to live in Singapore? Can live comfortable in US muh.

 

[kehyi4]

8. Basic personal hygiene is important.

I lol'ed at this

 

[klarklar]

Very good advices. U graduated from Harvard? Why u want to live in Singapore? Can live comfortable in US muh.

I'm curious about this too. Even if BBCWatcher lives and works in Singapore, he still has to pay U.S taxes since Uncle Sam taxes income globally. He is not taking advantage of PAPpy's generous zero capital gains tax.

I am guessing that his heart got captured by a Singaporean girl. That's the most logical explanation for an American Harvard elite to be here in Singapore, a boring place known for expensive cars/properties but wonderful place for making money (thanks to zero capital gains tax).

Anyway, I'm very glad that a Harvard elite is contributing to our nation-building and providing quality, free advice on this forum.

 

[qhong61]

Yes, that's right. Which is not to say every working minute is delightful, but I like the gig. I would like many gigs, fortunately.

U are not local?