Share your retirement strategy

[tiny]

My plan is transfer all my OA into SA. I reckon i will hit the cpf min sum (using my SA) in 1.5 years time

The transfer is irreversible. Don't cry next time when you have insufficient OA to buy house or fund your children education.

Were you inspired by the blogger AK71? He is an exceptional wonder case who bought a property at a cheap price and now sitting on it for rents. Not everyone can pull it off.

 

[havetheveryfun]

The transfer is irreversible. Don't cry next time when you have insufficient OA to buy house or fund your children education.

Were you inspired by the blogger AK71? He is an exceptional wonder case who bought a property at a cheap price and now sitting on it for rents. Not everyone can pull it off.

Don't need to treat AK71 as a wonder case, but just the fact that he choose to be single and do not have kids means a lot of us should not just follow him blindly. Even he said it himself before I think, that if we are planning to use our OA to purchase a flat, we shouldn't transfer everything to SA. But if your partner is willing to wait, maybe delaying the purchase of a flat by a few years (and transferring those $$ into the SA during that few years first) would help a lot towards meeting the retirement sum.

 

[mcylo]

How old r u? Dun need the OA for property or kids education? If you r young and can spare the money, it is a good idea as 4% compounded over the years will snowball quite fast..

Fully paid up. Gotten endowment policy to fund their education, but dont think it is enuff

 

[havetheveryfun]

I see many died at 60plus. Not likely many can live above even 90 at present time.

My colea fren father if he able to take out cpf monies to eat likely to last him for some time. Probably he might not even outlast his cpf monies. So whats the point he has cpf monies but cant use his own monies at all when he needs them? I think thats the point my colea is driving across. I think quite true to an extent also lar.

if he dun even have the ability to have that bit of savings left to feed himself at 55, what makes you think he won't squander off that money on other stuff if he were allowed to use those monies freely ?

you prob don't have frens or relatives who keep fantasizing of their cpf monies all day long. I have a relative who is able bodied, in his 50s, but chose to be jobless. other ppl recommend him jobs, he complain pay low, too much work, etc, then whole day keep complain why he cannot take out the cpf monies to eat. if ur colleague's father is also like that, able bodied and able to work, but keep thinkin of the easy way out and keep fantasizing about their cpf monies, do you think they would not spend finish those monies quickly ?

 

[mcylo]

The transfer is irreversible. Don't cry next time when you have insufficient OA to buy house or fund your children education.

Were you inspired by the blogger AK71? He is an exceptional wonder case who bought a property at a cheap price and now sitting on it for rents. Not everyone can pull it off.

Yup. Understand its irreversible. House fully paid up. My hdb bot during the asia finacial crisis! So i guess its cheap. As for children education, bot endowment policy already since they are babies.

U have a link to blogger ak71, would like to read his blog.

 

[Perisher]

Yup. Understand its irreversible. House fully paid up. My hdb bot during the asia finacial crisis! So i guess its cheap. As for children education, bot endowment policy already since they are babies.

U have a link to blogger ak71, would like to read his blog.

It's the first link that comes up when you google ak71... it's blindingly obvious.

 

[iCuteCube]

I discussed with moi colleagues and they told me im stoopid to think of pumping cash into SA account. Reason is no liquidity and if need monies to use we cant take out from SA until 65 yrs old then pay us back little by little. Scolded me for being naive leh. Wah piang. Regret voicing out. Now they think im really stupid naive boy. My coleagues is in their 40s 50s already and the one scolded me supports WP go to their rallies one.

For moi i think rent out the paid-off hdb is ok then the rent use to hire a maid or reinvest in another sg property. Sg properties still da best. Rent jb hse not say no good but the $2.2k rent converts to MYR 6.6k nia. In jb needs buy a car, maintainance already ard RM1k. Food not cheap. One meal outside coffeeshop at least RM6 also jiak not ba. Sg cai png $3 eat full alry. Jb internet v slow. Basically must sleep at 10pm. No life leh. Unless you are one waiting for time to die can go nursing hme in jb. One month RM6k VIP room. Jin sakti. Got personal nurse to assist you. Personal toilet. Big tv screen etc. I saw many sg old ple staying at the one at ECON perling branch. Big and new. The kids from sg come visit all look like well to do.

There is always pros and cons to things.

Even you invest, liquidity would be compromise because you gonna stick your money there a certain period of time to see some results, unless we are talking about high risk investment.

Yes, do agree that for SA it is really locking up your liquidity, but till 55 years old for a big portion of it. Why? I am taking assumption that your normal salary would be able to meet to the CPF-SA sum, and any top up would only means you could withdraw it @ 55, because 99.99% your SA would be "overflowing" the mark of the default amount set.

Theoretically your first 40k SA earn additional 1%, which amount to 5%.
Your top-up SA would reach a limit where you could no longer top up, because your normal CPF by your salary + your top up, would have hit the CPF-SA limit X number of years, could be somewhere around 15year-ish for most normal worker.

I am not a pro-CPF, and I had not top up the SA, as cash is still important to me at late 20s, but at 30s should be very attractive scheme, can save on tax also

 

[homer123]

Wow, wish I can be like him... What is his retirement strategy? Live off the 600k till CPF Life kicks in?

He can retire because his kid is going to work next year and his home business is self-running. His current cash holding is an opportunity fund when everything start crashing next year. Basically , it is easy to retire if u have no more financial burden

 

[highsulphur]

Well this is my plan. Will just talk about CPF and SRS.

1) CPF. Have transferred OA to SA very early in my career. Currently, assuming I will be gainfully employed with a salary of more than 6k/mth till 55, I should have a sizeable CPF balance at 55. Let's assume CPF Life is what it is now (which is not possible but just for planning). I will opt for Full Retirement Scheme which pays around $1300. The balance that will be returned to me will be put in a bond ETF that pays around 2%. I estimate I should have $1,500 per month from 55 to 65 and $2,800 from 65 onwards when CPF Life kicks in.

2) SRS: I estimate if I continue to contribute till 55, I should have around 370k in SRS (assuming no gain or loss from investment which again is not unlikely). That amount will attract zero tax if withdrawn over 10 years. Assume putting into 2% bond ETF, that should yield $600 per month (principal untouched).

So from just these two, I should have $2,100 per month from 55 to 65 and $3,400 from 65 onwards. If there is an emergency, I will tap on the principal of my CPF balance net CPF contribution and SRS.

I left out other stuff like properties and portfolio for simplicity sake.

 

[Pegasus Sinbkk]

Well this is my plan. Will just talk about CPF and SRS.

1) CPF. Have transferred OA to SA very early in my career. Currently, assuming I will be gainfully employed with a salary of more than 6k/mth till 55, I should have a sizeable CPF balance at 55. Let's assume CPF Life is what it is now (which is not possible but just for planning). I will opt for Full Retirement Scheme which pays around $1300. The balance that will be returned to me will be put in a bond ETF that pays around 2%. I estimate I should have $1,500 per month from 55 to 65 and $2,800 from 65 onwards when CPF Life kicks in.

$1,500/mth from bond ETF means $900,000 initial investment or do u factor in withdrawing from the pot?

 

[highsulphur]

$1,500/mth from bond ETF means $900,000 initial investment or do u factor in withdrawing from the pot?

Initial investment. If my calculation is correct, it should be achievable.

 

[shareholder]

As a shareholder, the retirement strategy is there is none. Be a minimalist, clear all the clutter, keep only what matters. Let go of all the negative, e.g. emotions, habits, people, etc. Then do what truly inspires the deeper soul within. Let the true self emerge.

 

[Seannie]

CPF Special Account compounds at 4% pa but you must remember that these money are only withdrawable at age 55 IF you have met the minimum sum of YOUR COHORT. If you cannot meet the criteria, the amount will snowball to age 65 and will be broken into smaller pieces and be given to you as monthly CPF LIFE payouts.

Orh oki. Then i see no point in locking up inside to get 4% compounded interest coz i might not meet the minimum and maybe not alive by then to see my monies even at 65. Some ple are gone even before reaching 65. I rather spent them all away while i still can walk, eat & enjoy life while still having healthy body and mind. If really so suay live beyond 65 then i guess my life after that to be destitude lor. Anyway past 65 alot things also cant do alry just waiting for time. My colleague at 50+ already many body ailments. Want enjoy life go overseas also cant already. Thats just life.

 

[Seannie]

Initial investment. If my calculation is correct, it should be achievable.

Highsulphur jin sakti elite. Living good life even after 65yrs old. For common folks like me not possible. Salary so little by time 55yrs old SA also not that much wont overflow till flooded.

 

[wondrdoggie]

I am already retired. Took early retirement since 1.5 years ago, don't foresee going back to work, maybe do another business later.

My retirement is funded 100% from returns on my investment portfolio, mainly equity, bonds, pe, hedge funds, etc. In a good year, my returns covers much more than my expenses. In a crappy year like 2015, I barely break even due to a bond default.

 

[iwant88888888]

is there really such thing as retirement in sg?

 

[ProLogic]

Moi retirement strategy ish to work until moi retire...meanwhile moi won't retire as long as moi can still work...

 

[allways]

Orh oki. Then i see no point in locking up inside to get 4% compounded interest coz i might not meet the minimum and maybe not alive by then to see my monies even at 65. Some ple are gone even before reaching 65. I rather spent them all away while i still can walk, eat & enjoy life while still having healthy body and mind. If really so suay live beyond 65 then i guess my life after that to be destitude lor. Anyway past 65 alot things also cant do alry just waiting for time. My colleague at 50+ already many body ailments. Want enjoy life go overseas also cant already. Thats just life.

Among my cohort in U of about 230 of us, only 1 is dead. We are all above 64 to 68. So it's not easy to die by 65. Don't know whether any of them still doing it at least once a week like me.

 

[Shiny Things]

Among my cohort in U of about 230 of us, only 1 is dead. We are all above 64 to 68. So it's not easy to die by 65. Don't know whether any of them still doing it at least once a week like me.

Yeah, this is a thing. It wasn't long ago that people's life expectancy after age 65 was in the single digits, so you didn't need a lot of money to fund your retirement. But nowadays, you can expect to enjoy retirement for a long time - if you're 65 this year, you can expect another 19 years of life if you're a man, and 22 years if you're a woman. (And those are just the averages! Half of people will beat that number, and the last thing you want to do is run out of money halfway through your retirement because you were too healthy.)

That said, dying before 65 isn't unheard of - your university cohort is in pretty good shape all things considered, because on average about one in ten Singaporean men and one in fourteen Singaporean women dies before age 65. (The source for all this stuff is right here - Singstat puts out some very comprehensive mortality tables.)

 

[Shiny Things]

$1,500/mth from bond ETF means $900,000 initial investment or do u factor in withdrawing from the pot?

You can factor in withdrawing from the pot as well. 3% is a pretty safe withdrawal rate - that almost guarantees you won't run out of money, especially when you include dividends - and that means you can hit $1500/mo with $600,000 in the bank.