Target networth

[BBCWatcher]

Sure or not? You can retire early this way?. Who sell u this kind of product for people Retiring at 40-45? Can trust them?

It's a sanity check, an excellent one. There are excellent insurers out there who can provide you with this sanity check. I'll sweep across many of the world's financial centers here to provide examples: New York Life, Nippon Life, Japan Post Insurance (Kampo), Tokio Marine, NTUC Income, Aviva (U.K.), Lloyds, Allianz (Germany), Swiss Life, and AXA (France).

It's possible to get quotations on some life annuities online, and that's a quick "temperature check."

Whether you choose to do business with one or more life annuity providers is a separate question, although in my view every retiree ought to have some baseline, high quality longevity insurance in force, whether from a sovereign (e.g. CPF LIFE), a high quality insurance company, or a government insured traditional private company pension. For example, New York Life is A.M. Best A++ and Fitch AAA rated, and that's as high as those rating scales go. (A.M. Best rates U.S. insurers. Other A++ rated companies include Northwestern Mutual and MassMutual.)

 

[Toni90]

Can u share the link to NTUC product for a check? Others not in Singapore, right?

 

[BBCWatcher]

Can u share the link to NTUC product for a check?

Here.

Tokio Marine and Manulife are the other sellers of life annuities in Singapore. Ideally you would get quotations on escalating joint life annuities, but any such data points can be useful to draw certain "sanity check" inferences. (Only one or two of these insurers offering escalating joint life annuities. I cannot remember which one or two off the top of my head.)

Others not in Singapore, right?

That's correct, and that's rather the point. Revhappy is not going to retire in Singapore, so this "sanity check" would be performed using the highest quality Indian annuity providers available, plus (preferably) a couple data points from high quality insurers elsewhere, as a sanity check on the sanity check, so to speak.

The point here is that if a high quality insurance company, with all its might and expertise, cannot make this retirement math work, then it's prudent to question whether you reliably can. Also, every retiree really ought to have some quality, baseline longevity insurance in place, highly preferably escalating and joint. And if you cannot do that because it would be "too expensive," that's yet another strong signal you're not financially ready to retire yet.

 

[Toni90]

Here.

Tokio Marine and Manulife are the other sellers of life annuities in Singapore. Ideally you would get quotations on escalating joint life annuities, but any such data points can be useful to draw certain "sanity check" inferences. (Only one or two of these insurers offering escalating joint life annuities. I cannot remember which one or two off the top of my head.)


That's correct, and that's rather the point. Revhappy is not going to retire in Singapore, so this "sanity check" would be performed using the highest quality Indian annuity providers available, plus (preferably) a couple data points from high quality insurers elsewhere, as a sanity check on the sanity check, so to speak.

The point here is that if a high quality insurance company, with all its might and expertise, cannot make this retirement math work, then it's prudent to question whether you reliably can. Also, every retiree really ought to have some quality, baseline longevity insurance in place, highly preferably escalating and joint. And if you cannot do that because it would be "too expensive," that's yet another strong signal you're not financially ready to retire yet.

You tried to bluff me, right? I clicked on the link and the guarrantee income is fixed one. Where got fighting inflation? Like this check for what?

 

[henrylbh]

You tried to bluff me, right? I clicked on the link and the guarrantee income is fixed one. Where got fighting inflation? Like this check for what?

 

[Incognito1979]

Yes, I have been here since 2009 mid, so in about 9 years I saved that amount. My salary has been pretty stagnant at 100k since 2012. Before that about 80K. I have been saving about 50% of my salary and investing mostly in fixed income in India and party into equities, not a lot. So it has compounding and aggressive savings. My wife hasnt been working. We have rented full HDB throughout for around 1.8 to 2.4K max, we never rented out rooms. So rent has been our biggest cost. Other than that we are quite frugal. Now my daughter is going in a private school as we didnt even get a local school for our daughter so schooling costs about 1K a month.

Wow good job on the savings, especially when you're the sole bread winner and providing for the family. I used to be able to save at those rates until I started a family. And then it plummeted. Mortgage, condo maintenance, insurance, car, school fees etc. Lol

 

[BBCWatcher]

You tried to bluff me, right? I clicked on the link and the guarrantee income is fixed one. Where got fighting inflation? Like this check for what?

Toni90, are you permanently challenged in your basic reading comprehension, or were you momentarily impaired? If the latter (hopefully), please try again, and please re-read what I wrote:

Tokio Marine and Manulife are the other sellers of life annuities in Singapore. Ideally you would get quotations on escalating joint life annuities, but any such data points can be useful to draw certain "sanity check" inferences. (Only one or two of these insurers offering escalating joint life annuities. I cannot remember which one or two off the top of my head.)

On top of that, NTUC Income does offer an escalation feature. It's not an ideal one from my point of view, but it's available.

WTF? Are you going around looking for arguments?

I see that Etiqa may also offer a life annuity in Singapore, with an escalating feature but not joint. It's a weird one, though, but it's another data point.

 

[NewInvestor]

Don't fight don't fight
It's not worth it
The reader will decide who is right n who is wrong

 

[Toni90]

Toni90, are you permanently challenged in your basic reading comprehension, or were you momentarily impaired? If the latter (hopefully), please try again, and please re-read what I wrote:


On top of that, NTUC Income does offer an escalation feature. It's not an ideal one from my point of view, but it's available.

WTF? Are you going around looking for arguments?

I see that Etiqa may also offer a life annuity in Singapore, with an escalating feature but not joint. It's a weird one, though, but it's another data point.

You tried to bluff me again. I clicked on your link. It is a horrible plan. Escalating as it started with 0% and slowly increased to ~1.6% at year 10 and stop increasing. Only scumbag liar and cheater will claim this kind of plan can fight inflation.

It is clear that no way you can find the plan you claim in Singapore. Maybe you can do a meaningful contribution by coming up with a link to such a product in US? Like this if you still can not do then I dont know what to say already.

 

[revhappy]

You tried to bluff me again. I clicked on your link. It is a horrible plan. Escalating as it started with 0% and slowly increased to ~1.6% at year 10 and stop increasing. Only scumbag liar and cheater will claim this kind of plan can fight inflation.

It is clear that no way you can find the plan you claim in Singapore. Maybe you can do a meaningful contribution by coming up with a link to such a product in US? Like this if you still can not do then I dont know what to say already.

Why does he have to bluff you man? He doesn't owe you anything. He is helping out people here. You can agree or disagree, but you can be kinder than that, instead of name calling. That just puts you in poor light.

Sent from Dont Take Any Of My Statment As Investment Advice. Do Your Own Due Diligence. using GAGT

 

[homer123]

.. ??

Homer123, your math just doesn’t work once you even begin to think about the reality of inflation. I’m afraid it’s not that simple, and it seems Revhappy understands that inflation needs to be factored in.

 

[Toni90]

Why does he have to bluff you man? He doesn't owe you anything. He is helping out people here. You can agree or disagree, but you can be kinder than that, instead of name calling. That just puts you in poor light.

Sent from Dont Take Any Of My Statment As Investment Advice. Do Your Own Due Diligence. using GAGT

I means those selling this product. Not him lah. Don’t think he dares to claim it.

 

[havetheveryfun]

.. ??

well inflation going forward at the same percentages is just not realistic for developed countries.

It would mean those in the 20s now would need 500k+ minimum sum in their CPF and houses that cost 500k now would cost close to over a million by then.

If we need to take care of inflation for our retirement needs, then what about our kids in the future who do not have a base capital to work on? If their salary doesn't catch up with inflation, it's doom for them too.

 

[BBCWatcher]

Revhappy is retiring in India. At last report (August, 2018) Indian rupee inflation is running at 3.69%/year. Within the past 5 years India’s inflation rate has varied from just below 2% to just over 12%.

Must inflation be factored into your retirement financial planning? Oh yes, in every country.

 

[Minimalists]

My target net worth was 15k when I started working at 25. It took me 8 years to achieve it, mainly because student loan and buying of a car with debt. After achieving it, I decided to do part time and pursue my dreams. Now in my mid forties, basically I have been living my version of ideal life for the past ten years. In a few years, I will be moving to a 3 rm hdb and continue this lifestyle. Many of my friends have been working really hard and saving tons of money, preparing for some “future” retirement. I have been doing the exact opposite, I was enjoying my life for the past 10 years. Have my friends retired with their millions? No. The truth is their mindset of accumulating stops them from retiring, I can bet they will keep working to reach some impossible moving target, until one day their health deteriorates and then congratulations they can finally have some excuse to enjoy their lives. My experience is this, stop all the debt nonsense. Live minimally and enjoy the real life. Interact with people and the environment. Our surroundings are filled with wonders, it is really a miracle to be here.

 

[limster]

I can bet they will keep working to reach some impossible moving target, until one day their health deteriorates

Whats your plan when your health deteriorates? Do you at least have a good H&S insurance plan, or are you going minimalist on that as well?

 

[Minimalists]

Whats your plan when your health deteriorates? Do you at least have a good H&S insurance plan, or are you going minimalist on that as well?

I was tempted to say no plan is the best plan. It is really tough to plan for so many possible futures, but thanks to our benign government, I am covered by medishield life, even my retirement at 65 seems assured with cpf life. I have not been idle and exercise about an hour daily, hopefully this slows the aging effects.

 

[ocs_woodlands]

I was tempted to say no plan is the best plan. It is really tough to plan for so many possible futures, but thanks to our benign government, I am covered by medishield life, even my retirement at 65 seems assured with cpf life. I have not been idle and exercise about an hour daily, hopefully this slows the aging effects.

Fortunately or unfortunately, only singles can opt for this path..

 

[BBCWatcher]

Fortunately or unfortunately, only singles can opt for this path..

Possibly also like minded couples without children.

 

[revhappy]

My target net worth was 15k when I started working at 25. It took me 8 years to achieve it, mainly because student loan and buying of a car with debt. After achieving it, I decided to do part time and pursue my dreams. Now in my mid forties, basically I have been living my version of ideal life for the past ten years. In a few years, I will be moving to a 3 rm hdb and continue this lifestyle. Many of my friends have been working really hard and saving tons of money, preparing for some “future” retirement. I have been doing the exact opposite, I was enjoying my life for the past 10 years. Have my friends retired with their millions? No. The truth is their mindset of accumulating stops them from retiring, I can bet they will keep working to reach some impossible moving target, until one day their health deteriorates and then congratulations they can finally have some excuse to enjoy their lives. My experience is this, stop all the debt nonsense. Live minimally and enjoy the real life. Interact with people and the environment. Our surroundings are filled with wonders, it is really a miracle to be here.

You seem to know what you want from life. That is a big achievement already. Most of us are in the rat race with the fear of unknown and don't know what we want in life. So moving the target and continuing to work is a way to delay facing that moment.

Sent from Dont Take Any Of My Statment As Investment Advice. Do Your Own Due Diligence. using GAGT