Target networth

[bigrooster]

I find the key is to keep the mind active and remain curious about the world.

i agree. and continue to write, start a blog or something. else will become rusty. if nowhere to write, can come hardwarezone to jjww a bit.

 

[TabascoSauce]

Money mind Favourite topic, what is considered an asset lol.

Asset is a straight forward concept that is well defined and used consistently across the world, but many choose to be poisoned by catchy concepts introduced by book authors

 

[Sinkie]

Money mind Favourite topic, what is considered an asset lol.

Asset is a straight forward concept that is well defined and used consistently across the world, but many choose to be poisoned by catchy concepts introduced by book authors

Another concept just introduced by edmw is hdb is just a rental, not asset, as you don't own it at all and therefore it is an expenses and all hdb shouldn't be included in your networth

 

[bluegt]

Another concept just introduced by edmw is hdb is just a rental, not asset, as you don't own it at all and therefore it is an expenses and all hdb shouldn't be included in your networth

When HDB is resold then that is cold hard cash in the bank, how is it not an asset?

 

[BBCWatcher]

Another concept just introduced by edmw is hdb is just a rental, not asset, as you don't own it at all and therefore it is an expenses and all hdb shouldn't be included in your networth

I will volunteer to solve this problem. Instead of suffering with that terrible expense, I’d be happy to remove the burden of your HDB unit in exchange for cold, hard cash — $188! — that you can enjoy however you wish. All you have to do is to transfer your HDB unit to me. Do we have a deal?

....This whole side discussion is nutty. (Financial) net worth includes the fair market value of all assets less all outstanding debt. Yes, including HDB, CPF, and even the clothes on your back (eBay/Carousel value). It’s really quite simple. If you want to create and discuss some other measure, such as “Net Worth Excluding Primary Residence,” that’s perfectly fine, but (as you can see) it’s called something else besides net worth.

 

[JuniorLion]

When people starts a topic like "What is your target net worth", "what is your current networth", or anything remotely linked to the word "net worth", you bring out all the big cannon fairies and egomaniacs to participate.

Worth a spectacle the first time you read the posts, but that's about it.

 

[ocs_woodlands]

When people starts a topic like "What is your target net worth", "what is your current networth", or anything remotely linked to the word "net worth", you bring out all the big cannon fairies and egomaniacs to participate.

Worth a spectacle the first time you read the posts, but that's about it.

Well, between travelling to JB and posting here, the latter is a lot more convenient for an ego trip

 

[revhappy]

I did some calculations, my current networth of 800k SGD needs to about double to 1.6M SGD for me to retire comfortably in India. I am estimating it will take me another 5 to 7 years to achieve this level. By then I will be 45 years old. That should be perfect time to retire.

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

 

[BBCWatcher]

I did some calculations, my current networth of 800k SGD needs to about double to 1.6M SGD for me to retire comfortably in India.

Or how about Malaysia?

 

[revhappy]

Or how about Malaysia?

India is my home country, it is a home country advantage, even though it is in pretty bad state. Malaysia, is a nice country infrastructure wise, there is a big Indian population too, so that is a good thing. But, it's politics and race related policies are a bit scary, especially for minorities. It is an Islamic country and some states are getting towards shariah law, I would stay away from such countries.

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[Dolphinqiqi]

Is that a plan for a family?
With family, it’s difficult to move.

I did some calculations, my current networth of 800k SGD needs to about double to 1.6M SGD for me to retire comfortably in India. I am estimating it will take me another 5 to 7 years to achieve this level. By then I will be 45 years old. That should be perfect time to retire.

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

 

[rrr2015]

i think will need both mental as well as physical health … so important to keep both mind & body active …

I find the key is to keep the mind active and remain curious about the world.

 

[revhappy]

Is that a plan for a family?
With family, it’s difficult to move.

Yes, it is for the family. We are from India, so it like going back home. Also my Singapore PR application got rejected 3 times, so it is not like we have much of choice to live here. If I lose my job, I have 30 days to pack my bags and leave the country.

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

 

[Sinkie]

Yes, it is for the family. We are from India, so it like going back home. Also my Singapore PR application got rejected 3 times, so it is not like we have much of choice to live here. If I lose my job, I have 30 days to pack my bags and leave the country.

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

wow, as an employment pass holder, you able to earn like $800k from singapore?

 

[BBCWatcher]

wow, as an employment pass holder, you able to earn like $800k from singapore?

That’s not quite what happened or is being forecast.

There are many possible scenarios, but as one example if you start with $800,000, save $2,800/month, and achieve 7%/year total returns (compounded annually in this example, and net of all costs), then after 7 years you’d end up with just over $1.6 million. $2,800/month for 7 years is $235,200.

Is this scenario possible? Sure, possible. Likely, maybe not, but possible. A higher monthly savings figure would be helpful, of course.

There is a major challenge here. If you’re trying to assure retirement from age 45, which is somewhere around 5 to 7 years from now, that’s well within the recommended adjustment period when a portfolio should be in the process of adjusting from an aggressive accumulation posture to a more conservative drawdown posture. But a progressively more conservative portfolio tends to reduce yields — and volatility, which is why you do it. I assume Revhappy is hoping he would be able to retire at age 45, but he’s not banking on that happening. In other words, he’s going to stay in an accumulation-oriented investment posture and see what happens.

 

[hwmook]

wow, as an employment pass holder, you able to earn like $800k from singapore?

He already mentioned he earn 100k PA so what do you need to know?

 

[hwmook]

That’s not quite what happened or is being forecast.

There are many possible scenarios, but as one example if you start with $800,000, save $2,800/month, and achieve 7%/year total returns (compounded annually in this example, and net of all costs), then after 7 years you’d end up with just over $1.6 million. $2,800/month for 7 years is $235,200.

Is this scenario possible? Sure, possible. Likely, maybe not, but possible. A higher monthly savings figure would be helpful, of course.

There is a major challenge here. If you’re trying to assure retirement from age 45, which is somewhere around 5 to 7 years from now, that’s well within the recommended adjustment period when a portfolio should be in the process of adjusting from an aggressive accumulation posture to a more conservative drawdown posture. But a progressively more conservative portfolio tends to reduce yields — and volatility, which is why you do it. I assume Revhappy is hoping he would be able to retire at age 45, but he’s not banking on that happening. In other words, he’s going to stay in an accumulation-oriented investment posture and see what happens.

It's not that simple when you retire at 45, you still got a lot way to go before you kick the bucket. 35-40 years is too long a duration to stay at a conservative profile. You risk having returns below inflation level which will have an impact 20 years down the road. From 45-65, I would slowly switch to a more conservative profile if I am in his shoes.

 

[BBCWatcher]

If I lose my job, I have 30 days to pack my bags and leave the country.

That’s true. However, if you have a fixed monthly salary of at least $12,000/month, you could apply for a Personalised Employment Pass. You’re allowed a maximum of one PEP per lifetime, and a PEP is good for 3 years. At the end of the PEP you have three options: (a) drop down to a EP, (b) rise up to PR, or (c) leave Singapore.

PEP holders are effectively self-sponsored EP holders, and a PEP holder can stay in Singapore for up to 6 months after cessation of employment. (Although a bout of unemployment that long would likely trigger an eventual early loss of your PEP, with the three options listed above.) PEP holders can also sponsor dependents for DPs.

It’s a quirky immigration status that’s somewhere in between an EP and PR. In practice, if you meet the income qualification (which could change, although probably not for people holding PEPs), you could try to apply for a PEP if your current employment seems wobbly. You have to be in employment to apply and to pick up your PEP, though, so it cannot be too wobbly. But if your goal is to stay in Singapore for at least another 5 to 7 years, you want to be a little careful about when you apply.

I think you have up to 6 months to pick up a PEP after approval, so you can stretch the total anti-wobble protection out to roughly 3 years and 7 months, figuring 1 month for the application decision, 6 months before you pick up the PEP, then 3 years once you do pick it up.

If you’re successfully on a PEP then I suppose you could attempt one more PR application, at about month 20 of your PEP. Maybe the PEP counts for a tenth of a point or whatever. Who knows.

If you’re not at $12K/month or above then please ignore all the above, at least for now.

 

[BBCWatcher]

You risk having returns below inflation level which will have an impact 20 years down the road. From 45-65, I would slowly switch to a more conservative profile if I am in his shoes.

Yes, that’s all rather the point. If you cannot afford to live on/from the recommended drawdown portfolio for the rest of your life when you retire, which the “textbook” advises should be around a 30:70 stocks:bonds split, then you cannot afford retirement yet.

There’s little risk of returns below inflation in that recommended portfolio. There’s much, much greater risk of exactly that with the aggressive accumulation phase portfolio. Aggressive portfolios can experience really terrible funks, with not only real loss of value over several years but also big nominal loss of value over several years. That is all quite possible, and you simply cannot count on sunshine, rainbows, and lollipops as your retirement income plan.

 

[revhappy]

wow, as an employment pass holder, you able to earn like $800k from singapore?

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.