Target networth

[hwmook]

Do you have any idea how much housing prices have gone up in Asian cities in the last 2 years, let alone 10 years?

I know you are biased against real estate but perhaps you should keep an open mind. on a personal level, my property purchase accounted for more than 50% of my increase in networth in the last 5 years including from compensation from work.

I wouldn't be able to afford my home now if I hadn't bought it 9 years ago

More than 50% of my increase in networth in the past 5 years is due to equities, what's the big deal? You bought your property at a good time doesn't mean it's a good time to purchase now. Singapore government is keeping a tight lid on property price for the past 5 years, why go against the policies? It's doesn't make sense, stop pushing properties just because you made some money many years back.

 

[revhappy]

And as I recall, Revhappy, you took advantage of your one-time PEP income protection plan, as it were, so well played, sir!

Thanks, yes I did. So I have experienced retrenchment. Both Credit Suisse and Barclays were on overdrive in recruitment in Singapore after the financial crisis. They thought it will be business as usual. But then came the European crisis in 2012 and both these banks were hit badly and they had this mandate to cut billions in IT cost. Most of 2013 and 2014 were retrenchment years and they moved lots of staff to India.
The team I was working in Credit Suisse were very nice people. They let me know in Dec 2012 that my position is shaky. Yet I decided to stay there till the end, because I liked the work life balance there so much. Eventually I was retrenched in May 2014 and I found another job on the last day of my work at CS. It was a very bad job market then and I had almost given up and decided to go back to India. But I am still here and changed 3 jobs after CS. Current job seems pretty stable, I have been here for almost 3 years now.

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[havetheveryfun]

More than 50% of my increase in networth in the past 5 years is due to equities, what's the big deal? You bought your property at a good time doesn't mean it's a good time to purchase now. Singapore government is keeping a tight lid on property price for the past 5 years, why go against the policies? It's doesn't make sense, stop pushing properties just because you made some money many years back.

sinkies love property... they wan their future generation to be paying over a million just for a 4-room HDB flat.

 

[minamikaze]

Posted in this forum for advice a while back, before I got my 2nd property.
In early 30s, wife in late 20s. Our gross income pa is at 350k (includes rental, main and side incomes etc). Net after all expenses, CPF, taxes, mortgage payments etc at about 220k. We don't spend very much as you can see, but are happy with our comfort level and jobs (although mine is a little unstable, but with quite a bit of free time).
We have 2 private properties in SG now, with 950K loan remaining. Both rental properties generating about 6k rental total (we're staying somewhere very low-rent for the time-being due to an arrangement for at least the next few years).

This is a breakdown of our assets:

To be honest I'm not exactly sure where to go from here. While we both like our jobs, life starts to get a little routine after a while with no clear purpose - I was thinking of paying off both properties within 2 years (and get rid of one major thing on our shoulders), and then look at what's next - maybe migrating to somewhere interesting?
I don't know what's a good networth to look for - I don't think our lifestyle would change much though, unless we hit the 10 mil mark (which would be next to impossible unfortunately, short of winning Toto). For people who don't have children, what kind of networth (as a couple) is enough to say they are really financially free?

 

[revhappy]

Posted in this forum for advice a while back, before I got my 2nd property.
In early 30s, wife in late 20s. Our gross income pa is at 350k (includes rental, main and side incomes etc). Net after all expenses, CPF, taxes, mortgage payments etc at about 220k. We don't spend very much as you can see, but are happy with our comfort level and jobs (although mine is a little unstable, but with quite a bit of free time).
We have 2 private properties in SG now, with 950K loan remaining. Both rental properties generating about 6k rental total (we're staying somewhere very low-rent for the time-being due to an arrangement for at least the next few years).

This is a breakdown of our assets:

To be honest I'm not exactly sure where to go from here. While we both like our jobs, life starts to get a little routine after a while with no clear purpose - I was thinking of paying off both properties within 2 years (and get rid of one major thing on our shoulders), and then look at what's next - maybe migrating to somewhere interesting?
I don't know what's a good networth to look for - I don't think our lifestyle would change much though, unless we hit the 10 mil mark (which would be next to impossible unfortunately, short of winning Toto). For people who don't have children, what kind of networth (as a couple) is enough to say they are really financially free?

Is that property exposure of 927k, after subtracting the outstanding loan of 950K?

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[minamikaze]

950K left to go in terms of principal repayment.
Correction: 927K is the figure derived, taking a lower bound estimate of our current property value minus outstanding loan (principal). Hope this figure is an accurate one to quote, in terms of our asset allocation to property.

 

[revhappy]

950K left to go in terms of principal repayment.
Correction: 927K is the figure derived, taking a lower bound estimate of our current property value minus outstanding loan (principal). Hope this figure is an accurate one to quote, in terms of our asset allocation to property.

Have kids, you will find a purpose in life. You can clearly afford.

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[revhappy]

950K left to go in terms of principal repayment.
Correction: 927K is the figure derived, taking a lower bound estimate of our current property value minus outstanding loan (principal). Hope this figure is an accurate one to quote, in terms of our asset allocation to property.

The correct way of representing is to have the entire property notional(about 1.9M) valuation as your property exposure. Then in cash you should adjust the 950k loan outstanding. So your property exposure is about 150% of your networth.

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[buttercracker]

I used to follow an investment expert on the radio talk show in the past. I remembered he said he dont believe there are no sure-win investment, just that the person dont know how to invest and one day, i wake up and just read in wan bao or xin min, he died of sudden heart attack. Quite a shock to me...

 

[havetheveryfun]

I used to follow an investment expert on the radio talk show in the past. I remembered he said he dont believe there are no sure-win investment, just that the person dont know how to invest and one day, i wake up and just read in wan bao or xin min, he died of sudden heart attack. Quite a shock to me...

yes.. life is short.

 

[havetheveryfun]

To be honest I'm not exactly sure where to go from here. While we both like our jobs, life starts to get a little routine after a while with no clear purpose - I was thinking of paying off both properties within 2 years (and get rid of one major thing on our shoulders), and then look at what's next - maybe migrating to somewhere interesting?
I don't know what's a good networth to look for - I don't think our lifestyle would change much though, unless we hit the 10 mil mark (which would be next to impossible unfortunately, short of winning Toto). For people who don't have children, what kind of networth (as a couple) is enough to say they are really financially free?

1 million networth is more than enough for a lot of singles to say they are financially free.

 

[buttercracker]

yes.. life is short.

I was just thinking, if i was to continue listening to financial talk show at that time, i may just became investment expert like you all instead of just past win with IPOs.

 

[havetheveryfun]

I was just thinking, if i was to continue listening to financial talk show at that time, i may just became investment expert like you all instead of just past win with IPOs.

its never too late to start.. nor am i an investment expert.

I would rather be earning 100-200k p.a. like a lot of sakti money mind folks than to be an investment expert.

 

[minamikaze]

The correct way of representing is to have the entire property notional(about 1.9M) valuation as your property exposure. Then in cash you should adjust the 950k loan outstanding. So your property exposure is about 150% of your networth.

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Hm, I see. I guess the chart was just to show the current "realized" asset allocation, if that makes sense. Perhaps I'll create another chart myself to show the actual asset allocation based on what you said. But not sure what you mean by "in cash you should adjust the 950k loan outstanding"?

1 million networth is more than enough for a lot of singles to say they are financially free.

Not single, married now. I think it also depends on how much of that is tied up in property, no?

Have kids, you will find a purpose in life. You can clearly afford.

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No interest in that at the moment

 

[revhappy]

Hm, I see. I guess the chart was just to show the current "realized" asset allocation, if that makes sense. Perhaps I'll create another chart myself to show the actual asset allocation based on what you said. But not sure what you mean by "in cash you should adjust the 950k loan outstanding"?



Not single, married now. I think it also depends on how much of that is tied up in property, no?




No interest in that at the moment

Since your loan outstanding is larger than your cash in hand. Your allocation to cash is negative. So that is the correct asset allocation representation. In pie chart it doesn't appear correctly, but if you create a table, it can be represented correctly.

For example

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[rottingapple]

Am aiming for 500k before 45 years old if im still single. Provided im still working in my industry.

 

[What2do4life]

Am aiming for 500k before 45 years old if im still single. Provided im still working in my industry.

Super satki

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[havetheveryfun]

Am aiming for 500k before 45 years old if im still single. Provided im still working in my industry.

what if u not single then

 

[Sinkie]

Posted in this forum for advice a while back, before I got my 2nd property.
In early 30s, wife in late 20s. Our gross income pa is at 350k (includes rental, main and side incomes etc). Net after all expenses, CPF, taxes, mortgage payments etc at about 220k. We don't spend very much as you can see, but are happy with our comfort level and jobs (although mine is a little unstable, but with quite a bit of free time).
We have 2 private properties in SG now, with 950K loan remaining. Both rental properties generating about 6k rental total (we're staying somewhere very low-rent for the time-being due to an arrangement for at least the next few years).

This is a breakdown of our assets:

To be honest I'm not exactly sure where to go from here. While we both like our jobs, life starts to get a little routine after a while with no clear purpose - I was thinking of paying off both properties within 2 years (and get rid of one major thing on our shoulders), and then look at what's next - maybe migrating to somewhere interesting?
I don't know what's a good networth to look for - I don't think our lifestyle would change much though, unless we hit the 10 mil mark (which would be next to impossible unfortunately, short of winning Toto). For people who don't have children, what kind of networth (as a couple) is enough to say they are really financially free?

15 months ago

Hi!

I've turned 30 recently, and would like to seek advice regarding where I should be heading, financially and career-wise.

I got married sometime last year, and instead of getting a home of our own to live in, we invested in a freehold condo (~$800K) and rented it out. In the meantime, we're staying at one of my relative's places and paying a token sum monthly.

We have about 280K liquid cash, and a stock portfolio of about 150K. There is still a hefty balance of about 570K to go, for the condo's loan.

Now, there are a few options that I have considered:
1) Pay off the housing loan as soon as possible, perhaps within the next 3 years. So, 1 thing off our mind. This is the safest approach, but of course it means that we would probably take a longer time to reach our financial goals.
2) Store up more cash within the next year, and invest in a 2nd property. This is by far the riskiest option, because who knows what would happen to SIBOR, or my job.
3) Invest the cash somewhere and get possibly more returns. The truth though is that I have lost some cash over the years, but I'm still open to learning though.

I have a great job currently which gives me the time and flexibility to explore, learn and really think about where I want to be. I'm always looking to learn and I'm not afraid for someone to point out my problems. So in the course of this thread, please, feel free to shoot (constructively, of course )

My long term goal is to have a steady stream of passive income, so that I can pursue my real interest - traveling, or other stuff. I spend very little monthly (buying mostly 2nd hand stuff and eating simple food), and most of what I spend goes to traveling (which is not much actually - I love backpacking and staying in hostels).

Perhaps some of you might share your personal experiences or offer some advice?

Thanks!

https://deluxeforums.hardwarezone.c...al-advice-opinions-5626145.html#post108277970

You and your wife earning power are good, in just 15 month, your stock portfolio doubled and you got one more condo fully paid for

At the pace of your earning curve, i think both you and your wife target of $10m is very achieveable before 50

 

[What2do4life]

15 months ago



https://deluxeforums.hardwarezone.c...al-advice-opinions-5626145.html#post108277970

You and your wife earning power are good, in just 15 month, your stock portfolio doubled and you got one more condo fully paid for

At the pace of your earning curve, i think both you and your wife target of $10m is very achieveable before 50

Satki lah!!!

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