What is your net worth?

[OngHuatHuat]

Sometimes it is just like a report on how you perform in life. Health and wealth, maybe to a certain extent, friendship and family?

Nope, spouse is spouse, your questions reminds me of a thread saying finding a wife earning 10 k and above, then combined income more than 10 k, cna live comfortably thereafter.

A dumb question, why need to calculate net worth? Do you include spouse's net worth in too?

 

[hwmook]

Sorry to dig out this old thread.. first time posting here..

I am 39yo single male and only earning slightly less than 6k a month. currently struggling at my job and possibility of being laid off is quite high.. I would like to know where I stand in terms of net worth and if I really lose my job what would be the best option..

Cash + stocks 190k
Cpf SA+OA+MA 232k
Hdb 5 room flat worth 420k
hdb loan 90k
Insurance cash value 35k

If I can keep my job for another 2 years, my total net worth can hit 1mil although liquid net worth will be quite low.. (around 250k only). I'm trying to save up as much as I can while I still have a job.

Should I pAy off my loan now so I wont be too stressed if I lose my job?

If i cannot find another job, worse come to worse I can still survive (v v basic frugal lifestyle) by renting out the master room n a common room plus some dividends.

Another option is downgrade flat but not ideal coz rental yield is quite good.

1. You need to first stop paying back your loan with cash, just use CPF only. You should be able to service the loan very comfortably with CPF, I don't get why you want to use cash.

2. Stop buying useless insurance, if insurance have a cash value then it's probably useless like endowment, whole life, ILP etc.

3. IMO your cash/liquid portion is low out of your total assets. Only 25% of your assets are liquid, mine is 60%. Mortgage loans are cheap so no need to rush paying them back.

 

[ocs_woodlands]

A dumb question, why need to calculate net worth? Do you include spouse's net worth in too?

IMO if you are sharing your lives and your kids with someone, it is only logical to share financial resources as well.. so I would look at a couple's net worth. Kids should be excluded as they would eventually become man and wife with another person..

Sent from Common Sense using GAGT

 

[Perisher]

1. You need to first stop paying back your loan with cash, just use CPF only. You should be able to service the loan very comfortably with CPF, I don't get why you want to use cash.

2. Stop buying useless insurance, if insurance have a cash value then it's probably useless like endowment, whole life, ILP etc.

3. IMO your cash/liquid portion is low out of your total assets. Only 25% of your assets are liquid, mine is 60%. Mortgage loans are cheap so no need to rush paying them back.

I think this is good advice.
If you are worried about not being able to pay back housing loan, then accumulate more cash in higher interest bearing account like SSB/Maxigain etc... those can put in a combined $250k as things stand while at the same time using OA to pay back loan as those funds in OA can't do much for you for now.
As your house increases in value, it should make up for the loss that OA earns.

 

[Oldnerd79]

1. You need to first stop paying back your loan with cash, just use CPF only. You should be able to service the loan very comfortably with CPF, I don't get why you want to use cash.

2. Stop buying useless insurance, if insurance have a cash value then it's probably useless like endowment, whole life, ILP etc.

3. IMO your cash/liquid portion is low out of your total assets. Only 25% of your assets are liquid, mine is 60%. Mortgage loans are cheap so no need to rush paying them back.

It was partly intentional to keep my cash low as I wanted to 'lock away' the money as a defensive move. My first priority was to hit FRS asap so instead of paying the loan w CPF I used partial cash n partial cpf and transfer the excess OA to SA. Having too much liquid cash might give a false sense of security n I also might spend it away or worse kena cheated..;p

My second priority was to be debt free thats why I have been doing partial lumpsum repayment using cash.. as I dont intend to buy a second property I didnt really need that much cash anyway.

Now that I have hit the FRS I will be switching to full cpf for my monthly instalment and will be able to accumulate more cash.

Hopefully can keep my job for as long as possible.

 

[Maeda_Toshiie]

Me 31

Joint-Own a 4room HDB HDB flat, fully paid off

CPF (exclude MA) = 90+k

Cash = $1k

Job? Thinking of quitting every single day....HATE THE JOB

izit very jia lat?

Married with kids?

 

[culture_counter]

The following are illiquid assets and should not be placed as components for personal nett worth of an average Singaporean:

If have only 1 HDB flat for residence purpose, HDB flat is illiquid
CPF Life Annuity
CPF RA
CPF Medisave

 

[starlight318]

It was partly intentional to keep my cash low as I wanted to 'lock away' the money as a defensive move. My first priority was to hit FRS asap so instead of paying the loan w CPF I used partial cash n partial cpf and transfer the excess OA to SA. Having too much liquid cash might give a false sense of security n I also might spend it away or worse kena cheated..;p

My second priority was to be debt free thats why I have been doing partial lumpsum repayment using cash.. as I dont intend to buy a second property I didnt really need that much cash anyway.

Now that I have hit the FRS I will be switching to full cpf for my monthly instalment and will be able to accumulate more cash.

Hopefully can keep my job for as long as possible.

Actually, if you rent out your spare rooms together with the dividends from the 190k cash n stocks, you should be able to get by without digging into your savings even in times of unemployment. You can adjust the hdb loan repayment so that your OA lasts long enough until you find a job.

Dont think you should pay off the loan even if u get retrenched n have a good retrenchment package. Keep the cash just in case u become jobless for a long time. You might need the cash for emergency stuff.

 

[cybercom8]

The following are illiquid assets and should not be placed as components for personal nett worth of an average Singaporean:

If have only 1 HDB flat for residence purpose, HDB flat is illiquid
CPF Life Annuity
CPF RA
CPF Medisave

excluding all that you stated, my friend has

~S$2.7m condo, S$1.3m loan
~US$1.5m in shares, friday dropped a lot, maybe will keep dropping
~US$550k cash
~S$750k cash

no other debts except the housing loan

any advice on what he should do to better plan for retirement?

 

[pcmdan]

Married with kids?

No kids....wife not interested...no choice..I wan she doesn't..

Last time she wants I don't wan...so maybe karma haha

 

[andyhtc]

No kids....wife not interested...no choice..I wan she doesn't..

Last time she wants I don't wan...so maybe karma haha

Good to have at least one kid.

 

[andyhtc]

Actually, if you rent out your spare rooms together with the dividends from the 190k cash n stocks, you should be able to get by without digging into your savings even in times of unemployment. You can adjust the hdb loan repayment so that your OA lasts long enough until you find a job.

Dont think you should pay off the loan even if u get retrenched n have a good retrenchment package. Keep the cash just in case u become jobless for a long time. You might need the cash for emergency stuff.

In addition, I suggest to keep a look out for a more stable job and upgrade yourself along the way.

 

[JuniorLion]

excluding all that you stated, my friend has

~S$2.7m condo, S$1.3m loan
~US$1.5m in shares, friday dropped a lot, maybe will keep dropping
~US$550k cash
~S$750k cash

no other debts except the housing loan

any advice on what he should do to better plan for retirement?

Funny that such "high network individual" will need help to invest? Hmmm?

 

[WWH123]

High Net Worth or accredited

Funny that such "high network individual" will need help to invest? Hmmm?

 

[highsulphur]

For the average post-55 Singaporean, do you agree that the following components constitute his/ her liquid nett worth?

Cash in FD and savings account
Surrender cash value of insurance policies
CPF OA and SA, after meeting FRS
Equity stocks values

But are the following excluded?
Only 1 HDB flat for residence purpose
CPF Life or CPF RA
CPF medisave


Please feel free to discuss.

For my calculation, my net worth includes

1) cash in banks
2) securities holdings CDP or with brokers
3) all CPF balances
4) SRS
5) deferred bonus with employer

less
1) outstanding loan (not own home mortgage since I did not include home in my net worth)
2) tax liabilities

However, I do split between liquid and illiquid. (3)-(5) are all under illiquid. Unlike you I do not include insurance policies' surrender values as they not significant in my case (i did not have many life policies).

 

[highsulphur]

A dumb question, why need to calculate net worth? Do you include spouse's net worth in too?

for me i started keeping track some time when I hit late 30s. I did not only for myself and do not include my spouse. The reasons are as follows

1) I want to see how much my net worth grows annual to have a rough projection on growth. From the annual increase, I can gauge how much from employment and how much from investment (which is the balance)

2) I set a target in order to reach my "retireable" age. I tend to be conservative in my yield projection so my target will be on the high side.

All in all, its more for financial planning and to take stock on growth path to have a projection. The difficulties of course are unexpected large expenses like medical bills and loss of income (eg from retrenchment).

 

[highsulphur]

excluding all that you stated, my friend has

~S$2.7m condo, S$1.3m loan
~US$1.5m in shares, friday dropped a lot, maybe will keep dropping
~US$550k cash
~S$750k cash

no other debts except the housing loan

any advice on what he should do to better plan for retirement?

Depends on his age and number of dependents.

If he is single, then I think he looks quite alright. Just stick to deploying his cash into global index funds. If he is married, then have to take into account his spouse's future retirement expenses too. The biggest complication would be if he has children because you need to project expenses well until the children are financially independent.

 

[highsulphur]

1. You need to first stop paying back your loan with cash, just use CPF only. You should be able to service the loan very comfortably with CPF, I don't get why you want to use cash.

2. Stop buying useless insurance, if insurance have a cash value then it's probably useless like endowment, whole life, ILP etc.

3. IMO your cash/liquid portion is low out of your total assets. Only 25% of your assets are liquid, mine is 60%. Mortgage loans are cheap so no need to rush paying them back.

I think this is good advice.
If you are worried about not being able to pay back housing loan, then accumulate more cash in higher interest bearing account like SSB/Maxigain etc... those can put in a combined $250k as things stand while at the same time using OA to pay back loan as those funds in OA can't do much for you for now.
As your house increases in value, it should make up for the loss that OA earns.

I guess i take a different view on mortgage payment for my home (not investment property).

1) I want to clear the mortgage for my HOME as soon as possible. Yes, I can try to optimise yield by comparing mortgage interest vs interest earn from delayed payment but I see little point esp if the amount isn't huge (ie >a few million$). How much can you save vs having a peace of mind that your roof is secured? This is even more so when you have dependents staying with you in that HOME. If it is a investment property, then by all means try to optimise.

2) I take a view CPF is firstly for retirement. If you can sort that sorted out (a simple benchmark is to have FRS), then it can be utilise for other purposes like housing. Hence I would advocate to use as much cash as possible to pay for mortgage (after setting aside emergency funds) and as little CPF. The compounding of interest of CPF balances can have a significant effort in reaching your FRS. Again, the issue of CPF is not your money will always come up so how you use it depends on your view.

So for oldnerd's question, if I were him, I would pay off the HDB loan with my cash. The 90k balance should be enough for emergency funds even if he loses his job (touch wood).

 

[culture_counter]

For my calculation, my net worth includes

1) cash in banks
2) securities holdings CDP or with brokers
3) all CPF balances
4) SRS
5) deferred bonus with employer

less
1) outstanding loan (not own home mortgage since I did not include home in my net worth)
2) tax liabilities

However, I do split between liquid and illiquid. (3)-(5) are all under illiquid. Unlike you I do not include insurance policies' surrender values as they not significant in my case (i did not have many life policies).

In my opinion, CPF MA, CPF Life Annuity, CPF RA, should be omitted in the personal nett worth calculation as they are illiquid in nature, and can only be drawn-down upon retirement draw-down age or upon something happens.
Also, HDB flat (with outstanding mortgage) is also illiquid if it is used as your primary residence and should be omitted in the personal nett worth calculation.

Personal nett worth should ideally be defined as liquid assets which can liquidated for normal consumption or gratification by the individual even in good times.

 

[starlight318]

In my opinion, CPF MA, CPF Life Annuity, CPF RA, should be omitted in the personal nett worth calculation as they are illiquid in nature, and can only be drawn-down upon retirement draw-down age or upon something happens.
Also, HDB flat (with outstanding mortgage) is also illiquid if it is used as your primary residence and should be omitted in the personal nett worth calculation.

Personal nett worth should ideally be defined as liquid assets which can liquidated for normal consumption or gratification by the individual even in good times.

It depends on whats the purpose of calculating net worth. If it is purely for measuring and keeping track of your own financial status, then it doesnt matter how you calculate it. Just use the same method to include/exclude whatever you think appropriate.

However, if u want to compare with others to know how u are doing in life (in terms of financials). Then u need to include everything in order to have a meaningfully comparison. Of course, some may argue why we need to compare, hao lian etc.. I guess it's just human nature
Negtive ppl will think it's hao lian. Can also view it as sharing to motivate n inspire one another to do better.