How much is enough for retirement in Singapore?
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How much you need for retirement will depend on your style of living and inflation. I have a chart based on different living expenses of $2000 to $5000 and 5% inflation rate per year. Feel free to take a look.
http://lifelongfreedom.blogspot.com/2010/01/how-much-will-you-need-to-retire.html -
I thought my mother has planned quite well.
1. She is staying with us, and renting out her old HDB flat. Her rental income is more than sufficient for her to live comfortably. This is much better than saving any amount of money in the bank. The flat can be rented out for another 40 years, by then she will be over 110 years old.
2. She has about $14,000 in her medisave, earning about $700+ interest every year. I bought NTUC Incomeshield for her, which costs about $800 every year. The interest almost covers the premium.
I strongly advise everyone to get medical insurance for their elderly parents. My later father went through major operations, hospitalized for months, and I did not have to come out with any cash at all. His insurance covered most of it, and in the end, he still had about $5000 left in his medisave account. He had only about $8000 in his medisave when he just retired.
We should not be thinking of how much money to save. It is unwise to live on savings, because savings will be depleted one day.
Instead, we should be thinking of ways to generate passive income such as rental income
And make sure you have medical insurance, don't even think about paying all hospitalization bills using your savings, very few people can afford to do so. -
Agree with what tamarind say, in addition, must still have something in bank account. Understand that many insurers work on reimbursement basis. My friend had to fork out a lot of money upfront for her operation…hospital require payment first then op; insurer is op first, bill already then pay.
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tamarind:
Instead, we should be thinking of ways to generate passive income such as rental income
Very well said.
What other ways to generate passive income besides rental?
Everyone in SG is talking about having a second property for retirement. But it's easier to say than done. With everyone having the same mindset and is investment savvy, every dip in property market is a good chance to buy. This has resulted property prices rocketed since last year. Not everyone has the ability to own a second property in SG and not everyone is lucky enough to stay with their children and rent out their HDB to earn a passive income . Me too, not sure whether I can stay with my child's family next time and rent out my apt.
Well, I'm still thinking what my retirement plan is. -
KSP:
Another way is to buy REITs. It's more flexible and hassle free than owning and renting out a property. Some of the REITs listed here still have decent discount to NAV (i.e. you're paying less than the market value for the properties) and good dividend yield (some close to 10%). The downside is since it's more liquid than properties, we tend to panic and dump the stocks at the lowest when there's a stock market crash :stupid:
What other ways to generate passive income besides rental?
Of course we also need to do some homework about the management and the prospect of the properties a REIT holds and its debt levels (there's always refinancing risk for REITs). So no free lunch lah
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There are many ways to generate passive income.
Just google \"how to generate passive income\". You will get lots of ideas. The difficult part is finding something that you can do
Staying with kids and renting out old HDB flat is the easiest. If you cannot think of anything else, this is the only way out.
If you know how to do it, you can setup an internet forum like this one and earn money through online advertisements. I heard that forums like this can earn a few thousand US dollars a month. -
tamarind:
Oh is it? This is really an eye opener. So I assume our Chief here is earning quite a good passive income from this forum.There are many ways to generate passive income.
Just google \"how to generate passive income\". You will get lots of ideas. The difficult part is finding something that you can do
Staying with kids and renting out old HDB flat is the easiest. If you cannot think of anything else, this is the only way out.
If you know how to do it, you can setup an internet forum like this one and earn money through online advertisements. I heard that forums like this can earn a few thousand US dollars a month. -
Oh yeah, chief must be making loads of $$ judging from the amount of ads on this site
Wonder if we members here will get a piece of the action -
minnie2004:
Investment in good fundamentals dividend stocks is one way to generate passive income. Remember don't trade stocks, but invest in stocks. Here is my portfolio: http://myinvestmentportfolioinsingapore.blogspot.com/
Another way is to buy REITs. It's more flexible and hassle free than owning and renting out a property. Some of the REITs listed here still have decent discount to NAV (i.e. you're paying less than the market value for the properties) and good dividend yield (some close to 10%). The downside is since it's more liquid than properties, we tend to panic and dump the stocks at the lowest when there's a stock market crash :stupid:KSP:
What other ways to generate passive income besides rental?
Of course we also need to do some homework about the management and the prospect of the properties a REIT holds and its debt levels (there's always refinancing risk for REITs). So no free lunch lah -
minnie2004:
:rotflmao: :rotflmao: :rotflmao: The amount we earn after paying for everything from Auctions to hosting cannot even pay for a night's stay in the RWS hotelsOh yeah, chief must be making loads of $$ judging from the amount of ads on this site
Wonder if we members here will get a piece of the action
Don't believe the stuff you read about getting rich by setting up Internet forums.
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