How much is enough for retirement in Singapore?
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hercules\" post_id=\"1935806\" time=\"1568782243\" user_id=\"14947:
I agree with the above.
My adult kids discussed with me about their 'retirements'.
These are the basic advice I gave to them:
1. Live simply
2. Max at a 4-room HDB (don't be lured into buying big flat or condos and pay extra maintenance fees etc)
3. Simple wedding
4. Simple flat renovation
5. Aim to save about 50% of salary (I have a spreadsheet for them that if they start saving $2000 per month at age 30, then they can hit their first million on own at age 50 and 52 with return interest of 4.5% and 3.5% pa respectively)
6. Buy second hand whenever possible (incl clothes, furniture, electronic gadgets, baby prams, etc)
7. minimize cost of raising their own kids (meaning basic preschool education, minimal tuition, etc)
8. No car
9. go for simple DIY travelling
10. Strive to be financially independent (FI) at 50 yo and latest by 55 yo (target of minimum saving of $1 million by then)
11. Once reaches FI, quit the job if they find no joy in doing it (don't waste anymore time and/or being stressed unnecessarily), and turn their remaining living years to pursue own interests and do volunteer work.
12. Leave the Earth in a better place on an individual basis
Recently then I chanced upon the concept of FIRE and think that I have been living that lifestyle for quite some time (that I feel so confident to retire comfortably coz of my contentment with simplicity):
https://www.youtube.com/watch?v=RyF40JydVNU -
In today’s low interest environment, how to find a low risk 4.5% returns interest?
If we must practise rules 1-10 on a daily basis, then I find life to be quite meaningless leh. No condo, no car, must wear 2nd hand clothes and buy 2nd hand baby pram etc. Some of the things in principle I don’t object lah, but Errr, no need to be so frugal right?
And imagine if one follows the above rules for the past 30years, today, he/she would have missed the property booms and likely still staying in the 30 yr old 4rm flat.
Ironically, it was my 1st condo investment (when I was 28yo) that helped me earn my first bucket of gold, which then went back into the property market to earn more money. So I am not against property investments. If I were to save a dollar here and a dollar there, by the time I reach 50yo, I also don’t know if I could accumulate $1mil or not, given that I am a SAHM.
Maybe it’s ok for the females to be thrifty but not the males? I recall my mum telling me not to find a husband who is “giam siap” (stingy) kind or else the rest of my life will be very miserable.
I mean if a guy’s starting salary is $5K and he buys a $5K handbag/diamond ring for his wife, then of cos it doesn’t make sense. But when the man is already established, then by all means buy. So far, while my hubby has offered to buy $5K handbag or diamond ring for me, I have always declined his offers but at least he’s not 一毛不拔 right? And I probably won’t like it if my MIL chided me because her son bought a $5K gift for me! Lol -
MrsKiasu\" post_id=\"1935873\" time=\"1568810265\" user_id=\"43981:
I also shocked I wrote that. So deleted. Somehow I got quoted. Haha. Nvm. Just pretend I lost my mind. But Geez....
just 2 mths projected fig up by 10k :yikes: got lobang arh? -
tyeogh\" post_id=\"1935886\" time=\"1568814984\" user_id=\"94399:
no worries..who knows really can get then..
I also shocked I wrote that. So deleted. Somehow I got quoted. Haha. Nvm. Just pretend I lost my mind. But Geez....MrsKiasu\" post_id=\"1935873\" time=\"1568810265\" user_id=\"43981:
just 2 mths projected fig up by 10k :yikes: got lobang arh?
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lee_yl\" post_id=\"1935885\" time=\"1568814175\" user_id=\"17023:
True that. If I thrift until buy 2nd hand clothes, 2nd hand shoes, no car, stay 4 room flat, dun renovate house, no holiday.....just to save $1m, I think my wife ah bish my face. Take my kids away. Find another man.
Maybe it’s ok for the females to be thrifty but not the males? I recall my mum telling me not to find a husband who is “giam siap” (stingy) kind or else the rest of my life will be very miserable.
Sometimes, money is not everything. Dont stinge or worship it. -
repeat
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tyeogh\" post_id=\"1935888\" time=\"1568815782\" user_id=\"94399:
True that. If I thrift until buy 2nd hand clothes, 2nd hand shoes, no car, stay 4 room flat, dun renovate house, no holiday.....just to save $1m, I think my wife ah bish my face. Take my kids away. Find another man.lee_yl\" post_id=\"1935885\" time=\"1568814175\" user_id=\"17023:
Maybe it’s ok for the females to be thrifty but not the males? I recall my mum telling me not to find a husband who is “giam siap” (stingy) kind or else the rest of my life will be very miserable.
Sometimes, money is not everything. Dont stinge or worship it.
You are humorous
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Yeah I don’t think I can keep to the 12 commandments too…life is short so live within your means comfortably. Raise responsible children and I think we should be fine?
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I feel that at my age I could follow many of the points probably coz I have tasted some of the sweetness as well as the bitterness… for a younger generation, I guess good to share with them that end of the day we may not need that much so maybe dont slave yourself all the way to the end. It is ultimately up to them if they want to achieve the more materialistic things but with those ideas at the back of their mind. Different people has different preference on how they want to live their lives and that may change along the way…to me important thing is for the couple (from different families with different values) to be able to come to an agreement of what they want as a family unit ba…
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Guess that is Hercules' preferred lifestyle and how she guides her children. Think of it as a base line and you slide your rule along that line according to what you think is suitable or practical for you.
For me, I did not have the privilege of buying a brand new HDB and making a windfall from that as we exceeded the income ceiling. EC was not available then, so the option was open market HDB or private. Given the property prices at that time, we went for freehold private.
I don't believe in 2nd hand clothes and stuff. Way I see it, I can afford brand new items so I get them brand new, instead of competing with others who are really in need for 2nd hand stuff. In any case, I don't shop excessively. I am still wearing some clothes(jeans, shorts, pullovers) from when I was in my 20s. :oops: Even furnitures and dining wares have been following us from house to house.
I spend less than 50% of what I earn since my 20s. Of course when kids came along expenses did go up somewhat but overall we are comfortable and retirement finances are on track. If there are things that I can afford and it improves the quality of life, I will not stinge on it.
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