How much is enough for retirement in Singapore?

[hercules]

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

[tyeogh]

Hercules,

Thanks for sharing. No offence. I find your first 10 impossible to do. What more ask my kids to do. Lol :rotflmao:

[tyeogh]

deleted

[hercules]

deleted.

[MrsKiasu]

just 2 mths projected fig up by 10k :yikes: got lobang arh?

[starlight1968sg]

hercules\" post_id=\"1935806\" time=\"1568782243\" user_id=\"14947:

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

I agree with the above.

[lee_yl]

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

[tyeogh]

MrsKiasu\" post_id=\"1935873\" time=\"1568810265\" user_id=\"43981:

just 2 mths projected fig up by 10k :yikes: got lobang arh?

I also shocked I wrote that. So deleted. Somehow I got quoted. Haha. Nvm. Just pretend I lost my mind. But Geez....

[MrsKiasu]

tyeogh\" post_id=\"1935886\" time=\"1568814984\" user_id=\"94399:

MrsKiasu\" post_id=\"1935873\" time=\"1568810265\" user_id=\"43981:

just 2 mths projected fig up by 10k :yikes: got lobang arh?

I also shocked I wrote that. So deleted. Somehow I got quoted. Haha. Nvm. Just pretend I lost my mind. But Geez....

no worries..who knows really can get then..

[tyeogh]

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.

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.

Sometimes, money is not everything. Dont stinge or worship it.