My Retirement Plan At 35

[paullow]

Well, the idea is not to keep more than 30% of onr's holdings in cash for that reason of inflation yet gives one a comfortable margin of safety n reserve. So for 2m holdings, if 1m is in ppty n 0.5m is in stocks, i think erosion of money due to inflatory pressures is minimised. But to have 2m sitting in bank wqiting for another gfc is asilly thing to do unless of cos one has a 10m portfolioalready.
Thats my opinion.
Pl

What? Retirement?
There is no such thing in life. Even if now you have 2 million in cash don't you still have to make sure this sum of money can at least beat yearly inflation? So that you won't run out of gas first before money. Besides, don't think you want to lower and lower your life style as you grow older and older. When you don't have to work for somebody, doesn't mean you don't have to work for yourself. Unless you want to become a real Buddhist monk who gives up all worldly possessions and join the monastery. Ha! Ha!

[CityFarmer]

It is starting to have a balance supply of views on retirement.

To avoid misalignment, i would like to make my definition of "retirement" (ops, definition again ) Retirement to me actually mean financially-free. Free of choice to do what is worthy, while you and your family is well maintained financially.

It does not mean sitting idling, total freedom at will, without any discipline in life.

Actually, i do feel full-time investor is a more demanding job than my current one, both on brainpower and physical power. But i do like the challenge and reward comes with it. You have exposure to more variety of biz, rather than restricted to one profession. As full-time investor, it required more discipline than most other profession as well

Been financially free, meaningful and important one can be prioritized e.g. more quality time with kid, mum and dad, grand-mum and grand-dad etc.

[KopiKat]

What? Retirement?
There is no such thing in life. Even if now you have 2 million in cash don't you still have to make sure this sum of money can at least beat yearly inflation? So that you won't run out of gas first before money. Besides, don't think you want to lower and lower your life style as you grow older and older. When you don't have to work for somebody, doesn't mean you don't have to work for yourself. Unless you want to become a real Buddhist monk who gives up all worldly possessions and join the monastery. Ha! Ha!

There's nothing wrong with work. As long as you enjoy your work and tap dance to work everyday (like Warren Buffett), you should continue to work till you drop.

But for those who just want to get out of the rat-race, then having an alternative source of income gives them the choice. There's a big difference between 'working for money' and making the 'money work for you'.

Sitting on $1M, $2M,.. and still worrying about retiring? There're so many different approaches to make it work for you. If you can beat the benchmark (be it Bank FD, Inflation, STI,..) consistently, by all means go DIY. If not, leave it with the professionals (but have to identify a good one). Still want to DIY? Easy way would be to put into ETF, Corporate Bonds,.. and spread it out. Don't know how but keen to learn? Check out this forum, many experts around and many useful old threads on many topics.

Buddhist monks don't need to work?? Just eat, sleep and chant sutra?? The monastery must be some kind of hoilday camp to you?? I didn't know that! I bet the junior monks still have to do chores everday. The senior monks likely need to perform rituals and perhaps even listen to grievances and give advice.. That's not work??

The key to me is still, to have the choice (work or no work) and to enjoy whatever you are doing (work or no work)...

[Janjansen]

I'm a 1-2 years your junior. I have been off-work by choice since Jan 2012. I took the chance to travel on a tight/low budget and basically took the time and opportunity to enjoy the world, enjoy having your time all to yourself.

Hi Valuenewb,

It is good to hear that you are following your heart and living life on your own terms.

Are you planning to return to the workforce or will this be an extended sabbitcal?

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IMO, even tho' $1Mil sounds like a lot of $$, I doubt that it's going to be enough to last you another 35-45 years, if you're unable to get returns better than the inflation rate. Even if you scrimp and reduce your basic needs to a bare minimum, it becomes a curse if you happen to enjoy a long life! Further, I don't see much enjoyment in life if you have to constantly worry about this.

You are exactly correct. $1mil is a nice whole number that sounds very good, but in reality, it is barely enough, or even insufficient to beat infaltion for 35-45 years in Singapore. However, if we broaden our horizon and look outside of this tiny islands, I believe there are other countries within Asia that offer a reasonable standard of living at a much lower cost. Bangkok comes across as one such city, although I have only been there a few times for business travel and need to do more research on the place and lifestyle.

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Third, it may be better to wait for a recession before long-term investing. That way you can get 30 to 50% off when you buy. I've no idea when the next recession will occur. If you do wait, its painful to lose 5% per year due to inflation, and you may be doing it for a few more years. If you don't wait, its more painful to lose 30 to 50% when the bear comes....like being punched in the stomach.

Myself, I am around 35, married with no kids, except 2 cute furry ones. Currently holding cash and looking to buy international and local stocks in the next recession. If I can make 100-200% the next time round, I can safely quit the rat race.

Blackcat you took the words right out of my mouth; everyday I wake up praying for the mother of all recession so that I can pour my money into blue chips at bargain basement prices! For those who are sitting on cash, this the the best thing one can hope for. I have experienced the 2008 financial crisis and saw the gains that could be made during the 2009 rebound. Dividend yields for some blue chips were pushing 8-9% at the bottom around March 2009.

Which is also the reason why I continue to work and build up my warchest The lingering thought of a market collpase is what keeps me going. I agree that no one can predict when it will happen, but it will happen. I studied the history of the DJIA and the average boom bust cycle is between 3-4 years, and of late financial cycles are becoming shorter due to how interconnected the globe has become.

[Temperament]

Well, the idea is not to keep more than 30% of onr's holdings in cash for that reason of inflation yet gives one a comfortable margin of safety n reserve. So for 2m holdings, if 1m is in ppty n 0.5m is in stocks, i think erosion of money due to inflatory pressures is minimised. But to have 2m sitting in bank wqiting for another gfc is asilly thing to do unless of cos one has a 10m portfolioalready.
Thats my opinion.
Pl

What? Retirement?
There is no such thing in life. Even if now you have 2 million in cash don't you still have to make sure this sum of money can at least beat yearly inflation? So that you won't run out of gas first before money. Besides, don't think you want to lower and lower your life style as you grow older and older. When you don't have to work for somebody, doesn't mean you don't have to work for yourself. Unless you want to become a real Buddhist monk who gives up all worldly possessions and join the monastery. Ha! Ha!

Exactly. The more you have the more you "worry". Worry how to at least protect your wealth if not to keep on "growing"
Just to share, i believe in Stocks Market Timing too. Because even WB and the late John Templeton said so. (Besides using fundamentals investing). It really makes sense. But a lot of people don't understand what they actually mean. i practise this philosophy since day one. and i can tell you it is not easy. i am trying to improve all the time. Sometimes, i KK then i lose a lot of money, fortunately was profited money.
And of course, we invest according to our own "situations" No one situation is the same. Retirement? No such thing in life lah.

[Janjansen]

I have been investing almost 20 years already I think investing not very easy. Everybody want to become like warren buffet and want to have his successful run but I think only 2-3 out of 100,000 can really do it. You only see him make money but when he had his problems, when he got badly burnt, when he lost money, when he was down early in his investing career did you all see it? Were you there to feel the pain his sense of failure and hopelessness? No right?

I think the entry point is key. I was lucky to have bought most of my shares shortly after the 2009 rebound. I did not catch the bottom, but I bought in phases when the STI was climbing from 2000 to 2500. I have never had to make signifcant adjsutments to my portfolio and just passively collected dividends. I hope that there will be another 2-3 crashes in my lifetime.

[Temperament]

What? Retirement?
There is no such thing in life. Even if now you have 2 million in cash don't you still have to make sure this sum of money can at least beat yearly inflation? So that you won't run out of gas first before money. Besides, don't think you want to lower and lower your life style as you grow older and older. When you don't have to work for somebody, doesn't mean you don't have to work for yourself. Unless you want to become a real Buddhist monk who gives up all worldly possessions and join the monastery. Ha! Ha!

There's nothing wrong with work. As long as you enjoy your work and tap dance to work everyday (like Warren Buffett), you should continue to work till you drop.

But for those who just want to get out of the rat-race, then having an alternative source of income gives them the choice. There's a big difference between 'working for money' and making the 'money work for you'.

Sitting on $1M, $2M,.. and still worrying about retiring? There're so many different approaches to make it work for you. If you can beat the benchmark (be it Bank FD, Inflation, STI,..) consistently, by all means go DIY. If not, leave it with the professionals (but have to identify a good one). Still want to DIY? Easy way would be to put into ETF, Corporate Bonds,.. and spread it out. Don't know how but keen to learn? Check out this forum, many experts around and many useful old threads on many topics.

Buddhist monks don't need to work?? Just eat, sleep and chant sutra?? The monastery must be some kind of hoilday camp to you?? I didn't know that! I bet the junior monks still have to do chores everday. The senior monks likely need to perform rituals and perhaps even listen to grievances and give advice.. That's not work??

The key to me is still, to have the choice (work or no work) and to enjoy whatever you are doing (work or no work)...

Ya lol. i know exactly there is no escape as long as you live. No such thing as real retirement. Even a monk has to worry how to practise giving up "everything in this world"

[Jared Seah]

LOL!

I think we can juxtapose this thread with: "Should I quit to become an entrepreneur?"

And the posts here will fit right in just as well

Someone mentioned Maslow's hierarchy of needs. In a way, we can "guess" which life stage the authors are in - hence the wonderful diversity of views and opinions:

1) Some focus on the security needs - Will money run out? What happens if I get sick? Returns? Inflation?

2) Some focus on social needs - What will others say? What if I discover I have no social life outside of work? All my "friends" are my colleagues; and I miss them...

3) Some focus on esteem needs - I don't think its only lao lee that enjoys the power-trip


From the words, I am guessing most of the authors in this thread are males. It would be nice to hear a female voice on what's its like for a woman to give up a successful career to be a stay-at-home mom to raise the kids and rejoin the workforce when the kids are grown up. I have a suspicion its not so much about money

Men have it easy isn't it?

[Temperament]

I have been investing almost 20 years already I think investing not very easy. Everybody want to become like warren buffet and want to have his successful run but I think only 2-3 out of 100,000 can really do it. You only see him make money but when he had his problems, when he got badly burnt, when he lost money, when he was down early in his investing career did you all see it? Were you there to feel the pain his sense of failure and hopelessness? No right?

I think the entry point is key. I was lucky to have bought most of my shares shortly after the 2009 rebound. I did not catch the bottom, but I bought in phases when the STI was climbing from 2000 to 2500. I have never had to make signifcant adjsutments to my portfolio and just passively collected dividends. I hope that there will be another 2-3 crashes in my lifetime.

Congratulations! You have the "over-all correct concept of lifetime or life-cycle" investing. Especially in the stock markets. i have been trying to do it for 23 years already. Patience.

[sgd]

Bangkok comes across as one such city, although I have only been there a few times for business travel and need to do more research on the place and lifestyle.

Ah bangkok again, I'm no expert but if you want research there lots and lots of threads and experts in the sbf forums on the subject of bangkok and thailand.

Bangkok is a nice place good infrastructure good quality healthcare and cheap too if compares to singapore the people there are tolerant of foreigners and very importantly they don't have a history of supressing minorities but beware the hidden danger lurking behind the many lovely and beautiful smiles that will try to entangle you and your bank account.

The biggest uncertainty as everyone knows is the king's health and political turmoil that will come if he goes. I think there's no such a place on earth that have no problems.