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(03-07-2014, 01:53 PM)Porkbelly Wrote: Some basic parameters and assumptions about retirement:
A) No mortage to pay ( all properties )
B) No car loans to pay ( but still have car)
C) No dependants ( kids grown up, parents in heaven )
D) No severe health issues ( maybe high blood pressure, high cholesterol )
To me these parameters determine retirement.
As such, the expenditure per month could be:
1. Utilities ( electric & water )$300
2. Service & conservancy $300 ( HDB less )
3. Internet $60 ( no cable movies )
4. Mobile phone $30
5. Car petrol,parking etc $300
6. Medication, health checks $200
7. Food $500 ( eat out & home cooked )
8. Insurance $100( Medishield LIFE, over estimated )
9. Holidays $700 ( 1 short, 1 long per year)
The total here is $2,490 for 1 person.
Even if we factor in ang pows etc the total sum will still be under $3,000.
If retirement begins at 55 and assuming we live till 80, its 25 years.
$2,500 x 12 = $30,000 per year
$30,000 x 25 = $750,000
With the minimum sum ( CPF LIFE ) added, the sum of $750,000 is sufficient to retire on.
Inflation fluctuates.. between 2% & 5%... and the monthly sum is not static. it reduces as we age and consume less. We may forgo the car, the air con... etc. this should compensate for inflation too.
And if we delay retirement till 60,65... the amount is certainly more than enough... even with a maid.
Time to close the thread So for 2 persons die liu. For 3 BOH BEY CHOW liu.
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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The first 15 years are likely to be proactive. To continue maintain 30K expenses is unlikely. Maybe even more.
Also retirement on that level of life eg. 700 annual holiday , must well don't retire or live.
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(03-07-2014, 02:19 PM)corydorus Wrote: The first 15 years are likely to be proactive. To continue maintain 30K expenses is unlikely. Maybe even more.
Also retirement on that level of life eg. 700 annual holiday , must well don't retire or live.
Please note his calculation is for per month. 700 per month means 8400 per year. More than enough for a short and long holiday for 2 (in my opinion).
Also what is wrong with going annual holidays with 700? Some might be just going hiking in nearby countries for a few days, exercising and enjoying the scenery. $700 is definitely enough. Saying that others might well don't retire or live sounds way harsh.
There are people that are less fortunate or people who are frugal by nature. Please keep your thoughts to yourself even if you think that 700 is pathetic and "might well don't retire or live".
Sorry for the rant 
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 (03-07-2014, 01:53 PM)Porkbelly Wrote: Some basic parameters and assumptions about retirement:
A) No mortage to pay ( all properties )
B) No car loans to pay ( but still have car)
C) No dependants ( kids grown up, parents in heaven )
D) No severe health issues ( maybe high blood pressure, high cholesterol )
To me these parameters determine retirement.
As such, the expenditure per month could be:
1. Utilities ( electric & water )$300
2. Service & conservancy $300 ( HDB less )
3. Internet $60 ( no cable movies )
4. Mobile phone $30
5. Car petrol,parking etc $300
6. Medication, health checks $200
7. Food $500 ( eat out & home cooked )
8. Insurance $100( Medishield LIFE, over estimated )
9. Holidays $700 ( 1 short, 1 long per year)
The total here is $2,490 for 1 person.
Even if we factor in ang pows etc the total sum will still be under $3,000.
If retirement begins at 55 and assuming we live till 80, its 25 years.
$2,500 x 12 = $30,000 per year
$30,000 x 25 = $750,000
With the minimum sum ( CPF LIFE ) added, the sum of $750,000 is sufficient to retire on.
Inflation fluctuates.. between 2% & 5%... and the monthly sum is not static. it reduces as we age and consume less. We may forgo the car, the air con... etc. this should compensate for inflation too.
And if we delay retirement till 60,65... the amount is certainly more than enough... even with a maid.
Time to close the thread I'm sorry, but i'm rather curious where one can go for a long and a short holiday for $700?
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Hi Porkbelly
Coincidentally, your monthly cost estimate is almost the same as mine (But components are different).
However, besides inflation, we need to think about lifestyle inflation. (As one book I read described)
In future, we may see new goods and services that may become indispensible, the way internet became indispensible now.
Not sure what that would be, but I imagine things like subscription for virtual reality entertainment, advanced medical procedure to replace failing organs, etc.
So if we retire just when we hit our target monthly expenditure, we may be unable to acquire stuff that would be seen as necessary in future.
(03-07-2014, 01:53 PM)Porkbelly Wrote: Some basic parameters and assumptions about retirement:
A) No mortage to pay ( all properties )
B) No car loans to pay ( but still have car)
C) No dependants ( kids grown up, parents in heaven )
D) No severe health issues ( maybe high blood pressure, high cholesterol )
To me these parameters determine retirement.
As such, the expenditure per month could be:
1. Utilities ( electric & water )$300
2. Service & conservancy $300 ( HDB less )
3. Internet $60 ( no cable movies )
4. Mobile phone $30
5. Car petrol,parking etc $300
6. Medication, health checks $200
7. Food $500 ( eat out & home cooked )
8. Insurance $100( Medishield LIFE, over estimated )
9. Holidays $700 ( 1 short, 1 long per year)
The total here is $2,490 for 1 person.
Even if we factor in ang pows etc the total sum will still be under $3,000.
If retirement begins at 55 and assuming we live till 80, its 25 years.
$2,500 x 12 = $30,000 per year
$30,000 x 25 = $750,000
With the minimum sum ( CPF LIFE ) added, the sum of $750,000 is sufficient to retire on.
Inflation fluctuates.. between 2% & 5%... and the monthly sum is not static. it reduces as we age and consume less. We may forgo the car, the air con... etc. this should compensate for inflation too.
And if we delay retirement till 60,65... the amount is certainly more than enough... even with a maid.
Time to close the thread
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(03-07-2014, 02:11 PM)Temperament Wrote: (03-07-2014, 01:53 PM)Porkbelly Wrote: Some basic parameters and assumptions about retirement:
A) No mortage to pay ( all properties )
B) No car loans to pay ( but still have car)
C) No dependants ( kids grown up, parents in heaven )
D) No severe health issues ( maybe high blood pressure, high cholesterol )
To me these parameters determine retirement.
As such, the expenditure per month could be:
1. Utilities ( electric & water )$300
2. Service & conservancy $300 ( HDB less )
3. Internet $60 ( no cable movies )
4. Mobile phone $30
5. Car petrol,parking etc $300
6. Medication, health checks $200
7. Food $500 ( eat out & home cooked )
8. Insurance $100( Medishield LIFE, over estimated )
9. Holidays $700 ( 1 short, 1 long per year)
The total here is $2,490 for 1 person.
Even if we factor in ang pows etc the total sum will still be under $3,000.
If retirement begins at 55 and assuming we live till 80, its 25 years.
$2,500 x 12 = $30,000 per year
$30,000 x 25 = $750,000
With the minimum sum ( CPF LIFE ) added, the sum of $750,000 is sufficient to retire on.
Inflation fluctuates.. between 2% & 5%... and the monthly sum is not static. it reduces as we age and consume less. We may forgo the car, the air con... etc. this should compensate for inflation too.
And if we delay retirement till 60,65... the amount is certainly more than enough... even with a maid.
Time to close the thread So for 2 persons die liu. For 3 BOH BEY CHOW liu.
(03-07-2014, 02:34 PM)pubster Wrote: (03-07-2014, 02:19 PM)corydorus Wrote: The first 15 years are likely to be proactive. To continue maintain 30K expenses is unlikely. Maybe even more.
Also retirement on that level of life eg. 700 annual holiday , must well don't retire or live.
Please note his calculation is for per month. 700 per month means 8400 per year. More than enough for a short and long holiday for 2 (in my opinion).
Also what is wrong with going annual holidays with 700? Some might be just going hiking in nearby countries for a few days, exercising and enjoying the scenery. $700 is definitely enough. Saying that others might well don't retire or live sounds way harsh.
There are people that are less fortunate or people who are frugal by nature. Please keep your thoughts to yourself even if you think that 700 is pathetic and "might well don't retire or live".
Sorry for the rant
Is an expression actually when i say about "...". I read it as annual which why i find too little. $8400 holiday for one person is too much. 
Btw housing and car are huge purchases and installments can go pass 55 or 60. I doubt enough.
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I have some comment on the definition of emerging affluent (EA).
According to the DBS survey, EA are divided into two categories: Those aged 18 to 29 with a personal monthly income of more than S$2,500, and those aged 30 to 59 with a personal monthly income of more than S$5,000.
That means some EA may find themselves no longer considered as EA as they cross from age 29 to 30. Imagine one year you can join the express queue to exchange new notes, next year you cannot. More importantly, the number of such respondents may affect the survey result. The survey should revised the definition to make the transition from the younger category to the older category more smooth.
According to Citibank's definition, EA are those with $50,000 to $200,000 of investible assets. So someone who retires with
S$571,715 may no longer be considered as EA.
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I found something interesting in the details and so wanted to find out further if it is the norm for most here.
Utilities ( electric & water )$300 - for1 person. 2 = 600 dollars.
Is this the norm for most people here . Every month you pay 600 dollars on utilities?
Holiday 2 person = 16800 - Currently do you'll spent this much for holidays per year?
Also, shouldn't the following be also included? Personal grooming and appearance ( Colgate, soap, dental visits, clothes) , Entertainment ( watching movies, shows, holding party in the house etc...) Maintenance ( TV, Fridge , aircon repair or replacement etc , House repairs, vehicle repair ) Misc. ( Gifts, dental & clinic visits etc....)
Thanx!
(03-07-2014, 01:53 PM)Porkbelly Wrote: Some basic parameters and assumptions about retirement:
A) No mortage to pay ( all properties )
B) No car loans to pay ( but still have car)
C) No dependants ( kids grown up, parents in heaven )
D) No severe health issues ( maybe high blood pressure, high cholesterol )
To me these parameters determine retirement.
As such, the expenditure per month could be:
1. Utilities ( electric & water )$300
2. Service & conservancy $300 ( HDB less )
3. Internet $60 ( no cable movies )
4. Mobile phone $30
5. Car petrol,parking etc $300
6. Medication, health checks $200
7. Food $500 ( eat out & home cooked )
8. Insurance $100( Medishield LIFE, over estimated )
9. Holidays $700 ( 1 short, 1 long per year)
The total here is $2,490 for 1 person.
Even if we factor in ang pows etc the total sum will still be under $3,000.
If retirement begins at 55 and assuming we live till 80, its 25 years.
$2,500 x 12 = $30,000 per year
$30,000 x 25 = $750,000
With the minimum sum ( CPF LIFE ) added, the sum of $750,000 is sufficient to retire on.
Inflation fluctuates.. between 2% & 5%... and the monthly sum is not static. it reduces as we age and consume less. We may forgo the car, the air con... etc. this should compensate for inflation too.
And if we delay retirement till 60,65... the amount is certainly more than enough... even with a maid.
Time to close the thread
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03-07-2014, 04:33 PM
(This post was last modified: 03-07-2014, 04:33 PM by Harvest Time.)
Assume 500k - 1st year expenses ($42K) and then multiply by (1 + interest/return rate), to get next year balance
500K with 1% return will last 12 years+
500K with 2% return will last 13 years+
500K with 3% return will last 14 years+
500K with 4% return will last 15 years+
500K with 5% return will last 17 years+
500K with 6% return will last 18 years+
500K with 7% return will last 22 years+
500K with 8% return will last 27 years+
500K with 9% return will last 48 years+
500K with 10% return will last forever as your balance keep on increasing
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(03-07-2014, 04:33 PM)Harvest Time Wrote: Assume 500k - 1st year expenses ($42K) and then multiply by (1 + interest/return rate), to get next year balance
500K with 1% return will last 12 years+
500K with 2% return will last 13 years+
500K with 3% return will last 14 years+
500K with 4% return will last 15 years+
500K with 5% return will last 17 years+
500K with 6% return will last 18 years+
500K with 7% return will last 22 years+
500K with 8% return will last 27 years+
500K with 9% return will last 48 years+
500K with 10% return will last forever as your balance keep on increasing
So those wil 500k should dump all their money into REITS that gives above 7% returns or more...
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