Someone who is my cohort just retired last year. He candidly shared that his average monthly expenses is less than $1000. Some background that I gathered: 1. Married with a working adult child. 2. Stay in condo; ever spinned n profited from few property sales. 3. Still need to support aged parent with 4 siblings. 4. No car. So I did some quick calculation to see sure or not to retire with $1k monthly expenses. Think his $1k p.m. is thin retirement. Utility & PS, water : $100 p.m. Telco: $20 p.m. MCST: $200 p.m. (where got so low maintenance?) Medishieldlife: $800 / 12= $66 p.m. (can pay by CPF-MA) H&S Shield Plan: $1200 / 12 = $100 p.m. (excluded $680 deducted from MA) Support his parents: $2000/5 = $400. Basic fixed monthly overhead: 100+20+200+100 + 400 = $820 With just $1000 p.m., net available for meal = $1000 - $820 = $180 p.m. (or $6 per day) Not forgetting that he just retired, he need to fully pay his last year personal income t...
1. My sharing on my layered 20 endowments: a. For the past 10-years, I have been building up about $600k worth of endowments to supplement my Retirement Income base. I started the Endowment Chapter in 2011 at age 47. (The same year that I also embark from my health regime and clocked 4 full Marathons in 10 years.) b. And 10-year later, this Endowment Chapter is yielding results. Starting from 2022 at age 58, my layered endowments have and will be paying my lifelong cash payouts. Last year was $40k, This year payout is $70k. Next year onwards will continue to give me $40k+ p.a. , not including annual cashback reinvestment of $12k per year over next 6 ~ 8 years. This endowment payout will give me a stable average $4k p.m. of retirement income when I retire. c. For now, likely I will taper off my Endowments Chapter. One thing about nibbling into endowments, it gives me time and investment maturity & clarity for next portfolio. d. I supposed that one can...
How to generate another RA tap? Savings have to be deliberate intention and discipline; putting aside the money or reinvest the cashback and let it compound. My learning from my colleague single policy: *Single $100k @6% (quite decent dividend/interest) put aside for 20year. a. $100k×(1.06^(20) = $320k maturity sum b. Then withdraw it over next 20-years; $100k×(1.06^(20)÷(20×12) = $1.33k p.m. It gives $1.33k p.m. every month for 20-years. c. My colleague chose to save $280k total !! age 48 to 55yo. He started late and hence shorter runway to compound. *$280k ×(1.05^(10)÷(10×12) = $3.8k p.m. But it is still good to enjoy $3.8k p.m. from 65 yo to 75yo. My Takeaway 1. Be it any saving instrument, stocks or endowment or CPF-SA, build up and reinvest or compound it, the principle sum has to be of bigger sum like $200k or $300k portfolio. (The bigger the better, just no quick return and get scammed.) Small portfolio, small outcome.
Comments
Post a Comment