Anonymous
Mum wants dad to stop working and retire. He earns 7k/month How can they optimise their financials for retirement?
Dad is an engineer who draws 7k/month and had his 55th Birthday last year. Did not read about CPF shielding then. Now he has
175k in RA(Has option for property pledge)
75k in OA
42k in SA
Mum is a homemaker aged 54. 55th Birthday this year October. She has
51k in SA(Due to regular 7k top up)
4k in OA
housing amount withdrawn 47k
CPF has informed her that she is not eligible for property pledge
Currently have some spare cash on hand, about 100-120k
Dad is drawing 7k/month
Rental giving 2k/month
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Hariz Arthur Maloy
06 Apr 2019
Independent Financial Advisor at Promiseland Independent
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Good to do a up a full financial plan and check his current net worth, retirement expense and retirement funding methods.
As long as all his assets and cashflow can provide him the lifestyle he wants to live without needing to go back to the work force then sure he can retire.
Everything becomes way clearer once you have things on paper and tabulated. Do make sure to get both your parents to understand that they might be retired for 30-40 years, and they still have to adjust their expenses for inflation.
It's very important now to not take much risk in their asset allocation and to start building passive streams of guaranteed income coming in.
CPF Life will only start paying in 10 years time, so if he's stopping now, you need something similar asap.