Retirement

Making sure you have enough for the later years

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Retirement
  • Asked by Anonymous

    Hariz Arthur Maloy
    Hariz Arthur Maloy
    Top Contributor

    Top Contributor (Apr)

    Level 7. Grand Master
    Answered 1d ago
    The earlier the better. But usually many people start in their late 30s to 40s, its when they start moving their equity investments into fixed income instruments like bonds and annuities.
  • Asked by Gim Neville Chua

    Yixiong Chang
    Yixiong Chang
    Level 5. Genius
    Answered 5d ago
    No. The amount used for investment is still counted as part of the limit.
  • Asked by Anonymous

    Junus Eu
    Junus Eu
    Top Contributor

    Top Contributor (Apr)

    Level 7. Grand Master
    Answered 2w ago
    Is it an either or situation? If yes, then it would definitely be paying off the housing loan. After all, the cats gotta have a place to stay in! Alternatively, you can look at seeing where else you can cut expenses to finance the two cats that make you happy :)
  • Asked by Anonymous

    Gabriel Tham
    Gabriel Tham, Kenichi Tag Team Member at Tag Team
    Top Contributor

    Top Contributor (Apr)

    Level 8. Wizard
    Answered 3w ago
    Any company face the same risk, even SG banks. But as long as our investments are kept seperate and custodised, it should be safer. https://www.stashaway.sg/faq/115003747047-what-happens-to-my-money-if-stashaway-gets-acquired-goes-public-or-closes/
  • Asked by Xinyi Lum

    Cecilia Leong
    Cecilia Leong
    Level 2. Rookie
    Answered 3w ago
    Buy my first home after my divorce to give stability to my 3 kids
  • Asked by Anonymous

    Brandan Chen
    Brandan Chen, Financial Planner at Manulife Singapore
    Level 5. Genius
    Answered 3w ago
    Actually no need to worry about hitting Retirement Sum. You also should take into consideration potential income increase and your annual bonuses if any. On top of which, pledging your property as a collateral is a viable option too. You can also consider topping up your SA account
  • Asked by Anonymous

    Clarence Chua
    Clarence Chua, Financial Planning Specialist at Prudential Assurance Singapore
    Top Contributor

    Top Contributor (Apr)

    Level 6. Master
    Answered 4w ago
    Inheritance and retirement planning are different. Inheritance planning is under legacy. So let’s not confuse them. ☺️ Retirement planning at the core of it, for singles or married couples are the same. Things to consider in retirement planning 1) Do you have a guaranteed source of income to supplement your retirement? This is a must have! I recommend you to have 70% of your desired income in retirement to be guaranteed. You see, once you have a guaranteed source of income no matter what, you can get a lot of things out of the way. Imagine having 20k per month, be it if you are sick or healthy. 2) Have you planned for the event in case of loss of independent existence? If you were to fall into a coma or something similar, how? Who is going to make decision for you? Hence it is important to set up a lasting power of attorney (LPA) and an Advanced Medical Directive (AMD). 3) What insurance do you still need and what you do not need. Most importantly keep the insurance that covers your bills. You won’t really need income replacement if you have guaranteed income. Some numbers you will need to know are a) your projected monthly expenses and desired income b) expected increase in expenses (if any) during sickness or long term care needs
  • Asked by Kenneth Lou

    Goh Kah Kiat
    Goh Kah Kiat, Editor-in-chief at Risknreturns.com
    Level 3. Wonderkid
    Answered on 25 Apr 2019
    The main issue I have with CPF is the CPFIS scheme. Some reforms have been implemented but more can be done. - Cost prohibitive to have a diversified portfolio of stocks (especially if your positions are small) due to quarterly $2.14 charge per counter. Having 10 stocks = $85.60 per annum. I understand these are bank fees and CPF may not be able to influence them, but one can try. - Limit amount you can use to buy Unit Trusts, ILPs, Annuities and Endowments. Having no limits on those products make no sense when most of these products underperform Index funds. It also encourages predatory financial advisors to recklessly sell these products to customers as “you can’t touch this money anyway”
  • Asked by Anonymous

    Lim Boon Tat
    Lim Boon Tat, Applied Mathematics at Brown University
    Level 4. Prodigy
    Answered on 22 Apr 2019
    Hi, good question, and as with most important decisions in life, it's always about finding the right balance, for yourself. I think others have given you a good perspective. Let me share something slightly controversial: some fruit for thought. With little to no savings, investing with whatever spare cash you have could be dangerous, especially if you're value-investing. Value investing (see my other posts) requires that you hold the investment for sustained periods of time (normally 3 years). If you suddenly have an emergency (medical, family, personal etc) and need the money, you may be forced to sell your investment at a loss. Typical financial advice suggests that you keep between 3- 6 months of expenditure as "emergency savings". Note that this is "expenditure" and not "gross income". Without knowing the exact figures, your current income level, your potential income level (highly correlated with your education level in Singapore, especially in your early career), it's hard to give precise advice. But let's assume that you have $X in cash and wish to invest all of it, and assuming that you're fairly decent in investing and average 20% per annum, at the end of a decade, $X becomes around $6X. Huge returns right? Well, not really. It really depends on how much X is, relative to your current income. At lower income levels, and especially early in your career, the amount of X you have to invest could be a very low percentage of your total income, simply because there are certain things that we ALL have to do: eat, drink, travel, rent a room etc. After subtracting all these, you dont really have much X left. Conversely, as your income grows (and because you've been reading Seedly) but your "quality of life" maintains its current level, your X (the amount of $ that you can save) becomes much higher (both in terms of % as well as absolute amount). Long story short, it may make sense in your earlier years to see if you can "re-invest" your $X to increase your primary income skillset, so that you can make more income: this could come in the form of buying coffee to your mentors to learn from them, attending more workshops/seminars to improve your skillset, getting more certifications etc. A numerical example may be more illustrative: Say you are earning $3k in gross income, and save around $300 a month after expenses (e.g. CPF, eat, drink, travel, rental, filial piety money to parents etc). So in this case, you have 10% of your income every month to invest. After 12 months, you have $3.6k. Two scenarios: Scenario A: invest at 20% per annum and make around 22k back in 10 years? Scenario B: invest in yourself, change to a higher-paying job, perform better and get higher annual bonus and increase your salary from 3k to 4k? 3k to 5k? Most salary increases tend to last for a while. So a 1k increase in monthly income this year, will likely persist through for at least the next couple of years. Which scenario gets you more $ in the long run?
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