$600,000+ enough for retirement at age 55? [Archive]

rhema83

07-01-2006, 04:22 PM

I am still a young adult but I have been planning my own retirement after my parents hinted that they are going to retire some time after I return to Singapore. Here is my own take on retirement.

Plan a normal (not extravagant) lifestyle assuming that you live to 100. Yes, there is no mistake, 100. Why so long? Firstly, you never know if medical technology is good enough by then to extend our lives to triple digits. Also, even if you live to only 85, the extra 15 years worth of living expenses will pay for your medical expenses (CPF Medisave is not enough) and any other unexpected events.

Finally, losing you will be hurting enough to your children. Do you want them to have an additional burden of paying for your funeral - after taking leave from work to attend to everything?

In Singapore, considering low to moderate inflation, you can plan to "earn" about $30,000 a year, which is enough if you don't have any mortgage to pay off. If you retire at 55 and live to 100, that is 45 years. That means you need $1,350,000 - more than double your estimate.

Granted, you may not need to come up with $30,000 per year, especially if your children are filial. But always work towards a high goal and you'll be still good to go even if you fall short of it.

Start saving NOW! (22 year old kid speaking here...)

Mark C.

07-01-2006, 04:27 PM

If a simple life from 55 to about 75 should be enough in Malaysia, but not in Sillypore.:giddy:
A minor operation at hospital here will cost at least 10k, so you figure it out yrself. :sweat:

ah_tee

07-01-2006, 05:08 PM

i mean if nothing serious happens, it shld be enuff

maybe jus take a low stress and easy job to get yr days by

seriously i think at 55 u r still workable, money is neber enuff issnt it, y not continue to 60 or 65 n have more material enjoyment or jus savings

on a sidetrack it dpends on ur lifestyle also, heard of some senior officers from military and police who take pension up to million but expended in a matter of years

lust and booze is the word

bomerman81

07-01-2006, 05:59 PM

bro guess not enuff ba.....

the living standard is getting higher each day here....

mayb can use the $600,000 in malaysia or even thailand( live like a king):cheeky:

Skunk

07-01-2006, 07:25 PM

my grandma retired with $0 and she's now living comfortably n healthily with my dad.

my neighbour retired with $1M....now he's dead and his family is in debt after a long n expensive battle with stroke n paralysis :cry:

it's not the money, it's where your destiny takes u :smile:

Naz

07-01-2006, 07:40 PM

:thumb: Skunk Bro

I'd say save as much as u can, and spend within how much u can.

Else, it always boils to, $ ALWAYS NEVER ENOUGH.

gohjohan

07-01-2006, 11:06 PM

I estimate that it should be ok for another 10 years but even for 20 years, S$600K is really pushing it, especially with inflation and cost of living going up slowly.

S$600k + some residual income from children and other resources, maybe can live very comfortably to the end.

Ah James

07-01-2006, 11:58 PM

Originally posted by rhema83@Jan 7 2006, 04:34 PM
I am still a young adult but I have been planning my own retirement after my parents hinted that they are going to retire some time after I return to Singapore. Here is my own take on retirement.

Plan a normal (not extravagant) lifestyle assuming that you live to 100. Yes, there is no mistake, 100. Why so long? Firstly, you never know if medical technology is good enough by then to extend our lives to triple digits. Also, even if you live to only 85, the extra 15 years worth of living expenses will pay for your medical expenses (CPF Medisave is not enough) and any other unexpected events.

Finally, losing you will be hurting enough to your children. Do you want them to have an additional burden of paying for your funeral - after taking leave from work to attend to everything?

In Singapore, considering low to moderate inflation, you can plan to "earn" about $30,000 a year, which is enough if you don't have any mortgage to pay off. If you retire at 55 and live to 100, that is 45 years. That means you need $1,350,000 - more than double your estimate.

Granted, you may not need to come up with $30,000 per year, especially if your children are filial. But always work towards a high goal and you'll be still good to go even if you fall short of it.

Start saving NOW! (22 year old kid speaking here...)
Brother.. u not in sg u dun know... nowadae4.. how many can realli earn $30000 in a yr if u are working for other ppl?

Each mth gt $2k.. u can luff liao lo...

ReBornBikeR

08-01-2006, 12:13 AM

Originally posted by rhema83@Jan 7 2006, 04:34 PM
In Singapore, considering low to moderate inflation, you can plan to "earn" about $30,000 a year, which is enough if you don't have any mortgage to pay off. If you retire at 55 and live to 100, that is 45 years. That means you need $1,350,000 - more than double your estimate.

Granted, you may not need to come up with $30,000 per year, especially if your children are filial. But always work towards a high goal and you'll be still good to go even if you fall short of it.

Start saving NOW! (22 year old kid speaking here...)
Thanks rhema83 for your view, you are a wise young man.
Medical expenses is always an unknown especially during old age :weep:

However, I hope I never see 100 :sweat:

Throttle

08-01-2006, 12:18 AM

Enough or not simply depends on your lifestyle apart from the unforeseeable "engine breakdown" .

heh heh

ReBornBikeR

08-01-2006, 12:32 AM

Thanks Mark C, ah_tee, bomerman81, Skunk, Naz, gohjohan, Ah James & Throttle for your views,

So far the main concern or uncertainties are medical expenses and inflation.
But they unknown figures, so the only way is to build in a sort of buffer to accomodate them in the retirement years.
And how much is again depends on how pessimistic or optimistic we are.
:confused:

How I wish I can know when I am going to "expired". :sweat:

nyquist2000

08-01-2006, 01:15 AM

to hit 600,000... depending on early you start saving hard. kekeke
12K saving per year will give you only 120k for 10 year....so to hit 600k...you need 50 years... my god....I dun think I can live 50 years saving 1 k every month...can go crazy. kekekeke

Constructicon

08-01-2006, 02:32 AM

xiaowang

08-01-2006, 02:52 AM

Well, that's why there is interest to help. A simple analogy: Do a compounded interest on S$ 100000 for 30 years at a rate of 2%. Let me know what you get. Then you probably understand why it's not that hard. By the way, S$ 600000 is not enough. U need at least ........... if u expect to spend S$ 1500 a month when u are 60 plus.. Do the maths again

Say u retire at 60, live till 100, monthly expenditure is S$1500 in today's money value. Take inflation to be 2.5% per year. How much is that?

For more info, speak to your bank. Retirement planning is critical.

Up to everyone's style. Just something for you to ponder on. Cheerios.

lizard

08-01-2006, 07:30 AM

Ah James

08-01-2006, 08:06 AM

Originally posted by lizard@Jan 8 2006, 07:42 AM

this depends on how much longer u wan to live after 55. :smile:

and what is your spending habbit . tats all . ie , a nsman could live off with a 300+ salary for a mth and yet some ppl earning over 2k have to eat roti to pull thru till payday .
I like wat u sae...

MrLau

08-01-2006, 08:27 AM

If you just depend on the the saving of $600,000 cash..... soon the money will running low and finish.

Make this $600,000 work to earn extra $$ for you, like some investment.

Example invest in a house and collect renta or invest in business for profit.

Of cause there is risk, it is up to you to decide.

Axxis

08-01-2006, 08:32 AM

nyquist2000

08-01-2006, 08:40 AM

ya lor... to each his own, each has their own comfort zone. :thumb: Some high...some low...some not high not low.... kekeke :bouncefire:

Raptor

08-01-2006, 09:05 AM

There is no such thing as enough money.

I hope my departure from this world is synchronised with the last dollar that I spend.

Delusi0n

08-01-2006, 09:06 AM

ride safe, dont buang, cause need to dig out money for repairs and hospital bills...

and dont buy a car just to show off, its a financial trap.

feng125

08-01-2006, 09:31 AM

hi RebornBiker,

Find any of your close friends who works as an insurance agent or financial planner and get them to explain the calculations for the amount of money needed for your retirement.

contrarian

08-01-2006, 10:56 AM

Originally posted by ReBornBikeR@Jan 7 2006, 04:10 PM
This thought just came to my mind,
is $600,000+ enough for a reasonably comfortable life for two with a fully paid up HDB executive flat?

What is the average life expectancy of Singaporeans now? 65, 70, 75 0r 80?
Damn......... I don't want to live till 80, by then I would be senile :cry: :cry:
the average life expectancy in Singapore is currently 78-83 years (women tend to live longer). it should increase by the time we reach retirement due to better medical science. realistically, we should at least expect to cater for that.

if we take 20 years after retiring at 62, $600k for two persons comes up to $30k a year to maintain two persons. that's not a lot but that's not little either.

if you see one of these financial adviser reps, you'll often get a reply that you'll need 70% of your last drawn salary to live on. that, to me, is wrong. when you've reached retirement, you should have paid off all your liabilities such as your home and maintenance of children. you shouldn't be needing to pay for much more assets. so your expenses would be your fixed ones like monthly housing S&C, utilities, transport, food and the like. these depend on your lifestyle and can be kept low if you budget well.

the other expenses depend on your recreational needs and hobbies. if you like to travel and all, then you need to make sure that you have enough for that.

the expected exceptional expenses would be medical bills. usually the largest medical bills occur in the last five years of one's life, so i guess that is less of a worry. unfortunately, in Singapore, the family members of the patient are required to pay for the hospitalisation expenses if the patient can't pay. this leads to the next generation paying off for the present one - a convenient way for the government to claim that no one is denied essential treatment if he can't pay (that is, only after his entire family can't pay!).

there are also many countries that you can move to in retirement to stretch your retirement funds and have a much better quality of life - usually less developed countries.

ReBornBikeR

08-01-2006, 11:29 AM

Originally posted by feng125@Jan 8 2006, 09:43 AM
hi RebornBiker,

Find any of your close friends who works as an insurance agent or financial planner and get them to explain the calculations for the amount of money needed for your retirement.
Insurance agent?
They will tell me that I need $2,000,000 to retire :sweat: :smile:

deganduss

08-01-2006, 12:50 PM

S$600,000 now is only peanut :faint:

xiaoya-

08-01-2006, 12:56 PM

definitely, not enuff.

Mark C.

08-01-2006, 01:57 PM

Originally posted by deganduss@Jan 8 2006, 01:02 PM
S$600,000 now is only peanut :faint:
:thumb: :thumb: :thumb:
A good 1.
:lol:

ah_tee

08-01-2006, 02:04 PM

Originally posted by feng125@Jan 8 2006, 09:43 AM
hi RebornBiker,

Find any of your close friends who works as an insurance agent or financial planner and get them to explain the calculations for the amount of money needed for your retirement.
i happen to watch derailed yesterday

and jennifer aniston says "i am a financial planner, i cheat for a living"

wahahahahaah

ReBornBikeR

08-01-2006, 02:38 PM

Originally posted by contrarian@Jan 8 2006, 11:08 AM
the average life expectancy in Singapore is currently 78-83 years (women tend to live longer). it should increase by the time we reach retirement due to better medical science. realistically, we should at least expect to cater for that.

if we take 20 years after retiring at 62, $600k for two persons comes up to $30k a year to maintain two persons. that's not a lot but that's not little either.

if you see one of these financial adviser reps, you'll often get a reply that you'll need 70% of your last drawn salary to live on. that, to me, is wrong. when you've reached retirement, you should have paid off all your liabilities such as your home and maintenance of children. you shouldn't be needing to pay for much more assets. so your expenses would be your fixed ones like monthly housing S&C, utilities, transport, food and the like. these depend on your lifestyle and can be kept low if you budget well.

the other expenses depend on your recreational needs and hobbies. if you like to travel and all, then you need to make sure that you have enough for that.

the expected exceptional expenses would be medical bills. usually the largest medical bills occur in the last five years of one's life, so i guess that is less of a worry. unfortunately, in Singapore, the family members of the patient are required to pay for the hospitalisation expenses if the patient can't pay. this leads to the next generation paying off for the present one - a convenient way for the government to claim that no one is denied essential treatment if he can't pay (that is, only after his entire family can't pay!).

there are also many countries that you can move to in retirement to stretch your retirement funds and have a much better quality of life - usually less developed countries.
I think a life expectancy of 60+ to 70+ is more realistic, living to above 80 is quite rare, 90+ is being too optimistic.

Being reasonably comfortable means being able to meet the daily expenses like food, utilities bills, commuting expense (not merc or bmw lah), phone bills, occasional movie & eating out, etc; in other words to maintain a simple and enjoyable lifestyle.
I think $2,500 per month is quite adequate.

Yes, when reaching retirement, one should have fully paid off the home and the maintenance of children should also come to an end or nearing the end.

The only unknown is future medical expenses, maybe with a part time job to kill off some time and to keep income flowing in, it should not be a problem.

Lastly retiring in another country might not be such a good idea. Will feels very lonely in the long term because will miss the family and relatives.

For those of you who says that $600,000+ is not enough, then how much do you think is more realistic? and can you achieved that figure when you retired?
I wrote the sum of $600,000+ because I think this is an achievable figure for the majority of working people in Singapore.

contrarian

10-01-2006, 03:13 PM

Originally posted by ReBornBikeR@Jan 8 2006, 02:50 PM
I think a life expectancy of 60+ to 70+ is more realistic, living to above 80 is quite rare, 90+ is being too optimistic.
taken from Singapore's Department of Statistics:
2004 - average life expectancy: 79.3 years
males - 77.4 years
females - 81.3 years

RageMyDream

10-01-2006, 03:40 PM

How do u plan to get 600k in the first place :confused:
Assume without compound interest, u need 50 years to save 1k every month. Who can do that when his pay is 2k only?
So no need to comfort yourself. just save and save to meet your target for 600months :giddy:

I feel quite impossible.
I can't see my retirement :weep:

ReBornBikeR

10-01-2006, 07:50 PM

Originally posted by RageMyDream@Jan 10 2006, 03:52 PM
How do u plan to get 600k in the first place :confused:
Assume without compound interest, u need 50 years to save 1k every month. Who can do that when his pay is 2k only?
So no need to comfort yourself. just save and save to meet your target for 600months :giddy:

I feel quite impossible.
I can't see my retirement :weep:
I had already exceeded that figure now, my very conservative estimation when I retire should have around $800,000.00 :smile:

I think it is not impossible for a "normal" working class person to achieved this figure when he retires. So don't lose hope and aim for it. :cheer: :cheer:

E.V.ilyn

10-01-2006, 08:36 PM

Originally posted by ReBornBikeR@Jan 10 2006, 08:02 PM
I had already exceeded that figure now, my very conservative estimation when I retire should have around $800,000.00 :smile:

I think it is not impossible for a "normal" working class person to achieved this figure when he retires. So don't lose hope and aim for it. :cheer: :cheer:
i'm available if you need a godson. :sweat:

marvypower

11-01-2006, 12:49 AM

if u think u need 2k a month for a comfortable living next time, that'll be 24k a year.
every 10 years down the road, inflation and other factors will double the cost of standard living...

If u're 25 and u wanna retire at 65, that will be 40 years more meaning that the future value of ur 24k will be easily ~400k /year

( 10 years later $24k become $48k
another 10 years after $48 become $96k
another 10 years after $96 become $192k
another 10 years after $192 become $384k)

Living on for a good 20 years will mean u'll need to save at least 8 million dollars.
And haven included any medical expenses...

Gentleman, work hard...

rhema83

14-01-2006, 12:31 AM

Originally posted by marvypower@Jan 10 2006, 01:01 PM
if u think u need 2k a month for a comfortable living next time, that'll be 24k a year.
every 10 years down the road, inflation and other factors will double the cost of standard living...

If u're 25 and u wanna retire at 65, that will be 40 years more meaning that the future value of ur 24k will be easily ~400k /year

( 10 years later $24k become $48k
another 10 years after $48 become $96k
another 10 years after $96 become $192k
another 10 years after $192 become $384k)

Living on for a good 20 years will mean u'll need to save at least 8 million dollars.
And haven included any medical expenses...

Gentleman, work hard...
Come to think about it, "earning" $30k a year per person may not be enough in 40 years time! By the way I am Singaporean, too.

Illustration: Student fare on non-aircon bus was 20 cents when I was in primary 2. When I was in secondary 2 (6 years later) it was 35 cents. When I was in JC 2 (4 years later, exactly 10 years from the start) it was 55 cents, and non-aircon bus was phased out.

Don't plan to live on a few million, because nowadays being a millionaire is becoming "peanuts" as well.

Throttle

14-01-2006, 01:17 AM

Originally posted by rhema83@Jan 14 2006, 12:43 AM
Don't plan to live on a few million, because nowadays being a millionaire is becoming "peanuts" as well.
absolutely.....

ellamcoy

19-01-2006, 02:57 PM

ReBornBikeR inflation, taxes n medical bills kill retirement.

Had been working hard but not smart all my life, till i
came across a multi-millionair who is Spore top 1% income
class. He had intro me to some his friend n buzz partner
who draws over 10k/mth in banking industries!

I had learnt the lesson a hard way lah. Was in hi-fi sales
equipment. Those who walk in is either lawyer, IT manager
or towkays. Each purchase invoice is at least 5-figures upz.
I dun tink i can save that muz in a lifetime, but tis is really
a wake up call for me!

Now that i m semi-retire(no more 8to5) hahaha...
Hope to share some tip which i learned wif u.

InFlation
What cost $1000 in 2001 would cost $1016.00 in 2002.
Also, if you were to buy exactly the same products in 2002 and 2001,
they would cost you $1000 and $984.25 respectively
In short every price tag goes up except your money!

Know Your Liability
For example, Wat i did was to total all my handfone bills on the Yr2005
which is abt 400 bucks. In conclusion if i draw 1.6k/mth, eg, i work for
StarHub for 1 week in a year.

Another example, if u pay 800bucks for ya HDB/mth. A year will be
9.6k. Assume u draw 3k/mth, it is like workin for HDB for abt 3mths.

All u need to find out is wat is the remaining months u r NOT working
for anyone(or nobody is earning from u!)

As i said i had learnt it the hard way with a starting debt of -28K..hmm
but all in the past liao... :smile: :smile:

limpeiwah

21-10-2007, 05:08 PM

now got annuity liao u;ll never see your cpf in your lifetime

NPNT

21-10-2007, 05:27 PM

best investment ever is ur health.

jia_yvon

21-10-2007, 05:30 PM

i dun gif a damn about my cpf.. all my $$ are in my account which i can take out n put back ani time as i wish.

n i dun even hope to use the damn cpf ..

limpeiwah

21-10-2007, 05:56 PM

yeah health is da best

u never pay cpf meh?

swirlacer

22-10-2007, 01:38 AM

do u counts assets in as money for retirement?

limpeiwah

22-10-2007, 02:03 AM

it depends on what assets.

Throttle

22-10-2007, 09:30 PM

Liquid assets....

Sky99

22-10-2007, 10:13 PM

liquid assets is what?

Aie

23-10-2007, 12:52 AM

I believe if you live frugally, that amount should be able to tide you over until it is time for you to expire. There may even be some money left over for your kids to fight over as well... :cheeky:

limpeiwah

23-10-2007, 01:47 AM

it depends if the cost of living keeps going up or not

gohjohan

24-10-2007, 12:22 AM

I believe if you live frugally, that amount should be able to tide you over until it is time for you to expire. There may even be some money left over for your kids to fight over as well... :cheeky:

From economist point of view, there's inflation, so in the end, prices go up and then the amount won't tide over. Yeah, if prices remain status quo, we all have our kids fighting over one another due to the surplus.

So in reality, they'll be fighting against you for being stingy.... :cheeky:

Aie

25-10-2007, 01:16 PM

From economist point of view, there's inflation, so in the end, prices go up and then the amount won't tide over. Yeah, if prices remain status quo, we all have our kids fighting over one another due to the surplus.
So in reality, they'll be fighting against you for being stingy.... :cheeky:
I'm gonna make it a point to my kids that they should amass their own wealth and not rely on their parents' fortunes. Both my mrs and I will help to provide and guide them so that they are capable of doing that. When I passed on, whatever wealth I have shall go to the charitable organizations after ensuring that there is enough to provide for my wife should I bye bye bye first... :sweat:

limpeiwah

25-10-2007, 02:43 PM

my mrs and I will help to provide and guide them so that they are capable of doing that.

whats the plan to do that?

25-10-2007, 02:55 PM

if i got 600,000 in cash.. every month use 3000 at the most last you around 16 to 17 year... if you live longer den tat.. good luck to you...

ReBornBikeR

27-10-2007, 06:37 AM

No, I think you are wrong.
For a person like you, you will need at least $6000 a month when you retired.
If you have $600,000 only, by the time you turn 70, we might see you begging on the street because you should have run out of savings.
So better have $3,000,000 for retirement :angel:

Bittersweet

27-10-2007, 08:37 AM

i larbour hours after hours,
is working my destiny?
i feel guilty when im lazy,
because i work for the money.

guess i have to labour all my life :(

shirl

27-10-2007, 09:35 AM

Anyone can explain wats the special account for? Quite a big percentage of our CPF goes to this a/c. Can we withdraw $ from this a/c ultimately when we retire or not? Seems that this a/c cannot even be used to buy house.

deckard

27-10-2007, 09:56 AM

Throttle

27-10-2007, 08:21 PM

Well , my father has retired some years ago.
He lives in a HDB (fully paid) and drives a Corolla (fully paid)
According to him, monthly expenses add up to about $3000 at least for him and my mother.

Plus the fact that inflation is so high now, I estimate that I need $10k - $12k every month (with no debt) when i retire (20 yrs from now) to maintain a fairly meaningful lifestyle. That means 30 yrs X 12 X $10k = $3.6mil minimum

So I have 20 yrs left to accumulate a couple of million bucks.
What to do? work hard or work smart , but work loh...hoho

limpeiwah

28-10-2007, 12:56 AM

remember guys 600000 now is not necessarily 600000 2 decades from now based on the future value of money. so u gotta work hard ok? pap owns this country. no free lunches no social welfare.

badzman

04-11-2007, 12:13 AM

I would say its wise to do some investments in the early age while you have money. So old le your investments may come in handy.

Delusi0n

04-11-2007, 10:49 PM

simple is best... go beg on the streets of France for a couple of years and you will be doing quite well in Sg

Sky99

02-05-2008, 05:18 PM

i dont think 600k is enough.

now everything is increasing.

ManInWhite

02-05-2008, 11:50 PM

ManInWhite

02-05-2008, 11:53 PM

This thought just came to my mind,
is $600,000+ enough for a reasonably comfortable life for two with a fully paid up HDB executive flat?

What is the average life expectancy of Singaporeans now? 65, 70, 75 0r 80?
Damn......... I don't want to live till 80, by then I would be senile :cry: :cry:

It's a very risky bet.

Why not like that ... You gave me $600,000 then I experiment for you.
If can, then you can go ahead. Good idea? :cheeky:

Xdir

03-05-2008, 01:08 AM

It wil be enof if u spend the money wisely... If u like to spend as the whole world belongs to u, then $6million also not enof...:thumb:

Learn

03-05-2008, 02:37 AM

This really depends on your idea of retirement.
For me $600,000 is definitely enough.
Here's how I'll do it:

Assume I have $600,000 cash and a fully-paid 3-room HDB at 55 years old.

I'll rent out one of the rooms of my HDB (assume I am lucky enough to not get married =p) for probably $350-$400 (very conservative assumptions) a month. BTW, a property is a hedge against inflation, ur rents and prices moves in tandem.

I'll invest the $600,000 in a combination of bonds and shares to achieve a yield of 2% per annum (SUPER conservative, but easily achievable in instructments like HDB bonds, FDs or blue-chip stocks). That's $12,000 a year or $1,200 a month.

I probably don't wanna stay at home and wait for God, so I'll probably go out find some part-time employment like selling SK jewellery, being a K-box supervisor, Macdelivery! or cinema service crew (I get to watch free movies!), work a few hours a day, make $20-$30 for my meals and kopi.
Happy I go work, not happy I just take my $51 ($1,200 + $350/30 days in a month) a day pocket money and play chess downstairs.
And if I am hardworking enough to work for a month and not use my pocket money completely, I can probably save around +/-$600 a month. Do for a few months, can go on a short holiday. =]

The problem is.... when I am 65, 75 or 85 years old, I STILL have $600,000 and a fully-paid up 3 room HDB flat... hmmm.. now, now, which charity should I give them to when I die? Money where got not enough? It's always how you spend it.

The hard part to this plan is mostly the accumulation of the $600,000 (3-room flat can use CPF).... but strangely enough, the 1st price for a TOTO draw is usually around $600,000... I wonder why is that so? =]

This is just an illustration of my simple plan.
Wish me luck every Monday and Thursday please. =]

hitman

03-05-2008, 05:46 AM

This thought just came to my mind,
is $600,000+ enough for a reasonably comfortable life for two with a fully paid up HDB executive flat?

What is the average life expectancy of Singaporeans now? 65, 70, 75 0r 80?
Damn......... I don't want to live till 80, by then I would be senile :cry: :cry:

IMO tt should be enough. if nt enough, sell away the executive flat n get a 3 room. anyway it's only for 2 person to stay. :cheeky:

+simon+

11-05-2008, 05:49 PM

The first think u should think about is always your insurances as i told all the pple around me.
Before u talk about investing for retirement take care of all your insurances first.

Something that covers your H&S+rider = purely coverage on hospital bills.
Accident = As a rider u surely need this.
Critical Illness and TPD = Coverage on min> $0.5million
OF COS in this case u need a few policies.

No point having so much $ and in the end a illness or accident gg to take all your WEALTH away.
And you should let your Financial Advisor settle all these for you if u have a kind one to begin with.

Treat insurances as an expenses and don involve them with ILP or other craps cos there are not worth it IMO. Better to invest in other means IF U have the financial knowledge

When it comes to how much u want to save for retirement.
You must first know how much u want to spend a month during your yrs of retirement.

Franco Modigliani, a noble prize winner states in his Life Cycle Hypothesis Model that:

Consumption = (Wealth + Income* Yrs to Retirement) / yrs to kick the bucket.

So I believe from the formula u should roughly know how much u need, but the variable 'yrs to kick the bucket' is subjective.

IMO how much is enough depends on when ur gg to retire ..