Can You Really Retire In Your 40s 😱! Calculations For Your Financial Independence!

[@joshconsultancy]

✅ ENGAGE Josh Tan on a fee for financial planning to build towards for your retirement! ►‌ www.theastuteparent.com/plan-with-josh-tan

[@whis5448]

I've reached FIRE at age of 41 and totally stopped working at 44. Now my everyday duty is to send my kids to school and then come back and monitor SGX. I only bought in SGX reits/business trust and hold them for dividends and during my free time I will play with my RC toys (Cars, trucks, tanks, motorcycles etc). Actually still can take loan, as I've taken car loan of 2.8% although I can pay full, cause I can use the sum of money to invest to get higher dividends, so not so wise to dump it all into car. That's my strategy and I've only taken a car loan, nothing else. My flat is fully paid using my CPF and my CPF is generating interests every year and it had already reached the FRS already. Didn't choose to upgrade to private or landed property as I feel that there will be cash outflow again and not my cup of tea. Anyways, your content is very relevant to a lot of people. Keep it up Josh!

[@joshconsultancy]

Great sharing whis key 🔥

[@Iendleasereit]

Nice!

[@maureenkam9212]

What is FRS?

[@peterc6083]

@@maureenkam9212 free rendang sauce

[@meihongtan3044]

40s is too early. At least 52

[@joshconsultancy]

semi-retirement maybe? =)

[@mlambert1974]

Does anyone know how to get affordable health insurance if I retire?

[@joshconsultancy]

In sg, health insurance premium is by age. Only way to save cost is to downgrade to a gov only hospital plan

[@RoadtoFIRE]

Yes, this is what I am working towards!

[@joshconsultancy]

Great channel u have there RTF! Cya around more

[@MrNamesNoMore]

Since I started on my FIRE journey last year November, I have cut out all unnecessary expenses such as food delivery, games, online show subscriptions. (I pirate now, no money yo.) With these, I have successfully cut down over 70% of my prior expenses monthly and put them all into investment. The journey to FIRE surprisingly made my life happier these days as there is a clear and absolute goal for my future to work towards, I should have started earlier haha.

[@joshconsultancy]

Great sharing koktung (pirate not encouraged 🤣) happy for you!

[@KelvinLearnsInvesting]

I totally feel that it is possible as long as you live frugally. Great video Josh!

[@joshconsultancy]

Thanks Kelvin, we should reinforce these especially to our younger audience =)

[@DonYang73]

If you never upsize your lifestyle 1 for 1 with your income then you dont really have to downsize your lifestyle when you retire. Thats what most people fail to do in Singapore. They make only $250k per year and they go buy a $250k car already…. Then they make $500k and year and they buy a $500k car… how to downgrade like that? Heh heh

[@nguyenquetran2413]

I’m 53 this year. Two kids age 12 n 14. Monthly expenses of $3.5k. Have cash plus investments of about $1.2M and cpf of about 500k. HDB fully paid up. Think of retiring early but feel that the amount may not be enough..could you do a video to advise for someone in this situation?

[@joshconsultancy]

Hi Nguyen, interesting. Of the $1.2m, how much is cash and how much is invested. And invested into what instruments? This $1.2m assets (ex-hdb) is for couple or for yourself?

[@nguyenquetran2413]

@@joshconsultancy I’m the sole breadwinner. 750k invested in 3 corporate bonds with an average yield of 4%. One of which having the highest yield will mature in another 1.5 yrs time. About 80k in penny stocks bought many yrs ago. Rest are in cash.

[@joshconsultancy]

@@nguyenquetran2413 for the corporate bonds bought, what are they and is there leverage recommended by your bankers? When is roughly maturity for other two?

[@nguyenquetran2413]

@@joshconsultancyDue to Low FD rate, the bonds are fully paid now, use to leverage. They are Thomson medical 4.8, sph perp 4.0 and Ascott prep 3.88.

[@joshconsultancy]

@@nguyenquetran2413 noted. Smash the subs and stay tuned 👍

[@chinchang5117]

I think the main problem with many financial advisors is they always assume people earned $5000 per month. Please make plans for the toilet cleaner auntie who earn $800 per month leh!!

[@goldbird86]

Nice video Josh. Expenses depends alot on life style. The article on the lady explains alot. Hence, doing women business is really good at times. Haha.

[@joshconsultancy]

Lol, true true. Smash the subs and Cya around more Toyokyomi

[@bornfree3531]

Why not?....Waking up anytime you want and doing anything you want at below 50 is a dream come true. Above 65 you may not wake up at all...My take ..Work hard when you're young....

[@joshconsultancy]

Waking up anytime doesn’t apply with kids haha, cya around BF

[@jameskee8191]

You give good advices & I appreciate that. However your presentation has a common flaw with the similar stuffs I came across- it is easy to assume the returns (I assume dividends) from investments are reinvested but in practicality it is not often the case. As such, compounding only works in theory or in cpf but not stocks.

[@joshconsultancy]

Hi James, for stocks if reinvestment is chosen, if not manually need to buy to achieve compounding. For funds, there is reinvestment mode to achieve compounding automatically. Hope it answers and cya around more ya!

[@cpchow6675]

You made the most important point about how much you spend is more important than how much you earn. IMHO, it is good to plan for FI as early in life as possible, but I am not sure about the RE part. Working, IMO, is also about mental well-being and contributing manpower into the economy. With all these aging population, low birth rates, xenophobia, etc, it is good to still stay in the workforce for the better good of the country's economy. Another way to look at RE (or your definition of semi-retirement) is we can 'choose' what work we want to do, rather than being in jobs that pay well but we do not like.

[@joshconsultancy]

Hi CP, you’ve seen my semi-retirement concept drive ✋🏻

[@yeeen123]

Do u hv a calculator online that can be used to calculate the above you mentioned? I tried other calculators either not suitable or unable to get same results as u. I wanted to do some variation for the figures and see how much i need. Thank u!

[@joshconsultancy]

Hi yeeen, Most of my calcations can be done w financial calculator or excel with FV and PV. Concept is the key 👌🏻

[@yeeen123]

@@joshconsultancy yes i think excel will do. Doing it in excel now. Thanks

[@yeeen123]

@@joshconsultancy actually would be good if u can provide some starting excel for calculation mentioned in ur videos nxt time. Just a suggestion

[@tixtictik]

Just a quick question; If all my positions have a dividend yield of less than 7%, how can I achieve a 7% return from my investments?

[@joshconsultancy]

Hi Tix, returns = dividend rate + capital appreciation. Having said that 7% return can be achieved only with a portfolio with significant equity allocation. Hope it answers

[@chinchang5117]

You can invest in Berkshire Hardaway, Tesla, Apple, Coca-cola etc.

[@MaskedMageYT]

you can retire at any age you want aslong as you have the money to do so. What you will do with your free time once retired is the real question, considering most of the stuff in the world is shut down or at very limited capacity not much joy in retirement rn you might aswell be working LOL -from a guy that can legit just do whatever i want when i feel like it within the bounds of the law.

[@joshconsultancy]

Great to cya MMYT, maybe travel starts in 2H2021? Haha

[@ALim-bs5ze]

Each person’s income & expenditure is different. The safer target is for passive income to reach the last drawn salary or active income. In this scenario, the person would have been building passive income with his/her salary before retirement and will be able continue to do so with passive income after retirement.

[@joshconsultancy]

Hi A, true. For passive income to reach active income, it will take longer coz principle is intact. I’m pioneering the concept of semi retirement with drawing down all your retirement savings

[@seanomics]

Dear Josh, yes definitely. Buy fundamentally sound companies and hold them for life, the power of compounding.

[@joshconsultancy]

Hi Sean, yea. Cya around more

[@mingmataaaa]

Wondering. Should you count your cpf and insurance cash values as part of your net worth / retirement sum available even though they are illiquid? Cpf only available after 55 and insurance cash value need to surrender.

[@joshconsultancy]

Hi mingliang, probably not since they are liquid at later years only? Retire at 40s needs the cash

[@dino.k5420]

I always buy housebrand. They are of good qualities too 😃

[@joshconsultancy]

Me too, cya around more yin li :)

[@DonYang73]

Sure, why not? ✌️😎

[@joshconsultancy]

First to comment 👍. Numbers to get there will be presented, stay tuned

[@DonYang73]

@@joshconsultancy i was financially independant 10 yrs ago at 38 yrs old. 😃 as you said its about expenditure, not income. You will never be financially independant if you continuously take on loans which eat up your speculative income becos your income will be chasing your expenditure. Honestly, i dont think Singaporeans today are doing enough for their own retirement. Perhaps they are expecting their parents to do the job for them.

[@joshconsultancy]

@@DonYang73 there are some who do and some dont. To each their choice =)

[@vincentlim1160]

Informative breakdown of steps and figures... just that both example of 2/3 and 1/2 savings seems ‘siong’ (tough) for individual/family to maintain, given $5k salary in the illustration. 😅 (A 10%-25% savings ratio seem more achievable?) Given invest in S&P500 and nothing else, I guess we should be able to achieve 5% and more consistently 😁

[@joshconsultancy]

I understand Vincent. Pacing to retirement is an individual race. If kids are within household, they need to have the right upbringing too. Smash the subs and Cya around more k!

[@livebythefire9191]

My goal is to reach Financial Independence at 30. Any age below 65 to retire sounds crazy to most, but YES it is 100% possible. Thanks for sharing. 👍 #FIRECommunity

[@joshconsultancy]

Hi there, 30 is really young, with children it’s almost impossible. All the best, cya around more!

[@yitlaiting2663]

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