I found a couple with $720k SAVINGS and STOCKS TO SELL, do they have ENOUGH? | Retirement Planning

ENGAGE Josh Tan on a fee for full retirement planning NOW - Hear the IMPROVEMENTS you can make IMMEDIATELY!
►‌ www.theastuteparent.com/josh-tan
Today we've a case of a couple who has possibly saved up well for retirement. They have questions whether to cash out stock options they hold and whether they have comfortably enough.
#investing #stocks #stockoptions
*****
🌟 Tiger Brokers JOSH TAN SPECIAL LINK HERE : joshtan.link/tiger
Tiger Brokers Welcome Rewards
Deposit & trade to win prizes worth USD 888* + USD 30 Tesla fractional shares!
Cheapest travel insurance (especially around Thailand, Malaysia, Vietnam...)
From as little as $4/day, check it out (STARR insurance) 🌅
►‌ joshtan.link/travel
My article on the best Personal Accident PA Plan to refer to you 🫵
►‌ www.theastuteparent.com/2022/...
****
TO LEARN MORE, 4 SUGGESTIONS FOR YOU
►‌ Follow Josh Tan on Linkedin to read articles and connect professionally
lnkd.in/gkfid5nG
►‌ NEW podcast channel "THE JOSH TAN PODCAST" On Personal Finance:
joshtan.link/spotify
To see updates and polls, join my TELEGRAM "Josh Tan Investment Official Group" here
►‌ joshtan.link/telegram
Meet Josh Tan On Instagram to see event update and fan meet pictures
►‌ / joshconsultancy
****
0:00 Introduction
0:45 Their stocks and savings
3:47 Selling stocks
9:15 Cash and CPF they have
13:37 Selling HDB flat
16:45 Enough state
We do not make any recommendations on whether a security is a buy/sell as every investor has different investment goals and risk profiles. The presentation of ideas from Josh Tan and TheAstuteParent are strictly for education purposes. You are advised to perform independent research yourself or seek a qualified financial adviser. We will not be liable for any losses directly or indirectly from the material. Some of the referral links in the video summary are products and services personally used by Josh Tan and they may pay an affiliate commission or referral bonus.
It is not an endorsement of the product unless explicitly stated and we will not be liable for any losses. The content in this video and any promotions mentioned is accurate as of the posting date.
*******
About Josh Tan:
Josh holds a degree in Accounting from NTU. In 2016, he co-founded the financial education website TheAstuteParent to provide detailed insurance plan analysis and financial planning tips.
As a ChFC Charterholder, Josh has agreed to be bounded by the ChFC®/S Code of Ethics. This includes, among others, acting in a professional manner when it comes to conducting due diligence on primary and secondary sources of investment-related data, and articulating his investment opinions based on his research and beliefs. Based on his research and analysis, he highlighted his beliefs and opinions, and illustrated the concept of time value of money, as of the time of the video.
ENGAGE Josh Tan on a fee for full retirement planning NOW - Hear the IMPROVEMENTS you can make IMMEDIATELY!
►‌ www.theastuteparent.com/josh-tan

[@joshconsultancy]

ENGAGE Josh Tan on a fee for full retirement planning NOW - Hear the IMPROVEMENTS you can make IMMEDIATELY! ►‌ www.theastuteparent.com/josh-tan ►‌ Follow Josh Tan on Linkedin to read articles and connect professionally lnkd.in/gkfid5nG To see updates and polls, join my TELEGRAM "Josh Tan Investment Official Group" here ►‌ joshtan.link/telegram

[@user-ff2kd8ex8g]

Frankly Josh, I view this as a form of humble bragging, or a rich person's problem... They are seriously secure in my view, without even considering any form or dividend investing. Glad you told them to start spending on themselves.

[@ocy138]

Same feeling here on bragging 😂

[@ChrisTang787]

Same feeling here… they probably know what to do, just need a little assurance…

[@joshconsultancy]

No no dun worry, its quite easy to see bragging. Will get to that Asking for opinion is sometimes an important trait of successful people. They know there are other answers out there and they know there are blind spots. Those that brag often have a tone which is not asking to learn/critique. I've seen many and its easy to smell

[@DonYang73]

This isnt bragging please…. If you eat in macdonalds , is that considered bragging? Come on

[@thomashong101]

Clear cut bragging. Not humble at all.

[@leejpeter3456]

Amazing video👍

[@Cedricchoy]

While the family is seemingly quite well-to-do financially, they might be at a plateau stage when they are unsure how to move forward. So I supposed Josh is bringing this case out as the scenario might strike a chord with some of us or the future of us. Even the richest man on Earth can benefit from a second opinion and I think Josh has done a fantastic job in getting us to see how asset allocation can be done differently at different stages of life with different amount of wealth accumulated. Let’s us cheer if someone out there are better prepared and we too can look forward to that if we start our plans early and listen to wise words of others like Josh. Cheers. And peace.

[@joshconsultancy]

Thank you for the high praise Cedric

[@Mike-e1n]

Nice job Josh

[@joshconsultancy]

Thank you =)

[@christopherlaw9184]

For this case, you are secure when you have decided enough is enough. There’s no perfect planning, no perfect future. Just don’t have FOMO. Even with $5 million dollars or more, some people may think it is still not enough. We just need to live within our means 🙏🏼 Enjoyed your video, Josh ⭐️

[@joshconsultancy]

No probs Christopher. Yes the concluding part is knowing what is enough is beautiful

[@DonYang73]

Confirmed. I have much more than $5mil but i still worried its not enough

[@edgan1]

Well done and congrats to this family! Try not to be ensnared the worldly possessions. ... And I will say to my soul, “Soul, you have ample goods laid up for many years; relax, eat, drink, be merry.”’ ...

[@JoeFantastic]

Josh, on your point of not delaying payout till 70. Since they have sufficient cash on hand, isn't it better to use their cash first for daily needs. Putting into 2xFrs few years after 55 is not gaining much from the compounding effect. Better off place in SSB n slowly draw out for use. Getting interest also unlike pump into cpf life. Delay payout till 70, so interest compound till 70.(leave behind more). Rather than start payout n interest stop there. My 2 cts

[@joshconsultancy]

Hi Joe, in RA it compounds at 4.05%. Ssb already recommended, there is a cap of $200k each Im now more in the school of deferring cpf life just takes compounding too far. Start taking it out from 65. Give it away or invest it if don’t need the money

[@boliaohill6595]

have a minimum viable retirement fund, and if that needs to be met by cashing out some or all stocks, that would be the plan. Any leftover you either cash out or leave it. This will be extra money. If it goes up, its a bonus, if it goes to zero, its painful but won't affect your retirement plan. Fully cashing out its very conservative, and safe, but it's a waste of opportunity, esp if you can already hit your target retirement plan without fully cashing out.

[@JJ-iu6sr]

Very informative sharing..By the way, HDB masionette's scheme ended in 1995, how did the couple's lease left only 77 years?

[@joshconsultancy]

Oh that part I also dun know

[@kevinlim7974]

The other BIG spend could be medical-related. There was no mention about insurance coverage for hospitalization, critical illness etc, though I suppose they would have at least some coverage presently.

[@joshconsultancy]

Ya no mention of it. Hopefully shield plan is done up properly to remove risk of big medical liabilities. Anyone reading, do note, current shield plans (medical insurance) have limits on cancer cover. Do consider enhancing it Your CI plan has also more value now as they are cases of cost on cancer that goes beyond limits

[@user-wx6mq2ql4k]

Josh, for 50yrs old is it recommended to have dividend stocks than growth stocks? Thanks!

[@david888a]

With 15 years to go before retirement, I would do both…n then all dividend for passive income at 60+ onwards….

[@joshconsultancy]

As long as the company is good and you understand the business. Overseas listed firms have different dividend and estate laws 👌🏻

[@david888a]

@@joshconsultancy buy sg dividend stocks,like banks…never buy US stocks for dividends, I think 30% tax for Singaporean

[@user-wx6mq2ql4k]

Thanks!

[@jironghuang4895]

Should probably sell all company stocks and diversify away from company risk. Deploy into a balanced portfolio across asset classes.

[@joshconsultancy]

pov noted

[@BobbyGPortfolioMgt]

Hi Josh, My view is that the couple should first educate themselves on a business valuation course and do both FA and TA analysis to decide the next best course of action for the hubby's stock options. Regret only comes when you did not do the right thing. If they had done their due diligence, regret is only on hind sight (human nature greed, etc) and not on making the wrong decision. What do you think?

[@joshconsultancy]

Theres abit of difference between stocks earned from employment and stocks bought using savings. The former much easier to buy and hold and sometimes great companies just require blind holding?

[@BobbyGPortfolioMgt]

Hi Josh, although the stocks are at no cost to the hubby (actually he exchanged time for money, hence, not so sure about that), experience tells me that even the best companies in the world (especially tech) are subjected to business cycles, over valuation, etc. Don't need to watch it daily but consistently keep track on its value relative to its peers (nowadays not many monopoly companies, even if there is, just a matter of time competition will surface) - some active portfolio monitoring is required to not regret later :) Keep up the good work

[@davidng2699]

How about selling 200k of the 800k stock options now at all time highs. This 200k you can put in 3% fixed deposit ready cash till you figure out if you have a spending need. The other 600k stock options you can either keep it OR Sell/Convert that into 600k worth of Vanguard S&P500 ETF for far greater diversification.

[@joshconsultancy]

Hi David, pov noted. I actually wont vote for the idea of selling earned stocks and converting it to VOO. The correlation is very strong and especially if my retirement cash flow is settled by other sources, there's little incentive to diversify. Steve Balmer for example still owns a lot of microsoft. Eduardo Saverin still owns a lot of Meta

[@cpchow6675]

They look very well financially. I wonder if they thought about philanthropy; maybe something to consider if there are meaningful causes to support.

[@joshconsultancy]

A lot of the wealth is in property. Not that much for discussion on philanthropy i guess?

[@cpchow6675]

@joshconsultancy small ones like donating supplies to homes :)

[@user-eu3yt6xq5o]

Selling half will be a better option as you will not regret if market goes up or down. To retire comfortably, need about 1 mil cash on hand and to place them in safer investments.

[@joshconsultancy]

No need cash on hand. I’d actually discourage cash on hand 👌🏻 but pov noted

[@DonYang73]

Just $1mil cash on hand to retire? Wow, if so easy i would hv retired in 2008

[@david888a]

Not knowing which tech stock they r holding,, it’s hard to provide advice. $600K, is it the whole value or unrealized gain?if it’s unrealized gain, selling a third or half is a good advice or the other option is to sell covered call to protect the $600K long. There’s 15 years to go before retiring, I would setup a stop loss on that tech stock just in case it takes a bad downward trend. Covered call would b my strategy…n for peace of mind, sell all, pay the US tax n dump it into Sg banks for dividends.

[@kenghweepeh1070]

The most undesirable outcome will be they need the $$$$ n they need to sell but mkt is not favorable. Isn’t that worst?

[@joshconsultancy]

There is more than enough cash assets currently already which is what i was describing. Hence I didnt go with the view of selling most of the stocks

[@AdelineWSL]

If index funds, keep. If single company stock, sell. Or sell 50%

[@joshconsultancy]

pov noted

[@tttzesfo4988]

concentration risk

[@ignatiusee3564]

Please lah. 50+ already keep for what. Too much risk. Sell and put in something less risky ie sg banks or reits

[@joshconsultancy]

These are also stocks

[@ignatiusee3564]

Yes but not US tech stock which is very volatile

[@Longtermalwayswins]

@@ignatiusee3564sg stocks are volatile also.

[@tayso6620]

How high will ETH reach after 10 years....any ideas. Please share your convictions😊

[@joshconsultancy]

I have no idea. Naturally I’m of the view it’s substantially higher

[@jimw8615]

It’s show a lot of insecurities in Singaporean. Many always feel it’s never enough. It’s sad. Relentless pursuit of money & excellence. Not many know how to live a life besides work. How can stop work means boring? That mean work define yr life.

[@joshconsultancy]

There may be misinterpretation. Husband chose to retire already

[@kcchiew4247]

I will more concern about estate tax at US. 😅

[@thureinoo]

Beware of Estate tax for US stocks.

[@joshconsultancy]

Yes i mentioned too

[@Longtermalwayswins]

@@joshconsultancyemployee might not be required to pay or lesser

[@money3ss]

For these hi earners, they definitely under perform. Many I know in the category already in landed pty & owned 2 or more IP (investment pty) and $m in cash. It is easily explained - self confessed that they are risk averse and didn't plan ahead for their retirement. Gut feeling - enough with assumption that there will lead a simple life.🤥 Quite messy in revealing their net worth to u. (Tough job being a financial planner)

[@joshconsultancy]

They were asking to learn, not messy

[@money3ss]

@@joshconsultancy Shd submit a balance sheet with notes to accounts. Didn’t even submit annual expenses, how to do their P/L?😵‍💫

[@money3ss]

@@joshconsultancy True, if they are well planned, no need to come to u. 🙂

[@BomBomm12345]

humble bragging Josh.. you tell me husband and wife with their wealth of experience working in MNCs at probably a senior management level.. cant even know what to do with their retirement funds.. its like in sch this student scored 90 marks and they said he did badly..

[@joshconsultancy]

Asking for opinion is sometimes an important trait of successful people. They know there are other answers out there and they know there are blind spots.

[@yongdesmond5412]

I will sell if I am in their position because of concentration risk, they do not need it at this stage of their life, its kind of like winning a lottery but lost it all in casino. The proceed can be brought back and invest in ETF, at this moment can easily fetch more than 5% PA which is additional recurrent income😋

[@joshconsultancy]

Vote noted desmond. I actually wont vote for the idea of selling earned US stocks and converting it to US index. The correlation is very strong and especially if my retirement cash flow is settled by other sources, there's little incentive to diversify. Steve Balmer for example still owns a lot of microsoft. Eduardo Saverin still owns a lot of Meta

[@kohyh8676]

For me. i would rationalize the financial assets to buy a property in the only child's name and collect rental income, and pass the property to the child later when he needs it.

[@joshconsultancy]

pov noted

[@tayso6620]

Wow 33 ETH coins.

[@SgAlvinOng]

First guess is Microsoft, Second guess is IBM

[@joshconsultancy]

I like your guesses 👍

[@holdthel1n331]

you sell or don't sell, also non of our biz. go seek a financial advisor privately. not a free review from JOSH?

[@joshconsultancy]

Be nice be nice 🙏

[@david888a]

U don’t hav to watch the content if u don’t appreciate Josh’s advice. BTW, Josh is a FA n they wrote to Josh seeking his advice n Josh kindly provided his sound recommendations. Smh

[@byebyefiat]

just cash out and go casino enjoy

[@joshconsultancy]

please dun

[@YCLouisL]

I wonder why this amount 33 ETH coin?? 😂

[@joshconsultancy]

Oh easy, was Aiming for 40. Stopped buying

[@YCLouisL]

@joshconsultancy Just nice more than 32 ETH can become a validator on the Ethereum network. 👍

[@thomashay79]

they really need advise? seem like not...

[@joshconsultancy]

Asking for opinion is sometimes an important trait of successful people. They know there are other answers out there and they know there are blind spots.

[@jasonlim4512]

dun give ppty to kids! i will let them pay rent. teach them responsibility and also cash flow for me😄