Why Some People CANNOT RETIRE? | 5 Levels Of Financial Freedom

[@joshconsultancy]

ENGAGE Josh Tan on a fee for full retirement planning NOW - Get advice to improve on finances, retirement planning and investing IMMEDIATELY! ►‌ www.theastuteparent.com/josh-tan

[@kcchiew4247]

My wife (housewife) and me (engineer) are at 57 yo. Borh if us hv ers in ra, and more than 600k of cash / investment. Our home fully paid with no car, I am ready to retire.

[@joshconsultancy]

Congrats =). Can share with everybody what is your best guess on how much retirement expenses you need a month?

[@kcchiew4247]

@@joshconsultancy If I am not working, exclude life insurance (saving plan) and travel expenses, we will spend less than sgd 400 per week.

[@bkoh1771]

@kcchiew4247 $600k seems low. Yeah of course no car. It will be impossible lifestyle to maintain. Based on the survey, it's $600k per person excluding CPF and home. You are about halfway and you haven't reach 65 for your payout. If 8 yrs $25k each, $400k will disappear. This also excludes any major holiday experiences. You will end up at 65 with $200k combined with CPF and house. Must lease room/sell lease/downgrade or work longer otherwise this seems lean. Unless your house is a GCB/ landed 😀.

[@kcchiew4247]

@@bkoh1771 Agree with you.

[@DYeong]

@@kcchiew4247 May I ask, sgd 400 per week individually or for both of you combined?

[@shawnang280]

Not every company got 15k bonus. Good to hear FF got 5 level. ❤

[@joshconsultancy]

I understand and $15k not all income levels get also. Hopefully its a good average figure from 3mths median

[@eddiegan7644]

To make things simple.. is either you build enough cpf to ensure long term payout when you turn 65 or through room rental income to sustain affordability.. so basically Singaporeans have these two options which I think is good enough for retirement if there were no other alternatives

[@joshconsultancy]

Valid points

[@cheewanng6138]

Putting medical bills aside, which is most likely to confirm to go up as we aged, it's prudent not only to have enough financial "bullets', but also got to be honest with yourself what kind of lifestyle or material needs after retirement. No sugar coating and no 'make yourself feels good assumptions'. If indeed that are expensive material needs, best to purchase them when you have income, pay them off and do not upgrade or changed them after retirement, running the risk of negative cash flow. This mainly applies to mere mortals like me and not to high net worth individual

[@joshconsultancy]

Good points raised on paying off while having income

[@DonYang73]

Well said….

[@cherrycran2247]

Good reminder. I hv been living extremely frugally after I started a family. Now you awaken me that if I don't buy the expensive ( quality) things now, I probably won't be able to afford them when I'm older.

[@patoises]

I treated myself to three holidays this year in anticipation of retiring soon, ticking off my bucket list destinations: Jordan, Switzerland, and an East African safari. These experiences are best enjoyed with the comfort of knowing there’s still a monthly salary coming in. Next up: a few home improvements. Then, I’ll be ready to retire!

[@manivannanperumal7342]

The investment arena is very wide and complex for me. Hidden charges are not shared. How can I invest safely in investment? Is insurance investment is a wise choice? I am 60 years old, is it too late?

[@edwardlumsianming3430]

This ratio is just nice. If all achieve financial freedom, then all the work the younger generation does not want to work it is reserved for older workers😢

[@AjoraJade]

From the squirrel story... I learnt that if you are on a diet, you can earn less and save more.

[@joshconsultancy]

😂LOL Food is not the moral of the story la!

[@kennychia7277]

Some basic math. Assume one has $1M in cash for a 30 year retirement. That works out to $2777 per month. But after considering annual inflation of say 2.3%, to maintain a present value of the above mentioned $2777 per month approx $1.5M in cash is required. Is $2777 for today enough? Esp when hit with high medical bills? I doubt many Singaporeans have $1.5M cash flow for a 30 year retirement.

[@DonYang73]

Yes, definitely NOT enough in SG

[@Mike-e1n]

Ya I don’t have cash of 1.5mil either. Need to sell one of the investment property otherwise can’t make it

[@DonYang73]

With Discipline and planning and decent luck, hit level 5 in my mid 40s ( with corp job) yes it is possible

[@WeimingXie-zk3rm]

Thanks Josh. Based on my own assessment, I am at level 3.5. Hope I can be at level 4 within the next 3 years

[@joshconsultancy]

Wa nice! =)

[@DonYang73]

I am pretty sure only 25% of Singaporeans can truly retire with dignity, the remaining ones “eat not full, hungry not dead” Reality is scary. Good luck to Singapore

[@patoises]

I think I will be at level 4 in a year's time, I will be 52 and retiring for good - fingers crossed

[@joshconsultancy]

Congrats 👍🏻🙂

[@ashleighwong2594]

Looking for 240k per year passive income. What is needed to generate this income before i can fully retire? I think i am more interested to know what is the right portfolio to achieve this target.

[@MrBluehorizonsugar]

4.8m if 5% yield, or 2.4m for 10% yield. But does it help by knowing this? 😂😂😂

[@ashleighwong2594]

No. That is why my question is not about return but more of how to build the right proven portfolio that could generate such passive income.

[@DonYang73]

@@ashleighwong2594 the “right” portfolio to every person is different due to differences in risk aversion and expected performance. My current passive income is about $320k-350k per annum

[@henrylee1269]

Sorry to say there is no right one size fits all portfolio. A lot depends on the business environment going forward. A lot of good fortune on the timing of investment, though people will say time in the market is more important, the problem is sometimes people don't have that luxury or stomach for volatility​@@ashleighwong2594

[@lohdanwee474]

The moral of the story is we spent some much time educating since young until adults studying pointless topic such as calculus, trigonometry, Newton's law of Gravity, whilst the more important topics such as compounding, saving more than what one spend and save are not even mentioned at school. No wonder many still do not know how to calculate what it takes to be financially free even they have Master or PHD !

[@joshconsultancy]

Yes indeed financial literacy is not taught in school. I hope to share more on it here

[@richemon2524]

Ya, the Dua Kar Soh in maths where got use in real-life? (sine cosine tangent) 😅

[@lohdanwee474]

Never ever use Sin, Cos, Tan, differentiation once in my real working life ! But l use statistics in my real life work😂

[@bkoh1771]

The $1.6k savings cannot equate to the median income of $5k as income rises and fall in your worklife. The main reason is that if you achieve median income at at median age say 45, it is likely that you earn below median income before 45 say $3k in your 20s $4k in your 30s etc. $5k maybe peak in 40s as usually you'll luckily get $5k in your 50s. Hence Josh's projection of $1.6k/month probably only starts at 40s. You'll be lucky if you save half $800-$1k before median & hence cannot achieve what Josh mentioned. $600k excluding CPF per person is definitely above median income. Thats the survey. To say that we can easily achieve $1+m at median income assuming family, house paid up etc is not possible in my opinion.

[@joshconsultancy]

Pov noted

[@ALim-bs5ze]

Passive income = expenses is not enough. Need more passive income to reinvest such that passive income at least keeps up with inflation. Also more health related expenses (tends to grow exponentially) as one ages.

[@joshconsultancy]

Yes exactly

[@DonYang73]

Well said. Definitely not enough. I am retired and doing passive income 2x of expenses

[@weeminglim5374]

Live and eat simply … clear all loans and all will go well with u

[@DYeong]

Yes, and hopefully have good health to go along with that , for as long as we hope for.

[@Mike-e1n]

@@DYeonghealth first

[@Ko911ed]

Some expenses has increased more than 8%, some less, some much much more... my economic beehoon bf has definitely increased >8% ....😢

[@joshconsultancy]

I understand. Lucily food cost is one. Rent is coming down and transport generally well contained

[@stylerho6278]

SG has the cheapest food among all developed nations in the world.

[@kenchua829]

Poor male squirrel.. think I can tell this story to my kids to teach them on financial knowledge

[@stylerho6278]

There are 4 common problems why so many people in SG do not have sufficient savings for retirement, even for those with total household income (married couples with 2 children) of over S$250,000 per annum: 1. Over spending on their young kids such as paying over S$1,500 childcare / kindergarten fees per month per child 2. Over spending by buying a house that is not quite “affordable” such as over 10 times their total annual income 3. Over spending on their children such as sending them to university overseas 4. Most importantly, not investing (enough) their savings. Even an average compound of just 4% p.a. will make a huge difference over a few decades I avoided all the above and retired at 50, at the Legacy level.

[@joshconsultancy]

Very good points and congrats on financial freedom =)

[@DonYang73]

Well said Stylerho6278. today household income $250kpa is very mediocre

[@ahbai1976]

Haha…. Just look at how people are investing in LABUBU….. u can know where our younger Gen is heading

[@joshconsultancy]

oops ya, theres always a new hype

[@cazpk6840]

SA cloaure after 55 means we will now have to work whether we like to.or not. It will likely be an election issue.

[@joshconsultancy]

Not really. Yes it is less guaranteed interest but there are solutions 👌🏻

[@byebyefiat]

Society cannot afford to have everyone financially free, it needs people to NEED to work in jobs so that everything keeps running.

[@DonYang73]

@@byebyefiat well said. Reality bites. So who will be those people slogging away their whole lives till the day they drop dead

[@byebyefiat]

@ Ain’t gonna be me for sure. Let others rekt.

[@henrylee1269]

Frankly, we will never feel we have enough. When you have 1million, you think you need 2m.when you hit 3m, you realise its not even enough to buy a landed house, then it will 6m plus a little more...😂

[@joshconsultancy]

Exactly

[@R6ex]

Poor folks. 😭

[@joshconsultancy]

Not morale of story. Frugal folks 👌🏻

[@ASingaporeChipmunk]

02:50 this. It’s not how much you pick but how much you keep. Can’t agree with this more. I already enjoyed most if not all of what consumerism has to offer Liao, it’s not really that great to be honest lol. Trust me when I say to live below your means, have a buffer to have fun, set a limit and enjoy life as you age, as all go from womb to tomb anyway can’t bring your money or stuff to the grave anyway.😅 Had to come in as a fellow chipmunk/squirrel this had to be said lol. 😊

[@joshconsultancy]

@@ASingaporeChipmunk yes! From the OG chipmunk haha! =)

[@prime8krish]

5M in todays money with 3% withdrwal rate,

[@joshconsultancy]

Not an easy target

[@BullRun-g9s]

For 1 person or combined

[@bromiesgreen7270]

I have a passive income of $4k monthly, enough for me any my wife at the current age of 50 plus. Invest early plus savings paid off

[@joshconsultancy]

Congrats! 🙂👍

[@CyChong-vm2uf]

I defnitely have enough (IF exclude my young kids)😂

[@joshconsultancy]

😂

[@cherrycran2247]

😂 Right! If I didn't start a family, I'm rich & living a carefree life now! My singles friends are holidaying 2-4 times a year!

[@TLK281]

I need $10m

[@joshconsultancy]

Why $10m needed for retirement?

[@TLK281]

@@joshconsultancy by the time you retire, you need $10m

[@TanLouis-jw8ld]

Time to eat 1 meal a day instead of 3

[@joshconsultancy]

Intermittent fasting! No la that’s not moral of story…