Singaporeans are WORRIED ABOUT RETIREMENT… Here’s How You Can Plan!

[@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

[@BernardLee-x7i]

It is how we prioritise the needs, wants and good to have in our life. If there are alot of wants in life and expect to sustain that sort of lifestyle in our retirement period then expect the retirement cost to be high. If from the start we maintain a simple lifestyle and keep on saving and find ways to save even more then we can build up sufficient capital for retirement. Alot of people out there view that they need to have at least 5k/mth salary in order to survive at the present moment. When u plan to sustain a 5k/pax lifestyle & take this sum and factor in inflation then of course youll need a much higher sum for retirement!!

[@joshconsultancy]

Well said 👍

[@ddpow7]

All commoner should start part of their retirement starts from the 1 st day of working life, when more and more commitments starts rolling in the more stressful to start or plan in a rightful mind. Not forgetting both employer and yr health as u age will not give you a chance to work . The world economy is getting stringent. The age of unemployment is getting younger , so 20 yrs down the road you could be facing early forties getting jobless while basics job like grab or delivery may not exist . Look at China now will and might be a day how Singaporean would be. Save and invest as much while young not wait and wait.

[@pohkhui]

If any handicap or serious sickness on oneself, immediate family members, including parents , the retirement plan kaput

[@joshconsultancy]

Valid point

[@echee74]

Something to think about is whether you want to leave an inheritance to your kids. If you don't then you get to spend more for your retirement.

[@joshconsultancy]

Well said

[@Mike-e1n]

Josh my cash in hand is sufficiently pay down my 3rd unit as the loan balance of 45% when it is TOP next year. The only 2 streams of income I lack of are Dividend Income and Insurance Annuity income. On the way to plan and top up to ERS when I turn 55. Thank you for sharing the details! I will keep working on to climb the ladders up on areas that I haven’t achieved. 🎉

[@joshconsultancy]

No probs, all the best Mike :)

[@kimmyng8862]

It's not how much one earn, it's how much one spend.

[@joshconsultancy]

How much one keeps 👍

[@marinekong235]

first - it matters how much one earns, then it matters how much on spends which bring to the last point - how much one keeps and get the most out of it.

[@wz758]

@@marinekong235I would argue that how much one saves/spends is more important than how much one earns as the former is more in his control.

[@kurtselleslagh7489]

What you spend, even how little, will be subject to inflation as well, unless you live totally off the grid

[@Mike-e1n]

@@joshconsultancy high income does makes lots of different in life. Within a few years time can see a significant difference in life

[@jacquelineseto1009]

With reference to the 2nd diagram, where does the investment using CPF funds come in? Thanks in advance for enlightening.

[@feudallordcult]

why assume that one would live beyond 65? one can't even predict what would happen the next day.

[@Mike-e1n]

Josh my cash in hand is sufficiently pay down my 3rd unit at the balance of 45% loan when it is TOP next year. The only 2 streams of income I lack of is Dividend Income and Insurance Annuity income. On the way to plan and top up to ERS when I turn 55. 2 rental incomes and 1 residential self stay. The other item I was lacking is SRS as currently only have $60k. started top up SRS 4 years ago to get tax relief. Other than that I am cover with all insurance hospitalisation and CI. Thank you for sharing the details! I will keep working on to climb the ladders up .

[@joshconsultancy]

No probs Mike, All the best =)

[@DonPedroII-uc9pd]

Private car ownership, I feel, is the greatest leak in the context of lifestyle inflation. 'upgrading' from bto to condo comes close ... together with annual (multiple) overseas travel.

[@joshconsultancy]

It’s true. I’m seeing now $100k budgets for car downpayment now on the ground

[@marinekong235]

@@joshconsultancy buy a car only if you can pay it full in cash - if not, save and wait. You see people riding BMW 1,000 cc motorcycles doing food delivery - that's the most unintelligent to do haha BTO to Condo - why? After a couple of years - that pool, gym, BBQ pit is a total waste of time.

[@bkoh1771]

Nah I think is most of them can afford it. The bigger question which Josh didn't address is what to do after retiring early? That's also the FIRE shortfall. You end up retiring at 40 but going back to work at 45 cause your work is your passion 😊 own a portion of the piece of land vs hdb which you don't. Good and bad. You can enbloc hdb can't. You have to pay market rates for services HDB use mass cheap services. Cars are all about timings. We know COE quotas while there are 650k is not evenly distributed across the 10 years hence this effect. Flip back to 2013-14 COE news and it's the same HIGH.

[@marinekong235]

@@bkoh1771 afford to pay the loan you mean. Own land buying a condo, thats what the property agent wants you to believe. Enbloc is not a given, if so then HDB has SERS - even better.

[@TanLily-yp4nn]

I have recently invested $200k in SSB for a year but the interim payouts that I received is only about 3K(1.5%). So, it is at variance with the promise of an average of 3.5% for 10 years. If, I only manage to get 1.5% at such good interest rates now, how much will it be then if the interest rates dip?

[@joshconsultancy]

Its every half yearly payout. Thats why $3k. Theres another $3k coming your way Hope it explains

[@marie20142]

Think the ladder stepped approach is great ! Which annuity and endowment plan do u recoomend ? Giving 500 each as illustrated. How much needed for investment on average? Thanks

[@joshconsultancy]

For annuity plans, to get $500/m, a budget of $150k will be needed. Do discuss with a qualified advisor on whether it fits, how to reach us for a fee based retirement plan is in the comments sections k

[@Ben-gp5ty]

Josh maybe not so right to put SSB throughout providing the base over so many years aka more than 10. We won't know the interest rate environment later

[@joshconsultancy]

I understand what you mean but I think the the likelihood of securing 3% is very high VS for example short term rates. We are still in an inverted yield curve situation and at some point, the short term rate comes down while long term stays

[@Mike-e1n]

@@joshconsultancygood to buffer up 200k in SSB after all 200k not a big amount

[@TanLily-yp4nn]

I am so credulous to invest in ssb and dreaming about the average 3.5-3.8% interest for 10 years. To my horror, I totaled up all the interim dividend payouts for a year, which is only a miserable 1.5% of my invested sum. So much worse than fixed deposit rate.😢

[@Mike-e1n]

@@TanLily-yp4nn so dividends investing is not all about great returns. Lucky u count otherwise continue to pump money in

[@arrelta]

Hi Josh! Very useful content and appreciate your work in the space of financial literacy. On the third diagram, I notice that SRS withdrawal lasted for more than 10 years. Can you clarify on that please? I always thought that SRS investment must be withdrawn within 10 year period. Thanks!

[@joshconsultancy]

SRS tax calculations can be stretched out with payouts from annuity plans. Thank you for the high praise =)

[@arrelta]

@@joshconsultancy learning new things here. thanks for the clarification!

[@schadenfreude6274]

If Singapore Founding Father Mr Lee Kuan Yew can work until he die at the Age of 91, all Singaporeans should be able to do the same. Thinking to retire early is a Very Lazy Mentality. Mr Lee would be extremely ashamed of you. 🙂

[@joshconsultancy]

We cant replicate his ambitions and motivations. Early retirement is personal choice

[@wowokingxoxo]

No need excel sheet. Use passport and go JB.

[@joshconsultancy]

lol

[@ashleighwong2594]

What is networth per person should be targeting before you are financially free a.k.a ready to retire?

[@joshconsultancy]

It depends on your expectation of retirement expenses. If you are satisfied with simple enough, you may need very little only to FIRE 👌🏻 Watch how to get to retirement with less kzbin.info/www/bejne/r5qxoHiohbSMiNksi=eHcXZbNo3SPVQexe

[@Phonedumb]

Networth without cash flow is useless😂

[@marinekong235]

1. SPEND LESS - stop GRABbing for food, rides, etc 2. EAT LESS - why take in all that calories just so you can work them out haha 3. STOP UPGRADING - house, car, vacations, handbags, watches etc

[@joshconsultancy]

Cannot eat less la lol

[@marinekong235]

@@joshconsultancy eat less doesn't mean starve haha. but in general we do eat more than we need. As one ages, one simply cannot eat as much as before, hence all the health problems.

[@PohAlan]

Go temple eat free ​@@joshconsultancy

[@starbreath76]

Ssb rates is trending down , how about actual long duration bonds ( high yield , us treasury and private equity etc)?

[@joshconsultancy]

Different. SSB is capital guaranteed at all times 👌🏻

[@Phonedumb]

If you stomach abit of risk... alot of long duration corporate bonds available. Or do Temasek bonds which is AAA rated. Yes. Long duration is what I do as it gives me certainty for retirement planning. If you don't mind investing in USD, the yields are usually higher. Present Temasek YTC for SGD 2050 bonds are about 3.4% while the USD 2039 is yielding about 4.5%

[@starbreath76]

@@Phonedumb thanks

[@JustJamesDean]

Wow Uncle Josh, you described me perfectly. Mortgage too big, didn't contribute to retirement, earned very low income and gotten wiped out in the GFC. Worked 3 jobs for 16 years, massive lifestyle deflation, didn't invest in low yield structured products, I am now retired, its very doable.

[@leanne2330]

Mortgage can be forced savings. At old age say after 65, expenses are low, the challenge may be if abandon by kids after 85yrso.

[@joshconsultancy]

What happened back then? Sounds like a tough journey

[@JustJamesDean]

@@joshconsultancy took out a huge margin loan for the stock market, just before the GFC bubble popped. Bankrupt liaw. Young, stupid and too much confidence, ha ha ha. I did no investing for 10 years, and work non stop. Built my war chest, did well in COVID crush, invest more money last few years, equities continued to track well, now retire liaw.

[@JustJamesDean]

@@leanne2330 i rather have a smaller place and invest the difference. Large mortgage in hind sight is a burden Kids already made it super clear under no circumstances they will take care of us. Will have to retire in the Philippines, hire personal carers and nurses on the cheap.

[@bloggeraldwin]

buy lion hst is good

[@joshconsultancy]

Hopefully the full recovery is near

[@kelvinkelvin9020]

Go for the most expensive car and luxurious tour every few months, I am sure you need to work till you drop dead. Lol...

[@Happy-v3f5d]

Existing Loans until age 65 is gigi

[@joshconsultancy]

Refi can stretch to age75 actually

[@alfc6247]

Worried my foot if one is spending on sizable annual holidays, planning instalments till 60s, splurging on branded goods, cars and kids enrichments. Just full of excuses.

[@joshconsultancy]

be nice... many are still worried and dont fit the profile above

[@R6ex]

Poor Singaporeans.

[@joshconsultancy]

Plan ahead 👌🏻👍🏻

[@wktan8790]

Hi Josh, can I meet u for private investment? Tan Wee Kiang