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

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@joshconsultancy Ай бұрын

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 Ай бұрын

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 Ай бұрын

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

@kcchiew4247 Ай бұрын

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

@bkoh1771 Ай бұрын

@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 Ай бұрын

@@bkoh1771 Agree with you.

@DYeong Ай бұрын

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

@cheewanng6138 Ай бұрын

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 Ай бұрын

Good points raised on paying off while having income

@DonYang73 Ай бұрын

Well said….

@cherrycran2247 Ай бұрын

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 Ай бұрын

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!

@shawnang280 Ай бұрын

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

@joshconsultancy Ай бұрын

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

@eddiegan7644 Ай бұрын

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 Ай бұрын

Valid points

@AjoraJade Ай бұрын

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

@joshconsultancy Ай бұрын

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

@WeimingXie-zk3rm Ай бұрын

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 Ай бұрын

Wa nice! =)

@edwardlumsianming3430 Ай бұрын

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😢

@kennychia7277 Ай бұрын

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 Ай бұрын

Yes, definitely NOT enough in SG

@Mike-e1n Ай бұрын

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

@patoises Ай бұрын

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

@joshconsultancy Ай бұрын

Congrats 👍🏻🙂

@DonYang73 Ай бұрын

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

@manivannanperumal7342 Ай бұрын

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?

@DonYang73 Ай бұрын

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

@bkoh1771 Ай бұрын

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 Ай бұрын

Pov noted

@ALim-bs5ze Ай бұрын

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 Ай бұрын

Yes exactly

@DonYang73 Ай бұрын

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

@weeminglim5374 Ай бұрын

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

@DYeong Ай бұрын

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

@Mike-e1n Ай бұрын

@@DYeonghealth first

@lohdanwee474 Ай бұрын

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 Ай бұрын

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

@richemon2524 Ай бұрын

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

@lohdanwee474 Ай бұрын

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

@ashleighwong2594 Ай бұрын

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 Ай бұрын

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

@ashleighwong2594 Ай бұрын

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 Ай бұрын

@@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 Ай бұрын

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

@Ko911ed Ай бұрын

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

@joshconsultancy Ай бұрын

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

@stylerho6278 Ай бұрын

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

@stylerho6278 Ай бұрын

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 Ай бұрын

Very good points and congrats on financial freedom =)

@DonYang73 Ай бұрын

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

@kenchua829 Ай бұрын

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

@henrylee1269 Ай бұрын

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 Ай бұрын

Exactly

@ahbai1976 Ай бұрын

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

@joshconsultancy Ай бұрын

oops ya, theres always a new hype

@byebyefiat Ай бұрын

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

@DonYang73 Ай бұрын

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

@byebyefiat Ай бұрын

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

@cazpk6840 Ай бұрын

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 Ай бұрын

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

@prime8krish Ай бұрын

5M in todays money with 3% withdrwal rate,

@joshconsultancy Ай бұрын

Not an easy target

@BullRun-g9s Ай бұрын

For 1 person or combined

@R6ex Ай бұрын

Poor folks. 😭

@joshconsultancy Ай бұрын

Not morale of story. Frugal folks 👌🏻

@ASingaporeChipmunk Ай бұрын

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 Ай бұрын

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