Recently i have been giving thoughts on Variables that is critical for my consideration before i retire.
1. Years after retirement
2. Principal Fund
3. Annual Returns
4. Expense amount and growth
Using S$1M as a reference benchmark with a set of other variables, i did a simulation as linked below.
Article on Retirement Planning
Cory
Hi Cory, will you consider using annulities as part of retirement planning? At least will not run out of money (unless the insurer close shop....)
Thanks for your question.
I will exclude it as an additional buffer for now. However their inclusion or not probably will not drastically change my Net worth much when i do retire as they form only a small percentage. If is not, you may have other problem to worry about.
Another consideration is individual safety margins. Some people may want to include CPF or Live-in Property. There is also situation where you may have tapped Emergency fund earlier than expected and requires top-up.
At the end of the day is your own retirement well being.
Hi Cordy,
Thanks for your reply.
I had read somewhere that how long the retirement fund can last depend greatly on investment performance in the 1st few years of retirement. If one retire in 2008, and the retirement fund get wiped out 50%, likely it will not last too long.
As I do not know how the future will be, likely I will look at some annuities to give a small safety net, in case the market drop, and take a while to recover.
IMO:
The concept of annuities is very good but in actual practice so far not so good (In terms of investment returns). i think to be a paid-up FH property landlord is better. There is really no free lunch in what ever way you to look at it.
My thoughts are in time to come if the government of the day still bring in a lot of FT can consider renting our place here to FT for additional income instead of burning up your retirement savings and then after rent out your place we can go become FT in other country like Malaysia or Thailand. Same standard of living but at much lower cost.
My thoughts are:
Pick a country where the people don't have a history of persecuting minority or foreigners and pick a city to live in, lets face it living on a farm in the country side sounds very romantic but there's going to be a lot of work under the hot sun mosquitoes bugs and chirping insects - we are city dwelling folk we still like our hot showers internet air-con and CNN even in retirement. When I go to malaysia visit some of my relatives in small town for a few days within 1 day I would have visited all the malls done all the shopping massages, whack until cannot eat or drink anymore by the second day I'm already feeling bored if small town like this can drive me up the wall just think what living in a vegetable farm is going to do. You want fresh air get an air freshner it's easier.
My current pick is Thailand is it any surprise?
Apart from beautiful eye candy everywhere, cheap booze cheap food, cheap transport, very very affordable medical and very affordable accommodation.
Last time I was in BKK I asked around if want to live on minimum around 3000 bhat that's around 100+ sing a month rental can get a basic room but I think most forumers here can do better consider renting a good decent apartment in place like Bangkok around S$400
Then every 6 months do a passport run or come back for short a visit.
Before you take the step to go out of the country to retire, why not proactively ensure you can stay within and prosper.
If FT can comes in and survive, why can't we ?
Cory
(16-12-2012, 11:05 PM)sgd Wrote: [ -> ]My thoughts are in time to come if the government of the day still bring in a lot of FT can consider renting our place here to FT for additional income instead of burning up your retirement savings and then after rent out your place we can go become FT in other country like Malaysia or Thailand. Same standard of living but at much lower cost.
My thoughts are:
Pick a country where the people don't have a history of persecuting minority or foreigners and pick a city to live in, lets face it living on a farm in the country side sounds very romantic but there's going to be a lot of work under the hot sun mosquitoes bugs and chirping insects - we are city dwelling folk we still like our hot showers internet air-con and CNN even in retirement. When I go to malaysia visit some of my relatives in small town for a few days within 1 day I would have visited all the malls done all the shopping massages, whack until cannot eat or drink anymore by the second day I'm already feeling bored if small town like this can drive me up the wall just think what living in a vegetable farm is going to do. You want fresh air get an air freshner it's easier.
My current pick is Thailand is it any surprise?
Apart from beautiful eye candy everywhere, cheap booze cheap food, cheap transport, very very affordable medical and very affordable accommodation.
Last time I was in BKK I asked around if want to live on minimum around 3000 bhat that's around 100+ sing a month rental can get a basic room but I think most forumers here can do better consider renting a good decent apartment in place like Bangkok around S$400
Then every 6 months do a passport run or come back for short a visit.
For most of us "Home" is where your "Heart" (read your people) is. No?
(30-12-2012, 08:50 AM)corydorus Wrote: [ -> ]If FT can comes in and survive, why can't we ?
These FT are going to retire here or go back to their home country?
Quote:Before you take the step to go out of the country to retire, why not proactively ensure you can stay within and prosper.
If FT can comes in and survive, why can't we ?
Cory
FT is getting a lot of help from our government.
Quote:For most of us "Home" is where your "Heart" (read your people) is. No?
Go to macdonalds and ask any of the retirees working there what they look forward to in their current retirement? Ask them why they eligible to take cpf how come they spending their retirement still working.
FT will not retire here. A few of my indian and prc colleagues tell me their wife took singapore citizenship but my colleagues did not. They bought a house here a few years ago using grant (thru their now singaporean wives) and have made a lot of money(from the current crazy property market) most say they did the citizen thingy is only because of their careers here and children's schooling but at the same time they are also building very big bungalows back in india. Points for guessing where they going to retire?
If you are rich and wealthy you can retire anywhere if you are average middle class the retirement plan I have outlined will be a much better option than the lousy $300 cpf money you can collect every month to buy maggie instant noddles but at same time also have to work in macdonalds.