User Research/Opinions   

Investment for retirement

Thank you everyone for you advice. I really appreciate the advice. I just joined this forum 2 weeks ago and I have learned a lot from everyone.

Thank you again.

 

The best parts, buy yourself a smaller apt to stay and ask your agent to rent out the other bigger apt, spend some times to consolidate your blue chip stocks with reasonable PE ratio and consistant dividend and some with a bonus throw in (who know after afew years down the road).

 

hi geojam... the illustration given is just a very simplified one... difficult to factor in retrenchment lah... i think the main point in the illustration is to save a good proportion (~20%) of your income and keep expenses to at most 50%

 

hi all.

i think its good adivce to invest like 10% of the total retired fund he has in good blue chips, but with the knowlegde that the whole 10% can be lost.

Investing more than that at this stage where the main aim is to grow and not lose money can be dangerous. Furthermore, since he is new in the market, chances of losing money is so great. I guess why not spend some money attending some talks first before getting invested?

 

Hi lampard

Good point and noted.

However what happen if in middle age crisis when u got retrenched?

It is very common these days when china and India is competing so hard to take jobs away.

 

for singles, his/her $2 mil can be splitted up this way:

$1 mil for expenses (i.e. spending half his/her salary every month)

$0.5 mil for a studio apartment

$0.5 mil for retirement nest

for married couples... total income is $4 mil, spliited up this way:

$2 mil for expenses

$0.5 mil for 4- or 5-rm hdb flat

$0.5 mil for children's education

$1 mil for retirement nest

just a simplified way of looking at how we could distribute our income...

 

Taken into consideration he or she have to need a house to live in?

U mean S$500k in cash after buying the house? 

 

sorry, mistake... should be 37 years of working life from 25 to 62, not 47 years... =X

 

on the topic of retirement nest... i have a simplified illustration...

an average graduate can earn abt $2 million in his working life ($4000 pm plus AWS = $52000 pa, multiply by 47 years working life from age 25 to 62). 

If he/she can save 25% of it, he/she will have $500k in cash savings at age 62. 

To be spent over 20 years of retirement, each month, he/she will get $2k, which for a normal retiree should be sufficient to meet monthly expenses.

And with a bit of low-to-medium risk investment, he/she can readily amass a larger retirement nest...

 

My reply to "educator Member".

I don't buy funds bec. I have the time to monitor my own investments; and enjoy better returns.

E.g. I spoke to F.A. My concern is that (a) They enjoy the purchase commission (b) The Annual Managing fee and (c) Enjoy the thrill of Investing/Gambling with your money while you take the Downside Risks.  Yes Funds are excellent for younger people, thouse who do not have the time to manage own funds and those with Lots of money and don't enjoy "Investing themselves". You need to "follow through" for at least 5 yrs or longer to really enjoy the fruits of your investment.

The fun in investing by yourself is that whether you win or lose, it;s your money - just don't be Greedy and don't Regret. - Invest rather than speculate.

 

1: Generally Newbie will pay heavily in Stock lost, mostly due to greed & get emotional in both Bull & Bear market.

2: Earn 2-4% in safe FD, Investment with 70% of yr Retirement Fund.

3: 20% in Good Yeilding Stock that pay 5-8% Dividend.

4: 10% for Thrill & Spill that U can afford to loose in Stock & shares.

I hav a little exp to share & also wanted to Learn from SIFU here!

Please don't play play the Stock Market with yr pension or retirement Fund.  Better be safe than sorry.  After all, most retirees dont need plenty of $$ & neither can they carry them to Heaven.

 

1: Generally Newbie will pay heavily in Stock lost, mostly due to greed & get emotional in both Bull & Bear market.

2: Earn 2-4% in safe FD, Investment with 70% of yr Retirement Fund.

3: 20% in Good Yeilding Stock that pay 5-8% Dividend.

4: 10% for Thrill & Spill that U can afford to loose in Stock & shares.

I hav a little exp to share & also wanted to Learn from SIFU here!

Please don't play play the Stock Market with yr pension or retirement Fund.  Better be safe than sorry.  After all, most retirees dont need plenty of $$ & neither can they carry them to Heaven.

 

Hi educator

for your info,research shows that shares consitently gives u the best return over a period of 5 to 7 years.

I emphasied 5 to 7 years.Not 1 day stuff or 1 week stuff.

If u have kept a record,check how ST Engr shares preformed over the last 7 years plus dividends..

 

Hi mamasan

flat in spore for only S$200k?

If u have S$1 million and stay in flat for S$200k abit below standard?

 

Hi mamasan,
Just wondering how many ppl have hard cash of S$1 million !!. and who ever have a million, i think they can oso know what to do with their million. No need to tell them what to do with their million $$$.

 

Hi mamasan

Please teach me how to make 10% a year.

I am sure alot of members like to know too

 

1 million SGd Ok liao, buy a flat for 200k, use  800k for investment, make 10% a year, that is 80k, about 7k per month,  200 bucks per day, very confortable life...

 

Hi all members

What kind of lump sum do a person needs to retire comfortablely?

It is a tough question.Depends on individual,rite?

Just a gauge anyway.

Or maybe how much a month do a retiree neeeds for living expenses.

 

Hi all members

What kind of lump sum do a person needs to retire comfortablely?

It is a tough question.Depends on individual,rite?

Just a gauge anyway.

Or maybe how much a month do a retiree neeeds for living expenses.

 

Hi educator

Is your friend speculates in shares which result in his loss?

Or he just buy for investment but pick the wrong stocks and as a result loss money?