Spending too much on your home & killing ur retirement

[Zanter]

See this clip

 

This guy talks about financial ratios. He says a home 4x your annual income will result you spending 30% of your salary on the roof over your head. I think many people are spending like 10x their annual income on homes? Of course US home rates are higher but we cant expect our home rates to be forever at 2% pa.

 

To retire at 65 we need to save 15-20% of our income so that at 65 we would have a saving/investment of12x our annual income. Can be done?

[HOUSENUMBER]

i can only say what is retirement

[Sgnick]

See this clip

 

This guy talks about financial ratios. He says a home 4x your annual income will result you spending 30% of your salary on the roof over your head. I think many people are spending like 10x their annual income on homes? Of course US home rates are higher but we cant expect our home rates to be forever at 2% pa.

 

To retire at 65 we need to save 15-20% of our income so that at 65 we would have a saving/investment of12x our annual income. Can be done?

 

WTF, retire fund of 12x our annual income? I dun see how I can achieve that

[Kyrios]

Ask Mah Bow Tan?

[Throttle2]

WTF, retire fund of 12x our annual income? I dun see how I can achieve that

 

Actually that is a good figure to work on.

I'm trying to hit 10X annual as a retirement nest

but i think saving/investing only 20% is not gonna take you there

 

It demands stronger savings/investment (at least 30% or more) and not overspending on future income. many people are not willing to sian ku hou tian, thats the problem.

 

Earn only $200k per annum , buy $200k car, buy $2mil property, of course cannot achieve lah.

Edited February 15, 2011 by Throttle2

[Skunk]

Heng my flat is less than double my household annual income whew hehe

[Aeromania]

i thot our gahmen wants us to work until die?

[Aeromania]

then ur next generation also same.

and the next generation

and the next generation

and the next one

and the next one

and the next one

and the next one

for eternity...........

[Gearoil]

One can never be able to depend on 'save while you can' for the hope that when retirement comes, there will be enough funds.

 

Stupid ppl thinks like this...which of course never really worked in real life, nowadays when inflation is so high.

 

One need to have investment(s) that generate income, even when you retire and don't work.

 

Smart ppl never tell you this but never tell you how but you go think about it.

 

The cash ( if it ever comes back from CPF) are just petty cash, it won't be enough for many folks out there when they hit retirement age.

 

Think about this again.

[Mizarahi]

Say peasant annual incom 60k x 12 = 720k

Assuming 65 got no more debts, children no need your money anymore and you live till 90.

 

720k/25 = 28.8k.

 

Wa piang. It is so tough. 1 year only have 28.8k to spend equal to 2.4k a mth.

All the best.

I gave up on 720k savings + investment at 65. I better go commit suicide when I m 70. Hahaha.

[Rainman]

Can live til so old (and healthy) then say.

[Throttle2]

Say peasant annual incom 60k x 12 = 720k

Assuming 65 got no more debts, children no need your money anymore and you live till 90.

 

720k/25 = 28.8k.

 

Wa piang. It is so tough. 1 year only have 28.8k to spend equal to 2.4k a mth.

All the best.

I gave up on 720k savings + investment at 65. I better go commit suicide when I m 70. Hahaha.

 

1. This is over and above CPF

2. $720k must be properly invested so it continues to earn something.

3. every year take a little and earn a little, will work out to be closer to $5k per mth using 80yrs old as the benchmark.

It's not bad lah so dont complain.

 

if want to complain better ask yourself why your annual is no$600k but only $60k

Edited February 15, 2011 by Throttle2

[Mizarahi]

Not complaining.

 

I am comfortable and living happily with $60k per annum now. I believe $600k per annum has it's own setback.

Just don't wish to live till 90. I see my grandma at 90 is so poor thing.

Live alone. Can't walk for long. Need wheelchair. All her children has their own family and nobody really taking care of her.

[Freestylers09]

65 liao why nid spend so much?$2.4k cash a month? older eat also eat lesser liao since like u say no debt no children to feed?

[Watwheels]

See this clip

 

This guy talks about financial ratios. He says a home 4x your annual income will result you spending 30% of your salary on the roof over your head. I think many people are spending like 10x their annual income on homes? Of course US home rates are higher but we cant expect our home rates to be forever at 2% pa.

 

To retire at 65 we need to save 15-20% of our income so that at 65 we would have a saving/investment of12x our annual income. Can be done?

Sounds like some sort of insurance policy.

Edited February 15, 2011 by Watwheels

[Ender]

WTF, retire fund of 12x our annual income? I dun see how I can achieve that

I'm trying to achieve that this Friday... May or may not..

[Gearoil]

I'm trying to achieve that this Friday... May or may not..

 

This sort of richness is guaranteed to make you.... WORSE!

 

[Throttle2]

Not complaining.

 

I am comfortable and living happily with $60k per annum now. I believe $600k per annum has it's own setback.

Just don't wish to live till 90. I see my grandma at 90 is so poor thing.

Live alone. Can't walk for long. Need wheelchair. All her children has their own family and nobody really taking care of her.

 

 

you grandson, maybe can try to take care of her?