Emils 2nd Gear October 22, 2009 Share October 22, 2009 Based on this report, you can supposedly retire at age 62 drawing S$2,500/mth (till age 82) just by saving S$158.30/mth starting from 25 years old with zero savings. How to retire with S$1 Million Try as I might, I can't seem to get the maths to work... Anyone has any idea? ↡ Advertisement Link to post Share on other sites More sharing options...
Seaweed 1st Gear October 22, 2009 Share October 22, 2009 probably yes if those investment don't fail on you... Link to post Share on other sites More sharing options...
Emils 2nd Gear October 22, 2009 Author Share October 22, 2009 Took a closer read and noticed this qualifier: Further, we assume that whatever the investors save during their pre-retirement days will earn 8% annually. What's the chance of this happening in real life over a span of 37 years (from 25 to 62 years old)?? Link to post Share on other sites More sharing options...
Throttle2 Supersonic October 22, 2009 Share October 22, 2009 hahahah, b-------t lah. unrealistic assumptions for Singapore might as well say work 3 yrs, save 85% then retire base on 10% returns annually Link to post Share on other sites More sharing options...
Curahee 1st Gear October 22, 2009 Share October 22, 2009 What i worry is by the time i retire at that age, 1 million is nothing much anymore. Link to post Share on other sites More sharing options...
Guyver 1st Gear October 23, 2009 Share October 23, 2009 Based on this report, you can supposedly retire at age 62 drawing S$2,500/mth (till age 82) just by saving S$158.30/mth starting from 25 years old with zero savings. How to retire with S$1 Million Try as I might, I can't seem to get the maths to work... Anyone has any idea? Take this $1 million .... buys a condo/commercial property .... rent out and collect $3K-$5K/mth .... done. Link to post Share on other sites More sharing options...
Robo 2nd Gear October 23, 2009 Share October 23, 2009 there is a bank in geylang... i heard the security is fat and lazy... heard he is always sleeping also. maybe one can try his luck there... hahahaha Link to post Share on other sites More sharing options...
Windchoco 1st Gear October 23, 2009 Share October 23, 2009 So what is a better plan? CPF? Link to post Share on other sites More sharing options...
D_bergkam 1st Gear October 23, 2009 Share October 23, 2009 8% returns is pretty high. In real life, dividend yield with stocks is roughly 3 to 4%. Barely enough to cover inflation at 3%. Link to post Share on other sites More sharing options...
Schneider79 Clutched October 23, 2009 Share October 23, 2009 You just missed a good chance of being a millionaire yesterday. The problem is how old are you now. 20? 30? 40? 50? If you're just 20 years old and retires 42 years later. What is the worth of that "million" dollar at that point of time. Today, $1m is like nothing. $500k for a Toa Payoh pigeon hole. Gather another 5-8 years, it's a million dollar pigeon hole. So, is our money increasing it's value or depreciating it's value to suit the FTs ? Link to post Share on other sites More sharing options...
Stdfrank 1st Gear October 23, 2009 Share October 23, 2009 Took a closer read and noticed this qualifier: Further, we assume that whatever the investors save during their pre-retirement days will earn 8% annually. What's the chance of this happening in real life over a span of 37 years (from 25 to 62 years old)?? and another assumption is salary increase 3% every year.... In fact, the message the writer is trying to convey is that regular saving is important , but assumption he made is unrealistic... Link to post Share on other sites More sharing options...
Skunk Clutched October 23, 2009 Share October 23, 2009 what's this obsession with retirement? I plan never to retire, and so i do not need to save money for "retirement"....I only save money for emergencies. Link to post Share on other sites More sharing options...
Rickster 5th Gear October 23, 2009 Share October 23, 2009 Even if I can save SGD1 million by the time i retire... maybe that amt of $ is only enough for me to buy a small car Link to post Share on other sites More sharing options...
Yaloryalor 5th Gear October 24, 2009 Share October 24, 2009 Based on this report, you can supposedly retire at age 62 drawing S$2,500/mth (till age 82) just by saving S$158.30/mth starting from 25 years old with zero savings. How to retire with S$1 Million Try as I might, I can't seem to get the maths to work... Anyone has any idea? I also dunno how. S$158.30/mth for 1 year is $1,899.60. For 25 years is only $47,490. If plus the interest, compound it. How to reach $1,000,000??? Link to post Share on other sites More sharing options...
Yaloryalor 5th Gear October 24, 2009 Share October 24, 2009 What i worry is by the time i retire at that age, 1 million is nothing much anymore. I know wat you meant. But how many of us can even have 1 million at the age of retire? Link to post Share on other sites More sharing options...
Freestylers09 5th Gear October 24, 2009 Share October 24, 2009 If You're 25 Savings: S$0 Monthly Salary: S$2,500 Rate of Increase in Wages: 3% p.a. Number of Months in Bonus: 2 months Housing Loan: Not Required What You Need to Save per Month for the next 37 years: S$158.30 i wonder how to make it 1m by 37years even given the best return with monthly $160.... Link to post Share on other sites More sharing options...
BoneStock 5th Gear October 24, 2009 Share October 24, 2009 Based on this report, you can supposedly retire at age 62 drawing S$2,500/mth (till age 82) just by saving S$158.30/mth starting from 25 years old with zero savings. How to retire with S$1 Million Try as I might, I can't seem to get the maths to work... Anyone has any idea? as other bros already mentioned, 1m doesnt really mean anything. There are many variables and inflation is one of them. 1m today is equivalent to how much 20 years down the road? Personally I think it is important to generate a steady stream of passive income even after we retire from our full time job. I think that is more important. Link to post Share on other sites More sharing options...
Blackseal 1st Gear October 24, 2009 Share October 24, 2009 (edited) Take this $1 million .... buys a condo/commercial property .... rent out and collect $3K-$5K/mth .... done. 2 yrs back...there used to be a new commercial building where offices were going for S$288k per unit....each unit ( around 1000 sq ft ) can rent for between S$4k to $5k....why bother with S$3k to S$5k with your outlay of S$1 million ? I can take in S$10k+ monthly with the same amt by just renting out the offices.. Edited October 24, 2009 by Blackseal ↡ Advertisement Link to post Share on other sites More sharing options...
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