How much is enough?

[wildcard87]

Don't often start threads here but am just wondering how much savings/investments is considered adequate/average by the age of 30?

I'm a 27 yr old guy and have about 40K in savings, another 10K in SGX and about 15K in insurances at present. Been working about 4 years now and put myself through school. This topic came up as I was talking to my insurance agent about my financial standings which he claims to be on the healthy side of financially.

So am just wondering am I really financially healthy or should I be aiming higher? Also how much does the typical S'porean have liquid in their savings a/c for daily living as am considering investing the rest as savings a/c here pay peanuts.

[maxsee]

It is very hard to say whether you are financially sound or not...Depends on the kind of lifestyle you want to lead bah...A friend of mine in his early 40s has a net worth of 10m++....And he still feels that it is not good enough...so what is enough???....:D:D:D

[wildcard87]

It is very hard to say whether you are financially sound or not...Depends on the kind of lifestyle you want to lead bah...A friend of mine in his early 40s has a net worth of 10m++....And he still feels that it is not good enough...so what is enough???....:D:D:D

Precisely my point. As in at this stage in life, without my own house/car, an average typical S'porean lifestyle (spend my free time at the gym/pool or cycling, restaurant meals prob like twice-thrice a month, mostly relying on bus/mrt to travel around, travel prob. around twice a year) Is this enough?

[damong777]

Precisely my point. As in at this stage in life, without my own house/car, an average typical S'porean lifestyle (spend my free time at the gym/pool or cycling, restaurant meals prob like twice-thrice a month, mostly relying on bus/mrt to travel around, travel prob. around twice a year) Is this enough?

Yes. Based on what u are having it shd be enough.

But are u going to start a family soon (get married and get house)? If yes, then not enough.

Getting a house or married 40k will be wiped out in a flash. So it depends on your immediate or long term goal.

If u can,,put ur money in srs account early.

[sunhuan-con]

It is very hard to say whether you are financially sound or not...Depends on the kind of lifestyle you want to lead bah...A friend of mine in his early 40s has a net worth of 10m++....And he still feels that it is not good enough...so what is enough???....:D:D:D

Even billionaire also say money not enough too...

[Hurricane88]

Don't often start threads here but am just wondering how much savings/investments is considered adequate/average by the age of 30?

I'm a 27 yr old guy and have about 40K in savings, another 10K in SGX and about 15K in insurances at present. Been working about 4 years now and put myself through school. This topic came up as I was talking to my insurance agent about my financial standings which he claims to be on the healthy side of financially.

So am just wondering am I really financially healthy or should I be aiming higher? Also how much does the typical S'porean have liquid in their savings a/c for daily living as am considering investing the rest as savings a/c here pay peanuts.

at 27 yrs old...with your balance is not enough...do the maths

all based on estimates

hdb - bto 300k
car - yearly 24k
1st child delivery - 6k
2nd child delivery - 8k
household expenditure - ??
children childcare, education and miscellaneous - ???

if your wife working then your burden may be lighter...

now tell me if you think you have enough....:p :p

[sammyboyfor]

Don't often start threads here but am just wondering how much savings/investments is considered adequate/average by the age of 30?

I'm a 27 yr old guy and have about 40K in savings, another 10K in SGX and about 15K in insurances at present. Been working about 4 years now and put myself through school. This topic came up as I was talking to my insurance agent about my financial standings which he claims to be on the healthy side of financially.

So am just wondering am I really financially healthy or should I be aiming higher? Also how much does the typical S'porean have liquid in their savings a/c for daily living as am considering investing the rest as savings a/c here pay peanuts.

I started a thread in my other forum on this very subject.

Asking how much is "enough" is like asking "how long is a piece of string?'.

It all depends upon what your financial goals are and what sort of lifestyle you want to lead.

In order to figure out how much is enough you have to do the following :

1. Decide at what age you want to become financially independent... ie no longer have to depend upon working in order to support your lifestyle.

2. What sort of monthly income you want your assets to yield. This all depends upon what sort of lifestyle you wish to lead.

For an in depth discussion, proceed to http://www.sammyboy.com/showthread.php?151153-The-RETIREMENT-thread

[Yeo7988]

at 27 yrs old...with your balance is not enough...do the maths

all based on estimates

hdb - bto 300k
car - yearly 24k
1st child delivery - 6k
2nd child delivery - 8k
household expenditure - ??
children childcare, education and miscellaneous - ???

if your wife working then your burden may be lighter...

now tell me if you think you have enough....:p :p.



Every month my earning also not enough to sustain my loan.

[sammyboyfor]

.
Every month my earning also not enough to sustain my loan.

If that is the case you're spending way beyond your means.

If you carry on in the same manner, what's going to happen you lose your job at 45? Do you want to end up being a taxi driver?:rolleyes:

[acidicavex]

I would say no it is not.

Everything is in the rise, base on your current 10 yrs down it another new height. Do u think it will be enough? Unless u got no intention of starting a family.. and provided u find a woman that will think and consider for your pocket.

Even u aim to live humbly no need cars no need holidays etc.

[sammyboyfor]

So i would say no......

What sort of figure would you say is enough and at what age should the target figure you suggest be achieved?

[Hurricane88]

For an in depth discussion, proceed to http://www.sammyboy.com/showthread.php?151153-The-RETIREMENT-thread

I read thru the whole discussion...very good...and meaningful...really makes me wonder what I had been planning all these years...:)

[SnowLeopards]

The country you reside in plays a paramount impact on your decision.

However, as human, naturally, we are greedy.

Pierre.

[porscheclub]

Money is never enough :)

Seriously, no property of your own? You need some hard assets dude. A wedding alone can wipe out $50k modestly & $100k on luxury side. It is good that you depend on public transport but other than insurance plans you need to look at your portfolio properly & forget about those "projected" returns. They take 15yrs min to break even.

[LonelyPlayboy]

I started a thread in my other forum on this very subject.

Asking how much is "enough" is like asking "how long is a piece of string?'.

It all depends upon what your financial goals are and what sort of lifestyle you want to lead.

In order to figure out how much is enough you have to do the following :

1. Decide at what age you want to become financially independent... ie no longer have to depend upon working in order to support your lifestyle.

2. What sort of monthly income you want your assets to yield. This all depends upon what sort of lifestyle you wish to lead.

For an in depth discussion, proceed to http://www.sammyboy.com/showthread.php?151153-The-RETIREMENT-thread

Thanks for sharing this boss

[aNewBie]

Bro

Just take 40K to divide by your monthly expenses. This is the duration you can survive without a job. Basically $40K in my country is not enough for a person to retire at age of 55.

Fyi

Don't often start threads here but am just wondering how much savings/investments is considered adequate/average by the age of 30?

I'm a 27 yr old guy and have about 40K in savings, another 10K in SGX and about 15K in insurances at present. Been working about 4 years now and put myself through school. This topic came up as I was talking to my insurance agent about my financial standings which he claims to be on the healthy side of financially.

So am just wondering am I really financially healthy or should I be aiming higher? Also how much does the typical S'porean have liquid in their savings a/c for daily living as am considering investing the rest as savings a/c here pay peanuts.

[sammyboyfor]

Bro

Just take 40K to divide by your monthly expenses. This is the duration you can survive without a job. Basically $40K in my country is not enough for a person to retire at age of 55.

Fyi

Based on my lifestyle, I worked out that the minimum amount for retirement is $3 million to $5 million based upon a conservative yield of 3% after taxes.

This gives $30,000 in income annually for each million of assets so $3 million yields $90,000 per year and $5 million yields $150,000 per year.

Of course it would be fantastic to aim for $10 million or more but I'm keeping the goal reasonable in order to inspire everyone to give it a shot.

$3 million is actually pretty easy. Everyone should go for it.

[wildcard87]

Bro

Just take 40K to divide by your monthly expenses. This is the duration you can survive without a job. Basically $40K in my country is not enough for a person to retire at age of 55.

Fyi

40k if i don't work now, I'll be able to feed my lifestyle for about 2yrs and still contribute monthly to the household.

[sammyboyfor]

40k if i don't work now, I'll be able to feed my lifestyle for about 2yrs and still contribute monthly to the household.

NEVER touch your principal sum because if you deplete it you'll have to go about building up your nest egg all over again.

[MoJoe313]

Based on my lifestyle, I worked out that the minimum amount for retirement is $3 million to $5 million based upon a conservative yield of 3% after taxes.

This gives $30,000 in income annually for each million of assets so $3 million yields $90,000 per year and $5 million yields $150,000 per year.

Of course it would be fantastic to aim for $10 million or more but I'm keeping the goal reasonable in order to inspire everyone to give it a shot.

$3 million is actually pretty easy. Everyone should go for it.

Boss,
I had to do a double take when I saw your numbers. I hope $3m includes CPF. Else I find it hard to fathom how it is easy.

You are making a few assumptions. That the principal will not be touched, even at the ripe old age of 85, just to keep the $90k annual yield going. I seriously doubt anyone will do that. When I am nearing 85, I want to wither down my principal. I can't use money in the after life. So in that sense, one does not really need $3m to begin with.

My other point will be, Why in the world will one need $8,000 a month past 75 years old? I can understand one wants to travel the world upon retirement. But once one passes 70, his legs may not even keep up. His physical state may not match his fuck-it list (or bucket list as many call it). I have seen many older relatives just rot at home. So a closer approximation may be a decreasing yield or a smaller principal.

Many need to understand lifestyles and ideals change as one ages. You may want to eat at high end restaurants when you are in your 30s-50s, but when you reach 70s, you get tired of even eating. My mom did. She just wanted to ooom at home the whole day. Not that she has no money. She needed less things when she got older.

If $8,000 a month is indeed the benchmark, I wonder how those who earn less and have families to feed, survive. Hmmm.......

Its a good write up, nonetheless. Thanks boss. Sets us thinking. Like you wrote, retirement is like a string and you and only you, decide how long you want it to be.

Personally, I rather think this Retirement planning thingy is over rated. Many spend too much time worrying about it. They push themselves harder to build up a war chest. The sad reality is some may not even reach retirement. Their time in this world is up. By all means plan, but l recommend one cherishes what he has today than spend his time pushing for something he may not even enjoy tomorrow. Perhaps I have seen too many friends departing before their 50s. Let tomorrow take care of itself.

Cheers....literally, LoL

[CuttingBack]

NEVER touch your principal sum because if you deplete it you'll have to go about building up your nest egg all over again.

I would definately agree with this boss