What condition we can go into semi-retired?

[singleman]

what you think can allow us to go into this so called semi-retired mode.

that is no need to work full time. can work part time or work occassionally as n when u feel like.

for example, ur flat have fully paid either use cash or using CPF. that is mean no more housing loan. have some saving. can withdraw some sum of money from CPF. did not have other loan like car loan, etc. so can we go into semi-retired mode? can go "enjoy" life liao?

no need to work full time to say must have an income that need to pay the different loan instalment, bills, etc. can have more own time to do wad we like, to cheong for example. of course i dun mean totally not working. still working but on part time or freelance basis.

[loneyheart]

Ask yrself bro to each is diff
Only u think u have enough $$$ to spent comfortably n able to cover yr monthly bills
Why not ?
Life is simple n short why work if u can stop
Sure u still have many things u want to do when u were young but unable to

Know u reaching 55 withdrawing yr CPF soon
Use it wisely n enjoy bro :)

[sky_liner2]

Bro singleman, you have already started a thread with regards to CPF matters, why created another, please continue from the earlier thread will do.

[loneyheart]

He is overly excited as going to 55 B day soon :) I understand like suddenly feel rich will so much $$$ :p

[snooker]

what you think can allow us to go into this so called semi-retired mode.

that is no need to work full time. can work part time or work occassionally as n when u feel like.

for example, ur flat have fully paid either use cash or using CPF. that is mean no more housing loan. have some saving. can withdraw some sum of money from CPF. did not have other loan like car loan, etc. so can we go into semi-retired mode? can go "enjoy" life liao?

no need to work full time to say must have an income that need to pay the different loan instalment, bills, etc. can have more own time to do wad we like, to cheong for example. of course i dun mean totally not working. still working but on part time or freelance basis.

when the $$ in your bank generates interest every month = $3000 and above + u don't have any loans or debts (house and car fully paid up). Then can consider semi- retire. For full retirement, the bank interest must be above $5,000/month.

[candle2000]

what you think can allow us to go into this so called semi-retired mode.

that is no need to work full time. can work part time or work occassionally as n when u feel like.

for example, ur flat have fully paid either use cash or using CPF. that is mean no more housing loan. have some saving. can withdraw some sum of money from CPF. did not have other loan like car loan, etc. so can we go into semi-retired mode? can go "enjoy" life liao?

no need to work full time to say must have an income that need to pay the different loan instalment, bills, etc. can have more own time to do wad we like, to cheong for example. of course i dun mean totally not working. still working but on part time or freelance basis.

Hopefully the ang mo does not come again to kow peh kow bu saying this is not the right place to post.

1. A fully paid roof over your head
2. At least can enroll CPF Life Basic at age 65 and continue to draw some cashie monthly till RIP
3. At least 20K in the medisave account to pay for polyclinics outpatient and inpatient Class C or B2 bills

The above 1 to 3 is for myself who is single and does not intend to get marry.

If married with kid(s), harder to go semi-retired, wait till the kid(s) has finished their highest educational level (not necessary to be a Uni grad)

Haha No. 4. Save a dollar or two every day in the empty biscuit tin, this is my for sexual activities/adventures :D

[candle2000]

Bro singleman, you have already started a thread with regards to CPF matters, why created another, please continue from the earlier thread will do.

He is testing water..........whether ang mo is still around :D

[fallen11]

my idea is....

1. No debts at all. All paid off including your property. Debt is a killer. Installments are also debt. Do not purchase things on installments if you can.

2. No other ongoing liabilities. Like children all grown up and independent from you.

3. Drawing down on savings may not be a reliable way to fund retirement. You should have some passive income. Ideally your passive income covers at least a little more than you planned expenditure. This is to take into account of some uncertainties. If there isnt a need to draw down on savings, then dont. This means you can fund your retirement forever. Drawing down of savings alone will deplete it fast, then make you finish your savings unexpectedly and find yourself having to go out to pick cardboard at age 75....

4. Dont rely on cpf. First, its not enough. Second, you only start withdrawing from 65. Third, withdrawal age may change in future...... very hard to say. Should you survive physically and financially till your cpf starts paying out, take it as an income bump. Upgrade your retirement lifestyle from there.

I take your meaning of "semi retired" as = dont need to work for the sake of money anymore

[singleman]

He is testing water..........whether ang mo is still around :D

hmm that is not my intention of the thread lah. :D

[singleman]

Hopefully the ang mo does not come again to kow peh kow bu saying this is not the right place to post.

1. A fully paid roof over your head
2. At least can enroll CPF Life Basic at age 65 and continue to draw some cashie monthly till RIP
3. At least 20K in the medisave account to pay for polyclinics outpatient and inpatient Class C or B2 bills

The above 1 to 3 is for myself who is single and does not intend to get marry.

If married with kid(s), harder to go semi-retired, wait till the kid(s) has finished their highest educational level (not necessary to be a Uni grad)

Haha No. 4. Save a dollar or two every day in the empty biscuit tin, this is my for sexual activities/adventures :D

1. A fully paid roof over your head
- yes my current flat is fully paid using CPF, but of course when sell the house need to pay back CPF. I did not take any housing loan that require using CPF to pay instalment loan monthly.
- does this match the first criteria?

2. At least can enroll CPF Life Basic at age 65 and continue to draw some cashie monthly till RIP
- what is the criteria to be able to enroll CPF Life Basic at age 65?
- Currently i have already met the FRS amount.

3. At least 20K in the medisave account to pay for polyclinics outpatient and inpatient Class C or B2 bills
- this criteria think i can fulfil liao as i have about 65k in my medisave account. so far i am quite healthy, did not need to use from medisave yet, did not hospitalise before n hope no need to in future.

[candle2000]

hmm that is not my intention of the thread lah. :D

OK.......my bad

----------------------------------------------------------------------------------
Quote:

2. At least can enroll CPF Life Basic at age 65 and continue to draw some cashie monthly till RIP
- what is the criteria to be able to enroll CPF Life Basic at age 65?

Unquote

Quote:

Automatic inclusion
You’ll be automatically included in CPF LIFE if you’re:

A Singapore Citizen or Permanent Resident;
Born in 1958 or after; and
Have at least $60,000 in your retirement savings when you start your monthly payouts
If you’re automatically included, we’ll inform you before you turn 65 to explain the options available to you.

If you’re not automatically included, you’ll receive monthly payouts which will stop when your retirement savings run out.

Unquote

[singleman]

when the $$ in your bank generates interest every month = $3000 and above + u don't have any loans or debts (house and car fully paid up). Then can consider semi- retire. For full retirement, the bank interest must be above $5,000/month.

if based on this, then i cannot semi-retired liao.

[singleman]

my idea is....

1. No debts at all. All paid off including your property. Debt is a killer. Installments are also debt. Do not purchase things on installments if you can.

2. No other ongoing liabilities. Like children all grown up and independent from you.

3. Drawing down on savings may not be a reliable way to fund retirement. You should have some passive income. Ideally your passive income covers at least a little more than you planned expenditure. This is to take into account of some uncertainties. If there isnt a need to draw down on savings, then dont. This means you can fund your retirement forever. Drawing down of savings alone will deplete it fast, then make you finish your savings unexpectedly and find yourself having to go out to pick cardboard at age 75....

4. Dont rely on cpf. First, its not enough. Second, you only start withdrawing from 65. Third, withdrawal age may change in future...... very hard to say. Should you survive physically and financially till your cpf starts paying out, take it as an income bump. Upgrade your retirement lifestyle from there.

I take your meaning of "semi retired" as = dont need to work for the sake of money anymore

maybe what i trying to do is i dun have to so called need to find full time job or with high pay, maybe i can find some part time job just to have an income to pay for my daily expenses n need. like that i dun have to draw from my saving or the cpf money. only when have urgent need then draw from saving or cpf.

[singleman]

OK.......my bad

----------------------------------------------------------------------------------
Quote:

2. At least can enroll CPF Life Basic at age 65 and continue to draw some cashie monthly till RIP
- what is the criteria to be able to enroll CPF Life Basic at age 65?

Unquote

Quote:

Automatic inclusion
You’ll be automatically included in CPF LIFE if you’re:

A Singapore Citizen or Permanent Resident;
Born in 1958 or after; and
Have at least $60,000 in your retirement savings when you start your monthly payouts
If you’re automatically included, we’ll inform you before you turn 65 to explain the options available to you.

If you’re not automatically included, you’ll receive monthly payouts which will stop when your retirement savings run out.

Unquote

retirement saving here mean RA account rite. so mean i should be able to fulfil too. i am already met the FRS of 192k mean my RA will have 192k at age 65 provided i did not withdraw from the RA before 65.

[cestycesty]

The world is so uncertain these days. Put in bank inflation makan it. Put in investments, market makan it. Cannot win man. I'm 42 this year. only started planning for retirement 2 years ago at 40.

If and when the market turns for the better when i'm 50, i will probably change it to more bonds and less equity kind of investments for safe keeping. Hopefully by then i max out my FRS also and just let the interest roll.

I am self employed and dont think i can work till 65. probably by 55 i have to plan for a lifestyle that what i work and earn cannot be saved anymore and probably take things easy then and enjoy life a bit. That would be 10 more years before i can start receiving my CPF.

[singleman]

He is overly excited as going to 55 B day soon :) I understand like suddenly feel rich will so much $$$ :p

a sum of money to certain people like with low or middle income will appear as a lot of money to them. but the same amount of money will look like a peanut to those who is really rich or super rich.

so in this sense that the amount i can withdraw from cpf is so called "so much" $$$$. but that not going to make me rich. i not a high income earner, neither low income. can be considered middle income. so this amount of money is considered "so much" to me.

[entering]

what you think can allow us to go into this so called semi-retired mode.

of course i dun mean totally not working. still working but on part time or freelance basis.

First, depends in your lifestyle. I can eat $2 rice everyday (1 rice, 2 veg), so my own expenses are low. Most of my girls, I don't maintain them, but once in a while I do give them some to spend. But not much, like $50-$100.

Second, some bros say need retirement income, which i feel is right. 3 studio condo are rented out. Profit not much for each but they'll all be paid off when I'm 65. Monthly I don't need to worry cuz tenant paying for it. My own stay, I stay HDB.

No other loans, no credit card installments, no Ready Credit installments, no car loans, kids all take scholarship.

I find work that allows me to travel. So though my work isn't part time work, but regional work helps to pay for a lot of free travels. Can bring either wife, friends or girls along. Just tell company my room needs a double bed instead of a single bed.

Semi retire, I also looking at buying a freehold studio somewhere else. Mostly either Perth or Auckland. I used to have a house in Auckland. If you semi retire, it's nice to anytime just fly there to R&R. Downside is place must upkeep and may have squatters or problems with the taxes etc.

Like some bros state, the above all haven't consider my CPF yet. So, CPF is bonus.

But by 65, all the studios should be fully paid, and I should have a studio in Perth/ Auckland, or whichever country my kids go study. By 65, my eldest would be 35 and the 3 of them should be independent and married.

Not sure if I'm still alive then, but I also already checked out the old folks home and the cost of maids to take care of me (if I'm not able to do the ADLs). But some of these homes, including the cheaper ones, the Pinays not bad.

Besides that, I'm not a person who wants to live long, so I'll skip on long term medical care if I can. Also done my LPA, signed the form to donate my organs for research (so that cremation is free).

So, actually I can be considered semi retired right now.

[lalaliang]

when the $$ in your bank generates interest every month = $3000 and above + u don't have any loans or debts (house and car fully paid up). Then can consider semi- retire. For full retirement, the bank interest must be above $5,000/month.

Huh how u generate 3k interest a month in bank?

[havana]

1) No debt or liablities.
2) Fully paid house which U can rent out partially/fully to generate "passive" income.
3) Lump sum of at least $300k in saving(FD) and investment(Dividend) which give U a few hundreds per month.
4) Able to earn at least $1k for part time/temp. job.
5) Dont touch your CPF @ age 55. Leave it till age 65
6) Sufficient health insurance to fall back onto.
7) Plan B if mid way something crop up and destroy your plan, i.e. family need big money:eek:

So in total U get around +$2/3k per month. Ask yourself is it enough for U???:confused: Maybe U can cook for youself? R U able to adjust your lifestyle?
Have U consider Geographic arbitrage?

[AmpedUp]

1) No debt or liablities.
2) Fully paid house which U can rent out partially/fully to generate "passive" income.
3) Lump sum of at least $300k in saving(FD) and investment(dividend) which give U a few hundreds per month.
4) Able to earn at least $1k for part time/temp. job.
5) Dont touch your CPF @ age 55. Leave it till age 65
6) Sufficient insurance to fall back onto.
7) Plan B if mid way something crop up and destroy your plan, i.e. family need big money:eek:

So in total U get around +$2/3k per month. Ask yourself is it enough for U???:confused: Maybe U can cook for youself? R U able to adjust your lifestyle?
Have U consider Geographic abritage?

Very good points

[jonn88]

My house fully paid, only loan is car, have about 100k in dividend stock/bonds/reits. My household expenses is about 4.5k, driving phv part time will only give me about 3k, still can't balance my income and expenses. Start to split my household expenses with my children, hope I can really semi retired one day.

[bondage]

1) No debt or liablities.
2) Fully paid house which U can rent out partially/fully to generate "passive" income.
3) Lump sum of at least $300k in saving(FD) and investment(dividend) which give U a few hundreds per month.
4) Able to earn at least $1k for part time/temp. job.
5) Dont touch your CPF @ age 55. Leave it till age 65
6) Sufficient insurance to fall back onto.
7) Plan B if mid way something crop up and destroy your plan, i.e. family need big money:eek:

So in total U get around +$2/3k per month. Ask yourself is it enough for U???:confused: Maybe U can cook for youself? R U able to adjust your lifestyle?
Have U consider Geographic abritage?

Concerning 5 and 6, I would lump them as savings put to work for you early enough so that by 65 or maybe 60, your plan should be to realise the returns in stages of every 5 years. This is besides other investments or trading which may or may not work out.

So firstly, not all your eggs in one basket. Secondly, you might not want to stare at only one large sum at one go and then accidentally spend it all faster than you expected. Thirdly, the other baskets still continue to work for you.

Lastly, in case you have excess CPF in your ordinary over and above the RA or FRS, please be aware that the excess cannot be retained in the ordinary at 65 having a free ride of compound 2.5. You'll be asked to take the excess out and manage it yourself. I'm not sure if you can still transfer excess to CPF Life. Anyway, the point is to be aware and check it out in case I'm wrong.

Maybe in a more practical situation, have a small HDB as a base and spend more time abroad in cheaper places to live and work part-time. The base is for when you need to back for whatever reasons. Just a thought. Anyway, it's important to keep oneself usefully or happily occupied in the house.

World is changing very fast. UK has started fighting for talent by giving visas for uni grads here. If that applies to younger generations that you know of, this might be an alternative to consider. I don't have the details but it's in yday papers. The geopolitics will change many things. Sg is nothing in the Great Game that has started.

Just chipping in my 2cts.

[I Love Boobs]

if based on this, then i cannot semi-retired liao.

Current FD interest is less than 1%.
Assuming 1%, to get $3000 per month you need $3.6 million in your bank.
To get $5000 per month you need $6 million.
Insane!

[sammyboyfor]

what you think can allow us to go into this so called semi-retired mode.

that is no need to work full time. can work part time or work occassionally as n when u feel like.

for example, ur flat have fully paid either use cash or using CPF. that is mean no more housing loan. have some saving. can withdraw some sum of money from CPF. did not have other loan like car loan, etc. so can we go into semi-retired mode? can go "enjoy" life liao?

no need to work full time to say must have an income that need to pay the different loan instalment, bills, etc. can have more own time to do wad we like, to cheong for example. of course i dun mean totally not working. still working but on part time or freelance basis.

https://www.sammyboy.com/threads/the-retirement-thread.151153/


Retirement - what does it mean?

In my books, retirement isn't doing nothing. It's doing what you want to do rather than because you have to earn a living performing a task which may or may not bring you any satisfaction.

In order to do as you please, (within the boundaries of the law of course) rather than what you are being paid to do, you first need to achieve financial independence. This term causes much confusion too. I take it to mean what it says... ie that you no longer have to depend upon regular employment in order to fund your lifestyle. You are independent of others and are not beholden to any organisation or person when it comes to money.

Everyone is different so there's no fixed threshold that defines what financial independence is. What's enough for me may well be far too little for you. More of that later.

How is financial independence achieved?

1. Saving as much as possible with the hope of achieving your goal. (very difficult to achieve in this day and age)

2. A combination of saving and investing in the enterprises owned by other people. (better than just saving but not ideal)

3. Investing in yourself and creating wealth on your own. (The best method of all and in my opinion, less risky than investing in 3rd parties)

[loneyheart]

a sum of money to certain people like with low or middle income will appear as a lot of money to them. but the same amount of money will look like a peanut to those who is really rich or super rich.

so in this sense that the amount i can withdraw from cpf is so called "so much" $$$$. but that not going to make me rich. i not a high income earner, neither low income. can be considered middle income. so this amount of money is considered "so much" to me.

Use it wisely bro
Its not like suddenly strike 4D
Don't burn out yr life time saving :)

[candle2000]

Use it wisely bro
Its not like suddenly strike 4D
Don't burn out yr life time saving :)

I totally concur with Bro loneyheart.

Once you start to borrow from relatives/friends and words get around, many likely to avoid and ignore you.

I do not believe in charities that is why I am careful with my little money.

Also do not be so gullible leading to your hard earned money being cheated or scam.

[catalyst]

Hopefully the ang mo does not come again to kow peh kow bu saying this is not the right place to post.

1. A fully paid roof over your head
2. At least can enroll CPF Life Basic at age 65 and continue to draw some cashie monthly till RIP
3. At least 20K in the medisave account to pay for polyclinics outpatient and inpatient Class C or B2 bills

The above 1 to 3 is for myself who is single and does not intend to get marry.

If married with kid(s), harder to go semi-retired, wait till the kid(s) has finished their highest educational level (not necessary to be a Uni grad)

Haha No. 4. Save a dollar or two every day in the empty biscuit tin, this is my for sexual activities/adventures :D


——————
lol . bro i like your point no 4
that’s out most important to married guys
GIVE YOU A TUMBS UP !!!!!!!!

[snooker]

Huh how u generate 3k interest a month in bank?

If don't have enough $, then try generate cpf interest $3000/month. easier target to reach

[fallen11]

The world is so uncertain these days. Put in bank inflation makan it. Put in investments, market makan it. Cannot win man. I'm 42 this year. only started planning for retirement 2 years ago at 40.

If and when the market turns for the better when i'm 50, i will probably change it to more bonds and less equity kind of investments for safe keeping.


for bonds, i do not recommend buying single bonds.
Either invest into a bond portfolio (need to pay hefty fees), or easier go for bond ETFs or government bonds (local government or US government bonds). Make sure the portfolio or ETF is well diversified so that it wont eat all your capital away should there be defaults on some of the bonds. Yes the interest will be lower but at least you can sleep soundly for decades probably.
If you invest into single bonds and they default, you are back to zero. Happened to a lot of Hyflux / Noble bondholders.

[cestycesty]

for bonds, i do not recommend buying single bonds.
Either invest into a bond portfolio (need to pay hefty fees), or easier go for bond ETFs or government bonds (local government or US government bonds). Make sure the portfolio or ETF is well diversified so that it wont eat all your capital away should there be defaults on some of the bonds. Yes the interest will be lower but at least you can sleep soundly for decades probably.
If you invest into single bonds and they default, you are back to zero. Happened to a lot of Hyflux / Noble bondholders.

yea i agree on this. actually i rather invest in gov bonds than corporate bonds.

[ilovepantyhose]

for bonds, i do not recommend buying single bonds.
Either invest into a bond portfolio (need to pay hefty fees), or easier go for bond ETFs or government bonds (local government or US government bonds). Make sure the portfolio or ETF is well diversified so that it wont eat all your capital away should there be defaults on some of the bonds. Yes the interest will be lower but at least you can sleep soundly for decades probably.
If you invest into single bonds and they default, you are back to zero. Happened to a lot of Hyflux / Noble bondholders.

yea i agree on this. actually i rather invest in gov bonds than corporate bonds.

can put some excess cash in sg bond etf A35 or sg govt savings bonds, at least there is annual payout, whereas the cpf monies is locked until retirement age

[fallen11]

Lastly, in case you have excess CPF in your ordinary over and above the RA or FRS, please be aware that the excess cannot be retained in the ordinary at 65 having a free ride of compound 2.5. You'll be asked to take the excess out and manage it yourself. I'm not sure if you can still transfer excess to CPF Life. Anyway, the point is to be aware and check it out in case I'm wrong.

Excess can be retained in OA actually.... but only for the portion credited from employment.
At 55, they'll sweep all your OA & SA into RA. So your OA & SA would become zero. Any top ups would have to go into RA.
But assuming you would still be employed by then, the cpf portions would still be credited into your OA & SA every month as mandated. Thats how you can have excess balance in OA and SA after 55 or 65.
You may transfer the OA SA balances into your RA anytime. For lump sum withdrawals, only can withdraw from your OA balance.
Any excess in your RA, after paying for CPF life, will be used to supplement your CPF life payouts every mth from 65 onwards.

Example: CPF life paying $1000 a mth. You have say $30k balance in RA at 65, after deducting for the lump sum cost of CPF life. This $30k will be used to payout monthly, say maybe extra $200 a month until it is empty (at 5% interest to you i think), making your total cpf payout to be $1200 a mth.

oh yes, another bro mentioned about insurance. You'll need it.
Medical insurance is a must have, for as long as possible. A major illness will bleed dry all your dreams and plans away.
Other insurance like life, accident, critical illnesses are necessary before retirement. When you have enough passive income to retire, you dont need these insurance plans anymore as your passive income will still be intact should anything happen to you. Best to just go for term insurance as its cheap and incur the lowest fees. Expenses on insurance should not be saved. And also, you actually dont need accident insurance if you have a life + medical insurance plan. The coverage kinda overlaps.

[AmpedUp]

Excess can be retained in OA actually.... but only for the portion credited from employment.
At 55, they'll sweep all your OA & SA into RA. So your OA & SA would become zero. Any top ups would have to go into RA.
But assuming you would still be employed by then, the cpf portions would still be credited into your OA & SA every month as mandated. Thats how you can have excess balance in OA and SA after 55 or 65.
You may transfer the OA SA balances into your RA anytime. For lump sum withdrawals, only can withdraw from your OA balance.
Any excess in your RA, after paying for CPF life, will be used to supplement your CPF life payouts every mth from 65 onwards.

Example: CPF life paying $1000 a mth. You have say $30k balance in RA at 65, after deducting for the lump sum cost of CPF life. This $30k will be used to payout monthly, say maybe extra $200 a month until it is empty (at 5% interest to you i think), making your total cpf payout to be $1200 a mth.

oh yes, another bro mentioned about insurance. You'll need it.
Medical insurance is a must have, for as long as possible. A major illness will bleed dry all your dreams and plans away.
Other insurance like life, accident, critical illnesses are necessary before retirement. When you have enough passive income to retire, you dont need these insurance plans anymore as your passive income will still be intact should anything happen to you. Best to just go for term insurance as its cheap and incur the lowest fees. Expenses on insurance should not be saved. And also, you actually dont need accident insurance if you have a life + medical insurance plan. The coverage kinda overlaps.

Very good points made

[ParidoBoy]

Very good points made

This I would really agree on too