5 Signs You're Financially Ready to Retire
ฝัง
- เผยแพร่เมื่อ 22 พ.ค. 2024
- Are you dreaming of your golden retirement years, but unsure if you're financially prepared to make the leap? In today's episode, we cover the top 5 financial signs that tell you that you are indeed ready to retire. On the flip side, if you don't have these signs, you may want to postpone your retirement until you're ready! So whether you're on the brink of retirement or planning ahead now while you're young, these signs will serve as milestones for you to reach -- so that you know that you can finally kick back, relax and call it a day...
📖 FREE EBOOK - A Quick-start Guide to Winning the Game of Stocks
fifthperson.com/ebook/
💻 FREE TRAINING WEBINAR - How to build a profitable income portfolio
TheIncomeStrategy.com
📈 OPEN $0 COMMISSION TRADING ACCOUNT
fifthperson.com/moomoo
Here are a few more investing tips and tutorials to help you out:
💵 HOW TO INVEST IN DIVIDEND STOCKS
• How To Invest And Make...
🏢 HOW TO INVEST IN REITS
• How To Invest In REITs...
🏖️ HOW TO GROW YOUR CPF FOR RETIREMENT
• How To Grow Your CPF F...
📄 HOW TO READ A FINANCIAL REPORT
• How To Read A Financia...
_________________
📊 Get more investment insights, tips, and company analysis from our blog (100% free).
FifthPerson.com
🎙️Also on Spotify: podcasters.spotify.com/pod/sh...
📢 Say 'Hi!' on Social
Facebook: / fifthperson
Instagram: / thefifthperson
Telegram: t.me/thefifthperson
One can semi-retire even though he/she is financially independent, like working on part-time jobs that are less stressful or enjoyable, even though the income might be much lesser.
Thanks for the session! Very good inputs.
Thanks Justin!
Wish I had someone like you guys to give such sound advice when I was 18! I'd be multi-millionaire now, like AK!
Victor, I totally agree with your comment about reinvesting a percentage of your passive income at retirement (or leading up to it). I practice that now, and the journey has been fun, as you keep seeing your quarterly dividend and DPU payouts steadily increase. I'd like to think that that will help me overcome inflation. Plus, maybe move to sedate Ipoh or Taiping in the future to stretch the dollar. Cheers guys!
Well said
Well said.. esp the part abt moving to Ipoh or Taiping. The little island we grew up in has become too expensive and crowded, and it's no longer the same.
Great video again guys! The young really need to listen and pay attention. Enough now will not be enough 20 years down the road. And always look to top up your investments to get even more passive income.
Thanks Nick! Haha. We were all young once; retirement plans will always come up in due time (hopefully)
health is the most important.. eat healthy, stay happy and exercise often...
Definitely! Health is wealth!
A succinct + wakeup calling list!
I have achieved #1,2,3 but not #4,5, and now I know what I need to do!
On your way!
I wish I had met you guys two decades ago. I am almost 44 but I cannot believe how much I am learning from you, young people. Thank you for sharing your knowledge, and I believe I still have time to fix everything. Better late than never, as they say.
Will share this in my social media platform.
Thanks for watching our videos! You still have more than 20 years to invest and grow your wealth before retirement! More than enough time to build something substantial if you remain diligent and consistent. You can do it!
@@TheFifthPersonChannel Thank you, Sirs. I needed someone to tell me that. Yes I can and I will.
It's never too late to learn...esp the power of compounding. Keep working on it!
I know nothing about trading /investment and l'm keen on getting started. What are some strategies to get started with?
Don't know what to do in retirement? Feeling bored? Play video games with AK! 🥳 How to be bored like that? 🤭
It is so important to plan way ahead, once one reach 50, they are in the danger zone of retrenchment unless they have a skill set that is in high demand. I am 55, did my SA shielding , enhanced my RA, took out all my OA to put in 6% yield stock, built a strong dividend portfolio , debt free, continue to work till I reach 60 or get fired along the way.
The above seems easy but it took me years of planning and active execution to create a future free cash flow supply when the day I do retire. Meanwhile enjoy life within our means and live a purposeful and meaningful life.
Thanks for sharing your wisdom, Kevin!
Generally a lot of points that are on point.
Adam raised a good point that most should bear in mind: The retirement is about 20-40 years and it is a long time that you may need equities for the portfolio to keep up with inflation.
The part that you guys may struggle a bit is how do you categorize the role of bonds and equities in retirement. One way to look at it is to categorize your spending into two groups, the spending that is inflexible, which is the base amount that you need (usually the rent, food, transport etc) and the flexible which is like your entertainment food, vacation, giving. If you want greater certainty over the inflexible, perhaps you wish the bonds to address that part and for the more flexible you can have the equities to address that part.
Victor raised a good point about only spending 50% of your income but essentially what he is also saying is that you need to have margin of safety in your income. It also means you need quite a large capital base. Whether Victor is right or wrong, we should take note of the spirit why he suggested that. the reality is income from your plans can be volatile and you may need enough safety to engineer some consistency.
I like the idea of considering equities for "flexible" expenses and bonds for "inflexible" expenses. Good 👍
@@payjohnny0354 i think if people wish to do that. but personally i just have a portfolio mixture of diversified equities and bonds that pays for inflexible spending and another portfolio for the flexible spending. basically have two different portfolios for the two groups.
the difference between the two portfolios is how much income to extract from the portfolios. the inflexible portfolio will have a higher capital to be more conservative while the flexible portfolio can have less capital because for the flexible portfolio, the income is based on maybe a 4-5% of the prevailing portfolio value. the income is going to be more volatile, but that is ok because those spending can be more flexible. that is a sensible match.
for the inflexible, the capital is larger because the income taken out has to be more consistent and so we have to factor in more challenging periods where returns are not so good and inflation is higher. hope that helps.
Great point about using bonds to set a floor for income!
Q up at SGP pool counter .
Don't need to queue! Just buy using the SG Pools app!
Should consider retiring in Malaysia as an alternate option.
Always an option but do note that owning a Malaysian property doesn't automatically give you residency rights in Malaysia
To be ready for retirement financially, it is preferable that the passive income is equal to active income. The assumption is that expenditure will be less than passive income and that the excess can be reinvested such that the passive income continues to grow above inflation. This in theory means that the capital is maintained or increased until the time of death.
Aiming for passive income to only cover expenditure is risky due the effects of inflation and additional expenses like medical etc.
Yes, we always need a buffer!
Having Insurance is not the thing, how to pay for it, do we have money to pay for insurance
Of course, the level of protection you buy should match what your income allows
We tend to play on the safe side that what if I live beyond 85? It would also be useful to consider what if I don’t? And I live till 70 only. Will you do things differently?
Also, it is a bit simplistic to just project the same expenses with inflation. Depending on individuals, expenses might increase or decrease as we aged and priority changes.
So a good guide but one really needs to take some time to think about it. We don’t want to risk running out of money.
However, we also don’t want to end up having the money but ran out of energy and time.
Probably better to have a little too much money when we pass than not enough money when we're still alive?
@@TheFifthPersonChannel a valid point. Just don’t forget to live in the present while planning for the future. Energy level at age 30-50 is definitely different from that at age 60-80.
Definitely! We can't take things to the grave, only experiences ❤️
No house lond
Car lond 100 thousand
All in dbs
Dividen around 100 thousand more.
Can retired.???
Depends on your lifestyle and commitments
Disagree with striking lottery. That depends on your spending habits. If you are huge spender, you will be much poorer after striking lottery
Haha. Yes, fair enough
when cars in Singapore , like a BMW 5S is half a million, having a auto loan debt is definitely a no no , so your advice is wrong as Singapore cars are all 6 figures
Not everyone drives a BMW. But if you can afford a car outright, then an auto loan is fine.
Can u all share ur portfolio ?