Enjoy your videos so far and felt your perspectives are practical and realistic. Agree that it's more about how much we save than how much we earn. The key is to know our goals and manage expectations. Sometimes simple pleasures in life do not have to be expensive but taking care of our physical and mental health is still the most impt, not just the financial health though it can mean a diff management or treatment approach when we are down.
Most people would have their property fully paid up by retirement age, 59 or 65 or whatever. Downsizing or right sizing the house would certainly bring in extra money for a more comfortable retirement.
10-15% savings are very little in today context. You need at least a net savings rate of 50% in order to stand some chance, and if you're single and can't save that rate. Probably you got to look at somewhere to cut unnecessary expenses.
Agree that high income won't last forever. Somewhere in 40s, it could possibly drop. But on the income side, may be useful to analyze from a cohort perspective instead of a single snapshot of a particular year. Think I did that years ago when i was an economist in the ministry.
@@joshconsultancy you can see 25-29 cohort income 5 years ago. And compare it to 30-34 income now. You can repeat the analysis for all age groups across multiple horizons if data avails
GenZ here, my ambition is to retire around mid 30’s, but realistically in my mid-late 40s, considering how i save and invest most of my money and made bank from my 2017 crypto
Although all of us start points different and luck different, capabilities different, health different, life span, everything different, rest assured we are given the gift of same FRS per cohort.😅😅 55 years and 65 years.
house i think dont count. Coz cant consume for retirement cashflow But having said that, in america, they rent alot. Which also means they need more cashflow than us coz we are mostly home owners in SG
Aiya too stressful to think too far. Prepare and plan savings and investments until 65 sufficient lah. A single retiring at 55 years old and needing only $3000 would only need $360,000 for 10 years before CPF payouts
Good luck if you think $3000/mth is enough 20 years down the road. Even if you reached the ERS limit, you would only get around $2200/mth after spending your theoretical $360,000.
not realistic for the common people because have to do other things like buy house, get married, hobbies, travel, eat out, buy tech things, give money to parents etc etc etc.
Wah by 60 than got 2m ... maybe u got that 2m but than u lost so much .... just go see the world when u are much younger.. instead of saving just think of way to make more lah... and invest much more when u are much younger. it helps a lot.
Hold on where can we get 6% interest rate for saving? With insurance company with little to no liquidity? Those endowment are killers, imagine not able to pay for certain months you end up paying 6% interest back to the insurance company.
@@tintan1688 you mean credit suisse. Stay clear of COCOs (I personally do). Look for high investment grade issues (quasi government if possible). Of course the safer the issue, the lower the yield. Temasek (triple A rated) long dated 2050 issues is presently around 4%. There's loads of issues rated with at least an A but mostly in USD for better yields. For familiarity, you can check out HDB, LTA etc. ... names that you know. But yields for them can be pretty low
Your computations of saving seem just unrealistic at age range of 20 to 40's (Monthly saving $2K to 3K), unless we "do away" with marriage, owning car and having children. Staying single throughout.
The $2m is not a benchmark for sufficient retirement. Hence the monthly savings amount is just a formula on how to get there. Save an amount that is comfortable. W kids the equation is always harder I agree but it’s worth it :)
@@joshconsultancy Totally agree now, within Singapore going by balance sheet month on month with family children of two or more, with commitment of car & others liability are ok norm to me. I am a good example at 55 I'm glad to be semi retire/finance well with lots of savings at later range age in life from 45 to 55.
25 yrs ago when i was 25 yrs old, i saved/ invest 50% of my income. 25yrs later , i am still saving 50% of my income. Married, 2 children, 2 cars, landed house, zero debt.
@@DonYang73 Must be 2nd generations rich with most things already provided. Just my assumption, you are probably the minority few percentages 0.33% tail end of the population distribution curve. I was referring to the bigger mean value distribution curve of the whole population. Maybe No car? Small 3 rooms HDB?
Dream on la...Retire at S$ 2million at 60? Early retirement is the worst nightmare of any government on Earth, especially for Singapore. This means less productivity in the economy, less taxes collected and less CPF in Singapore case. Worst, we are facing aging population. There will also be troubles with maintaining SGD strength given most will be spending our SGD overseas (e.g. going on excessive tours or buying foreign properties). We are not USA and SGD is not an international reserve currency. The government will never make it easy for you to retire earlier than the minimum age if early retirement becomes a trend. But it is important to prepare for retirement.
Hi James, can I ask - how exactly does the government make it more difficult for me if I simply choose to be unemployed or retire early? Pls, kindly enlighten me.
If u wait till u earn 2mil b4 u have kids,. By tat time your body may not be able to have kids!! ( Jus been honest. To have kids is not like going to shop n buy a handphone!! ). No offense ya, jus been practical
I hear you guys. Now struggling with job uncertainty and impending retrenchment. So literally making to put our baby plans to the future. Its difficult.
@@weiyongl ya it will always feel like insufficient. Good kids have been raised even in low income families. Many rags to riches stories. When theres a will theres a way. Take care k, wishing you the best
ENGAGE Josh Tan on a fee for full retirement planning NOW - Hear the IMPROVEMENTS you can make IMMEDIATELY!
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Your fee is base on my portfolio you help set up? How it works on the fee aspect?
rewatched a few times then i get the part about why plan until 50.
more videos about uncommon topics like this pls. many thanks!
Noted. Stay tuned =)
Enjoy your videos so far and felt your perspectives are practical and realistic. Agree that it's more about how much we save than how much we earn. The key is to know our goals and manage expectations. Sometimes simple pleasures in life do not have to be expensive but taking care of our physical and mental health is still the most impt, not just the financial health though it can mean a diff management or treatment approach when we are down.
Thank you and agree with what youve said
Most people would have their property fully paid up by retirement age, 59 or 65 or whatever. Downsizing or right sizing the house would certainly bring in extra money for a more comfortable retirement.
That’s what I did after I retired at 70. Lifestyle adjustment is crucial !
valid point
Oh yes Josh, can you help us reduce or avoiding Tax smartly. Can you do a video on that? Thanks in advance.
Hey josh
U r quite spot on man on all ur discussions
Excellent work thank you
Thank you for the high praise
10-15% savings are very little in today context. You need at least a net savings rate of 50% in order to stand some chance, and if you're single and can't save that rate. Probably you got to look at somewhere to cut unnecessary expenses.
I agree
Agree that high income won't last forever. Somewhere in 40s, it could possibly drop. But on the income side, may be useful to analyze from a cohort perspective instead of a single snapshot of a particular year. Think I did that years ago when i was an economist in the ministry.
If you've data on that id be curious also. send it or point me to there k
@@joshconsultancy Historical labour force survey in MOM site. Income by age groups. They may not store the full series there. But you might be lucky.
@@joshconsultancy you can see 25-29 cohort income 5 years ago. And compare it to 30-34 income now. You can repeat the analysis for all age groups across multiple horizons if data avails
live and save within once means.
Agree
Should the $2M target include the CPF FRS or ERS that already set aside for deduction at 55?
I think can coz it will all provide retirement cashflows
How about any state pension in Singapore?
That is the CPF scheme in Singapore.
Where are you based in?
Achieving 6% annual return now and then is realistic. BUT achieving this same rate every year over 25+ years is impossible.
It is very achievable in equities
@@joshconsultancy Not straight 6% win in year after year after year unbroken over 25+ years. Not even the Oracle has managed that.
GenZ here, my ambition is to retire around mid 30’s, but realistically in my mid-late 40s, considering how i save and invest most of my money and made bank from my 2017 crypto
Continue to say and invest patiently. You will have a better sensing of your projections w a few market cycles k
Although all of us start points different and luck different, capabilities different, health different, life span, everything different, rest assured we are given the gift of same FRS per cohort.😅😅 55 years and 65 years.
haha yes. FRS is a min retirement level so it being universal is correct
yo josh, did you mention a telegram channel? is there a link somewhere?
Here t.me/pi21k
want to save like this means no meaning in living a normal life.
Excluding the house u stay ,?
house i think dont count. Coz cant consume for retirement cashflow
But having said that, in america, they rent alot. Which also means they need more cashflow than us coz we are mostly home owners in SG
Is 1 million enough for a couple in their early 50s to retire early in Malaysia or Thailand?
It really depends on expenses. I believe it is enough for most simple lifestyle retirement
More than enough for a comfortable lifestyle in Penang Island
Aiya too stressful to think too far. Prepare and plan savings and investments until 65 sufficient lah. A single retiring at 55 years old and needing only $3000 would only need $360,000 for 10 years before CPF payouts
Good luck if you think $3000/mth is enough 20 years down the road. Even if you reached the ERS limit, you would only get around $2200/mth after spending your theoretical $360,000.
@@ployny 10 years. After 65, retire in your Vietnam, or neighbour Thailand or Malaysia
happiness can be in simple things. Also dont stress to much =)
@@Farmersyoungseniors if you are willing to go local, that will be a good choice
35 year old, most likely you will start having kids. very hard to set aside so much every month
Agree. That reinforces, before having kids - golden period to save!
@@joshconsultancy if I can rewind my life and start over, I definitely would have done that. better start late than not starting at all.
not realistic for the common people because have to do other things like buy house, get married, hobbies, travel, eat out, buy tech things, give money to parents etc etc etc.
Age 30 plus. making 40k a year. need to save 100% of income. Yeah, these numbers too unrealistic.
Agree. Work with a different pace that is comfortable.
Is 2 mil net asset per person? so 4 mil needed for a couple to retire?
For this discussion yes
Just work hard and invest u can retire at 45 years old.
Is this S$ 2 M include our Singapore house ? If not, this almost impossible since you take 30 years to finish the mortgage.
It shouldn’t include. Cpf can be
Watching your video is pretty stressful 😂
Oops :)
Wah by 60 than got 2m ... maybe u got that 2m but than u lost so much .... just go see the world when u are much younger.. instead of saving just think of way to make more lah... and invest much more when u are much younger. it helps a lot.
earning more certainly helps...
Hold on where can we get 6% interest rate for saving? With insurance company with little to no liquidity? Those endowment are killers, imagine not able to pay for certain months you end up paying 6% interest back to the insurance company.
6% from equity markets
@@joshconsultancy Agree now. I am building my portfolio soon next month April, when I am finally turn 55.
High investment grade bonds and some leverage to get the yields slightly higher
@@Phonedumb Just saw UPS bank bonds wipe out to zero, scary.
@@tintan1688 you mean credit suisse. Stay clear of COCOs (I personally do). Look for high investment grade issues (quasi government if possible). Of course the safer the issue, the lower the yield. Temasek (triple A rated) long dated 2050 issues is presently around 4%. There's loads of issues rated with at least an A but mostly in USD for better yields. For familiarity, you can check out HDB, LTA etc. ... names that you know. But yields for them can be pretty low
Your computations of saving seem just unrealistic at age range of 20 to 40's (Monthly saving $2K to 3K), unless we "do away" with marriage, owning car and having children. Staying single throughout.
The $2m is not a benchmark for sufficient retirement. Hence the monthly savings amount is just a formula on how to get there.
Save an amount that is comfortable. W kids the equation is always harder I agree but it’s worth it :)
@@joshconsultancy Totally agree now, within Singapore going by balance sheet month on month with family children of two or more, with commitment of car & others liability are ok norm to me. I am a good example at 55 I'm glad to be semi retire/finance well with lots of savings at later range age in life from 45 to 55.
25 yrs ago when i was 25 yrs old, i saved/ invest 50% of my income. 25yrs later , i am still saving 50% of my income. Married, 2 children, 2 cars, landed house, zero debt.
@@DonYang73 Must be 2nd generations rich with most things already provided. Just my assumption, you are probably the minority few percentages 0.33% tail end of the population distribution curve. I was referring to the bigger mean value distribution curve of the whole population. Maybe No car? Small 3 rooms HDB?
Dream on la...Retire at S$ 2million at 60? Early retirement is the worst nightmare of any government on Earth, especially for Singapore. This means less productivity in the economy, less taxes collected and less CPF in Singapore case. Worst, we are facing aging population. There will also be troubles with maintaining SGD strength given most will be spending our SGD overseas (e.g. going on excessive tours or buying foreign properties). We are not USA and SGD is not an international reserve currency. The government will never make it easy for you to retire earlier than the minimum age if early retirement becomes a trend. But it is important to prepare for retirement.
Hi James, can I ask - how exactly does the government make it more difficult for me if I simply choose to be unemployed or retire early? Pls, kindly enlighten me.
If we build enough assets and have it invested to protect against inflation, we should be fine to survive tax hikes including GST
$2mil? Not enough for me for sure 😢
1 million la
vote noted
2.7 million net assets with wife. keep delaying kids because of economic uncertainty. talk about first world problems but its real
Ah? Dont delay kids. Possible source of regret w health and age
If u wait till u earn 2mil b4 u have kids,. By tat time your body may not be able to have kids!! ( Jus been honest. To have kids is not like going to shop n buy a handphone!! ). No offense ya, jus been practical
you will never achieve enough for kids, because a safe figure will just keep inflating
I hear you guys. Now struggling with job uncertainty and impending retrenchment. So literally making to put our baby plans to the future. Its difficult.
@@weiyongl ya it will always feel like insufficient. Good kids have been raised even in low income families. Many rags to riches stories. When theres a will theres a way.
Take care k, wishing you the best
I don't even have a million on retirement ... but I don't care! Work sucks!
Chill chill, hopefully it’s a tough period only. Stay optimistic :)
$2mil if you are 60 yrs old today, ok lah. Aiming for $2mil in 35 yrs? Sorry not enough. Hard truths. Reality bites
Enough.. Its equivalent to maybe $800k-$1m now in purchasing value? Simple lifestyle retirement still ok
@@joshconsultancy $2mil in 2060? very simple life. Lets not kid ourselves