I probably have to thank you for the 1M65 movement. When I was young, I (like many others) was naive about CPF. One day, my mentor shared with me regarding max-ing SA ASAP for the higher interest, it was a moment of enlightenment. Soon after, I made sure my wife's and my SA reached FRS, albeit a bit late in our lives. Using a simple projection, assuming both my wife and I both stopped working now, our combined CPF savings will hit 1M when we hit 65 (assuming everything else stays constant). Although 1M will probably be worth much less in the future than now, it is nonetheless an important milestone achieved. Of course, we have our own investments that will further boost our retirement funds. Even though I was not directly influenced by you, you (or someone else who believes in CPF) probably made an impact to my life through my mentor.
@@viper88448 Assuming 2.6% long term inflation, should be worth ~600k in today’s context. This safety net may be only just right to sustain a basic level of living. That’s why investing is so important.
To those who think properties are better than CPF, try to crunching the numbers and see. After deducting all costs associated with the properties (Mortgage interest, Maint fees, Taxes, etc), can you generate a return better than 3.5% yearly? With private property prices going at >$2000psf for suburban areas, i highly doubt you can generate anything close. I recommend not to leverage too much from CPF for properties, especially for investment properties. At the end of the game, CPF will give a much better and more consistent return.
Bought a 3 bedroom condo in suburban in 2012 for about $950k. Now transacted price is $1.3m to $1.4m. Renting it out at $4500 per month now. Indeed it is the best investment. But i do not know those that paid over $2k psf for new suburban condo now.
I think 1M65, 2M65 as a couple is do-able with median income and relying on SA and MA alone. To reach 4m65 will require risk taking and i think thats where risk averse individuals (myself included) may draw the line.
I do welcome Mr Loo’s suggestion by increasing $1m to $4m as retirement funds. About 25 yrs ago, the financial advisors suggested people to retire comfortably by accumulating 1million in liquid assets. However, in today’s world especially after the pandemic disaster, inflation takes place everywhere. Our life span is being prolonged to pass 90s if you take care of your personal habit and health. $1million is no longer enough to support a comfortable retirement life per person.
As for CPF, it is a non-liquid asset that you can withdraw only after 55. I am sure Mr Loo you have more assets or cash that your CPF AMOUNT. What allocation of your overall networth will you put inside CPF? We know you are a critic of properties but what if the property is of appreciating value and gives you rental income? Isnt it a good asset to hold? And I am sure that you can liquidate your properties before 55yo
Hi Mr Loo, fantastic sharing. if we start it late in late 30, what is your advice to us and the minimum amount you think one can achieve at 60 by following your strategy putting money in SA and MA? Thanks.
Hard to say, But I would encourage filling up your SA/ MA quickly even though you have some lost years. Even if you cannot make 4M65, 1-2M is also very good
@@1m65 Although I dun agree with topping up of SA, I do agree, that with a coherent and consistent strategy, its very possible, to achieve 1M65, 2M65, or even 4M65, using CPF
Good for you in your achievement. But if the video is to convince average people that they can achieve 4M65, by using your own CPF and S&P funds as an example, don’t think it’s convincing. How many people have 1.9m as a couple at 50?
It is doable only if you start young and follow the 4M65 strategy. Once you pass certain age, it can’t be done as time and opportunity is not on your side. Make sure your children all learn this get rich optionS
I probably have to thank you for the 1M65 movement. When I was young, I (like many others) was naive about CPF. One day, my mentor shared with me regarding max-ing SA ASAP for the higher interest, it was a moment of enlightenment. Soon after, I made sure my wife's and my SA reached FRS, albeit a bit late in our lives. Using a simple projection, assuming both my wife and I both stopped working now, our combined CPF savings will hit 1M when we hit 65 (assuming everything else stays constant).
Although 1M will probably be worth much less in the future than now, it is nonetheless an important milestone achieved. Of course, we have our own investments that will further boost our retirement funds.
Even though I was not directly influenced by you, you (or someone else who believes in CPF) probably made an impact to my life through my mentor.
Outstanding!
i will assumed 1million will value to 500k in today's context in the next 20 years. still better than nothing.
@@viper88448 Assuming 2.6% long term inflation, should be worth ~600k in today’s context. This safety net may be only just right to sustain a basic level of living. That’s why investing is so important.
@@viper88448 exactly, better that than without it
To those who think properties are better than CPF, try to crunching the numbers and see. After deducting all costs associated with the properties (Mortgage interest, Maint fees, Taxes, etc), can you generate a return better than 3.5% yearly? With private property prices going at >$2000psf for suburban areas, i highly doubt you can generate anything close. I recommend not to leverage too much from CPF for properties, especially for investment properties. At the end of the game, CPF will give a much better and more consistent return.
Bought a 3 bedroom condo in suburban in 2012 for about $950k. Now transacted price is $1.3m to $1.4m. Renting it out at $4500 per month now. Indeed it is the best investment. But i do not know those that paid over $2k psf for new suburban condo now.
Happy for you Mr Loo .God bless you & family
Hi Mr Loo... You are a blessed man. Thank you for sharing so openly and generously :)
Thank u very much too for watching
I think it’s achievable as long as you are disciplined enough.
Yayyy you used a mike, and that’s the best thing about this video
I found a cheap and easy to use Mike. Uncle me very slow in adapting to technology. Sorry
I found a cheap and easy to use Mike. Uncle me very slow in adapting to technology. Sorry
with more income can do more top ups. rite?
I think 1M65, 2M65 as a couple is do-able with median income and relying on SA and MA alone. To reach 4m65 will require risk taking and i think thats where risk averse individuals (myself included) may draw the line.
You cannot make extraordinary gains without taking risk
I do welcome Mr Loo’s suggestion by increasing $1m to $4m as retirement funds.
About 25 yrs ago, the financial advisors suggested people to retire comfortably by accumulating 1million in liquid assets.
However, in today’s world especially after the pandemic disaster, inflation takes place everywhere. Our life span is being prolonged to pass 90s if you take care of your personal habit and health. $1million is no longer enough to support a comfortable retirement life per person.
The word to achieving is “ Discipline Savings Management “
As for CPF, it is a non-liquid asset that you can withdraw only after 55. I am sure Mr Loo you have more assets or cash that your CPF AMOUNT. What allocation of your overall networth will you put inside CPF?
We know you are a critic of properties but what if the property is of appreciating value and gives you rental income? Isnt it a good asset to hold? And I am sure that you can liquidate your properties before 55yo
4M referring to total net assets or not inclusive of the house staying?
Not inclusive of house ….
Wealth stuck in wealth is a KKK wealth
Any other viable options besides S&P?
I do have some globally diversified world index too
Hi Mr Loo, fantastic sharing.
if we start it late in late 30, what is your advice to us and the minimum amount you think one can achieve at 60 by following your strategy putting money in SA and MA? Thanks.
Hard to say, But I would encourage filling up your SA/ MA quickly even though you have some lost years. Even if you cannot make 4M65, 1-2M is also very good
Thanks Mr Loo!
Good idea
Yes possible …on the way there
Mr Loo, how do you invest your funds in S&P500? Do you use IBKR to pump your money in or a third-party executing your trades for you?
For CPF I use endowus
mr loo, do you top up your cpf SA?
Of course … from late 20s.
@@1m65 Although I dun agree with topping up of SA, I do agree, that with a coherent and consistent strategy, its very possible, to achieve 1M65, 2M65, or even 4M65, using CPF
Can I retire at age 35
Why do you want to retire so young?
Do nothing and jia lai jia ke!😂
No sound
Have lah
👏
Good for you in your achievement. But if the video is to convince average people that they can achieve 4M65, by using your own CPF and S&P funds as an example, don’t think it’s convincing. How many people have 1.9m as a couple at 50?
It is doable only if you start young and follow the 4M65 strategy. Once you pass certain age, it can’t be done as time and opportunity is not on your side.
Make sure your children all learn this get rich optionS
Jai Hinduja. Young people starting out in life must be patient. Just buy HDB BTO flat and all will retire as millionaires.
4M65 is achievable if the couple's income is in the top 1% of income earners. For the majority, it is not achievable.
1M65 may also be out of reach for low earners. And It takes discipline n a supporting spouse working e same goal.
Hi Mr Loo