How You Achieve Retirement With Just $500/mth Invested💥! Retirement Planning With Semi-Retirement!
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- เผยแพร่เมื่อ 17 ธ.ค. 2020
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I've this to suggest considering - Spend all your retirement money in your retirement.
Bill Perkins has this book "Die With Zero".
DFS co-founder Chuck Feeney who was a billionaire and now broke because of charitable giving.
Based on the OCBC report, retirement with $5,000/m may need an individual to have $2m.
That is a big amount and I'd use semi-retirement as a concept to reduce the amount potentially needed because semi-retirement still has income.
Work can be defined with 4 main quadrants
1) JOB
2) AMBITION
3) INCOME
4) IDENTITY
In the phase of semi-retirement, it will be a stage of completing "JOB" and "AMBITION".
The purpose of work will mainly be for "IDENTITY".
"INCOME" can be targeted at expense level so that retirement savings are left intact to compound.
10:00 If you have $1m at age65 now, factoring in 3% portfolio return with 2% inflation, you can consume $55,500/m or $4,625/m. To clarify, every year from age65, consume a 2% more.
If you are age35-40, factor in CPF LIFE escalating payouts of possibly $2,000/m (Based on ERS in 15-20y time). Although the $1m pot (which you can draw down $55,500/y or $4,625/m) in future value is worth less then now, overall I feel it is still a comfortable retirement amount at the age65.
#Semiretirement will be a very helpful stage in life and will be factored for #retirement calculation
This is not a recommendation to buy or sell any securities mentioned. The information contained are ideas from Josh Tan and TheAstuteParent are strictly for education purposes. You are advised to perform independent research yourself or seek a qualified financial adviser. We will not be liable for any losses directly or indirectly from the material.
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About Josh:
Josh holds a degree in Accounting from NTU.
In 2016, he co-founded the financial education website TheAstuteParent to provide detailed insurance plan analysis and financial planning tips to help you kickstart your journey towards financial freedom.
As a ChFC Charterholder, Josh has agreed to be bounded by the ChFC®/S Code of Ethics. This includes, among others, acting in a professional manner when it comes to conducting due diligence on primary and secondary sources of investment-related data, and articulating his investment opinions based on his research and beliefs. Based on his research and analysis, he highlighted his beliefs and opinions, and illustrated the concept of time value of money, as of the time of the video. No products were advertised.
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Josh, your video had set me thinking... I totally agree about giving too much to our children. I have friends who have legacy plans that gives $1m plus a apartment to each of their children and they have forgotten about their own well being. They are so stressed at work and always have no time for other things and trying service their mortgage. I believe that my children should build their own life and not depend on their parents. Keep up your good work!
Thanks Chris. This spending away all retirement case is still also very new to me. I hope to expand more thoughts on it in subsequent videos :)
Yeah to spend all your hard earn savings accumulated over the years is never easy, even you know you have enough to last you a lifetime. Maybe we Chinese are taught to be frugal.
@@ChrisTang787 Im against parents give large amount of money to young couples to buy homes or as wedding cash gifts. There is a saying 天下没有白吃的午餐, even with parents. When you receive $$$ form your parents, they are expecting something back. They have a say in all aspect of your life and how you going to spend your money, you will be giving up your freedom, financial decision makings, personal life, marriage file.
the person pays has bigger voice.
Excellent video again Mr Josh. Keep it up
Thanks Ridhwan, will do!
Love your videos Josh! Thanks
Thanks syafiq. Share with friends who should see the concepts and take action!
Amazing video 💫 im binge watching all your content for an inspiarational Sunday 💫
Thanks for the high praise wazoogurl
Hi Josh, another great video! I like your various options which are really achievable. How I wish I see this video 30 years ago. I agree with you complete retirement is not idea for our health and mind. I am 48 now and planning for my semi retirement starting 55 yo.
Thanks for the high praise P TH =) Wishing you all the best too in your journey for your retirement
This video really resonates with many people. 😍
Thanks Josh 👍🏼
No probs Lucy, share with friends who should see the concepts! Do subs and welcome to the family!
Teacher Josh. Thanks for your guidance
No probs John, share with friends who should know more and take action
Josh. Thank you for the insights.
No probs, smash the subs and cya around
Like your down to earth approach
Thanks PM, cya around more =)
Thanks Josh for illustrating such a realistic/achievable numbers and introducing a meaningful retirement plan.
Thanks C WK, smash the subs and cya around more ya =)
thanks Josh for sharing some realistic approaches to plan for retirement, loving ur content!
May I know how do you factor in inflation in the calculation?
Hi Lim yang, only the consumption phase is using a inflation adjusted return calculation (google for it) with 2% inflation. There are limitations still.
Hope it helps. Smash the like and subs 🙂
46yr old now woking 32 hours a week and planning to semi retire on my 50th birthday.
Nice! What job would you want to be in then?
Love this video, a very interesting and workable perspective and strategy in my opinion. I guess I am on track for the more modest spectrum of this plan or desposition.
Thank you for the high praise
Very interesting concept. It changes the mindset a bit...
Hope it helped Desmond, share with anyone who should see it too =)
Trying to pick winning stocks usually fails. By tracking an index, we deliver higher returns automatically and we are able adjust your portfolio according to your investing time horizon, maximising growth and minimising risk. contact via email for more information: HolySchmid@consultant. com
Hi Josh, well said. This is what younger colleagues too. Start invest when you are young and don’t commit big houses loan. As you said with CPF life kick in at 65, I don’t see why we can’t be semi retire from 55 onward.
Hi Glenn, great to cya around. Yes im advocating this "SEMI-RETIREMENT" concept. Maybe come up with a book next time on it haha. Share with more k!
Excellent content!
Thank you for the high praise. Smash the subs and stay tuned for more financial freedom content =)
I've seen a lot of videos of similar topics but they're mostly from overseas & I couldn't quite relate to them especially when they start talking about 401k, ROTH etc. So it's good to have someone local sharing tips on finance or FIRE which u hardly mention in your videos but I think are very much related.
Semi-retirement allows for gradual phasing into full retirement. Adapting to full retirement directly is very difficult as most folks will find it difficult to suddenly trim their spending habits drastically overnight. Semi-retirement as an interim phase allows folks to ease into spending less more gradually and would be easier to swallow. I suppose when people go into semi-retirement, climbing corporate ladder is out of the window, not sure how people will cope with self esteem when they see their peers continue to move up the ladder. This is something that needs to be addressed before going into semi-retirement, together with their spouses.
Oh yes, it’s certainly departing from corporate ladder
I think it is still not easy to have $1M, that is on top of the ERS amount , and also apart from the housing commitment. Also, semi-retirement jobs are usually the under employed type of job, and you lose your identity, in order to cover personal expenses. Especially difficult between late 50s till 65.
Hi Ray, tutorial for illustration purposes. Different family, different circumstance I agree. $500/m towards own retirement should still be a priority to all heads of family, what do you think? =)
Your concept of semi retirement is somewhat similar to Barista fire or coast fire to me. I like the insight of 4 quadrants of jobs too, it does make me think more on how I value the individual quadrants personally.
Hi Marcus, barista fire or coast fires new to me. Will check it out. Really want to expand on this semi retirement. Cya around more ya
@@joshconsultancy it's all rooted in the FIRE movement and it did help me understand how to plan my financing. Looking forward to ur next video!
Maybe you can add medical and hospitalisation insurance. How Medisave and Cash become part of the insurance plan.
Guess if private medical insurance becomes too expensive in retirement years, can consider downgrading coverage?
$50k/yr can be a luxury... but when we need to use it to finance our medical bill.... I think that’s what many are worried.
I agree with u for not having the need to leave a big amount for the next generation (for they can learn the precious of it more!). What we want is probably a slight advantage over their peer to be successful in their career/business
Hi Vincent, medical insurance can take care of most inpatient and chronic medical bills. But in any case, doing all the right things to stay healthy is the best to save a future medical bill, agree? =)
@@joshconsultancy I quite like your video until now....now, i think your suggestion dangerous
Hi Josh, I believe the lump sum that can be drawn from CPF at 55 can add to this pot? For a 5% portfolio it’ll be better than leaving it in RA i guess?
Hi BBB, excess CPF can be added. In SA it grows at 4% which needs a separate projection. I simplified the projection and planning in this presentation. Maybe I'd create a more complex calculation one in future =). Have you seen this presentation, might interest you - HOW YOU CAN USE 1M65 AND ALTERNATIVE TO BUILDING WEALTH THAT YOU MUST SEE! th-cam.com/video/aliBqbHUKb4/w-d-xo.html
Hi Josh when you say a months retirement amount as S$ 3500 we are looking at it from 2020 point of view. What if we add in inflation of 2 or 3 % for over 30 years the actual value of S$ 3500 won't it be like approximate S$ 2000 ? Either way excellent video please continue.
Hi BN, Welcome to the channel. Do subs to get notified when more retirement/planning videos come. Have you seen 10:00? If you have $1m at age65 now, factoring in 3% portfolio return with 2% inflation, you can consume $55,500/m or $4,625/m. To clarify, every year from age65, consume a 2% more.
If you are age35-40, factor in CPF LIFE escalating payouts of possibly $2,000/m (Based on ERS in 15-20y time). Although the $1m pot (which you can draw down $55,500/y or $4,625/m) in future value is worth less then now, overall I feel it is still a comfortable retirement amount at the age65. It is true that $3,500 could be having $2,000 purchasing power, decide if it is still enough for your circumstance. Cya around more!
Hi Josh. Is it good idea sell Tesla bought at 394, sell at 690-700 n buy back same no of shares post inclusion when it’s expected to dip 500-600? With the profit, we top up on top of profit made n end up owning same no of shares but at lower cost. Kind of arbitraging? Tks for advice
hi Hairy, conceptually something is missing. Avoid speculation, it doesn’t pay off in the long run. Check this tutorial “Avoid trying to outsmart the market” th-cam.com/video/ghdXEbkcZ1Y/w-d-xo.html
@@joshconsultancy hi josh. Thanks for the great tutorial. Lots of wisdom n nuggets. N u are right. Knowledge is one thing. Execution n discipline quite another. I’ll bear your advice in mind. Have a great weekend.
Another comment, the assumptions that you are making in this video is if the person remains healthy or have enough medical insurance coverage. if one is struck with a major illness and has no insurance coverage, then the amount that you mentioned in the video cannot sustain the retiree. Can you make a video on medical insurance coverage please. Thank you Josh !
Hi Hazel, medical insurance is pretty standardized and also too fast changing for a topic here. Agree, major illness needs a CI cover to ensure retirement pots are unaffected
Having fun should be in one of the 4 quadrants of work.
Lol, work and fun seem oxymoronic yong liang
@@joshconsultancy have you heard of IKIGAI? It is a slightly different way of categorising "work' than you did in the video
@@hiroshilim4827 havent actually. interesting if it has similarities =)
Hi Josh! I've been sharing this with so many people but the one question I get is where can we put our money that will give 5% returns and for a good 10 years?
Hi David, 5% is very achievable. A properly diversified portfolio with equities and bonds and an example is www.theastuteparent.com/2019/09/ifast-dpms/ . I personally design portfolios for private clients and look for my contacts in the summary above =)
Hi, do you think purchasing a 2nd property for investment with CPF is a good idea? Or will using CPF to invest in financial instruments such as endowus be a better long term action?
Hi koktung have you seen this sharing, is your CPF better invested into a property? th-cam.com/video/AovNKDHBr2o/w-d-xo.html
@@joshconsultancy Ahh, not yet. Thanks for sharing.
I wouldn't agree with spending everything at retirement age, but I do agree that during the golden age, one should reasonably spent more to get more life experience and memories. I didn't do that with my parents and now I regretted. I focused too much on work and on savings.
🙏
Hey Josh, I don't think I will ever retire but 'semi-retire' after age 50 would be ideal 😊
Hey Sean ya, im aiming for that too
hi Josh, SGD 1million in 2050 (30 years from now) is worth $411K in today's value after factoring inflation rate of 3% - got that value from smartassets inflation calculator. That would be modest living - without factoring in CPF. What do you think?
Hi Kelvin, think the first thing we need to challenge is the 3% inflation. SG inflation seems to be lower. A 2% inflation figure will give a different figure. If it is indeed better to use 3%c 4,625 x 41.1% is about $2k/m. I think I’m ok w it still :) hope it helps and I think it’s a good point raised. Anyone else who has a view do chip in too
Trying to pick winning stocks usually fails. By tracking an index, we deliver higher returns automatically and we are able adjust your portfolio according to your investing time horizon, maximising growth and minimising risk. contact via email for more information: HolySchmid@consultant.com
You can not compare most people to the 1%. Am retired and have an identity. My life on earth is over when I die
some pple also have srs account to use at 62
Hi Tai Hing, yes that is true. I simplified the projection and planning in this presentation. Maybe I'd create a more complex calculation one in future, stay tuned =)
Hi Josh. I am not comfortable about investing(stock, unit trust, shares...) Now FD rate has dropped so much. I am thinking of short to mid term endowment plan. I would like hear your view about it. Tks
Hi Kean, do TheAstuteParent.com, I’ve insurance plan analysis over there
Can we consider 1M45 instead of 1M65 coz by 65 what can are we suppose to do with 1mil? Do we assume that health will not be an issue and all are healthy?
I'm not sceptical about your approach but is workable and it will be good when we can achieve 1mil earlier.
Now I'm planning to use your approach on my teenagers and hopefully they will be able to achieve financial freedom at 35 - 40yrs old.
Sure. It is a template to explain for most working adults. Not everyone has a background that can have a high savings per month amount thats why. Cya around Alvin
Where do I get 5% PA?
Hi there JGTV, welcome to the family. 5% is doable with a long enough time frame. Have you seen this tutorial? It is an illustration to do it th-cam.com/video/yrL-bb_H3is/w-d-xo.html
@@joshconsultancy And if I'm not willing to learn about investment, I'll have to hire people like you to help me invest right? LOL...
@@cathhl2440 yes I do bring value to a retirement plan and investment portfolio management =)
How to get from 205k to 333k within 10 years?
Hi Alv, I believe I used a 5%pa projection.
Welcome to the channel and cya around more ya
I think he did not take into consideration inflation, being ill and emergencies
Hi KA, 10:00 If you have $1m at age65 now, factoring in 3% portfolio return with 2% inflation, you can consume $55,500/m or $4,625/m. To clarify, every year from age65, consume a 2% more.
If you are age35-40, factor in CPF LIFE escalating payouts of possibly $2,000/m (Based on ERS in 15-20y time). Although the $1m pot (which you can draw down $55,500/y or $4,625/m) in future value is worth less then now, overall I feel it is still a comfortable retirement amount at the age65.
Thanks Josh, great video! I'm aiming for semi-retirement too preferably in 15 to 20 years time (I am currently 37yr old).
One question though, I have 3 schooler/preschooler children, how should I factor in the cost of raising them up (from now to college) when I m doing the math on saving/expense/investment to achieve my end goal? Thanks!
Hi Nick welcome to the channel. I'm a fellow parent and I understand the cost. How I'd advise private clients is to focus on knowing very clearly where your expenses are now towards (have a detailed excel) and making conscious choices every year as to what kind of schooling/enrichment to spend on them (to combat kiasuism). There are some numbers presented in this tutorial already that you can plug in using your current savings/mth. Hope it helps. SMASH the SUBS and LIKE. Cya =). Ps: have you seen "how much I spend in a month" video - th-cam.com/video/AY6is1QlAC4/w-d-xo.html
Thanks Josh! I will watch the video now :-D
Maybe people are thinking about living a decadent life? Like, they want to eat expensive, wear expensive, travel the world...
So they keep thinking they won't have enough.
True true Cath. Lifestyle inflation =)
The key to retirement early is to stay unmarried
Not true 🤣 Having a right partner can make the journey sweeter
@@joshconsultancy not everyone has the luck to find the right partner haizz
josh is right , married young with a right partner can retire early , anyway young people should work hard as much as you can
@@abangadikingreenontheirpmd4055 i know its hard in singapore but before looking a partner make sure you better understand yourself first
When you're old can retire in other asia counties with low basic salary, could easily get young ladies where younger than your age,or if you're younger migrates to EU countries when good social benefits, most of them have free education and free medication or in a very low cost,but might have to learn the language etc, is better when you're just gonna start your University.
Rent out your flat and stay in JB
Hi May, can always just rent a room =)
@@joshconsultancy no privacy.
Tell that to baby boomers that made millions from property.
Play your cards the best Z