Why it is important to plan for your retirement.

[bolts]

I was thinking of writing this article here.

If anyone is interested, I will start. Could be a lengthy one.:D :cool:

[chipmunk]

Originally posted by bolts
I was thinking of writing this article here.

If anyone is interested, I will start. Could be a lengthy one.:D :cool: Not bad. Eh if possible can u analyse a method for me to reap profit $10k with the investment amt of $5k?

[EPS]

yes pls do i will like to hear abt yr retirement plan .

[cccp]

i want to retire by 40

[blacklotus]

What's your risk appetite?

If you're really a high risk taker, do stock punting on the penny stocks.
e.g. Yesterday, if you punt your $5000 on Horizon, you would have made a 30% gain by buying at 10.5 cents and sold at 13.5 cents i.e. about S$1500.

Do that again on Interra today, and you again gain 27%.

Of course, the risk is that you could be stuck with worthless shares within 2 days. :)

Is it easy to spot these 2 shares? To me, yes. Both are #1 on the volume traded list.

Originally posted by chipmunk
Not bad. Eh if possible can u analyse a method for me to reap profit $10k with the investment amt of $5k?

[chipmunk]

Originally posted by blacklotus
What's your risk appetite?

If you're really a high risk taker, do stock punting on the penny stocks.
e.g. Yesterday, if you punt your $5000 on Horizon, you would have made a 30% gain by buying at 10.5 cents and sold at 13.5 cents i.e. about S$1500.

Do that again on Interra today, and you again gain 27%.

Of course, the risk is that you could be stuck with worthless shares within 2 days. :)

Is it easy to spot these 2 shares? To me, yes. Both are #1 on the volume traded list. Then i might as well play L&M. Buy at 1.5 cents unload at 2 cents. Then Short sell at 2 cents then buy back at 1.5 cents. LOL. Think L &M will be a faster way to earn $

[bolts]

Originally posted by chipmunk
Not bad. Eh if possible can u analyse a method for me to reap profit $10k with the investment amt of $5k?

Yes. Entirely possible. Start a BUSINESS!

[bolts]

This is my first responsible post as a mod. Feel free to disparage and comment.

Copyright by bolts

The year after the asian financial crisis, I saw the movie, "The Matrix", with a friend. You know that show has more relevance to us than you think. Stay with me here and don't roll your eyes yet.

We are living in the Matrix created by society. All along, our teachers and parents tell us, "Study hard, get good grades and you'll get a high-paying job, and you are all set for life!". The system is designed to turn our sons and daughters into worker ants to work for the collective. The value of money, it's principles and how to acquire it is never taught in school. And this is why majority of us are in the rat-race. The rat-race is the Matrix. It traps us in a vicious circle.

Someone once told me that if you get a MBA and be employed in a MNC or the government, you are all set for life!...Not any more, there is no job security left. When the economy falls, so do the jobs and then retrenchments start to come in. If you are over 40 and you get retrenched, the probability that companies will hire you falls dramatically.

It is, therefore, important to accumulate wealth for retirement.

There are some of you who think that money is evil. You need to realise that you use money to buy food and water, you help people with money, you build churches and temples with money. Even God (only for christians, and I am not a christian) ask you to give 10% of your money to help fund the church. So, how can money be evil? It is only evil if your method of wealth accumulation is evil. If you rob a bank, or sell narcotics, well that's evil. My opinion is that wealth accumulation is a worthy goal. As long as you don't cause harm in the process.

I have also heard of people who say that they just want an average life and go thru' life quietly. This is fine. Except that you must be prepared to accept what is coming when you retire.

There is this fallacy that our CPF will help us to retire. This is also an illusion of the Matrix. A significant portion of your CPF goes into paying for your housing, giving very little for retirement. And what about health costs? As you get older, your health costs shoot up. I know this well because my grandmother had a stroke and was bed-ridden for 2 years. Her health costs were $30,000 for the initial treatment and another $2000 - $3000 per month for the nursing home. Medi-safe will only pay for the medical bills PARTIALLY. The rest of the medical costs, you will have to pay by cash. What will be your expected health costs 30 years from now after factoring in inflation?

Will you have enough to retire comfortably?

Here are scary facts;

64% of all South East Asians will retire below the poverty line and only 2% will enjoy a life of wealth.

In other words, for every 100 people who are posting in this forum, by age 65, 64 will not have enough to get by, 10 will be dead, 26 will just get by and only 2 will be wealthy enough to retire.

The good news is if you are young, time is not against you because when you are young, you are likely to be healthy. And health is the pre-requiste for making money. You will also have a very good chance to be part of that 2% that will escape the rat race.

So, here comes the "message" part of the story; you, me and everyone here in this forum has an equal opportunity to retire comfortably. But, you must make a commitment and begin the first step.

May you prosper and escape the Matrix!

[bolts]

Originally posted by EPS
yes pls do i will like to hear abt yr retirement plan .

I intend to retire at age 45. (Not 65). Retirement to me is to become financially-independent. My wife and I are quarter way there.

Our intention is to create multiple streams of income. There are 4 main ways in which people can become wealthy. They are;

1. Investments.
2. Real Estate.
3. Business.
4. Internet.

My wife runs her own business. I am still in corporate but I look at investments. We already have 1 and 3 in the bag. The next ones we are now looking at is 2 and 4.

Notice from the list that "Being an employee" is not part of the list! :D

And please note that I am sharing this NOT because I want to brag. That is not the intention. Bragging brings me nothing except bad karma. But, I have seen some of my relatives become literally penniless when they retire. It is better to sound the warning. Especially to youngsters.

[chipmunk]

Originally posted by bolts
I intend to retire at age 45. (Not 65). Retirement to me is to become financially-independent. My wife and I are quarter way there.

Our intention is to create multiple streams of income. There are 4 main ways in which people can become wealthy. They are;

1. Investments.
2. Real Estate.
3. Business.
4. Internet.

My wife runs her own business. I am still in corporate but I look at investments. We already have 1 and 3 in the bag. The next ones we are now looking at is 2 and 4.

Notice from the list that "Being an employee" is not part of the list! :D

And please note that I am sharing this NOT because I want to brag. That is not the intention. Bragging brings me nothing except bad karma. But, I have seen some of my relatives become literally penniless when they retire. It is better to sound the warning. Especially to youngsters. I have Number 1 but starting out small as i am still a newbie

[koxinga]

I dun have a wife, and I dun foresee myself getting married. I am a civil servant and I do not forsee myself starting my own business.

My personal expediture is low. So I save a fair bit. I see my investments as a way to secure my future when I retire. The days are over when civil servants retire with a 250k pension. I know of civil servants (husband and wife) retiring with 500k combined pensions. But it is no longer. Alot of funny schemes have popped up (INVEST, SAVER etc) but it is still basically my own pay which they are deducting.

I want to work as long as possible, but possibly on a 'recreational' basis after 50.

[bullsback]

In the present economy, the frequent talk is that there is no job security which is brought about by mainly globalisation. The strong need to reduce cost as and when necessary.

Companies want to have a team of core permanent staff, surrounded by a group of contract temporary staff. So that they could hire and fire frivolously according to their whims and fansies. This is especially happening in the government civil sectors which has a growing proportion of contract staffs. In time to come, Singapore will become one of the typical western countries which have high unemployment rates. Singapore will have a number of citizens doing contract jobs. At the time of unemployment, some countries provide for unemployment benefits for financial assistance. However in Singapore, there is none, citizens have to rely on their measurable savings for tough economic times. Withdrawal of CPF is a strict no-no unless you reached the correct age or u migrate to other country.

What I strongly feel is that many factors has made the CPF contributions a redundant policy. When people are retrenched, especially the blue collars workers or those amongst the lower coporate structure, could find it hard to find another job. Why should their assets be locked in the government coffers when they need money. They need the cash flow for their flat installments, for daily bread and better.

Years ago, buying public residential property need just little years of monthly installment compared to the present. The cost of the maintenance of a car is also sky high. A portion of the tax payers' money goes into sustaining a few of the bleeding GLCs amongst the rest that controls 70% of the singapore's economy. One thing I dun understand is how come CSM is allowed to bleed for so many quarters despite having 1st class degree holders managing. One left early to avoid receiving the mess left behind for greener pastures.

Changing the topic....

Along the road to retirement, I think its important to keep fit and eat a healthy food in order that we may not fall sick and pay lots of hospitalisation fees.

Another point to note is that many people always know how they want to plan for old age, how to go about budgeting etc, but most fail to plan for the life after this life which is the most important. This is where religion comes in.

[bullsback]

Originally posted by bolts
I intend to retire at age 45. (Not 65). Retirement to me is to become financially-independent. My wife and I are quarter way there.

Our intention is to create multiple streams of income. There are 4 main ways in which people can become wealthy. They are;

1. Investments.
2. Real Estate.
3. Business.
4. Internet.

My wife runs her own business. I am still in corporate but I look at investments. We already have 1 and 3 in the bag. The next ones we are now looking at is 2 and 4.

Notice from the list that "Being an employee" is not part of the list! :D

And please note that I am sharing this NOT because I want to brag. That is not the intention. Bragging brings me nothing except bad karma. But, I have seen some of my relatives become literally penniless when they retire. It is better to sound the warning. Especially to youngsters.

I am frequently unconsciously reminded by a point made by a NUS bre lecturer:

in singapore, there is 2 ways to become rich.

1) Marry rich
2) Buy low sell high or sell high buy low

[chipmunk]

Originally posted by bullsback

Years ago, buying public residential property need just little years of monthly installment compared to the present. The cost of the maintenance of a car is also sky high. A portion of the tax payers' money goes into sustaining a few of the bleeding GLCs amongst the rest that controls 70% of the singapore's economy. One thing I dun understand is how come CSM is allowed to bleed for so many quarters despite having 1st class degree holders managing. One left early to avoid receiving the mess left behind for greener pastures.

U want to know why? Try working in statutory board or go to mindef. U will then know how they are spending the taxs payer money. Understanding that u have had been through NSF life, thus should have know how irrationale the govt is spending so much of money feeding those social rejects who are capable of doing not but seat and collect their monthly pay. However, there is no deny there are exceptional talents in the SAF as well.

[bolts]

This thread does produce some interesting discussion.

Quick question;

1. Is the house you are staying an asset?
2. Is the car (if you drive) you drive an asset?

[bullsback]

Originally posted by bolts
This thread does produce some interesting discussion.

Quick question;

1. Is the house you are staying an asset?
2. Is the car (if you drive) you drive an asset?

Car is not an financial asset definitely but to me its an asset in another sense. It is difficult for families with children not to have car in Singapore.

Housing is more or less a material good that you cannot live without. Since the housing bubble burst, residential property prices has been going down the drain.

[cccp]

have you guys thought of migrating to a foreign land for retirement ?

[bolts]

Originally posted by cccp
have you guys thought of migrating to a foreign land for retirement ?

If you do that, you are running from one Matrix into another. Sure, it's easier in a foreign land where cost of living is cheaper, but you still have mortages to pay. So, you still can't get away from the rat-race(matrix).

The keything is to build your retirement nest and then retire overseas (if that's your preference). But, this still means you need to plan for your retirement.

[blacklotus]

I already did. But like Bolts said, it doesn't mean I don't have to plan for my retirement anymore. I definitely still do.

But sometimes, God gives me a break.

p.s. I bought Aussie Treasury bonds at a good rate when I migrated here back in 2000. So during the recent Aussie dollar strength against SG helps increase my assets quite a bit in SG$ terms...:)

p.p.s. I might even do a reverse migration and return to SG in time. Currently, I'm actually converting quite a bit of my A$ income back to SG$...:)

Originally posted by cccp
have you guys thought of migrating to a foreign land for retirement ?

[bolts]

Originally posted by blacklotus
I already did. But like Bolts said, it doesn't mean I don't have to plan for my retirement anymore. I definitely still do.

But sometimes, God gives me a break.

p.s. I bought Aussie Treasury bonds at a good rate when I migrated here back in 2000. So during the recent Aussie dollar strength against SG helps increase my assets quite a bit in SG$ terms...:)

p.p.s. I might even do a reverse migration and return to SG in time. Currently, I'm actually converting quite a bit of my A$ income back to SG$...:)

If I am in your position, I would have converted A$ into US$ instead. Main reason is US$ is much more liquid and desirable. The S$ could be prone to sudden market forces in the future. The govt decided to relax capital controls in their negotaition with the US on the FTA.

This is something I am against. If capital leaves Singapore suddenly overnite due to some economic crisis, the S$ will collapse.

Remember the recent Iraq war? The Iraqi dinar is now almost worthless. Ordinary Iraqis are now using the US$ to trade for daily necessities.

[blacklotus]

Well...deep down inside, I guess I still love this country. After all, a 25 year relationship is hard to forget. :)

Anyway, being practical, I believe in a stronger S$ for the next few years compared to a stronger US$.

Why?

1) SG has more reserves compared to US, which is gonna run a huge deficit over the next few years, especially if Mr Shrub wins next year's elections. p.s. This is provided the figures given by MAS is the truth, the whole truth and nothing but the truth. And we can all trust Mr LHL, right? :)

2) The Europeans, who will be looking for new places to park their funds, will probably look towards Asia rather than over the Atlantic Ocean. Pride is a very strong emotion. And a stronger Euro vs US$ does give one lots of pride. But there's a saying, Pride before a Fall...:) At least over the next couple of years, Euro should be stronger than the US$, given US Federal commitments to retain a very low interest rate environment for until 2005 at least. Bottomline, Mr Shrub will try all ways and means to win the elections next year.

3) I'm actually converting to SG$ for only a short time. Then wait for Aus$ to go back to its more export friendly valuation (A stronger Aus$ doesn't help Australia, whose industries trive on exporting goods and services), then buy back more Aus$ again.

Australia is where I already plan to retire in. But in the meantime, with the funds freed from Aussie treasuries (aka bonds) and dollars (my salary), I can better use it to buy SG equities, which should give better returns over the long term compared to bond type investments now. :)

Originally posted by bolts
If I am in your position, I would have converted A$ into US$ instead. Main reason is US$ is much more liquid and desirable. The S$ could be prone to sudden market forces in the future. The govt decided to relax capital controls in their negotaition with the US on the FTA.

This is something I am against. If capital leaves Singapore suddenly overnite due to some economic crisis, the S$ will collapse.

Remember the recent Iraq war? The Iraqi dinar is now almost worthless. Ordinary Iraqis are now using the US$ to trade for daily necessities.

[bolts]

Originally posted by blacklotus
Well...deep down inside, I guess I still love this country. After all, a 25 year relationship is hard to forget. :)

Anyway, being practical, I believe in a stronger S$ for the next few years compared to a stronger US$.

Why?

1) SG has more reserves compared to US, which is gonna run a huge deficit over the next few years, especially if Mr Shrub wins next year's elections. p.s. This is provided the figures given by MAS is the truth, the whole truth and nothing but the truth. And we can all trust Mr LHL, right? :)

2) The Europeans, who will be looking for new places to park their funds, will probably look towards Asia rather than over the Atlantic Ocean. Pride is a very strong emotion. And a stronger Euro vs US$ does give one lots of pride. But there's a saying, Pride before a Fall...:) At least over the next couple of years, Euro should be stronger than the US$, given US Federal commitments to retain a very low interest rate environment for until 2005 at least. Bottomline, Mr Shrub will try all ways and means to win the elections next year.

3) I'm actually converting to SG$ for only a short time. Then wait for Aus$ to go back to its more export friendly valuation (A stronger Aus$ doesn't help Australia, whose industries trive on exporting goods and services), then buy back more Aus$ again.

Australia is where I already plan to retire in. But in the meantime, with the funds freed from Aussie treasuries (aka bonds) and dollars (my salary), I can better use it to buy SG equities, which should give better returns over the long term compared to bond type investments now. :)

The US$ fell. In fact, it's been falling for the past few months.

US Exports cannot remain competitive unless the US$ falls. The reason why the Fed can allow US$ to fall is because they are now assured of getting cheap Iraqi oil. They no longer need a strong US$ to buy Saudi oil. The US enconomy should pick up with a falling US$. It is, therefore, a good time to buy US$.

I am curious about life in Australia. What steps did you have to take to migrate to Australia?

Someone told me racism is an issue in Australia relative to Singapore, do you agree?

In times to come, the US$ will pick up in value again.

[blacklotus]

Agreed. US$ did fall. But it didn't fall enough for me to consider buying. I'm still holding some US$ purchased at S$1.65 a few years back.

On the other hand, I've zero S$ investments after I moved to Australia a few years ago (I don't count CPF as part of my investments. More of an safety net just in case my other investments fail.) So when the Aussie dollar strengthened recently, I decided to rebalance my portfolio.

As for racism in Australia, I can safely say as long as you are a minority, some members of the majority race will be biased against you, especially if the minority starts showing off by flashing around in fancy cars. :)

(As it is, the Malays and Indians in Singapore are complaining about hiring practices at SMCs, the majority which are run by Chinese businessmen, who usually specify Chinese workers in their ads only.) It's just that we don't feel it because we are part of the majority here. (I am assuming you are Chinese too. :))

For the official Australian Immigration site - http://www.immi.gov.au/

As for me, I'm a graduate and I managed to save substantially when I was working in SG. So I was classified as a skilled and business investment migrant. As for getting used to life in Australia, I was lucky to have an aunt who is already a PR there for 2 decades. She helped me out with my lodging and other basic essentials for a few months while I learn the ropes. :)

When I managed to find a job a few months later, I got the Australian employer to sponsor me.

Originally posted by bolts
The US$ fell. In fact, it's been falling for the past few months.

US Exports cannot remain competitive unless the US$ falls. The reason why the Fed can allow US$ to fall is because they are now assured of getting cheap Iraqi oil. They no longer need a strong US$ to buy Saudi oil. The US enconomy should pick up with a falling US$. It is, therefore, a good time to buy US$.

I am curious about life in Australia. What steps did you have to take to migrate to Australia?

Someone told me racism is an issue in Australia relative to Singapore, do you agree?

In times to come, the US$ will pick up in value again.