Tag Archives: retirement

Guaranteed Retirement Income

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Happy is a man whose wife is happy!

Many Singaporeans will face a lot of uncertainty when they retire at age 62, 65…

After 10 years in the financial advisory industry, I realised that most young Singaporeans and PRs are very much occupied with putting bread on the table, upgrading their homes, getting that dream car, sending their kids to the best schools, paying the utility bills, buying the latest IT gadget, going for overseas trips. Most of us do not or will not bother to take a real hard look into their future, especially their own retirement needs. Maybe it is too far away to even think about it… 20, 25, 30, 35 years later…

Stephen Covey’s book, “7 Habits Of Highly Effective People” advised us that one of the habits was to “begin with the end in mind”. A successful person will plan to succeed and not just hope to succeed. Nobody plans to fail, they failed because they failed to plan!

May I urge you to really set aside a weekend afternoon with your spouse to discuss about this very important but often neglected event of your life. If you are single and intend to remain single, it is even more important for you as you may not have financial support from anyone when you retire.

Let me know if you need help to determine the amount of money you need at retirement.

If you are looking for a guaranteed income for your retirement, I have the solution to meet that need of yours. A visit to my office will clear the air for you and you will enjoy your “golden years” not sunset years.

Deciding to take action and really taking action are two completely different matters.

Taking action will transform your life but just deciding to take action will lead you to nowhere!

Are You Saving For Retirement?

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Singapore


A recent survey revealed that two in five Singaporeans are lagging behind in their retirement savings after the global financial crisis. They have suffered serious losses because of the financial crisis.

As Singaporeans are expected to live longer due to the high quality of medical aid here, we are expected to live longer than our parents after retirement. Most Singaporeans are expected to live another 20 to 30 years after the official retirement age of 62.

Just picture this… How much will you need for a basic level of living? Just the bare minimum, no frills, no luxury, no extravagance. Do you need $1000, $2000, $3000, $4000, $5000 a month? This amount is very important as it represents basic living life style, any amount less than this means you will have to compromise your standard of living. Are you or your spouse willing to lower the standard of your lifestyle when you retire?

Next, you need to find out exactly how much you need to accumulate when you retire. Based on 3% p.a. inflation, you will need double the amount in 24 years time using the rule of 72 concept.

For example, you are 38 years old now and you intend to retire at age 62. If you need $2000 a month for retirement in today’s dollar, you will need $4000 a month in 24 years time for the same standard of living. If you are expected to live for another 28 years ( till age 80 ) you will need $1.344M.

That’s a lot of money by most Singaporean standards. There are two ways to save this amount, lump sum investment plus regular savings investment.

If you have $100K to invest at 6% p.a. now, you will have about $405,000 at age 62. The shortfall of $939,000n can be achieved if you  save and invest $1540 a month at 6% p.a.

This show that the earlier you start saving and investing, the lesser you need to set aside every month. If you delay your savings till you are in your forties, you will be very hard pressed to save with so much commitment with your family expenses.

Come and have a FREE no-obligatory discussion with me to find out how to achieve your financial security and success. Free consultancy for a limited time only!