How to ensure your money never runs out in retirement?

 

Die early.

FIRE at 35, go sell salted eggs before age 37.

Retire "early" at 55, bye bye after 58.

Forced to quit and rot at home after hitting 70, up lorry age 71.

Remember when our official retirement age was at 55?

That's because that time most retirees meet their makers in their late 60s or early 70s.

That meant their retirement nest eggs just have to last them for 15 years? 20 years tops!

Now what's the actuarial age given by big daddy on when they "expect" us to live to? 

Around 85 right?

Some have probably figured out why big daddy switched to CPF Life at this point. Wink.

The old Retirement Sum Scheme (RSS) is like planning our retirements using the Withdrawal Rate model - or what I prefer to call killing our Golden Goose slowly though a thousand cuts.

Can you spot the biggest fly in the ointment for this solution?

So when you gonna die?

Die early no problem; live long long like Dr Mahatir could be problem!!!

Big daddy's solution is to "socialise" retirement - take the bricks from East wall to patch the holes at the West wall.

You can do that too!

If you're a couple on the 1M65 path, the minimum PC requirement sums may not last the both of you till your 90s...

But if one of you goes in your late 60s or early 70s...

What? Don't look at me! 

You should pay more attention to your partner if he/she looks at you funny...

LOL!

The alternatives?

Work beyond your 70s and never retire. I don't see anything wrong or sad with it if you're doing what you love.

Or just see the 1M65 for what it is - a bait and switch routine. 

Nobody makes money off 1M65, but if its 4M65... kaching!

Better you pivot and capitulate on your own to chase the recommended PC requirement sums in your youth than to do so in your 60s!

Or maybe we don't exercise; don't eat healthy; do our best to wear and tear our bodies through wine, women, and song?

Yup, don't have to worry money not enough during retirement if we sayonara in our 60s!!!

Grasshoppers and crickets unite!

Sarcasm aside, if you can spot bad advice masquerading as "in your best interest advice", you'll be OK.

You're not bei kambing anymore. Wink.

Look at Goldfish instead of Modelling them?

I often shared this Goldfish story about this Professor who asked his students how they would go about learning more about Goldfishes?

If you never heard this story before, try it yourself. (Don't peek below)

OK. 

The Professor's students all gave various "standard" answers like go library and research published articles or books on Goldfishes.

Or watch YouTube videos and documentaries on Goldfishes.

Then the Professor reached down and lifted up a bowl of gold fishes and plonked it on top of the podium.

"How many of you bothered to look at the actual Goldfishes?" the Professor asked.

 Eh...

This is not new for those familiar with our 5,000 years of Chinese wisdom.

Remember the story of the man who don't trust his own feet when buying shoes? 

He already at the shoe shop, but realised he left the measurements of his feet back at his home. 

He hurried back to retrieve them.... Huh???

LOL!

I see lots of examples in our community.

Do you?

Talk like maciam got dragons and phoenixes about Goldfishes, but have they actually looked at a live Goldfish before?

Let's take this topic on how to be financially secure during retirement?

Have you interviewed and listened to actual retirees? 

Ideally not freshly retired for 1-2 years, but those who have been retired for more than 10 years and above. The longer the better!

No need to look far. Have you talked to your grandparents or grand uncles/aunties how they survived their retirements?

Senior citizen neighbours?

Retired elders in your church, temple, mosque?

There's this Buddhist story about a distraught mother who lost her young child and was so angry and upset that she confronted her Abbot.

Instead of "wah kali gong" or giving sermons, the Abbot asked the mother to knock on 100 households to find how many families have never lost a family member.

After knocking at tens of households, the distraught mother soon discovered the "truth" on her own. 

Ownself cured her ownself.

 

Just saying.

3-Day Work Week Hawker

 

This morning, I bought duck noodle soup for mom as breakfast.

Nothing unusual.

Except I noticed something new.

There's a new sign stating they are closed on Mondays, Wednesday, Fridays, and Sundays.

LOL!

Why can't they just say they are opened on Tuesdays, Thursdays, and Saturdays?

Before you think they are lazy hawkers, they have been here since the early days of Tanglin Halt. 

People have been selling for over 40 years. 

I think that's a nice reflection on the progress of ordinary citizens with the progress of Singapore over the years.

They have earned it.

Those of you in your 50s like me, do you remember most hawkers when we were in primary school never closed?

Of course the owner will rest for one day. But when he takes off, he will make sure his assistant/apprentice will take over for that day.

When you pay the same rent every month, a day off not earning money is like flushing money down the toilet right?

As our economic picture improves, we finally see hawkers taking 1 day off per week. (Money cannot earn finish one) 

Slowly it tuned into 2 days off per week like most hawkers we see today. (Food courts don't count as most of them are chain stores/outlets run like fast food outlets)

I don't know about other HDB estates, but in mature (euphemism for old) HDB estate like Queenstown, there are quite a few hawkers that only open 4 days a week. 

Just visit ABC market, Alexandra Village, Mei Ling Street, and of course the two Tanglin Halt Food Centres (10 storey and 16 storey).

Often these are first generation hawkers who have been plying their craft for 40 over years. 

But a 3 day work week is rare amongst hawkers.

That's why I had to take a double-take this morning.

I'm happy for the duck noodle soup seller.

Its really a case of hungry eat; tired rest.

A lot of bei kambings in our financial freedom community over plan things. 

Set goals that they neither have influence or control over...

Own self don't trust their own feet. Go round asking others what shoe size they should wear!? (How much money should I have to retire on? And yes, that's a dumb question!) 

No, I'm not going to say if a Duck Noodle Seller could do it, so can you!

.

4-day work week hawkers

 

I'm seeing more and more hawkers in Queenstown opening for 4 days a week.

That's a good sign. 

Which is also part of the Singapore story.

Mind you. These hawkers are in their late 60s, 70s, and even 80s! They have worked 30 to 40 years to be where they are today.

No, they are not "lazy". 

They've earned the right to take it "easy" a bit, for they have "enough".

Their grown up children are probably poly or uni graduates. The "bo tak chek" ones with "ang gong" on their bodies would have a hawker stall of their own. Like that ABC fishball noodle and Tanglin Halt wanton noddle stalls, both had their sons having their own hawker stalls at Alexandra Village.

Its another one of those "real people, real stories" examples where you don't have to feel "pressured" to invest or else...

Especially if investing is not your thing...

Be it trading or investing, its not any different from selling chicken rice or nasi lemak. 

Its a craft.

Never mind the nouns; focus on the adjectives.

If we are good at what we do, then we can survive 30 to 40 years doing what we do,

Ever wonder why those hawkers in their 70s or 80s are still working - albeit on a 4 days workweek - instead of taking it "easy" at home?

Well, you'll know the answer when you try it yourself. 

I found it out myself after 18 months of "doing nothing" after my return from Athens.

When everyday is Sunday, Sunday soon loses its meaning.

 

HDB loophole or sugar from big daddy?

If you look around your colleagues in their 40s to 50s, you may find some of them have rented out their HDB flats while they are staying in private condos themselves.

This is a variation of the 2 bites of the cherry and upgrade to private property sugar from big daddy. 



Today, if you owned a condominum or private landed properties, you must sell your condo when you downgrade to a HDB flat.

But if you owned a HDB flat, you can "invest" in a private condominium. Now that's cool for those of us who started with small means. And no interest in investing in equities or other forms of financial "paper" assets...

To you, an asset is something you can feel, touch, and hold kind. Wink.



Of course not everyone and anyone can do it. 

But its a great later years option for those who started out "average". The slow starters. The mediocre fresh graduates. Those with no papers. And those who have no clue what they wanted to do in life! You know, no dreams, no goals, no plans whatsoever... 

Strange things do happen. 

Who knows?

Maybe 10-20 years later your career or own business took off!?

Now you can afford to upgrade to a private property. Why not rent out your HDB for "passive" income? (OK, no such thing as "passive" as you may still need to handle tenants from hell!)

And you know what? You can do this without knowing how to read financial statements, know nuts about what's happening globally in the financial markets, or anything to do with FIRE or financial freedom!

Its just based on simple Earn More, Save More. And some luck in life!



Let's be honest. Which is easier?

Renting out a flat/condominium?

Or investing in paper assets like bonds or equities for the yield?

I mean its inside our DNA from 5,000 years of Chinese history.

Landowner anyone?









  

Taxi driver who drives because he wants to

Nowadays, I often chit-chat with taxi drivers.

Just the other week, I had the pleasure of meeting this 60 plus taxi uncle who had a cheerful outlook on life. And it showed in his body language and voice!


I hate to take taxis around 5-6 pm in the evenings. A lot of taxis will be changing shifts.

Was telling this taxi uncle how lucky I am to have flagged his taxi. No shift change sign on the windscreen!

He laughed. 

Turned out, he don't have to change shift; he has no need for a relief driver to share the rental costs of the taxi. 

Curious, I asked can survive like that meh? 

I told him most other taxi drivers I met were always complaining how hard it is to make a living... Costs high, and competition from Grab not helping...


What I've learned from this encounter is another real life example where we don't need to take up "investing" to be financially free in Singapore.

This taxi uncle told me he had "enough". 

Children all grown up with their own families.

His HDB flat fully paid for. 

No debts.

By driving 14 hours a day (instead of the normal 12 hours shift if he had a relief driver), what he makes is more than enough to cover his daily expenses.

He is happy.


I know some of you reading here may "feel sorry" for his 14-hour work day. Not so fast!

This taxi uncle loves to drive. He enjoys it so much that he drives 6 days a week; 52 weeks a year!

He revealed he can't sit at home and do nothing; or watch TV. 

Don't like to travel either. He can't stand those vacations he had taken in the past. To him, any vacation more than 3 days long will be a "torture". 

Driving a taxi gives him purpose.


I sat there nodding with a knowing smile on my face.

The blind masseur of Tanglin Halt

From my backyard:

The blind masseur of Tanglin Halt


Just sharing in case you are in need of a masseur around Queenstown.

In a few more years, this place will be torn down for en-bloc.

A lot of the shops and proprietors are here since the early 70s. Nostalgia.

This indomitable spirit of where we fall where we get is a trait amongst entrepreneurs, sales persons, investors, and traders who never give up.

Of course not every can do it.

Once we have a skill that someone is willing to pay for, we are financially free.

Investment not needed.

Work could be THE solution

Those of you who got cable may recognise the interviewee as the ex-host of "Dirty Jobs".

And for those of you who have experience hiring people - be it as a land owner or shepherd - noticed "work" is not given its due respect by the candidates nowadays?

Before showing evidence they can help the company Earn More and/or Save More, the candidates were already asking for work/life balance or what benefits they'll get?

And this one the best!

What are the promotional prospects?

LOL!

(If you are good, no need to worry. If you below average, what's the point of asking?)



Some of our youths (and not so young sheep) have been poisoned by all these talks about early retirement, financial freedom, passive income bullshit out there...


Just thought this video would be a good counterbalance to the siren songs of snake oils who peddle the "dream" that all your problems will be solved once you can invest/trade your way to "escape velocity"!

Yes, you don't need high IQ to do well in investments or trading; it does not mean low IQ is OK!



When you interview some of those people who do drugs, gamble at casinos, over spend on their credit cards, you often find they have "holes in their hearts".

They were either bored, aimless, lonely, career not doing well, having bad relationships, and so on... You get the picture.

We don't want to admit it, but we can spot a few in our community who are using investing/trading as their "opium" of choice to "escape" their meaningless daily existence.

And for men, the no. 1 is dissatisfaction is with our jobs. Or lack of having one.



Vested interests will never tell you sometimes the best route to happiness is having a job that you feel meaningful doing it.

Notice I never said follow your passion or do what you like? (You figure it out yourself)



Now for some cheerleading and positive sunshine!

Last night I had dinner at Ghim Moh food centre. Found a young couple in their late twenties or early thirties selling spaghetti. Tried it. Not bad. No wonder they were featured in the press.

I've also noticed there're more young bus drivers in their twenties driving our busses nowadays. OK, they're mostly Malaysians, but still... It gives me a warm fuzzy feeling inside.

Those who hate their jobs because of office politics may want to explore or try jobs outside the office?

As supposed to only thinking about investing/trading to "escape"?

Just saying...

You know how to beat inflation?

I bet you do!

I mean nowadays, just do a bit a reading on the internet, one can all of sudden become an "expert".

All you need to do is to quote who and who said this, or cut and paste what others have said and you can write about anything!

Yes, its that easy to be a blogger!

Serious. No entry barriers at all!

Inflation is serious. Not fun and games. Just look back 10-20 years and see how much HDB and private property prices have gone up. How much education and health care costs have ballooned. And of course for those who drives, the price of cars and motocycles today are crazy right?

Funny thing though. You can afford them right?

Unless you jobless or retired with little to no savings.

Now ask yourself, what is the single biggest reason you can afford the lifestyle you are having today?

Was it your investments? The insurance policies you have bought? Your savings?

No right?

Did it surprise you?

Now lets make things a lot more interesting.

Let's use 1965 as our index 100. That's the year Singapore gained independence mah!

Talk to your parents and/or grandparents.

If they were financially literate, what were the asset classes they used to protect themsevles against inflation?

How did these asset classes panned out 52 years later?

More regrets or more smiles over their good foresight?

If your parents/grandparents were not financially savvy, even better!

That meant they never "invested" or did anything to protect themselves against inflation.

How?

What's the asset class they "accidentally" stumbled into that kept pace with inflation?

Not only that. It turned out to be a little windfall for you the descendant!

That's almost like, "Look ma! No brains needed!"

So. 

Do you still think we need to "invest" or else? 

Everyone must invest! Really?

Sounds like a person who only knows how to use a hammer right?

Its the same sort of "well meaning" advice to study hard and work hard right? How did that work out for you?

The classic misreading is Rich Dad Poor Dad.

Many will say this book was - the inspiration, the catalyst - for them to begin their journeys towards financial freedom.

But isn't the whole book was about the benefits of being a Business Owner?

Everyone knows to be fabulously rich you must start our own business and be your own boss. So why didn't you start your own business?

Sorry, what did you just murmur to yourself?

Not everyone can be an entrepreneur...

Exactly!

Why then do you assume anyone and everyone can be an investor?

No offense, but those jobs where anyone and everyone can do, you know how much they are paid right?

And if you job pays well, you know its precisely NOT anyone and everyone can do it!



Sorry, I can't tell you what other paths are good for you. Only you know which would suit you best!

I not you; you not me.

What I know is if you ask a hammer for advice, they will treat you as nail - hammer you down patronizingly.

And if you ask a screwdriver, they'll screw with you!

Investment Not Required - Real Life Cases

I think I'll follow up with more real life cases where Singaporeans are living or retiring well without the need for investments.

Remember this old post:  Landed Property and Car with $6K per month Household Income



Here's one interesting case about a 67 year old ex-Regional Sales Manager's retirement in Singapore:

Merits of HDB 2 Room Flexi Scheme

What's my takeaways?

1.  Staying healthy can be more important than dollars and cents.

2.  CPF savings enough if you had a good career and didn't over invest in properties so that you are asset rich but CPF poor. 

3.  Flexibility and adaptability give us options. Driving weekend taxi is not "beneath" an ex-Regional Sales Mananger...  "Downgrading" from HDB 4 room to 2 room is not a loss of face...  Isn't doing what we feel like doing without fear of what others think - freedom?

Investment Not Required

Let's be honest now. 

The harsh reality is for the majority of people, the more we invest, the more we lose.

Everyone is sharing "succcess" stories, but where are the "chop fingers" examples?

Only CW mentioned about them in his blog.

Just like entrepreneurship, can't be the majority of new startups and new businesses all succeed right?

You really believed the spin vested interests are telling you?

Look, if you don't invest, how do they earn commissions and fees from you?

No, I'm not telling you not to invest.

Financial freedom is more than $XXX passive income or multiple baggers in capital gains...

If you are a stay-at-home dad or mom, your CPF is a pittance. But if you had brought up your children proper, do you have to worry about your retirement and anxious your CPF not enough to qualify for CPF Life?

Wait. Is there such a thing as retirement from being mom and dad?

No, invest only when you enjoy so. 

If you don't enjoy this craft of investing, then no big deal!

Don't have to feel pressured to join the other lemmings. Yes, most of us have no clue ourselves!

In bull markets we are louder than a peacock; in bear markets we are quieter than the church mouse... 

With a bit of common sense and listening to your heart, you'll find your own path.

Its OK to take the path less travelled.

Landed property and car with $6K per month household income

Success is what we have to sacrifice to achieve it.

Hold on to this thought as I share with you this story about my colleague. I think their story can be a good counterbalance to financial bloggers and readers who think (and plan) too much.

Husband and wife in their early 30s.

Combined household income around $6K per month.

One is a technician, the other in retail sales like me.

Both non-graduates. Nope. Not even A' levels or Poly.

They are now living in a landed property, and have a car.

No, they never invested, start a business, or embarked on any financial freedom journey.

So how did they do it?

Both got married early.

Bought their HDB 4 room flat before prices went ballistic.

Rented out the whole flat.

With the rental income in Sing dollars, they in turn rent their landed property in JB near the 2nd link with Ringgit dollars. That area is fast becoming Little Singapore.

Not those huge Bukit Timah or Katong houses mind you.

More like those quaint SIT/HDB landed terrace houses that lined Commonwealth Avenue, or similar to those 70s private landed houses that lined the Macpherson road area.

But still, they have small garden in front and a yard at the back, plus space for 1 car driveway/garage.

Got left over from their Sing dollar Ringgit arbitrage that they can afford a Singapore car.

How?

Earning power in Singapore, cost of living expenses in JB. Power!

Of course there's no free lunch.

They have to sacrifice extra 2-3 hours each day braving customs.

Before you argue back, when was the last time you are able to leave work on the dot when you have a high power career? No 60 hours work week to justify your high salary? You lucky basxxxd!