Die lah! Your family of 4 don't earn $6500 per month...

Family of four needs $6,426 a month for basic standard of living in S'pore.

Let's round it up to $6,500 per month since I hate "precision" when its not needed.

Which means we can assume the man is making $3,500 and the wife makes $3,000?

(OK, OK. For feminists, we can easily say husband makes $3,000, while wife makes $3,500. There. Happy?)

If husband makes $6,500 per month, to have a better standard of living, the problem is easily "solved" by having wife go back to work. 

I mean their children are not babies right?

My time before maids were popular, when both parents work and children were left at home on their own, they were known at latchkey kids.

Now what happens if a family of 4 only earns $5,500 per month. And both husband and wife works. Die! Below basic standard of living!!!

How to overcome the shortfall of $1,000 per month?

What if I come "selling" the benefits of a dividend portfolio? 

I mean all this couple need is "just" have a $250,000 portfolio of dividend stocks that yield 5% per year. 

Problem solved!

Gee. Thanks!

Wait. 

How do this couple amass the $250,000 capital in the first place?

I mean first they have to increase their income to $6,500 per month, no? 

Unless you tell me the researchers got it "wrong"? $6,500 is not the basic standard of living? Its much lower?

To start saving, its only when their household income is above $6,500 per month before they can afford to save any surplus... Can we agree on this?

To save $1,000 per month, the couple have to increase their household income from $5,500 to $7,500 per month!?

And they would still need 20 years before they can have their hands on that "fabled" $250,000 capital to play the dividend income game!!!

Has anyone spotted the Elephant in the room?

If this couple can increase their earned income by $2,000 per month, is there still the need to wait 20 years for that dividend income!!!???

LOL!

What if the same couple meet the 1M65 people?

Would the 1M65 people awkwardly shy away from any families that make $6,500 and below per month?

Or would the 1M65 people still encourage voluntary contributions to CPF? 

I mean, man up! 

A little bit of austerity never killed anyone. 

Just take $1,000 from their current $5,500 per month and voluntarily contribute to CPF. The interests will compound and compound until...

Look! You both are already making so little mandatory contributions to CPF due to your low salaries... 

Cannot! 

Like that how to survive when you both retire???

No, don't live for today, we must live in the future! 

If we fail to plan, we plan to fail...

"Chotto matte"...

Pray tell how should this family of 4 survive on $4,500 per month again?

Giving advice is easy when the pin don't prick your own skin...

There's another "easy" solution.

Report on minimum income standards not an accurate reflection of basic needs

Well, that was quick!

What if the basic standard level of living income, for a family of 4, according to big daddy's calculation is $4,500 per month?

(Big daddy gives a knowing nod and wink to the 1M65 people. Don't worry. I got your backs)

Problem solved!!!

Invite the researchers for "coffee" for stirring shit?

What do I think?

Well, I know my own feet, I don't need others to tell me what basic standard of living shoes I should wear. 

Who wants "basic" shoes anyway?

I want comfortable shoes. Wink.

There are some ang-moh bloggers who can retire to Phuket or Chiang Mai on $1,500 passive income per month. Tell the whole world they have achieved FIRE before age 35...

Then there are non-HDB heartlanders in our community who would treat any retirement incomes below $10,000 per month as "hardship"...

Its like asking others how much you need to retire?

Now that's a dumb question!

Earn More; Save More.

Do both!

But focus on Earn More if you need to prioritise.

Don't believe?

Show me countries, companies, families, or individuals that achieved prosperity through austerity?

Too Focused On Opportunity Costs Can Drive You Mad!

 

Question: How often have you spotted Emperors not wearing any clothes?

I just spotted one recently.

So funny. 

Its about the so called "research" that if we use less CPF and more cash to service our housing loans, one of the examples (theory one of course) showed we could get our hands on a cool extra $800K from our CPF interests alone!

Its that easy! 

Just by not touching our CPF for housing loans!!!

Why stop there?

If we want to play Opportunity Costs "manipulation", I have more to contribute!!!

The CPF Ordinary Wage ceiling is $6,000 per month.

The maximum amount of mandatory and voluntary contributions that a person (employee or self-employed person) can make in a calendar year is subject to the CPF Annual Limit of $37,740. (Or $3,145 per month)

1. High Wage Earner/Corporate High Flyer

Let's say at age 30 you are earning more than $10,000 per month, imagine if big daddy only caps CPF contributions from the employer side, and no artificial salary cap from the employee side, how?

Isn't that easier? No need to do voluntary CPF contributions some more!

Think of all the CPF interests in hundreds and hundreds of thousands (maybe millions?) you are leaving on the table by not being able to max out your CPF contributions from employee side, in tandem with your salary growth, as a corporate high flyer!!!

Time to talk to your MP?

2. Old Fogey Savvy Long Term Successful Investor

This old fogey will advise his children - must invest! 

Why settle for a few percentage in CPF interests when he had enjoyed around 20% annual returns from investing with Warren Buffett's Bershire Hathaway stock for 3 decades and more?

Just calculate the obscene amount of money he would have left on the CPF table had he only saved and not put money to work for the past 30 years....

 

3.  Youths High On Cryptos

These youths must be scratching their heads, "Why settle for single or double digit compounding when we could have exponential compounding with cryptos?"

I mean crypto acolytes are counting 2 baggers, 5 baggers, 10 baggers in years; not decades!

Ah! Never trust any adults above age 30. They have no clue what talking them!

4.  Entrepreneurs that made it

Eh... If you became a billionaire overnight from listing your startup in HK or Nasdaq, or able to afford Good Class Bungalows in your 30s, never mind your business not listed yet...

I would think you have more exciting ideas swirling in your head than concerning yourself with "eating water melons all the way to the green bits"...

Ding!

The Peanut Joke

Those of you who got study cost accounting may know this Peanut Joke.

If you haven't, I would strongly recommend you read the link below. 

Especially if you are into Fundamental Analysis that sort of thing:

Funny Story on Activity Based Costing

Knowledge is just potential energy; its power only when we know how to apply it! 

SkyParc@Dawson - Future Million Dollar HDB Flats!

 

First, this is not an advertorial post OK?

Yes, I've worked with Stacked Homes before, but this is me talking my own book. 

You think those money managers are not doing the same when they go on Bloomberg or CNBC?

For those of you who don't mind paying a million or more to buy a fantastic HDB resale flat with a million dollar view, look no further!

SkyParc@Dawson Review

No, you don't have to wait 5 years for the MOP (minimum occupation period). Not if you're buying from those lucky enbloc owners who got first dip in the balloting selection process!

Our MOP starts 7 years from the date of selection of the replacement flat. 

I selected my SkyParc@Dawson flat on July 2015. 

That meant starting August 2022 next year, provided there are willing sellers, you may find listings for resale flats at SkyParc@Dawson. (First mover advantage)

You'll beat those "bei kambings" who thought MOP is always 5 years. Wink.

Who knows? 

You may even flip your purchase 3-4 years later, when most of the flats will be available in the open market for those owners who got their SkyParc@Dawson flats under the normal BTO process.

So don't say I got "lobang bo jio"!

If you bothered to read the review at Stacked Homes all the way to the end, you'll notice the surrounding resale HDB 3 room flats at SkyTerrace and SkyVille are now going for $600K.

The most expensive HDB 3 room flats at SkyParc@Dawson bought direct from HDB is $398K (Top 2 floors with balcony).

How? Luck is luck or what!?

Enough about me. (I not a bleeding heart; you don't care about me either)

However, I want to draw your attention to a group of SAVVY and SKILLED property buyers. (Either that or they have good, better, best property agents looking out for them!)

You know when our Tanglin Halt flats were selected for SERS or enbloc during June 2014, immediately there were property agents and buyers circling like vultures making offers to buy my Tanglin Halt flat for $500K!?

Of course its great for those Tanglin Halt owners who want to cash out immediately and not have to wait another 7 to 8 years to collect their keys to their replacement flats.

I mean, at $500K, these buyers were willing to pay $100K more than the $398K compensation I got from big daddy.

By not being "cheap", these savvy buyers, even if they got the worst and last ballot number for this SERS exercise, their ballot number would still be streets ahead of those who selected SkyParc@Dawson on the regular HDB BTO route!

How?

The only drawback is that for these buyers who bought the Tanglin Halt flats after the SERS announcement, their MOP is the regular 5 years from collection of keys - like any other regular HDB BTO applicants. That's all!

What's the upside?

They paid resale price but got a brand new HDB flat!!! That's if you're into "virgin" that sort of thing...

Making money is just icing on the cake! (Better than buying resale 5 years later and finding your savvier neighbour also bought resale but paid $100K less than you...)

That's Earn More mindset for you!

Now to address some of the cons in the review (I did say I talking up my own book remember?):

1)   The upper floors only have 4 units; unlike the lower floors with 8 units. (OK, OK. I'll stop! I think by now you know why people are willing to pay a price premium for top floors!)

2)  There's a difference between staying near and next to MRT stations or busy main streets with lots of bus options.

You just have to go to those flats immediately next to Alexandra Road that's 6 minutes walk away that have more bus routes (Opposite NTUC Dawson). Listen to the noise pollution and try smelling the car exhaust fumes.

Its the same for living next to MRT stations. You think why you see lots of sound barriers on MRT tracks nowadays? When MRT tracks were first built, where got sound barriers? Evidently those residents living next to MRT cannot stand it any longer!

There's 2 bus services serving Margaret Drive. Let's keep it that way. Buses are not exactly quiet...

The bus stops are just in front of SkyParc@Dawson. It's like having our own private bus stops!

If you want to travel to the East, bus 32 will take you to Bukit Merah MRT, while bus 122 will bring you to Tiong Bahru MRT.

And if you want to travel to the West, both bus 32 and 122 will connect to the Commonwealth MRT.

If you prefer taking buses, all the above mentioned MRT stations will give you access to a lot more bus options!!!

Just treat bus 32 and 122 as "feeder bus" services. Yup! Just go downstairs and walk 1 minute. Its that convenient!

3)  If you're into the 10,000 steps thingy, or is now currently practicing alighting one MRT stop (or a few bus stops) away from you destination to use walking as your "exercise", then SkyParc@Dawson is right up your alley! (I'm in sales; that's how you turn lemons into lemonade) 

Walking to the bus stops with more bus options opposite NTUC Dawson is 6 minutes.

Walking to the nearest Queenstown MRT is 10 minutes.

What's the problem again?

LOL!

I hope other SkyParc@Dawson residents will understand what to do. Wink.

Especially if you are looking to flip your flats a few years later. 

Use Facebook, Instagram, or whatever you familiar with.

Do what the crypto crowd is doing.

I not selling is also helping you out!

Don't forget to buy me coffee!