It is better to continue working after the normal retirement age, either in a full or part time job, preferably in a familiar job, according to this report.
Anyone can retire, provided you know what lifestyle you wish to have. First condition is you must be debt free. Second condition is that you have an income stream that is able to support the lifestyle that you chose.
For example, per month expenses: Utilities = $300 Internet = $50 Groceries = $200 Sundries = $200 Insurance = $150 Transport = $75 Phone = $45 Tax = $100 Incidental = $100
Actually it all boils down to stress levels. It is not about working or not working, not even if married or unmarried as some studies also try to suggest that one is better than the other. Such studies are like looking at the universe using a microscope. People die earlier due to stress is clear to see. MM Lee likes to work and for him he lives longer not because of the work but because he enjoys it. There are others who has to stop work in order to live a longer life as the work may be stressing them out. So such studies are meaningless if the real cause of early death is stress. Having said this, I must also stress, pun not intended, that those who retire can still benefit from exercising their faculties from time to time in order to remain alert and healthy.
Fully agree. But even if one wants to retire, he needs to be very rich or have a son who is a minister.
ReplyDeleteAnyone can retire, provided you know what lifestyle you wish to have.
ReplyDeleteFirst condition is you must be debt free.
Second condition is that you have an income stream that is able to support the lifestyle that you chose.
For example, per month expenses:
Utilities = $300
Internet = $50
Groceries = $200
Sundries = $200
Insurance = $150
Transport = $75
Phone = $45
Tax = $100
Incidental = $100
Total $1200
Dividends from shares ( annual )
SIA 1000 = $200
UOB 1000 = $300
SPH 1000 = $300
KepCorp 1000 = $200
STI-ETF 1000 = $150
SINGTEL 1000 = $50
Total $ 1200
Just under $50,000 investment.
Trouble is: Many will spend it on a car instead.
Dividend payouts are not guaranteed, so a diversified asset allocation is recommended. But this could be one way to achieve financial independence.
My opinion.
Actually it all boils down to stress levels. It is not about working or not working, not even if married or unmarried as some studies also try to suggest that one is better than the other. Such studies are like looking at the universe using a microscope.
ReplyDeletePeople die earlier due to stress is clear to see. MM Lee likes to work and for him he lives longer not because of the work but because he enjoys it. There are others who has to stop work in order to live a longer life as the work may be stressing them out. So such studies are meaningless if the real cause of early death is stress. Having said this, I must also stress, pun not intended, that those who retire can still benefit from exercising their faculties from time to time in order to remain alert and healthy.
To: No.2 Anon,
ReplyDeleteHo can you spend $1200 a MONTH when your dividend is $1200 a YEAR?
Anon 9.12 pm
ReplyDeleteYour monthly expenses is $1200 and your annual total dividend income is only $1200.
Where got enough? Unless at least $500K and even then may not be enough for the frugal lifestyle of $1200 pm.