ffree cashflow projection has the latest figures
Update: Today YW gave some numbers. He felt 60k/Y burn rate is the minimum for his family of three . With 2M asset he would need something like 3% annual return but he dreams of 8%. He feels 2% annual return is seriously insufficient but I doubt it.
Key Differences between me and some my peers:
- I really really want to work till old age. Many of them wish to retire in 40’s.
- Burn rate – my determination and discipline on burn rate control.
- My wife and I have Singapore citizenship
See also eg@personal financial independence within%%family
YW mentioned early retirement. I guess with their combined savings, they probably can do it. Assuming their burn rate is USD 5k/month, their passive income and savings can probably last 30-50 years.
I estimate my family burn rate now at SGD 5k to 6k a month. I have around SGD1.5k passive income now. If my entire family stop working, we would move to a rental apartment in Singapore (US rents are much higher) and lease out our current apartment, with a net rental income about SGD 1k. Hopefully my Philippines property could contribute SGD 1k passive income. If we also maintain our burn rate at SGD 3k as planned, we would be able to survive in Singapore without touching our savings. (After age 67, CPF-LIFE should contribute SGD 800~1600 for each spouse.)
SGD 3k/M is a reasonable estimate. See CPF-Life/covid19 $handout reflect`(jobless)burn rate
“Survive” comfortably, I hope. I have reason to hope so, since I follow a primitive system to track my expenses for years, so I know where we spend. I’m fairly good at it.
My family’s major medical expenses are largely covered by integrated shield plans in Singapore. We are debt free.
In reality, situation is better — my wife and I both can work till old age. As I told everyone I want to work till 65+ in technology, and till 75+ in some other domain. That plan has never changed. I think my wife also prefers to work and earn her own living.
Other cities? Once we stop working, we could move to cheaper locations in Malaysia, as described in multiple blog posts.
I used to fancy other domains outside banking IT. Now I have mellowed up. I keep my options open, but I accept banking IT jobs for the rest of my career. At VP salary, the workload is non-trivial but manageable. If I grow old and can’t cope, then I will settle for a lower salary in banking IT.
Even with our relatively low combined income, I’m positive about our capacity for relatively early retirement, because of
- burn rate — my confidence to control our burn rate, based on insight into our past burn rate
- our confidence to keep earning two salaries and growing our retirement nest egg, up to whatever time I want to retire
- college — my decision to leave college education funding to “other people”
- medishield+polyclinics — for Singapore citizens
- properties — in relatively good locations and inflation-proof