Live life2the fullest, but@low burn rate

A favorite among marketing slogans is “Live life to the fullest”, as you have it once. I guess the ERE author can say he is living his life to the fullest. I don’t need to benchmark with him.

Similar to him or unlike him, I do feel I’m living my life to the fullest. There’s nothing missing in my current carefree life. My current life is satisfying and complete.

The Buddhist would say there’s still a lot of unsatisfied desires and pains lurking beneath the surface. Admittedly, these pains will surface, but hopefully become mild and forgotten. The current carefree /bliss/ is obviously impermanent, and possibly short-lived, but in this blogpost I care more about the contributing factors:

  • foundation: marriage, health, citizenship,
  • green Cornerstone: rewarding, low-stress job
  • red Cornerstone: boycott to FOMO/FOLB
  • red Cornerstone: Brbr, ffree
  • # The red cornerstones are based on cash flow.

cost@livelihood4retiree ^ GNIppp/capita: rank`nations

k_hongkong …. k_PPP

See also BRBR,

In terms of retirement destination, there are other important factors (BRBR, weather, nursing home cost, …) but today’s subject is arguably the most fundamental factor.

Now I think a fair comparison of two countries should use median household income adjusted for PPP. There are several key points:

  • the most common stats use per-capita. I would prefer per-household.
  • Even in that case, we have an average household income. I would prefer median, which would rely on national census.

Attachment warning: SG may experience difficulties and may not be so enviable over 40Y.

— GNI ranking by USA_Today, based on WorldBank data .. https://www.usatoday.com/story/money/2019/07/07/richest-countries-in-the-world/39630693/ is a 2019 publication. It explains why GNI is better than GDP.

  1. Qatar
  2. Macao
  3. SG

— WorldBank ranks GDP per capita:
https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?most_recent_value_desc=true

  • GDP per capita — U.S. ≅> SG > HK
  • (my estimate) cost of livelihood i.e. typical not luxury consumer price level including housing, food … SG << U.S. (Melvin3). Also SG < HK

Clearly Singapore citizens get a better deal than Hongkong residents.

I have never lived in HK but I know U.S. cost of living. I would say SG citizens (esp. retirees) get a better deal than U.S. Citizens.

— CIA ranks GDP in purchasing power parity:
https://www.cia.gov/library/publications/the-world-factbook/fields/211rank.html
https://zh.wikipedia.org/wiki/各国人均国内生产总值列表(购买力平价)  and https://en.wikipedia.org/wiki/List_of_countries_by_GDP(PPP)_per_capita show WorldBank, IMF and CIA rankings.

SG is much higher than HK, Switzerland or U.S. (in that order) and all Scandinavian nations. In fact, the 6 countries above SG all feature tiny populations !

I think both SG and Switzerland rely on workforce from neighboring countries (including China and India), but Switzerland’s neighbors are more expensive.

2002 in Zed I had colleagues from Holland and Finland. I thought their countries were rich, but no. They are now way below Singapore.

 

khm shop units=excellent outlier@@ No!

Now I think the 3 shop units together appears to be an outlier if “plotted” along return vs risk

  • ==== returns
  • guaranteed rental without vacant period.
  • potential windfall
  • — cost that erodes returns
  • 0 legwork — huge cost in the U.S. context and Singapore too
  • 0 taxes
  • 0 repairs
  • low currency exchange cost
  • ==== risks are mostly listed on REIT/dividend stock^shop unit but I will pick a few
  • uncertainty of dividend? perfect track record so far
  • perceived risk to principal? no sign of trouble but this is the biggest question mark over the outlier status.

Conclusion — too early to call it an outlier. Need to see some units changing hand at reasonable prices.

Because this data point appears to be so much ahead of the pack, I tend to develop emotional attachments.

I tend to feel too proud of them.