A bit of a philosophical question here. I want to save hard for retirement or even FIRE, but I want to live a good quality of life in the prime years of my life too. What's the point of having the most cash "at the end of the day" when I will look back in regret at the life I didn't live? My internal desire for FIRE and YOLO at the same time keeps me constantly torn internally. Retirement is important but you never know what happens in life too. Some may die early. My savings of $180+k in the mid-30s is far behind the FIRE folk but also more than the pure YOLO folk. Is there a balanced advice for people like myself? Thanks!
Ultimately, I think it’s important to live comfortably within your income but also plan for the future. Some prefer to live big at the tail end, some are contented to spread and enjoy what life has to offer at different stages. Regardless, make sure you are taking care of yourself to live long enough and also have enough for the future
it's a dilemma I have very often too. for eg: I want to go backpacking for 6 months and would have to fork out maybe 10k, while also understanding the opportunity cost of investing this amount in the stock market. But on the other hand, experiences can be priceless and are '''worth more'' then the returns of investing. I'm a FIRE and YOLO enthusiast too and feels that barista FIRE suits me best as I don't need to aim for that big of a portfolio, while also having greater time and freedom to yolo/side hustles. In context, i quit my full-time job every 3-4 years to go backpacking for few months (or whatever u dream to do); this enabled me to put aside $ for investments and at the same time ticking off my bucket list and having no regrets in life.
It sounds like you are perfect with where you are; half yolo half fire. Even if you fire fast, life gets boring pretty fast. There is meaning in suffering and struggles. With suffering and struggles, your Yolo moments will have a greater impact. You can also choose to work part-time/freelance past 50-60 years old.
This is a really good time to invest. Even an extra $50 saved and invested each month can grow into more than $27k in 20 years. Optimizing your income sources, savings and investing can make a very big difference in the long-term and buying stocks on sale (like we're seeing now) can also help grow that into even more.
@@johnchan729 Not really, even if you must sell everything today for some reason. You're still up a nice amount overall even if you started investing only 10 years ago. Otherwise, it doesn't really matter since you probably wouldn't sell it and instead just rely on the dividend
Not easy to retire at 40 especially in Singapore unless you fall under one of these options 1. High-flyer in corporate world 2. Owns a self-sustaining business 3. Just want to live a simple life
Actually I found that create the passive income is better than just save up 7x annual income. I’m planning to get another house on next 5 years once the locking period release.
saving maybe beneficial in a way, what if u get terminal illness and the money save or invest went to hospital bill. in any cases do enjoy as I see u as a thrifty person don't really enjoy life
Apparently tiger now has 9 option strategies, not sure if you use it but if you do can you make a tutorial on how to use it to do those strategies like the vertical spread
The monthly income chart by occupation probably does not reflect the high income earners? There are professionals or people in managerial positions who earn more than 20k a month.
Hi Kelvin, to be more exact, it should be by age 30 years old if your CPF SA account has a balance of $130k and even though you do not do any contribution after that, when you reach 65 years old, the amount in the SA account will be above $500k. Hence for a couple, it will be more than $1 Million.
Nah, the most important thing is to ensure you have money to last till you uplorry. You won't want to be cleaner at 80s years old for another 20 years just because your lifespan is unexpectedly long.
Lets say i lose 100% at 20 years old, it's painful, but it's a good learning experience. I still have 40 years of salary increment, 40 years of compounding in investments, 40 years of experience gained.
No matter how young you are. Stage 1 : Principal/Primary Livelihood Saving US$2m (Min 2.5% Interest) - 1-5 years to achieve Stage 2: Secondary Savings (International Travel Fund) Min 52 Travel (Weekly Travel) Max 122 Travel (3D/2N) @US$5,000 P/Return Trip @ US$200K x 2.5%= US$5000 Per Trip Stage 3: Subsequent 1 Saving (Health Care & Medicine Cost) In case one of your organ fails (Eg Kidney, cancer or emergency operation..) to be replaced US$5m (minimum) on interest compounding (health cost) Stage 4 : Subsequent 2 Parents Support Saving (Family Support) Stage 5 : Subsequent 3 Social Support (Choice Of Charity @ Mine Poverty & Food Security & Emergency Cash Aid)
Hi Kelvin, can you do a hypothetical video on how we can actually retired with 4% rule or so ? Imagine now you are 60 years and you already have 3 millions. How do you constantly get 4% or higher yearly in todays market condition....I seeing all youtuber...last year huat big big...this year lose big big...last year can withdraw 4% to live...what about this year ?
The 4% would mostly come from dividends. In today's market, you can find lots of relatively stable dividend payers that offer a yield even above 5-6%. For a 60-year-old with a portfolio worth $3 million today, there have been plenty of opportunities to get even better yields.
@@Investing_With_Andrew Like which one specifically other than CPF? When you say a lot , can you advise me a few over here ? Reits are down. One may take dividend yearly but overall one asset is down .
@@velosity6535 The value of the asset itself doesn't matter as long as you don't sell. The idea of the retirement portfolio would be living off of the dividends and letting the portfolio compound even further instead of selling parts of it - at least that's my approach since I also want to leave something for my children. REITs like OHI are a good example where you can get even more than 10% at today's price, although you have to take into account that some companies might cut the dividend for the next couple of years due to the economy. I can't advise you on buying any specific company, but if you're looking for dividend payers, Verizon pays an almost 7% dividend at this price (again, dividends can be cut, but in the long-term they should be able to pay a decent one), Barrick Gold is at over 5%, IBM is at 5.4%, and AbbVie is at 4%. There are plenty more, depending on your risk tolerance, of course.
@@Investing_With_AndrewVerizon payout is 7% if you buys the share price now. If you own the stock for last 10 years. You lost even to inflation. Likewise for Barrick Gold, the price is now 15.48, same as 1983. Yes. IBM and Abbvie looks like a better choice.
@@velosity6535 Be careful though, past performance can be misleading, especially for 10+ years of history. Markets and companies can change a lot in that period. I've covered Verizon and Barrick and I own all 5 of the companies I mentioned. Each of them has its unique role in the portfolio and its own risk and reward potential. I can recommend doing your own research on all of them.
Thanks for the great vide once again. Would you mind covering Gemini Earn? Interest rate used to be about 8%...but recently lowered to 5%. (for Gemini USD. GUSD)
I don't think can compare salaries like that. not all industry are paid well
A bit of a philosophical question here. I want to save hard for retirement or even FIRE, but I want to live a good quality of life in the prime years of my life too.
What's the point of having the most cash "at the end of the day" when I will look back in regret at the life I didn't live? My internal desire for FIRE and YOLO at the same time keeps me constantly torn internally. Retirement is important but you never know what happens in life too. Some may die early.
My savings of $180+k in the mid-30s is far behind the FIRE folk but also more than the pure YOLO folk. Is there a balanced advice for people like myself? Thanks!
Ultimately, I think it’s important to live comfortably within your income but also plan for the future. Some prefer to live big at the tail end, some are contented to spread and enjoy what life has to offer at different stages.
Regardless, make sure you are taking care of yourself to live long enough and also have enough for the future
it's a dilemma I have very often too. for eg: I want to go backpacking for 6 months and would have to fork out maybe 10k, while also understanding the opportunity cost of investing this amount in the stock market. But on the other hand, experiences can be priceless and are '''worth more'' then the returns of investing. I'm a FIRE and YOLO enthusiast too and feels that barista FIRE suits me best as I don't need to aim for that big of a portfolio, while also having greater time and freedom to yolo/side hustles. In context, i quit my full-time job every 3-4 years to go backpacking for few months (or whatever u dream to do); this enabled me to put aside $ for investments and at the same time ticking off my bucket list and having no regrets in life.
Find a job with salary so high that you can do both at the same time
It sounds like you are perfect with where you are; half yolo half fire. Even if you fire fast, life gets boring pretty fast. There is meaning in suffering and struggles. With suffering and struggles, your Yolo moments will have a greater impact. You can also choose to work part-time/freelance past 50-60 years old.
This topic super deep eh. Let me make a video to answer this instead
Well, the cpf savings have not factor in purchasing of house. Most married people would have 80% or even full cot OA wipe out 😢
This is a really good time to invest. Even an extra $50 saved and invested each month can grow into more than $27k in 20 years. Optimizing your income sources, savings and investing can make a very big difference in the long-term and buying stocks on sale (like we're seeing now) can also help grow that into even more.
Assuming i am 60 this year.
And all my savings had been in the SPY
Wouldnt I be in a very bad position now?
@@johnchan729 Not really, even if you must sell everything today for some reason. You're still up a nice amount overall even if you started investing only 10 years ago. Otherwise, it doesn't really matter since you probably wouldn't sell it and instead just rely on the dividend
Retire at 63.....what's the point of so much $$ left at that age..I'm going to retire at 40.
Not easy to retire at 40 especially in Singapore unless you fall under one of these options
1. High-flyer in corporate world
2. Owns a self-sustaining business
3. Just want to live a simple life
@@NicholasYg You forgot retiring at cheaper asian country
Actually I found that create the passive income is better than just save up 7x annual income. I’m planning to get another house on next 5 years once the locking period release.
People are grumbling about high cost of housing. The answer lies in your comment.
bubble will burst cos there will be a point where the rental / housing cost is unsustainable and ppl will start leaving the country.
I'm always below median. hahahah. 44 years old, unemployed. Last drawn salary 2.6K.
Question here, when people say save 1x yearly salary, where do you keep that 1x yearly salary? Does it just mean anywhere liquid?
saving maybe beneficial in a way, what if u get terminal illness and the money save or invest went to hospital bill. in any cases do enjoy as I see u as a thrifty person don't really enjoy life
Health is the most important . If you are diagnose with terminal illness yr money you have will be useless but to pass on to your children and spouse
There's no point comparing.
The topic on finance has always been daunting esp stepping into adulthood. You are awesome for making supposedly serious topics so fun
❤
Doesn't matter if you're ahead or not (if you lose everything in the market) 👀
Why u do this (cries)
😂😂
lol. question is that if you still bullieve :)
as long as no baba!
Apparently tiger now has 9 option strategies, not sure if you use it but if you do can you make a tutorial on how to use it to do those strategies like the vertical spread
The monthly income chart by occupation probably does not reflect the high income earners? There are professionals or people in managerial positions who earn more than 20k a month.
It is median income so yes it considers all walks of life.
Can you share where you get the table of medium income for every age group?
Nice, clicked on this video to know that im actually behind in life as compared to people in my age
Everyone goal is different, there’s no point comparing.
@@KelvinLearnsInvesting My humble goal is to huat big big. Wondered if people in the late 20s have the same goal as me
hiaz, 65 yrs old got money also no energy already
What if i just spent 100k on reno, housing and wedding 😭
I guess this milestone shouldn't apply to me as i started work way later than usual.
For the CPF balance shown, is it only OA + SA?
All 3 accts
^ that's right
lol....go sky diving at 60 or 30... which is better? make your choice now!
Does CPF balance means all the accounts combine together? Tks
Yup everything
Hi Kelvin, to be more exact, it should be by age 30 years old if your CPF SA account has a balance of $130k and even though you do not do any contribution after that, when you reach 65 years old, the amount in the SA account will be above $500k. Hence for a couple, it will be more than $1 Million.
Have to make sure you spend most of your money before you up lorry, for those DINKs.
Nah, the most important thing is to ensure you have money to last till you uplorry. You won't want to be cleaner at 80s years old for another 20 years just because your lifespan is unexpectedly long.
@@jacky5297 if run out before can up lorry, don’t worry...many high rise buildings here.
Nice to 50year old, but in the 20 year old category by losing 85% of everything in Stonks. Can go skydiving without parachute
Lets say i lose 100% at 20 years old, it's painful, but it's a good learning experience.
I still have 40 years of salary increment, 40 years of compounding in investments, 40 years of experience gained.
When you say cpf median amount, do you mean oa + sa + ma?
Yup everything
12:29 at this age you most likely wont consider doing skydiving anymore for your own health
I have no debts. I have savings enough to take care of me till death
Life is not about money!!
hey hey starbucks coffee is essential. once per week. coldbrew haha
U mean saving is cpf + saving in hand? Or only cpf?
In hand, better to treat cpf as though it doesn't exist
😅 That's a huge milestone to achieve..
Thanks. I wish I had watched this video 20 years ago
Well presented. Of course in reality it much more complicated. Eg. Property mortgage or what % paid. Insurance Investments, etc.
"You are now in full control of your life".... hahahaha.
Always making great videos
so old cannot sky diving already, haha
looks like i'll never retired 💀
Dream Big. Live Small.
Start skydiving everyday😂😂😂😂😂
Where to find this type of husband/boyf? 🤣
I won’t be able to go skydiving. 😢
No matter how young you are.
Stage 1 : Principal/Primary Livelihood Saving US$2m (Min 2.5% Interest) - 1-5 years to achieve
Stage 2: Secondary Savings (International Travel Fund) Min 52 Travel (Weekly Travel) Max 122 Travel (3D/2N) @US$5,000 P/Return Trip @ US$200K x 2.5%= US$5000 Per Trip
Stage 3: Subsequent 1 Saving (Health Care & Medicine Cost) In case one of your organ fails (Eg Kidney, cancer or emergency operation..) to be replaced US$5m (minimum) on interest compounding (health cost)
Stage 4 : Subsequent 2 Parents Support Saving (Family Support)
Stage 5 : Subsequent 3 Social Support (Choice Of Charity @ Mine Poverty & Food Security & Emergency Cash Aid)
Travel now.. u don even know u will wake up tomorrow
and you are 80% in TSLA..that's an irony in itself :)
Eating chicken rice ah Kelvin
Hi Kelvin, can you do a hypothetical video on how we can actually retired with 4% rule or so ? Imagine now you are 60 years and you already have 3 millions. How do you constantly get 4% or higher yearly in todays market condition....I seeing all youtuber...last year huat big big...this year lose big big...last year can withdraw 4% to live...what about this year ?
The 4% would mostly come from dividends. In today's market, you can find lots of relatively stable dividend payers that offer a yield even above 5-6%. For a 60-year-old with a portfolio worth $3 million today, there have been plenty of opportunities to get even better yields.
@@Investing_With_Andrew Like which one specifically other than CPF? When you say a lot , can you advise me a few over here ? Reits are down. One may take dividend yearly but overall one asset is down .
@@velosity6535 The value of the asset itself doesn't matter as long as you don't sell. The idea of the retirement portfolio would be living off of the dividends and letting the portfolio compound even further instead of selling parts of it - at least that's my approach since I also want to leave something for my children. REITs like OHI are a good example where you can get even more than 10% at today's price, although you have to take into account that some companies might cut the dividend for the next couple of years due to the economy. I can't advise you on buying any specific company, but if you're looking for dividend payers, Verizon pays an almost 7% dividend at this price (again, dividends can be cut, but in the long-term they should be able to pay a decent one), Barrick Gold is at over 5%, IBM is at 5.4%, and AbbVie is at 4%. There are plenty more, depending on your risk tolerance, of course.
@@Investing_With_AndrewVerizon payout is 7% if you buys the share price now. If you own the stock for last 10 years. You lost even to inflation. Likewise for Barrick Gold, the price is now 15.48, same as 1983. Yes. IBM and Abbvie looks like a better choice.
@@velosity6535 Be careful though, past performance can be misleading, especially for 10+ years of history. Markets and companies can change a lot in that period. I've covered Verizon and Barrick and I own all 5 of the companies I mentioned. Each of them has its unique role in the portfolio and its own risk and reward potential. I can recommend doing your own research on all of them.
Hahaha $1 million on Starbucks 😅
Thanks
Wow, thank you for that!
Me when 26, still in uni haizz
Thanks for the great vide once again.
Would you mind covering Gemini Earn?
Interest rate used to be about 8%...but recently lowered to 5%. (for Gemini USD. GUSD)