Pathetic Singaporeans

I have always fantasize about retirement. What would life be when I don't have to be awake by my iphone alarm. I don't have to rush through traffic in the morning and evening, worry about bills to pay, etc... The list goes on.

Every human being, to me, the effective or I should say productive lives spans at about 60 years old. When I'm 60, I do not think that I should still achieve greater heights in life. It will be truly nice where I can start enjoying and appreciate the little things happening around me. Gardening, coffee experimenting, reading, fresh air... endless list.

Sweet 60... I hope that I do not suffer from any diseases, rheumatism, etc. Imagine the life when you wake up 6 in the morning, take your favorite breakfast, do your morning exercise, sip your aroma coffee with your best friends. Do the afternoon power nap after lunch and followed by enriching your mind with new knowledge and life philosophy. Complete dinner by 7pm and watch your favorite discovery channel programs with a Heineken in hand. Lights off at 9pm to get ready for the cycle tomorrow. Boring? So you mean work is fun for you now?

Let's do a general analysis of this dream.

I'm in my mid 30s and having a 4 room flat under my belt weighing at $200,000 owe to HDB. Serviced my loan at the rate of $921 from CPF OA account for the pass 2 and half years paying $27,630. The last time I checked HDB website says I still owe them $188,000+. Why is that so? They say most of the payment went to financing the interest rather than the principals. WTH. I hope to have a smooth sailing to complete my loan at 56 years old. By then I should have enough for retirement (provided the minimum sum kept at $165,000 from now to year 2037).

What if my pay grade fall below 5k within these 25 years? I still can manage for a year as I parked a few thousands in OA. If the bad times goes beyond a year, I will be in
deep SH*T. The thought of having less money per month accompanied with cash into financing housing loans gives me goosebumps behind my neck.

All these battles and struggles is to have a peaceful retirement life stated in paragraph 3. Does it really take that much effort to achieve these goals? Will I be healthy and clear minded enough to be able to enjoy these moments?

I would like to do a comparison with Chiang Mai, Thailand. Yes, my favorite Chiang Mai again. The ever peaceful land of smiles. How much do you need to have to live a life of retirement there? Let's say I don't buy a house, the rental rates (current) for a studio apartment is about 4,500 baht fully furnish with internet included. 3 meals a day at about 120 baht. I'm not kidding! Breakfast at home, lunch eat out and dinner self cook. Lunch is about 30 baht at the local eating house and balance 90 baht for breakfast and dinner grocery. Petrol price at 30 baht per liter and a motorcycle average at 40,000 baht brand new.

Excluding motorcycle and laptop, etc. that required only 1 time payments. The recurring fees required to live a retirement life there (now) is 4,500 (lodging) +  3,600 (meals) + 720 (petrol) = 8,820 baht. Round it off to 10,000 baht for the safety buffer. That will be 10,000/25 = $400 SGD. Less than $14 a day. Double it for emergency situations contingencies, $30 a day and you are safe in heaven. That's $900!

Now tell me why do you need to make $200 a day for 25 years just to live a $30 peaceful retirement? Only if you can have a stable passive income of $30 a day, you can actually retire now in Chiang Mai city. Move yourself further north another 20km and the cost will be further reduce by 30% which is $21.

The destination is the same, only the paths and duration are different.



A short extract from 4HWW, Tim Ferriss.  

An American businessman took a vacation to a small coastal Mexican village on doctor’s orders.
Unable to sleep after an urgent phone call from the office the first morning, he walked out to the pier to clear his head. A small boat with just one fisherman had docked, and inside the boat were several large yellowfin tuna. The American complimented the Mexican on the quality of his fish. “How long did it take you to catch them?” the American asked. “Only a little while,” the Mexican replied in surprisingly good English. “Why don’t you stay out longer and catch more fish?” the American then asked. “I have enough to support my family and give a few to friends,” the Mexican said as he unloaded them into a basket. “But … What do you do with the rest of your time?” The Mexican looked up and smiled. “I sleep late, fish a little, play with my children, take a siesta with my wife, Julia, and stroll into the village each evening, where I sip wine and play guitar with my amigos. I have a full and busy life, señor.”

The American laughed and stood tall. “Sir, I’m a Harvard M.B.A. and can help you. You should spend more time fishing, and with the proceeds, buy a bigger boat. In no time, you could buy several boats with the increased haul. Eventually, you would have a fleet of fishing boats.” He continued, “Instead of selling your catch to a middleman, you would sell directly to the consumers, eventually opening your own cannery. You would control the product, processing, and distribution. You
would need to leave this small coastal fishing village, of course, and move to Mexico City, then to Los Angeles, and eventually New York City, where you could run your expanding enterprise with proper management.” The Mexican fisherman asked, “But, señor, how long will all this take?” To which the American replied, “15–20 years. 25 tops.” “But what then, señor?”

The American laughed and said, “That’s the best part. When the time is right, you would announce an IPO and sell your company stock to the public and become very rich. You would make millions.”
“Millions, señor? Then what?” “Then you would retire and move to a small coastal fishing village, where you would sleep late, fish a little, play with your kids, take a siesta with your wife, and stroll to the village in the evenings where you could sip wine and play your guitar with your amigos …”

What a great advice from a Harvard M.B.A businessman.