Prudent retirement funding strategy for elderly parents.

Reader:
Hi AK, apologies for the multiple questions from me. 🙂 I am looking to help my parents with their retirement planning and hope you could shed some light.

For convenience of calculation and discussion, assuming the following hypothetical figures, can you share how you would do the planning?

Parent A - 500k cash
parent b - 300k cash,
Zero CPF for both,
No existing loans at all
Children all financially independent
Require about 2k per mth for expenses
Occasional traveling

Given the above I was thinking of topping up their retirement account to the ERS and opt into cpf life at 65.

The remainder will be kept in minimum risk instruments like FDs etc and maybe just a small percentage into shares. Hope you can help me out in your free time. Thanks a lot!

Both parents have basic health insurance. I am thinking of getting them to surrender their whole life policy bought donkey years ago with low sums assured as we children are all financially independent.



AK:
What you are planning to do sounds like what I would do if I were in your shoes. Spooky!
Old folks should not be too adventurous with their money.

Reader:
I read your blog daily! I guess that's where I get all my thoughts mainly. Can't thank you enough!

Related posts:
1. Elderly with spare cash.
2. How to make money last longer?
3. FRS, BRS and ERS.
4. Parents have enough H&S cover?
5. Dad terminated his whole life policy.

Nano apartments less than 200 sq ft in area for Singapore?

180 sq ft micro apartments sold like hot cakes.

Do you know that a car park lot in Singapore must be at least 124 sq ft in area? 

That is the rule by LTA.






Do you know how big is the smallest flat in Hong Kong? 

According to an article in The Sunday Times, it is 61.4 sq ft! 

That is smaller than the smallest hotel room I have ever stayed in!





There are more and more homes which are less than 200 sq ft in size being built in Hong Kong and they cost about HK$4 million or S$725,000 each.

Now, for those who wonder how I could stay comfortably in an apartment that is a bit bigger than 400 sq ft in size, what about one that is smaller than 200 sq ft in size?








200 sq ft is probably the size of a decent hotel room with a bath. 

I feel that it is good enough for a short stay of maybe a few days but to stay for a longer period, it could be difficult for me.

I actually stayed in a junior suite before because I got a good deal. 






Similar in size to my current place but missing an outdoor space, it was very comfortable.

See the photos: HERE.

I feel that my apartment gives me just the right amount of space for living comfortably long term. 

A kitchenette, a living cum work space, a bedroom, a wardrobe, a bathroom and a small outdoor space. 

Everything I need in the smallest apartment I ever stayed in.

With only 200 sq ft, I think I would be left with just the bedroom and the bathroom. 

I would have to eat out all the time and I would probably want to go out a lot more because there is no outdoor space.






Hmmm, OK, I guess these nano apartments (yes, they are even smaller than shoebox apartments) could work for people who don't cook and who spend very little time at home.


When are we going to see some nano apartments in Singapore, I wonder?




Related posts:
1. My hut in the sky.
2. Downsizing our homes.