Second "Evening with AK and friends" in 2016.

Tickets for the first session of "Evening with AK and friends" in 2016 sold out in less than 2 days although my friends from The Fifth Person increased the number of seats available as I meant it to be the only session this year. (Told you AK is lazy.) Many readers were left out in the cold and requested for another session to be organised and I promised them to have another one. So, here are the details:

Date: 

16 September 2016 (Friday).

Time: 

7.00 pm to 9.45 pm.

Location:  

Lifelong Learning Institute, Event Hall 1-2.

This should be the last session for 2016 and unless there is going to be another InvestX Congress this year, I don't plan on making another public appearance for the rest of the year.

Get your tickets: here. Fastest fingers first!


UPDATE: 8.20PM, 16 Aug 2016.

Related post: Talking about "Evening with AK and friends".

$1m in CPF by age 65? What about $1.2m?

An article in the newspapers on one person's goal to have $1m in his CPF account by age 65 generated quite a bit of interest. 

I commented on my FB wall that not everyone has the financial ability to do what the person does but it shouldn't stop us from trying. 

Even if we should just do a fraction of what he does, I am sure we will be financially more secure in future.







After reading the article, I decided to estimate what I might have in my CPF account by age 65.

The estimate will ignore the effect of the extra 1% interest on first $60K of our CPF savings as well as the additional 1% interest on the first $30K once we reach 55 years of age. 

Of course, I am also ignoring the possibility that interest rates for our savings in the CPF could change in future.




My CPF accounts at the end of 2015:

OA: $418K
SA: $200K
MA: $50K

Assuming that I stop contributing to my CPF account from 2016, I should have at age 65:

OA: $652K
SA/RA: $438K
MA: $109K

Total by age 65: 

$1.2m




Although I will no longer have mandatory contributions to my CPF, I intend to max out the CPF annual contribution cap for members by doing voluntary contributions annually, in the process maintaining a meaningful percentage of investment grade sovereign bonds in my investment portfolio. 

So, I would probably end up with more than $1.2m in my CPF accounts by age 65, all else remaining equal.





I am making good use of the CPF to form a cornerstone in my retirement funding strategy. 

This safety net gives me peace of mind.

If AK can do it, so can you!




Related posts:
1. Use CPF savings or cash to pay?
2. How to upsize $100K to $225K?
3. A cornerstone in retirement funding.
Read newspaper article: here.

Retiree regrets selling his flat to help son buy a condo.

Dear AK,

By chance, I got to know some people who are investors and they told me about you. I enjoy reading your blog but I decided to write to you when I read the blog post, How to have children and a comfortable retirement?





I am a 65 year old retiree. I was a school teacher for all my life until I retired. I am a widower and I have a son who is working in the sales line.

I had a HDB 3 room flat but I sold it a few years ago to help my son buy his matrimonial home, a condominium when he said the flat was too small for us to stay together as a family. I now live with my son and his wife.






Apart from what I have in my CPF, I don't have much savings. I don't get any money from my son as he is struggling financially and his wife who is from China is not well educated and cannot speak English well. She says she is not able to find a job but I think it is because she doesn't want to wait at tables or wash dishes.

The times when I talked to my son about selling his car or convincing his wife to find a job were unpleasant. I now avoid talking about money matters with him and I feel his wife is very cold towards me. It does not feel like home. I spend my days outside and only come home to sleep.






I sold my flat and gave the money to my son because I didn't want to stay alone but I regret my decision to sell my flat and to stay with him and his wife.

I want to share a message with all parents that although we should love our children and try to give them the best but, like you said, we should be pragmatic and not deprive ourselves of a comfortable retirement.

I wish someone had told me this earlier but I am not sure if I would have listened.

Sincerely,
Uncle R




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There are quite a few things I can say in response to Uncle R's situation but I shan't rub salt into his wound. Sometimes, we just need a listening ear.

I hope Uncle R will focus on activities that make his golden years meaningful and happy. I hope he will let go of regret and disappointment.

For what it is worth, I suggested that Uncle R read this blog post:
A simple concept to better mental health.





Related post:
I am not suggesting depriving children of necessities. I am suggesting not depriving ourselves of a comfortable retirement! 
- AK in How to have children and a comfortable retirement?