Free "e-book": Retiring before 60 is not a dream.

AK is a lazy fellow who is always thinking about retiring and how he doesn't want to have to work for money. 

So, when AK read a recent article on how most fellow Singaporeans who want to retire before age 60 are unable to do so, the blogging bug bit him.





The article appeared in CNA and in summary:

1. 
54% of Singaporeans would like to retire before 60 years old. Only 36% believe they are able to.

2. 
48% believe that they will have less than $2,000 a month at 60 years old.

3. 
More than 90% have savings.

4. 
56% have started to save for retirement.

Read the article here:
http://www.channelnewsasia.com/news/singapore/many-s-poreans-doubt-they/1122962.html




I believe more than half of the respondents have taken the very important first step and that is to save money for retirement. 

However, nowhere in the article was the word "investment" mentioned. 

There was also no mention of how we could use tools available to us to help grow our funds for retirement. 

Give us enough information to worry us but not give us the solutions? 

Read the article and see if you can find the reason why.

Anyway, as this is a topic I have blogged about frequently, I decided to put together what could be 6 chapters in an e-book which could be useful to anyone who might be interested.

Chapter 1.
Be prudent when it comes to expenses, especially the big ticket items. 

Do we need to stay in a condominium? 

Do we need that car? 

Do we need to send our children to universities overseas? 

We could seriously boost our efforts to save for retirement by having our feet firmly planted on the ground.

Read: Why a wealthy nation cannot afford to retire?




Chapter 2.

If we are saving specifically for retirement, use the SRS. 

Many people I know still do not believe in the SRS. 

I don't understand why.

Spend less than you make; always be saving something. Put it into a tax-deferred account. Over time, it will begin to amount to something. This is such a no-brainer. Charlie Munger.

Read: A brief analysis of the SRS.






Chapter 3.
Time is required for compounding to do its magic.

I still believe that the CPF-SA is a relevant tool and that we should let time help us meet the minimum sum required. 

There are quite a few examples of people who have done this. 

It works.

Read: Securing risk free returns early for retirement.




Chapter 4.
Don't hold on to too much cash. 

We should put aside a meaningful sum of money every month as we save towards retirement but just leaving the money in a savings account is not a good idea. 

Inflation and paltry interest rates mean that our savings will shrink in real value.

Read: Have huge amount of savings and work till 70?






Chapter 5.

Get rich slowly and retire a millionaire. 

Put aside an emergency fund and invest the rest of our savings. 

Never depend on single income. Make investment to create a second source. Warren Buffett. 

Invest for income and that is what I have been doing.

Read: Retiring a millionaire is not a dream.




Chapter 6.
As we save money and build wealth for retirement, we should not forget to also protect our wealth.

Read: Millionaire or not, plan for retirement.

Unless severely disadvantaged, if we do the right things, there is no reason why we would not have enough money to retire comfortably in Singapore. 

We can do it!
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You might also be interested in:
How to upsize $100K to $225K in 20 years?
(Published in August 2014)
An update on AK's CPF-SA.
(Published in January 2016)

Saizen REIT: Rewarding patient investors.

Today, a reader asked me at what price would I sell my investment in Saizen REIT. It was a difficult question for me to answer because I don't really have any intention to sell my investment in the REIT. Well, at least not now. For reasons I have shared before, I believe that this REIT is a sturdy investment for income.

A small apartment: 452 square feet in area.

Of course, I could consider selling if the valuation starts to look rich. However, with its current NAV/unit at $1.17, even at the high of 98c a unit touched today, Saizen REIT's units still look inexpensive. So, do I think that unit price will continue to go higher? I really do not know whether prices will continue to climb a wall of worries but I do know the value backing each unit.

I am also reasonably sure that the REIT will continue to do well, operationally and financially. Operationally, the REIT has a very good track record. Financially, its balance sheet is strong and with its loans being amortising in nature, everything else remaining equal, it will only become stronger.

Developments in Japan suggest that real estate in the country will do much better and Saizen REIT is a natural beneficiary. I would like to share a couple of articles here which I read in recent days:

"House prices are expected to continue rising in 2014, given that the government is expected to inject an additional stimulus package in the second half of this year. Moreover, Tokyo’s successful bid to host the 2020 Summer Olympics is expected to boost property demand and the construction sector over the next 7 years." Read article: here.

"The top five property markets in 2014 are Japan's Tokyo, China's Shanghai, Indonesia's Jakarta, Philippines' Manila and Australia's Sydney, PwC found.

"PwC said a huge spike in demand for Japanese property had propelled Tokyo to the top spot, following a five-year absence from the top rankings. The sudden increase in popularity is due to the government's radical economic stimulus plan, which has resulted in a flurry of purchases in anticipation of higher prices, PwC said.

"As well as Tokyo, secondary cities in Japan, including Osaka, Fukuoka and Sapporo are also proving popular." Read article: here.

Saizen REIT has almost 140 residential buildings in Japan. Out of these, 4 are in Tokyo, 11 are in Fukuoka and 35 are in Sapporo. Buying any of these buildings is likely to make a better investment than buying an investment property in Singapore now. However, the good news is that we do not have to raise funds to buy an entire building, we could own a share by being unit holders in Saizen REIT.

I believe that things are increasingly looking up for Saizen REIT and investors with enough patience will be rewarded in due course.

Related post:
Saizen REIT: Undervalued and possibly more so.