Tuesday, February 28, 2017

How Much Savings Should I Have at 35

How much savings should one have at age 35? I think that is an interesting question that demands a good answer.

I was recently browsing an article when I came across something that caught my attention.

The article was giving a rule of thumb on how much one should have saved at age 35, 45, 55 and 65.

I am not too sure whether I recall the figures correctly but it stated that these were the sums required:
- @ age 35 = 1 times your annual income
- @ age 45 = 3 times your annual income
- @ age 55 = 5 times your annual income
- @ age 65 = 8 times your annual income
Saving in gold bullion perhaps?

What this means is that if you have an annual income of say, $100,000, you should have saved the same amount by age 35. At age 45, you should have saved $300,000 (3 times annual income). And at age 55 and 65, $500,000 and $800,000 respectively. This assumes no income growth.

I am wondering whether this is a realistic sum. I personally think it sounds realistic because assuming the person retires with am annual income of $200,000 , it means that he should have saved $1.6 million. Not very high but definitely a stretched and achievable target.

What do you think?

Sunday, February 26, 2017

Chay Yan Street @ Tiong Bahru

A little late to the scene but I recently discovered the beauty and charm of Tiong Bahru. Lots of hipster cafes have sprouted up over the years in this enclave where old shophouses sit quietly with towering and swanky new condominiums as the backdrop.

I managed to visit Plain Vanilla bakery at Yong Siak Street (which comes right after Chay Yan Street). They are supposed to be famous for their cupcakes and one cost $3.90. Lots of tourist and locals but still managed to find a seat inside a room called "the Workshop". I guess the locals have sort of vacated this area in search of the latest "in-thing" so it was much quieter than I expected even though it was a Sunday afternoon.

When I was walking back to the car, I managed to catch this lovely shot.
Back view of old house with spiral staircase along Chay Yan Street.

Apparently, Chay Yan Street is named after a rubber plantation owner.

Saturday, February 25, 2017

Queries from readers

Just sharing some email queries from readers that I have answered over the years. These queries were sent via email. Have removed names.

==

Hi

I chanced upon your site and would like to ask if the stock dividends is going to be paid out in Dec for example, when should we buy in?

Thanks
XXX
===

Hi XXX,


You have to buy the stock before it is ex-dividend to be entitled to the dividends.  Stocks which are ex-dividend will have XD beside the stock name in SGX website.


If you are talking about dividend capture strategy, then it is more difficult.  I personally find it hard to determine a correct entry point to buy-in to get the dividend/sell at a profit larger than what the dividend would have been.  If you are buying a stock for the dividends, I guess it does not really matter when you buy in.  Of course, some basic Technical Analysis might help in the long run.


Regards,

FF

===

Hi FF

Thanks for your email.

So if I spot that there is a ex-dividend stock, and if I buy in, will I be entitled to the dividends? Or would it already be too late?

Thanks
XXX

==
Hi XXX,


It will be too late by the time it is shown as XD

Wednesday, February 22, 2017

Budget 2017 - Housing Grants for HDB

A good snapshot of the housing grant changes announced in Budget 2017 by Finance Minister Heng Swee Keat.

(Source: HDB)


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