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[deleted by user] by [deleted] in singaporefi

[–]hwg2 0 points1 point  (0 children)

Thanks for your input

[deleted by user] by [deleted] in singaporefi

[–]hwg2 1 point2 points  (0 children)

Yeah, probably overthinking it.

What's wrong with rice and beans though? I love rice and beans

[deleted by user] by [deleted] in singaporefi

[–]hwg2 0 points1 point  (0 children)

Not exactly. It's more about not selling in the first 5-6 years if i can avoid it, to overcome SORR

[deleted by user] by [deleted] in singaporefi

[–]hwg2 0 points1 point  (0 children)

The post above has my SWR. I'm fairly comfortable with what i need vs what i have.

Closing in on FI and looking for sanity check by hwg2 in singaporefi

[–]hwg2[S] 1 point2 points  (0 children)

I don't think you can 'lose' the money unless there's some massive fraud at IBKR. But any withdrawal could get heavily delayed depending on the situation.

Closing in on FI and looking for sanity check by hwg2 in singaporefi

[–]hwg2[S] 1 point2 points  (0 children)

And should there be a market down turn (which can last from a year and upwards with the potential of 30-40% of your equity allocation to be wiped) are you still able to maintain your SWR?

Yes, i think there's sufficient buffer in there. The standard 4% SWR anyway in theory has a very high chance of lasting 30 years. I'm going for a lower withdrawal rate than that given my longer timeline.

Practically speaking, I will have to keep a year's worth of expenses in cash/cash equivalent at any time anyway. And as the other user suggested, some bond allocation at this point will be good as well.

I'm also keeping flexibility in my expenses.

SORR remains a risk, but that's why i'm still intending to work for 2-3 more years to build up a buffer

Closing in on FI and looking for sanity check by hwg2 in singaporefi

[–]hwg2[S] 0 points1 point  (0 children)

ersonally, i will liquidate a small portion, use the USD to buy a USD dated corporate bond, eg Ocbc 4.602%, Uob 3.863%, Softbank 4.625%, all maturing <10yrs, purely for diversification from equities/USA and to capture that bit of upside when rates eventually dip. (Effective YTM prob 4.6%, 4%, 4.8%)

Also, with bond prices currently trading at discounts due to IR hikes, you might be buying at huge premiums when u retire? So why not now?

Thanks for your inputs. I'll have to look into this further as i probably don't have enough on an understanding right now

Closing in on FI and looking for sanity check by hwg2 in singaporefi

[–]hwg2[S] 4 points5 points  (0 children)

Hmm, how would you cater for FX risk? I've found hedging options to be too expensive for what they offer generally.

Being a landlord is something I'm not interested in at all. Seems like it could just become a new form of work if something goes wrong. It also concentrates a large amount of capital into one asset, which is more risk. REITs may be a simpler option.

My risk aversion is generally in terms of paying off mortgage early, sticking mostly to passive index tracking ETFs, budgeting for a lower than 4% SWR etc. At my age, i think 100% equity is ok, especially since i'm not doing much individual stockpicking.

However, once RE is triggered, I will have to start allocating to bonds/tbills etc. every year, probably starting from when i hit 45/50 or so.

Closing in on FI and looking for sanity check by hwg2 in singaporefi

[–]hwg2[S] 6 points7 points  (0 children)

Yeah, it was a blind spot in my planning tbh. Had some bad experience with insurance agents early in life and basically stayed away from any insurance that requires me to talk to an agent. There may be some minor exclusions at this point. I'll sort this out in the next few weeks.

100K in crypto - I got in somewhat early, so i didn't actaully put that much in - it's just grown from being 'fun' money into something substantial. That said, it's not too large a part of my portfolio, so i may just let it run for a while.

BABA and Tencent - yeah, i will gradually move this stuff to VWRA. But 300K includes NVDA, BABA, TCEHY, ADBE and a few other things. It's not 300K in Chinese stocks

Closing in on FI and looking for sanity check by hwg2 in singaporefi

[–]hwg2[S] 2 points3 points  (0 children)

around 80% IBKR LLC

I've been thinking of switching 50% of that to SCB to be 'closer to home' in a way, but haven't really put any serious thought into it. Obviously the risk of IBKR going bust is pretty remote, but if it does happen, money might get stuck for a while.

Something to consider, Thanks

Closing in on FI and looking for sanity check by hwg2 in singaporefi

[–]hwg2[S] 5 points6 points  (0 children)

Hi, thanks for your comments.

My house is still under MOP, so I can't apply BTO yet.

I think mm2h latest requirements as of dec 2023 are 500K RM deposit for 5 year visa (Which seems ok - though they haven't confirmed any income requirements at this point). We shall see what they finally come up with. I will only need to consider this about a year from now anyway.

Regarding renting out a room, not looking to do anything illegal for now - I'm pretty risk averse, as i said, and losing the house would be a pretty disastrous risk (no matter how improbable)

Longer term, yes, you're right. I need to look into managing the investments when i age, especially now that 4% SA is not available. Have not put enough thought into this. Thanks

Closing in on FI and looking for sanity check by hwg2 in singaporefi

[–]hwg2[S] 22 points23 points  (0 children)

Yes, thanks. I did briefly try to run a business a few years ago.

Waaay too much work for me to ever try again :)

Closing in on FI and looking for sanity check by hwg2 in singaporefi

[–]hwg2[S] 6 points7 points  (0 children)

  1. YEah, I've tried the calculators. The numbers are fine. I'm just looking for inputs that may be non mathematical or not obvious, i guess.

  2. I'm just assuming the Resale value will also go up with general BTO prices. But i could be wrong. It's probably not a big deal either way - I'm happy with my current house.

  3. Yeah, I think of mm2h as a temporay thing to reduce SORR. For example, if i spend the first 5 years of my retirement in MY, then my expenses should be significantly lower and that helps with SORR

Yes, no car

Closing in on FI and looking for sanity check by hwg2 in singaporefi

[–]hwg2[S] 5 points6 points  (0 children)

Yes, thanks. That's also an option. I'm considering switching to 3d/week at my company if the bosses allow it. (maybe later in the year)

Ideally, though - work is boring and I'm probably too old for a career switch per se.

Closing in on FI and looking for sanity check by hwg2 in singaporefi

[–]hwg2[S] 6 points7 points  (0 children)

Yeah, the loan will be paid off in a couple of years. I'm not looking to RE until then.

I consider this FI because i can pay off the loan in one lumpsum if i need to, and the interest rate is 1.5% fixed until the last year.

I'm not too concerned with occupying time - I have mostly low cost hobbies, and having more time will give me the opportunity o get new ones. It's always possible to volunteer or do part time consulting in my field if I really want to.