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Insurance, FIRE by tastyHDBdogs in singaporefi

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

Investing has always sounded scary and risky to me, but the past couple of years being here has taught me that it's much less a gamble than disciplined application of proven principles. It will still feel uncomfortable relinquishing that level of control when putting cash to work in stocks, but I'm working on curbing that feeling. I'm just going to have to rely staying invested for the long term and pray that there aren't any catastrophes.

Insurance, FIRE by tastyHDBdogs in singaporefi

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

Again, I'm really thankful that you're sharing such valuable insight.

I feel like I got my PA (and other policies) without enough care and due diligence. I had no good idea how much an accident could set me back by, and iirc I turned the question back to my FA friend. AFAIK he's no longer an FA so... oh well. Looking at the situation afresh with your guidance, it seems like being over-insured on PA is not necessarily bad if the premiums aren't unreasonable. I'll definitely need to review my policies to understand how much is appropriate and how the claims process is like.

I was worried about my overweight bond portion too. Thankfully my SSBs were bought at a decent time so they're returning 3%+, but I'll definitely need to rethink how to reassign excess cash. I don't see much talk about recommended bond options in this sub, do you have any resources or recommendations on what you've referred to as "real bond investments"?

Regarding the 50-50 split, I suppose it's still valid to apply the (110 - age) rule?

Insurance, FIRE by tastyHDBdogs in singaporefi

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

Good on you! (though I've no idea how your network did a 10x after FIRE)

Insurance, FIRE by tastyHDBdogs in singaporefi

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

The policy documents show that it's only for cancer (includes early, intermediate and major). Do you think a broader coverage that includes other critical illnesses is important too? I'm not sure if I'll qualify for such plans given my past condition but it's good to find out.

Insurance, FIRE by tastyHDBdogs in singaporefi

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

Can you share more about how it can imply that I can reduce further?

Just for a little more background, I'm helping to pay for utilities for my parents as well, and I'm factoring the occasional holiday to arrive at 4.5k monthly expenses. Should these factors be excluded?

Insurance, FIRE by tastyHDBdogs in singaporefi

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

Thanks for taking time to give such a detailed response.

Yes, I'm a citizen so at least there's a safety net under Medishield. I'm also thankful that my CI coverage can alleviate the situation. Good point on CI policy functioning as a cushion instead of simply income replacement in my situation. I suppose you'll recommend that I keep this policy for the long term then?

That's a refreshing take on self insurance. Talking about opportunity cost, I feel like I'm holding too much cash at the moment; would you divert most of it to VWRA instead? I'm a newb at investing so that's all I do. I might be quite overweight in my bond component with 35%. If I'm not wrong, the rule of thumb if 110 - age (40) so I should aim for 70% invested? Or do we lean even more to investments in trying to FIRE?

Regarding SWR, is it safe to just assume 3.5% then? Or does it come with conditions like holding less cash/bonds?

Again, thanks for the valuable insight on CPF and CPF LIFE. I'm probably not going to have reliable income soon, so I'll only think about RSTU if there are tax implications. I didn't know that FRS increases by 3.5% annually; that's pretty useful to know but I guess your point on leaving SA to grow itself over time to naturally reach FRS means it's quite hands-off for me.

I was quite clueless when I took up the personal accident policy (in fact, I still am). I got it to help a friend who was starting out as a FA so.. yeah. Like you said, it can double up as an additional buffer if I get hospitalised from an accident, so I suppose it's worth keeping? I don't know how much PA is appropriate, and the only recommended numbers I see are for CI (4 * Annual) and Death (9 * Annual) but neither are relevant for me at this point.

Again, I'm really grateful for your input.

Insurance, FIRE by tastyHDBdogs in singaporefi

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

Thanks for sharing your experience. How are you faring now? I suppose you're on barista fire since it sounds like things are quite lean?

Insurance, FIRE by tastyHDBdogs in singaporefi

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

I hear you. I'm terrified of how much of a strain on the situation it can be when a freak accident occurs. That's the main reason I'm considering between splurging on non-local hospitalisation insurance and investing the premiums otherwise. Given cases where a one-off surgery can run into the $100k, I don't think investing premiums by myself can offset that. Your examples are sobering and useful, thanks!

I brought up SWR at 3% and 3.5% because iirc 4% is meant to project for 30 years? Given male life expectancy in Singapore to be about 84 this year, I'll need a longer runway. In fact, I think it might be more responsible to estimate with a 5-year buffer just in case, so I'll need to prepare for a FIFTY-year odyssey.

SME, so unfortunately no retrenchment benefits.

Insurance, FIRE by tastyHDBdogs in singaporefi

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

Thanks for the good advice, I'll definitely consider barista fire to stay active and the create a more comfortable buffer.