Category: Planning your Retirement
The Truth about our Early Retirement in Bali
Harvey 0 Comments Planning your Retirement Retire Wealthy & Wise Retiree Tips and Tricks
at one point or another we've all dreamed about
what life could be like if we could spend our time doing whatever we want whenever we want
maybe it's vacationing to all sorts of exotic places maybe it's lying around on the beach
all day reading perhaps we'll finally pick up that hobby we've always admired for many
of us that sort of Freedom happens when we Achieve Financial Independence and retire and
that's exactly what we did I'm Jean that's my husband Vitali we're in our late 30s and in July
2021 we retired to Bali Indonesia we get a lot of people questioning our early retirement with
comments like you're too young to retire isn't it boring but the truth of our lives in Bali
could not be further from what people think our retirement lives alike so today I thought I'll
show you the raw and real deal with us here in Bali by taking you through a typical week in
our lives here I want to give you an honest standing of the alternative lifestyle we've
designed for ourselves at a relatively young age so you can consider how you are designing
and planning your own life your own retirement the options you truly have at your disposal
and what really might be the best fit for you hello most days here in Bali starts slow and
easy we wake up early have morning tea quiet time maybe a little meditation or journaling and
we check the self conditions actually to maximize each day's potential usually the night before
I would have already planned off the to-do list and the structure for today's activities and now
looking at the surf forecast now it's too high for surfing in the morning so that I'll just have
to wait till later today in the meantime this is a great moment to head over to our Pasa
to pick up some fresh supplies so let's go the meat and chicken ladies closed shop by 10 30
am so it's best to hustle over there early [Music] a lot of our freedom retirement life here in Bali
is also eating well and staying healthy and after more than a year of living here we've actually
settled into the pattern of trying to have at least one home-cooked meal a day we absolutely
love eating out and eating local here in Bali especially street food like this what did you
buy I buy Mullen right banana so everything obviously it can also be really calorific
and high cholesterol home cooking gives us the freedom to go more plant-based or
alternatively for Vitali to enjoy creating his barbecue Delights very conflicting I know but
really food is one of the main joys of life no so we've got fruits and vegetables and meat
for us and bones for the doggy so now it's time to go back off home but first we make
another stop [Music] yeah so the pastries here are really really good so we come here quite
often to pick up something quick for breakfast so we don't actually work any kind of salary
employment or do any business here in Bali instead our living costs here are covered by a
modest amount of monthly passive income hence our categorization as technically retired
if you're interested in the financial side of things to our life here we actually made
two videos about it so once about our monthly living costs here and the other one is about
how we actually reached retirement I'll link them down in the description below if you want to
check them out anyway so the beauty of our setup here is that our time is actually free from the
constraints of having to make money for survival and we get to choose what to keep busy with and
it's completely not about lazing around every day doing nothing that gets old really fast it's
an amazing feeling to you know keep busy and be productive every day with stuff that you actually
truly believe in and one of these things for us is the weekly Youtube upload commitment so Vitaly
and I started this channel like over two years ago and for the longest time now it's been
one video every week every Saturday and sometimes it's about what we do here
in Bali like a little live update and sometimes it's about some thoughts
that I'd like to share with you guys we are starting work on a brand new video this
week so right now it's going to be script writing for me for the next two to three hours I usually
work way in advance so I already have my idea all set up I just have to articulate my thoughts
around it and think about how to execute the shoot whilst I'm doing this Vitali is often on his
guitar or busy with his other responsibilities he's often managing our rental properties
and solving small issues that crop out with the tenants here and there remotely from Bali he
also spends a lot of time learning new technical stuff on YouTube and skillshare because that's
his areas of Interest photography videography Etc right now with the tide dropping it's just
about the right time for us to start heading over to the surf so it's time to pick up Bali
is our Dream Paradise particularly post Italy and I both love surfing and it's a luxury to
live in a place with quality ways like Bali has and we try to get as much of it as possible
if not every day then every other day at least okay super nice there are some ways available
we're gonna suit up and head in the thing is kind of our daily sport but it's also
actually something we really love so to us surfing is not just about exercise
it's kind of like an art and both Vitaly and I want to progress in it it does take
up a considerable amount of time though between traveling to the spot checking
for good conditions surfing getting a coconut to rehydrate driving back showering off
that's at least three plus hours of each day foreign [Music] all right now so it's a couple of days later
I've returned a halfway decent script after a few rewrites that I'm actually happy to
go shoot with so today is lights camera and action this usually takes a couple
of hours or so depending on the type of video and I need to look tidy so usually
shoot days are never surf days instead we usually couple it with errands that we have
to run there's always stuff each week that requires us to venture a bit further out of
our quiet Village Life into more civilization right so now we are at the Bali art supply
store it's actually a great little place for arts and crafts Hobbies you know if
you need supplies they have got a lot of things especially for watercolors
acrylics all sorts of painting really we've got a lot of really great stuff here but
they actually also sell this stuff off tokopedia right okay so now we're done here and it's off
to the next stop this is one of bali's home renovation Mega stores our bathroom tiles need
replacing so we checked out some options [Music] on the way home this is one of
our favorite stops for lunch so I'm not having rice today but
this is what I've got another nicely Nasi champor is like the best deal here ever of
living here in Bali or in Indonesia in general I mean it's cheap it's always tasty and you know
you get to choose what you want to have it's like really easy to go vegetarian or like just cut
out the meat and yeah super awesome after if I'm feeling energetic and in the flow I'll set up the
easel and go outing for a little bit good morning so now the shoot's all done and for this next
few days it's just going to be production time editing color grading adding music usually takes about three to four hours
each day until the video is done so we love living close to bali's Nature
it's one of the biggest privileges of being here in Bali so we keep the house as open
as we can most of the time but that also means it gets really really dusty plus
doggy runs in and out as she pleases so we do have to clean every day there's a lot of
upkeep required for the house and the garden so living like this also means we can take
rest whenever we need and usually this is just taking a day out of our normal swing of
things where we can just unplug and stop going Sam Dogan also known as the financial Samurai
turned living like this fake retirement he himself stopped working full time since 2012 but after a
year of the traditional doing nothing retirement he got bored and he went back to keeping busy with
his family his Finance website writing books and managing his Investments including investments
into art through platforms like today's video sponsor Masterworks if you two are retired or
planning for that Investments invariably form part of the picture in the U.S most Americans
now believe they need 1.25 million US dollars to retire comfortably a good 20 up from last year
traditional investing has been far from enough with the stock Bond portfolio that Millions rely
on down 34 this year if you're worried know that historically in times like these professional
investors seek out real assets because they can still deliver gains and help fight inflation not
just oil gold or real estate but also Fine Art while stocks and bonds are going down the average
artwork is selling at auction for 26 more than this time last year outside of 2022 investing
in art has outpaced the S P 500 over the last 26 years by 131 obviously for most of us investing in
art has always been a tad Out Of Reach I certainly can't spend three million dollars on a painting
but luckily there's Masterworks Masterworks allows us to invest in multi-million dollar
artwork high-class paintings from legendary artists like Picasso and Banksy for a fraction of
the cost in 7 out of eight sales Masterworks has delivered over 17 net returns to their investors
over 550 000 people have signed for Masterworks and as the economy tumbles there's a growing
wait list but my subscribers can get Priority Access using the link in the description people
have pushed back saying that living like this isn't truly retired since we're still doing
some sort of work and getting money in return I disagree I think the point of our retirement is
not that we can sit around and do nothing all day long but that we have the freedom to choose
what to visit ourselves with and if some of those Pursuits happen to bring in extra money
it's not a necessity but it is a nice bonus the point of our little body life is we chose an
alternative lifestyle design we chose to content ourselves with a simpler more economical life
here one that may even seem perhaps a little poor or name to some people but it allows us the
freedom to pursue what we believe in to learn new things and to live each day slowly with gratitude
and spend time with the people we love every day because these are the things I won't want
to miss out on or defer to much later in life because having all the free time in the
world will be pointless without all these I've always wondered if the traditional retirement
that Society paddles to us is a bit of a mirage an endless and aimless vacay gets old pretty quickly
for many people and Truth yet that is the very same picture of traditional retirement that's
painted for most of us to hold in our Mind's Eye whilst We Trust through layers of toil and
endure unfulfilling work to reach that Promised Land then sadly the reality of traditional
retirement pans out differently for many people these same people who spend most of their
lives working so beautifully and will have been conditioned to live their life around work as
their dominant priority they never took time off to develop themselves or develop other interests
outside of work work was all they need work had become their identity their purpose in life and
their social network and in retirement these very same people often seem to become lost lonely blue
some even find a way back into a retirement job personally I thought the whole thing looked a
little bit like a sub-optimal trade-off and a lousy lifestyle design after all you can never
get that lost time in your life back can you I'm just so grateful that Italia and I achieved
this together earlier rather than later in our lives and there are fake retirement in Bali
is as productive and meaningful as it is to us I will forever want to be spending our lives
this way this is a life I will never want to retire from in the traditional center of the
world I've learned that it is a misconception to drive towards unlimited Freedom with our time it's
really what we do with our free time that counts if you're still striving out there you may wish
to consider redesigning your own life to optimize it to serve you better in the long run I believe
that by making more conscious choices about how we want to use the time in our life and how we
truly want to live we don't need to wait until retirement to live closer to our true selves
we are all definitely different people with different perspectives and priorities so so I know
my choice may not always be the same as what you will achieve but I'll be very interested to know
what you think of our design for life and your ideal plans for your retirement so let me know
in the comments below I would love to hear it thank you so much for watching today's video
and I guess I will see you next Saturday bye [Music]
What Do You Do With Yourself After Retirement? – Dr. Devi Shetty with Sadhguru
Harvey 0 Comments Planning your Retirement Retire Wealthy & Wise Retiree Tips and Tricks
Devi Shetty: Sadhguru, I am constantly torn between my senior colleagues, who are extremely skilled surgeons. Sadhguru, the… on the heart there are some procedures, which are done by very few people on this planet. I’ll give an example – I do an operation called pulmonary endarterectomy that’s the blood clots from the leg goes to the lung arteries and it clogs up all the arteries. So twenty… twenty-five years ago there was no cure for this. And once you are diagnosed, you are destined to die within a year. Today people who are on home oxygen for two years, three years you do the operation they can go back to skydiving or they can go to scuba diving. That’s the transformative effect but there are only fifty surgeons less than fifty surgeons in this world who can operate. And like this we have some of my colleagues who are extremely gifted surgeons. They are in their fifties now.
And some of them are constantly talking about retirement. Especially one surgeon he is a extremely gifted surgeon who can fix any damaged valve. He is single, he has no other commitments every other day he talks about going to Banaras or somewhere and retire and I keep telling him that God didn’t create him to retire and meditate. He has to be fixing all these problems So he gives me extension every six months Guruji. So at the end of six months the usual rigmarole starts, he talks about retirement and everybody is depressed in the hospital. So how do you deal with this kind of people? Sadhguru: You must you must give him a one year sabbatical with me Yes, because the need or the idea of retirement enters anybody’s mind because of the monotony of what they’re doing, whatever it may be. Somebody else may think it's a great thing but in your experience somewhere it's becoming monotonous or stagnant. Stagnation is one thing that human intelligence and human system cannot take. And most of the ailments are because of stagnation stagnation of life.
They may be… they may be getting their you know once in three years promotion. They may be making little more money. All these things may be happening but somewhere experientially there’s a stagnation, which could be a major cause for many of the complex ailments that people manufacture within their systems. The more complex they get you try to create more talented surgeons. I am saying we are manufacturing the problems, we are trying to manufacture a solution. I think as we offer solutions people who have adl… already gotten into problems, they need solutions. But it's very important that we teach people how not to create these problems, so that instead of fifty, you have to produce five thousand expert surgeons to attend to all these people who are on self-help to illness. So I would say a surgeon who is who has a certain competence and who has worked through his life, if he wants to explore something of his own nature, that will be the greatest thing to do because he is not a man without commitment nor competence.
When competence and commitment is there, you should not run him through the rig ram role (rigmarole?) and destroy that possibility. It’s important that he explores something of his own nature, which will make him We don't know what he’ll come up with. You cannot even estimate what he may come up with. I think a sabbatical is good. He may come up with something that you have not thought possible. Devi Shetty: I will… I will convey your message Sadhguru. I am sure he is watching this program.
Read MoreHow I retired at 38 to live in Bali – 5 Money Concepts that helped me get there faster
Harvey 0 Comments Planning your Retirement Retire Wealthy & Wise Retiree Tips and Tricks
Hi, I’m Jean. At the age of 38 years old,
I retired and moved with my husband to the island of our dreams, Bali. Our passive income
covers the relatively modest living costs here, so we don’t need to work a 9-5 or any kind
of salaried employment, but we keep busy with stuff that’s meaningful to us. Surf,
painting, music, Bali dogs, making videos … For the friends who have been
with us from some time back, you’ll know my back story but for those who don’t… once upon a time I was an unhappy Big Law
corporate lawyer and after almost 7 years I quit and got off that hamster wheel.
If you wanna
check out the details behind that here it is. So many of you have been curious about how did
I go from then to our present life in Bali. There are so many misconceptions, like people
thinking I quit law and to replace my lawyer’s income I did YouTube – that’s absolutely not
the case – and people thinking that between me quitting and us ending up here in Bali, being able
to live simply but comfortably without working, was a quick and easy transition –
again, no it took us years to get here. The early retirement formula is generic,
isn’t it? Make more money than you spend, then grow your wealth to hit the
target retirement income you need. In my case, we didn’t actually make big money, but because our target retirement
income goal is so modest, with planning and discipline, we still managed to
make it happen within a matter of about 4 years. So how did I make money? Well, after I quit, I
didn’t have significant savings and I needed to replace my lost income.
My dream was to live on
a beach somewhere, surfing, so I quit my big law job. But all my official livelihood skills, law,
compliance, blah blah has zero relevance to my new direction. So, to get to my dream life, I moved
somewhere cheap to live – Vietnam, and I started re-skilling myself. I spent a couple of months
training, took exams and got certified as a surf instructor. The day after I got my cert, I walked
down the beach where all the surf schools were, and – I remember this so clearly – 26 rejections
later, I got my first job as an in house surf instructor at a nice resort. Yay – my first
new alternative income stream in my new life! So of course, the pay is peanuts compared to
my lawyer’s salary, but fortunately the living costs in Vietnam was so affordable that it was
still easy to live comfortably.
I spent the next 5 years traveling Asia, surfing, teaching, and
picking up more skills and certifications. Yoga, zumba, personal training… I taught language
classes. I did freelance remote legal and compliance work assignments. I worked part time
as a guest relations manager at a high end resort. Along the way, I started 4 businesses. I sold bean
bags, I sold luxury Brazilian swimwear, I started a yoga studio…. Heck, in between when I had to
return to Singapore for some time for personal reasons I even went back to a corporate stint for
a while. Finally, after I met and married Vitaly, we started the 4th business together, a
boutique surf school in Vietnam that did quite well. The starting years were slow going
but with time, momentum really picked up. What about spending and expenditure? From the moment I quit the law, I knew I had a
long road ahead, so I reduced my expenditure to only basics and essentials & switched into
full on savings mode.
If you’ve tried it, it’s just so immediately clear that society’s
just been peddling us the wrong message all our lives – things clearly don’t bring happiness, it
is great experiences that make for a good life. Ain’t nobody got time for fancy clothes and
branded things when there was good surf and adventures to be had. And living light
and minimally means spending very little, which means any extra money can
be saved, and put to investment. Vitaly’s and my happiest times was always
when we spent summers in Bali surfing, so then it became our dream to live in Bali
permanently.
But it was hard to abandon an already profitable business in Vietnam and we didn’t
want to have to take up 9-5 jobs to be in Bali. We aren’t ready now as rookies to start new
businesses in Bali that would require deeper capital injections with the uncertainty of
return as well. So then it seemed the answer is to try to get enough passive income so
we can start life here without much risk. We knew from experience that our
monthly living costs in Bali would be about 1,500 to 2000 dollars – if you wanna
check that out in more detail go here.
So $2000 became the target to hit. With that
in mind, we committed to saving and building wealth in a variety of ways. We’re no financial
wizards, but we both have a conservative stocks portfolio – mine is mostly US growth stocks,
some cryptocurrency – I personally find that very volatile so its only a very small fraction
of my holdings, and finally, rental property. It came as a surprise to us
ourselves, but within about 4 years we actually reached our goal for passive
income. Maybe that’s not surprising to you, given how modest our goal was, but for me
it was a total surprise! At the same time, the pandemic meant that our business in Vietnam
had came to a halt, so there wasn’t anything holding us back anymore from acting on our
dream and moving to Bali so… here we are! With all that said, if you were to
take something away from our story, I hope it would be the following
realizations about money and retirement.
First, if you want to do something similar,
I think the most important thing is to first have a specific and realistic plan and
understand the money you need to achieve that. Having a specific target gives you
a number to work backwards from and this was absolutely crucial in us reaching
this target within only a matter of years, as opposed to grinding away indefinitely,
chasing an undefined point in the future. We’ve all have been so groomed by society to
have this guilt complex about not working, we feel bad if we’re not constantly striving,
but if you don’t set an actual reachable point, you might never move from the striving part to
the part where you actually retire and enjoy life.
Second is to understand that the power of each of
your daily little actions and choices compounds to something amazing over time, and to use that
in building your wealth to achieve your dreams. So living a minimalist lifestyle comes pretty
easily to me and Vitaly – we’ve built our lives around activities we love as opposed to
accumulating things which we can’t carry around with us anyway whenever we travel.
We’re easily contented with great food and comfortable lodgings, even if it isn’t posh or
luxurious. And we’re quiet introverted people, so we usually live away from cities, which also
means we’re not constantly being bombarded with advertisements and temptations of “You only live
once!” and “buy that so you can be happier”. I know it can be challenging, especially if
you live in fast paced urban settings and you’re a big fan of social media.
There’s always pressure to spend. Temptation is always there to impress others
with your success or …. keep up with the Joneses, or grab that takeout because you don’t
have the time to cook your own meals. But the next time you’re reaching
for an overpriced Starbucks latte, or more clothes you don’t need, or that
branded watch to add to your collection, you might wanna pause to consider whether the
instant gratification of those purchases is worth you delaying reaching your dream life by another
couple of hours, or days, perhaps even years? This is the eternal struggle right?
Constantly having to choose between instant gratification vs attaining FIRE –
financial independence early retirement.
Third is to make good money by
working smart for sufficient value. This whole model only really works if you are
able to generate income sufficiently in excess of your expenditure so you can save and invest
and accumulate and compound quickly enough. If your sole income stream is working a low
hourly wage job its going to take a long time before you get anywhere. I personally believe that
we all need to create multiple income streams in today’s world, if only to hedge against job loss.
And whatever you choose to do, work hard but work smart too. Make sure its something in demand by
others, do it well, and get paid well for it. When we ran our business, we actually
charged more money than our competitors, but we provided far better quality, and
people were always happy to come to us. Instead of just being a yoga instructor
teaching classes, I created a brand and registered a yoga business myself, which meant
I could harness other instructors and canvass for big events and projects etc. and bring in
revenue on a bigger scale. You get the idea.
Fourth is to educate yourself
on financial management. I never learnt about managing money and
growing wealth whilst I was lawyering away, cos I was too busy and my fat paycheck every
month made me think I don’t need to grow my wealth in other ways, cos heck, I make good
money! But then that means once I quit my job, my only income stream, my salary, was lost and
there was nothing else other than that. Not great. We all need to know about money. How to make it,
how to manage it advantageously, how to grow it. Even if you love your job and want to
work at it forever, there’s no telling one day you may lose it. So we all need
to know this, and its shocking that they don’t teach this at school and you have to
learn it yourself on your own initiative. Books are great as a starting point to learn about
managing money and growing wealth.
Financial news, world current affairs and stock market
developments affect your investment portfolio so you must react accordingly, or at least it’ll
just help you avoid scams out there. There’s many amazing Youtube channels out there that
discuss personal finances and investments which I myself keep up with and find really useful….
I’ll leave some of the books and Youtube channels on finance which I like down in the description
below, if you’re interested to check them out. Knowledge is power, in this case, the power
to help you reach your dream of retirement faster. Five is that our story in particular couldn’t
have been possible without the advantages of what they call geoarbitrage,
or international arbitrage, the concept very clearly summarized in the
following quote by Tim Ferriss’ – Fun things happen when you earn dollars, live
on pesos, and compensate in rupees.” This wasn’t an intentional part of our
retirement plan but it certainly was a huge advantage in speeding up our
journey to reach financial freedom. But arbitrage is simply the concept of taking
advantage of different prices in different markets – it doesn’t necessarily mean you must
uproot your entire life to live overseas if you don’t want to.
It could be as simple as simply
changing neighborhood in the same city or moving from city to suburbs to lower rent &
grocery costs, sometimes even local taxes. I hope my story has given you some food for
thought and hopefully some inspiration regarding your own personal hopes and dreams. All of us are
so different, and we all have our own dreams and amazing life visions to pursue. I hope what
I shared today can help you a little more in getting there. And remember that, whichever
chapter of your life story you’re in currently, don’t forget to enjoy the journey whilst
you’re working your way towards your goals. Thank you so much for watching and for all your support. If you liked this video
do subscribe to join our community and stay tuned for more of my thoughts on
life in bali, early retirement and more. Speak to you next Saturday, bye!
6 Retirement Essentials (Most people only prepared 2 or 3)
Harvey 0 Comments Planning your Retirement Retire Wealthy & Wise Retiree Tips and Tricks
I'm planning for retirement most people focus
mostly on marshaling together enough money you know Financial Resources so that they can last
the distance and then maybe at the back of their heads they have some vague plan right perhaps
two or three things to fill the time with a lot of the times this is stuff like travel family
well unfortunately I'm gonna say that's not quite nearly enough for Preparation we ourselves
have been retired for two years and going looking back on the past two years I kind of see like
six essential things that if you prep for it beforehand before your retirement starts I think
this can really make such a positive difference to your retirement so that's what I wanted
to bring up and discuss with you guys today number one first and foremost of course we have
to talk about money most people's concern is the amount of money that they have in retirement
whether it will last them till the end come comfortably and allow them to afford the Hobbies
like travel good food Etc but I actually think after going through the last two years building up
our financial Acumen is just as important if not more so what do I mean by Financial Acumen I mean
stuff like budgeting tracking projecting investing I mean if you think about it the money in your
bank account can always be squandered we all know that story I think more importantly what's
going to make your retirement more fireproof is having an ability to generate more money where
it came from in the first place so the second essential thing that you can prepare for so that
you have a wonderful retirement it's definitely the ability to be self-directing and disciplined
self-direction definitely helps so much with spending your retirement days meaningfully right
after all there are no more like work schedules or like demands from colleagues or bosses to help
shape your days anymore you have to be the person to take charge in retirement there's a study out
there actually that shows that for happily retired folks most of them actually have about 3.6 core
Pursuits that's what they say and the unheably retired folks tend to have less than 3.6 corporate
suits coming in at about 1.9 call Pursuits that's what the study reflected I guess it kind of just
shows in retirement you really need to fill your life to the brim and keep busy with activities
you love and that is a really great formula for happiness and self-direction will help you
to achieve that state as well as discipline because if you think about it like discipline
directly affects the state of your finances right it affects whether you stick with your retirement
planning whether you keep fit and active and you get to maintain your health in retirement even
whilst you're left up to your own devices even to find your cover suits if you don't have any
when you're starting or in your retirement so discipline and self-direction will be like
the building blocks for enjoying your life in retirement the third essential thing you might
want to work on and cultivate or happy retirement is people skills right so studies and research
have reflected very consistently that the main determining factor for happiness and Longevity
for most of us is actually relationships Human Relationships friendships relationship with
your spouse and with your family I guess if you look at most of us you know we all have
a little need of work on some social skills in some aspect I mean some of us are a bit shy
paper hats or graph or maybe socially anxious working on our people skills really will help us
to get along and live happily with our spouse and family members and also importantly to make
new friendships at whatever age we all know that making new friends gets a lot more difficult
as we get older I mean I haven't heard anyone say otherwise for me personally making new friends
as I get older is the biggest challenge there's this huge feeling that nothing can replace
friendships with people who have known you all your life but it is also a challenge as I
have chosen to exercise through Arbitrage in our retirement and we've moved away from home
so those friends aren't with us in our present I find that it takes a lot of intention I have
to consciously push myself to broaden my Social Circles and make the effort to get to know people
on a more intimate basis I am also very happy to be able to say that it has paid off in that for
the last two years in Bali I have actually made two or three new friends that I'm happy to say are
kindred spirits and not just social acquaintances so that's very nice and it's a huge Comfort to our
daily life here in a foreign land away from home now before we move on a big thank you to
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MooMoo ad using my link in the description below now back to the video the fourth essential
thing that you can definitely work on and that will benefit your retirement tremendously it's
actually courage you're definitely gonna need lots of courage in retirement and I guess this isn't
a skill exactly it's kind of more of a quality but in retirement you need a lot of courage
to even plunge into retirement you need the courage to you know take that leap of faith to
stop putting it off due to fear of the unknown feel or financial insecurities so then it's all
about courage at that stage not let fear and insecurity rule your life and your decisions it
is also the courage to recognize that in life at the start at the end in the middle the Domino's
you need are never all nicely lined up you know at some point you just got to jump into it and
then learn to cross the obstacles as they come so for retirement long term I guess the
biggest issue most commonly is always money but my perspective on this is that hey budgets
can always be reduced money can always be earned or recouped or whatever happens so I still
think that you know it is actually beneficial to Advocate an approach whereby you get to
a point where you feel that you have most of your Ducks lined up you've planned well you've
prepped for it grab hold of your courage with both hands and then take the plunge people tend
to think of retirement as the end but it's not it's the start of a new phase where you should be
trying so many new things new Pursuits new ways to live and for each of these new adventures
you're gonna need courage to take action and once you have taken the plunge you'll find the
next fifth thing very very useful and that would be a mentality of resilience especially in early
retirement there are a lot more decades ahead of you you know and therefore a lot more chances that
they things can go wrong whether it be down to bad financial planning or perhaps an unexpected Health
catastrophe or even sometimes natural disasters whatever comes I guess you will always need that
strength of Will and the resilience so that you can roll with the punches and then get back up
you want to know that you have the mental strength that even if things go pear-shaped you won't just
give up and lose hope and certain Corner you've got to Marshall what you've got inside you go out
there find Solutions perhaps if necessary you've got to go back to work but know that later on
you can return to retirement and try again so the sex essential thing that I believe will benefit
everyone in retirement is to cultivate an attitude of gratitude we all know life is a very long
journey hopefully at least and so much of what we Chase using most of our years actually doesn't
really matter in the big picture once you have taken a step back and then at that point is when
you start realizing the earlier you cultivate and attitude of gratitude and that appreciation for
the simple little things that are probably around you everywhere every day the happier you probably
will be and it sounds silly but it's not really automatic I mean we all live and grow up and
work and go to school in a society that kind of innovates us with messages that we need to reach
for more have more ambition gives us you know that High definitions of success in life that we
have to try to jump to reach and nobody sings the Praises of the pleasures of a simple cup of
tea you know the importance of family time with your loved ones or or just the pleasure of being
able to take an evening walk on the beach with your dog so I think that it's very important that
somebody reminds you that you know you can not overload what you already have what you're already
surrounded by growing that muscle of appreciation so that in each and every moment you are present
in your own life you see all the little Joys that you're surrounded with every day and if you
live life like that I think that will help you achieve contentment with just the small stuff
around you and that's what majority of your life in retirement may be about is just a small stuff
every day but in my own retirement here in Bali it is what makes me so grateful and so happy every
day that I am surrounded by my loving husband and very interesting and independent little dog
that's very very cute you know that we have very comfortable a bit simple house we have the ability
to enjoy good food even if it's simple stuff from the war rooms locally we have a garden and
beautiful things are growing around us every day the weather is great you know stuff is good yeah
I think this is one of the most essential simple things that's often overlooked simply because it's
a matter of mentality but I believe this essential quality or characteristic could make all the
difference for you so these are the six essential things that I believe are very very important for
you to cultivate and prepare for in the leader to actually taking the plunge into a return then I
think that if you have these six strong skills and qualities going for you you will be in a position
much more well placed to make the best out of your retirement however long that period may be let me
know what you think of my suggestions whether you agree or if you think they suck let me know why
but in any event I really appreciate you tuning in and sharing my thoughts for this week and
wherever you are in the world I'm wishing you a happy Saturday evening and let's speak again
next week till then you take care and bye for now
CPF Retirement Sum & CPF Life
Harvey 0 Comments Planning your Retirement Retire Wealthy & Wise Retiree Tips and Tricks
In this video, I will explain the
concept of Retirement Sum and CPF Life One of the main goals of CPF
is to ensure that Singaporeans can meet their basic retirement needs. The CPF Lifelong Income for the Elderly, also
called CPF LIFE, is a national annuity scheme that will provide us with a monthly payout no
matter how long we live, starting from age 65. To fund the premiums of CPF Life, a new
account called the Retirement Account, will be created when we turn 55, the Retirement
Account compounds at up to 6% interest rates The amount set aside at 55 in Retirement
Account is called the Retirement Sum and there are 3 tiers called the Basic
Retirement sum (BRS), Full Retirement Sum (FRS) and Enhanced Retirement Sum (ERS)
The Retirement Sum is form by drawing funds from your SA followed by your OA.
You can watch the video on the top right corner on how you can optimize your Special account
using SA Shielding hack just before turning 55 The question you may ask next is what determines
the amount of monthly payouts we will receive? the more you set aside in your Retirement Account
at 55, the higher the monthly payout will be. For example, if you are turning 55 in
year 2021, you will need to set aside BRS of $88K , or FRS of $176K which is 2 times
of BRS or ERS of $264K, which is 3 times of BRS. And correspondingly, the projected monthly payouts
from age 65, based on CPF Life Standard Plan, will be around $800 per month if
you set aside BRS, $1500 for FRS and $2100 for ERS.
You can also use the CPF Life Estimator, which I have provided the link
below, to project your monthly payouts after 65. Due to inflation, Retirement Sum has
been increasing at about 3% every year. Do watch my next video which I will be
sharing more about Full Retirement Sum and a calculator to project
your FRS when you turn 55. I hope this video gives you an idea of
how retirement sum relates to CPF Life which eventually determines the lifelong
monthly payouts when we retire.
This will allow us to plan for our retirement in advance.
Thank you for watching. If you find this video helpful, please Like and Subscribe to
my channel for future notifications..
Retirement Planning: Are you Ready for Retirement? with Oak Harvest Retirement Success Plan
Harvey 0 Comments Planning your Retirement Retire Wealthy & Wise Retiree Tips and Tricks
[Music] welcome to the retirement income show on Market Lane alongside the CEO and founder of Oak Harvest Financial Group that of course is Troy sharp Troy is a certified financial planner professional his team at Oak Harvest is incredible if you want to go to the website to learn more elk Harvest financialgroup.com Oak Harvest fg.com works as well a lot of great information on the website you can learn about Jared Kinney Ryan Kenny you can learn about Chris Paris Jessica canella the whole team there's just a phenomenal team Oak Harvest financialgroup.com and of course you can always go to the YouTube channel there's over 300 videos on there about any topic you can think about in the financial world the retirement world uh it's phenomenal and there's no cost you subscribe you'll know when all the new ones are out but there's no cost to any of that YouTube check out Troy sharp and Oak Harvest Troy's office located at 921 oral City Way I-10 and Bunker Hill they they are here for you if you need help they would love to help they just don't know if they can help until you reach out and you can do that just by giving them a call 800-822-64-34-800-822-64 34 today we're going to be talking the retirement success plan Troy is going to explain what this is and it's the process so it's about investment planning income planning tax planning health planning Estate Planning and they all go together Social Security and Medicare are in there as well you know you've done this for a long time you sat down with a lot of people so you kind of understand the common mistakes the common things that we Overlook as well this will be good going through the retirement success plan how are you going to inform us today of this retirement success plan well just like we have as humans we have basic needs right we have that hierarchy of we need shelter we need food we need security in retirement or once we get to retirement people have their the same concerns the same questions we all have the same let's call it fears do we have enough you know can you retire when can you retire how much can you spend when you do retire without the fear of running out of money we all want to pay less tax right the government can get their fair share but not a not a penny more and whatever that fair share is it's it's defined differently based on your plan so if you take the government's plan there they want to get as much from you as possible and the tax law is set up in a way that if you don't plan for taxes in retirement oftentimes we see people in situations where if they keep doing what they're doing 200 300 500 800 we sat down with a client prospective client recently and we're doing this analysis it was well over a million dollars in taxes if he kept doing the his way of things the way that his advisor had him doing it in regards to his income plan and tax plan and retirement well there was no tax plan obviously but his income plan was going to lead create this domino effect of his tax bill being over the course of time over the course of 25 years over a million dollars in estimated taxes that he was going to pay that he simply didn't have to pay if he went about a different approach the approach that I'm going to talk with you about today as far as step three of our retirement success process the tax planning aspect so just like we have basic needs as human beings we have basic concerns when it comes to retirement and we've created the structured process and that's the beautiful thing about the retirement success plan is it's a plan that is something that is actionable but it's also living and breathing it's something we will review with you throughout the year once you're a client but it's also a process and we believe in structure here we're really big on structure and process and that keeps us organized that keeps us on schedule and that keeps us ahead of the planning curve in order to do the things that we promise for everyone that's entrusted so much to us and I'm talking about your retirement you worked for 30 years 40 years 50 years in some cases and you save up whether it's five hundred thousand dollars or five million or 50 million you need a team of people that of course are knowledgeable but before education and certifications and designations and training and experience first and foremost you need somebody that cares okay if you start there with someone that's a fiduciary and not just you can be a fiduciary and still do the wrong thing I've seen it for years in the industry where fiduciary advisors still sell mutual funds that have high fees and commissions and they can make justifications for why they're selling them or why they think you're they're in your best interest I don't believe that they are personally um we would never put someone into a mutual fund that is charging a five percent front end commission and then you know has two or two and a half percent of hidden fees and we've seen that for for years coming from fiduciary firms fiduciary advisors so you start with from Ground Zero are you working with somebody who truly cares who's truly passionate about retirement so with that philosophy in mind that's the foundation of of what we look at when we hire people here at Oak Harvest Financial Group you could have all the designations in the world all the education all the experience but if if you're arrogant if you're not humble if you're not hungry if you're not continuing strive to be continuing to strive to be a better person we don't want you to work here because that foundational element do you care about the people that you're working with on a human level if that's not there then you know we don't want any part of that type of person I don't care how much you produce how what the metrics are when it comes to how we measure advisor performance so that's the foundation now once you have someone that cares you want a structured process in place to deal with those big questions that you have the big concerns that you have so do you have enough yet it's not just a yes or no question it's a function of how much do you spend what is your health situation if you're healthy yes of course you're going to live longer most likely but are you planning for the increased medical costs in increased probability of needing long-term care or Assisted Living these are aspects that healthier people do have to absolutely be concerned about those that are less healthy it's less likely you're going to have a two or three year four or five year stay in a long-term care facility or need nurses in the home so when we talk about do you have enough and can you retire these are all the answers to those questions are function of how much do you spend what is your longevity what is your health situation your of course your family history um but not only that it's what are we doing with the other aspects of this process meaning the income planning side the tax planning side what about the health care side you know are you retiring before Medicare do we need to look at some type of Health Care planning that qualifies you to receive a subsidy so you're not paying two thousand dollars a month for both spouses for health insurance that maybe we get it down to 400 a month or 600 a month or maybe no out-of-pocket costs whatsoever for health insurance premiums you can do that with proper planning but you need the right type of asset structure meaning if you have all your money in retirement accounts this is where tax planning comes in when you take money out that goes on to your 1040 your tax return and then you probably aren't going to qualify for as big a subsidy as if you had money saved and non-ira accounts so this the structuring of income planning tax planning Health Care planning and then of course the estate side of things this is all what the oak Harvest retirement success process the retirement success plan is and that's what you receive when you become a client it is a very clear and structured process that we go through but then it's also a plan that is living and breathing and we're making adjustments as time goes on tax law changes economic conditions change goals change your spending levels will change it retirement is and we've only learned this you know from years and years of experience the best delayed plans we can't just set him and forget them you know plans need constant monitoring just like a plant or a garden or you know a human being so the retirement success process we're going to get into today to to today we're going to focus on the first three steps the first step is risk management and investment planning next step is income planning so income planning is social security when do we take that it's not just based on the math which it does play a role but when we start to look at are you a conservative investor okay versus an aggressive investor investor that plays into the Social Security election decision of course your Health and Longevity plays in market conditions okay are we in a recession when you're thinking about taking social security are your accounts down 20 30 percent or did we have a really really good year last year and it looks like we're gonna have a good year this year all of these factors kind of tie in to that income planning component as well as many other we're going to talk about and then the big one we're gonna we're gonna get into is tax planning that's step three of the retirement success process and when you start to understand that retirement is a set of dominoes when you're young you work you put the kids through school you deal with traffic you deal with bosses you deal with if you run your own business all the headaches that come with that you deal with so many different things money is really really simple it's life that's complicated in the accumulation phase once we get to retirement now life gets a little bit more simple it's the money it's the decisions you have to make and the realization that every single decision you make how you invest the portfolio impacts not not only how much income you can take today but how much income you can take down the road the sequence of returns risk based on how you've invested sequence of returns is if the market goes down and you're also taking money out you exacerbate that downturn in the market because there's no paychecks coming in you're you're pulling money out and losing in the market so these decisions every single one that you make it's a domino effect it impacts everything else it impacts the tax plan it impacts the income strategy can impact the health care it can impact absolutely the estate plan so we walk you through this process so we have a plan in place we call it the retirement success plan and the goal is for you to have security first and foremost but what I find most often is the outcome is that people feel more comfortable they feel more secure and they're able to enjoy retirement a bit more because they've they have a plan in place that addresses all these certain needs but also through the continual monitoring and adjusting and conversations one thing I love about our process is when someone comes to us and we have that first meeting where it's just get to know you you know no pressure no obligation no cost we get the information we do an analysis between that first and that second visit and then when we come back on that second visit you actually get to see what it's like to be a client at Oak Harvest Financial Group because that second visit with us we're starting to go through the foundation of a financial plan we're starting to discuss the decisions that you have to make not only this year but in the future so that's almost exactly what it's like to have an annual review with us or a semi-annual review with us so I love that about our process is that you get to see before you ever decide to become a client what it's like to actually be a client when we have up on the big television screen all of the information the choices you have to make the impact of making different decisions how it impacts your taxes how it impacts your income how it impacts your account balances when we do a sensitivity analysis and and show you okay this outcome in the market and this outcome for income decisions versus this one here are the possible outcomes for those choices and that those combination of choices so you get to see what it's like to actually be a client just through our normal process of going through that first second and third visit with us many Engineers it takes a little bit longer than that sometimes it's four or five visits but our goal is to Simply provide value we want to make deposits in your life we want to provide value and you know people see that value and they say you know what I think you guys could be a great part of my financial team my retirement team and yes I want to work with you Troy so if that's you if you don't have a retirement success plan if you don't have a tax plan income plan if you don't understand the guard rails what I'm going to get into in this next segment as far as risk management in retirement give us a call we want you to leave a message there's no one here working on the weekends if you're watching this on YouTube if you're listening to this later and it's during the week sure give us a call someone will pick up but we want to have a conversation just to see what's important to you who you are if you're a good fit for what we do and of course you can ask questions to see if we're a good fit for you and then we'll schedule that first visit there's no cost no obligation we can do it through Zoom we can do it in person at the office right here at I-10 and Bunker Hill in Memorial City and that first visit we'll have a cup of coffee a glass of water and just get to know each other and if we are a good fit at that point we'll get that second scheduled we'll do the analysis that I talked about and we'll walk you through that retirement success process so you can have those big questions answered do you have enough can you retire and how do you pay less tax 1-800-822-6434 1-800-822-6434 Oak Harvest Financial Group check out the YouTube channel check out the website Oak Harvest Financial Group so when you think about this this is what I think you should really like about it it's you're working with the team at Oak Harvest for your retirement right to coming up with that retirement success plan you're the CEO it's your retirement look at Troy and the team at Oak Harvest as your Chief Financial Officer here to help guide you you're going to make the decisions they're going to give you the choices right and it's up to you because it is your retirement it's your hopes and dreams your bucket list and all of that it's really important though that they understand your feelings your thoughts your hopes your dreams it is about you so you've got to talk to them and they're here to listen and they're here to help again that number is 800-822-6434 risk management how important is it what actually is it Troy we'll explain when we come back this is the retirement income show with Troy sharp out of Oak Harvest Financial Group back right after this investment advisory services offered through Oak Harvest Financial Group LLC Oak Harbor's Financial Group is an independent Financial Services firm that helps people create retirement strategies using a variety of insurance and investment products investing involves risk including the loss of principal any references to protection benefits or lifetime income generally refer to fixed Insurance products never Securities or investment products insurance and annuity product guarantees are backed by the financial strength and claims paying ability of the issuing insurance company Oak Harbor's Financial Group LLC is not permitted to offer a No statement made during this show shall constitute tax or legal advice you should speak to a qualified professional before making any decisions about your personal situation we are not affiliated with the US government or any governmental agency this radio show is a paid placement foreign [Music]
Read MoreIs 1 Crore Enough To Retire? How to plan your retirement?
Harvey 0 Comments Planning your Retirement Retire Wealthy & Wise Retiree Tips and Tricks
Hi friends, welcome to Yadnya investment academy. We are going to talk about a topic of financial planning on Friday. And today's topic is very interesting. Because this question is asked regularly on many social media channels and workshops. That people have an amount in their mind that is 1 crore rupees. We think that if we have 1 crore rupees, our life will be good. So this question remains in the mind that if I have 1 crore rupees, can I retire now? Am I financially free? I don't have any tension of retirement now. Now whatever work I am doing is extra. So that 1 crore rupees is enough. And if you have retired now and got EPF money and total is 1 crore is it enough for you? And if it is enough or not, how much can you spend in both questions, when is enough and when is not. We will touch on all those things in this video.
I will explain everything through a calculator. You can check that calculator on our website investyadnya.in as well. We cover many topics of financial planning in this session. If you want to make your own financial plan, then go to investyadnya.in website There are many products related to financial planning. There are 1 to 1 sessions as well. You can check that out. Now I am going to my website and I am sure you can see my screen. If you go to the tool and calculator, here you can see the retirement calculator.
I don't think you will get this anywhere else. Now the question is, suppose I have 1 crore rupees, is it enough for me to retire? First of all, I will be asked what is my age? I am just giving an example, 50. Suppose I am 50 years old, what is my life expectancy? It is important to know when you will be retiring. I think we should keep it around 90. I am keeping it at 90. How much is the expense now? If you are retiring and you have 1 crore rupees, how much do you want to spend? What is your monthly or annual expense? Suppose I am thinking that I have 6 lakh rupees.
I have put 6 lakh rupees here. How much inflation are you assuming? How much will my expenses increase every year? If India's inflation is around 6-7%, then you can assume that. Suppose 7% inflation till the end of life. Current asset, how much money do I have? I will put 1 crore rupees here. I have 1 crore rupees here. I will put that here. How do you invest this 1 crore rupees? How much return will you be able to earn? This is a very important question. What type of investment do you want to put? Do you want to put it in PPF? Do you want to put it in Senior Citizen Savings Scheme? Or do you want to put it in FDs? Or do you want to create a portfolio of Mutual Funds like Hybrid Equity Funds? This is very important. Let's take all the scenarios. Suppose I want to put it in FDs. I don't want to do anything special. I will get 7% return in FDs. Whatever is the post tax. Or whatever you think. You get 7.5% but let's keep 7% for calculation. Let's keep 7.5%. Let's keep 8%. We have put it in bonds, Senior Citizen Savings Scheme.
And there is some money in EPF. So, we have kept some money in equity. So, my 8% will earn 1 crore rupees corpus. Which is 1% over inflation. I have taken 7% inflation and 8% returns. I have to put these 6 fields first. If I submit this, My retirement corpus is in deficit of 1 crore. This means that I need 1 crore more to develop this scenario. If I am 50 years old and I have 6 lakhs per month. And 7% inflation. And 8% growth. I need 2 crores. 1 crore is not enough. Now, let's change the scenario. What should I do if I am not able to do it. I can either reduce it. I don't spend Rs 50,000 per month. I can do 30,000. Then we can change the amount. We have done 36,000. And then we have put this change. So, 21 lakhs is still less. So, basically it will come to 3 lakhs. So, now our retirement corpus is only 67,000 less.
So, I can spend 3 lakhs per year. If I can spend Rs 25,000 per month. And if I take 7% inflation. And 8% growth. Then 1 crore is enough in 50. If I spend 25,000. If I spend 50,000 with same scenario. Then I will need 1 crore. Now, you will say that I invest in mutual funds. I know investing well. And I think that my corpus can earn 10%. If 7% is inflation. Then I think that my corpus can earn 10% per annum. Like our approach. You must have seen many videos on retirement. If you want to understand anything. Then put it in the comment section. If I think that I can do 10%. So, let's try it on 6% after spending 3 lakhs. So, now our corpus will be 47 lakhs. So, it means that I can spend 4 lakhs or 4.5 lakhs. So, 4.2 or 4.3. Means I can spend around Rs 35,000 per month. If I can earn 10% return. Now, you will say that I have already retired. I am 60 years old. And now tell me what is this scenario. So, in that I can spend 50,000 per month. So, in 60 years also if you are earning 10% return. Then there is a deficit of 24 lakhs. If this scenario plays. You say that I have inflation.
I don't spend much. 50,000 per month. Next year, I will grow according to 5%. Then it is good. 5% inflation, 10% rate of return, 1 crore rupees. You have enough. You have just enough. So, you can spend 50,000 per month. If you are 60 years old, you will get that money for 90 years. Now, there is one more thing. Many people think that I have a pension. I have a house. He is giving rental. Or I am getting pension. Suppose you are getting pension of Rs 10,000 per month. Means it comes more than that. But I think 10,000 per month. So, I am getting a pension of 1,20,000. And we will make it 7 again. Is there any growth of pension? It seems that 2-3% growth is there. So, let's grow it by 3%.
Till when will the pension come? Will it come till 90? Will it come till life expectancy or will it come soon? Many times, for limited time, money is going to come. So, we sell those things. Rental is going to come. I have to sell that house after 10 years. So, you can put that also. So, I have to get pension till last. Till 90. So, then in 6 lakhs, 7% inflation, 1 crore, 10% and all. So, then almost I am there. Means 3 lakhs is the only deficit left. So, in this way, you can find out that the money you have, is it enough for your retirement? So, now you can change the amount. If you have 2 crore, 3 crore or 50 lakhs, then you can change the amount. Accordingly, you can find out how much expense I will have after retirement, my work will go smoothly till life expectancy which I have planned. So, this will be very very helpful for you. So, if you like Calculator, then do share this video with everyone.
I think this will be very helpful to many people in retirement planning. And from the perspective of financial freedom also. And if you want our financial plans and personalized approach, if you want to understand how to get 10% rate of return, or what all I can do after retirement, then you can go to our website and call our customer service, sales team or relationship team. You can WhatsApp or call or email. And then we will reach out to you and we will surely try to help you on those things. That is all I have. I hope, do subscribe more. Because the topics of financial planning are not going on much. So, do subscribe and like the video if you like it. Have a great time, friends. Jai Hind..
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