Truly Simple Maths To Retire Early In Singapore (Or Anywhere Else In The World)

Retiring is a case of maths, especially in the case of early retirement.

Let's run the numbers, and work backwards, shall we?

Ok, first of all, how much do you need to retire? Basically, how much is your annual expenses? You will need to compute all the expenses that you spend for the year, and ensure that your passive/dividend income is the same or higher than that particular amount.

Let's take an average of $2000 per month, so that'd mean in one year, that'd be $24000.

Assuming your return on investment is 4%, hence you will need to stockpile $600k ($24k / 0.04%).

$600,000?

So here you'd either be shocked or pleasantly surprised.

Let's dive down a little deeper, on how you can slowly reach this amount (I'm not talking about buying Toto or 4D or gambling - that never works because the favor is always on the house, not you).

  1. Either you invest $1k per month ($12k per year) x 28 years in a dividend stock portfolio with 4% return, with reinvested interest to maximize compound interest, and you'd amass $623,595.44. With that, you'd be able to get $24943.81 per annum based on 4% ROI

  2. Or you invest $1.5k per month ($18k per year) x 22 years in a dividend stock portfolio with 4% return, with reinvested interest to maximize compound interest, and you'd amass $641,121.99. With that, you'd be able to get $25644.88 per annum based on 4% ROI

  3. Or you invest $2k per month ($24k per year) x 18 years in a dividend stock portfolio with 4% return, with reinvested interest to maximize compound interest, and you'd amass $640,109.51. With that, you'd be able to get $25604.38 per annum based on 4% ROI

Is this hard?

Depends on how much you make and how much you save/spend.

An average individual in Singapore makes an average of SGD 3,770 per month, and after deducting 20% to CPF (unless you're a foreigner and not subject to CPF deductions), you may take home about $3016. To make it easier, let's round down to $3000 per month, plus 1-2 months of bonus (be it $3000 or $6000) (Note: some people make much more, or get much more for bonus, but for simplicity's sake, we use these numbers ok)

Assuming you can set aside $1000 per month, that'd be $12k per year; and the entire bonus 6k, that'd mean you can save-to-invest $18k per annum. Based on scenario #2 above, you'd be able to retire within 22 years.

We hadn't factored in yearly increments of course, and making a very conservative number of flat salary (which is untrue/unreal; most have growth between 1-5++% per annum, which in turn also compounds).

I'm not saying saving $1000 out of $3000 is easy: for many, it can be/is very hard, as oftentimes we have many expenses; but with a little bit of smart cost savings eg planning

  • packed meals which are both healthier and much cheaper than eating out

  • budgeted outings/eating out (including the daily $3-5 coffee that can happen 1-3x per day)

  • curbing back on expenses that are non-meaningful ie buying to impress someone/thoughtlessly

And that's just creating the basic savings approach to invest into dividend stocks.

The next is taking the time and effort to learn how to build an online business with Solo Build It.

You see, there's only so much you can save. You cannot ever save more than you make, so on one hand, it's very good to be able to streamline expenses to save more to invest; but you will accelerate your earning potential by starting an online business that is low cost to start, one you can build from the comfort of your home (and in your spare time), not another blasted MLM (ugh), with a global audience and 24/7 business.

I used Solo Build It to drive $100k worth of clients to my Singapore physiotherapy business since 2010, and I've added affiliate products that make me about $20-$30 per month (see my affiliate sales and commissions here)

Visit Solo Build It here, and read my SBI review here.

I'll write more about this in my next post k =)

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Hang around here for some time, you'd see that I don't well with hype or bullshit. I can smell that typically a mile a way, and I hate that shit too.

I've been working on myself and on NigelChua.com for years, since 2006, and only in late 2019 I started to focus on intuitive and loving leadership, entreprenership and personal development.

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The core topics I cover in NigelChua.com is:

  1. Eternal life and salvation: Jesus Christ is the Way, the Truth & the Life
  2. Fix your health: get healthier, live longer, run faster, more energy, fuck more
  3. Passive Income Lifestyle: Become financially secure by building assets that provides multiple streams of passive income that's more than your living expenses
  4. Personal Loving Relationships: Attract, build and grow relationships you love
  5. Philanthropy: give to the poor and needful
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  9. Optional Adventures: Become rich and wealthy
  10. Optional Adventures: Build businesses that adds positive value to your society and life
  11. Success Principles

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Billionaires are investing in precious metals and cryptocurrency such as Richard Branson, Peter Thiel, Eric Schmidt, Michael Novogratz and not to mention scores of very smart people and multi-millionaires like Tim Ferriss. I too am investing in cryptocurrency.

Ever-Green Assets: Precious Metals (Gold & Silver)

Experts agree that the financial market is now even more fragile than pre-2008. Will your current retirement portfolio weather the imminent financial crisis?

Threats are many:

Is gold really useful in times of trouble? See for yourself:

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You may wonder why investors worldwide are flocking to digital currencies (also known as cryptocurrencies or cryptos)?

Take a look at this chart showing the growth of a 10K portfolio invested in just three cryptocurrencies.

This is just one of the reason. And it'd continue to grow as utilization and applications increases.

Diversify and invest into future currencies and cryptocurrency such as Bitcoin, Ethereum, Litecoin and Ripple today, find out how here

One year from today, you'll be one year older. What would you have done by then?


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