Unlocking Financial Freedom: My Path To Early Retirement in Singapore

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koolgal
06-11

๐ŸŒŸ๐ŸŒŸ๐ŸŒŸImagine waking up each day without financial stress,  knowing that my investments are working for me while I pursue my passions, travel or simply enjoy a slower pace of life.  The Financial Independence Retire Early (FIRE) movement isn't just about escaping the 9 to 5 grind.  It is about reclaiming my time and designing a life on my own terms.

Singapore's high cost of living might make FIRE seem like a distant dream but with the right investment strategy and disciplined savings, retiring early can be achieved.

This is my plan to help me achieve FIRE and retiring comfortably in Singapore. 

Step 1 - Define My Monthly Retirement Budget

I need to estimate my expected expenses.  These include housing, food,  healthcare, transportation as well as leisure and travel.

I believe I will need about SGD 3000 per month. 

Step 2: Calculate My FIRE Savings Goal

The 4% rule requires me to save 25 times my annual expenses. 

Since I aim for SGD 3,000 per month   (SGD 36,000) per year, I would need SGD 900,000 in investments to sustain my retirement.

Step 3 - Build My Investment Strategy

Since FIRE relies on passive income, I would look at Index Funds and ETFs which are low cost and diversified for long term growth.  I would also consider Real Estate where rental income or capital appreciation can support my retirement.  Dividends are another source of passive income derived from good dividend stocks to provide me with a regular cash flow.  Side hustles such as freelance work or passion projects can give me additional income too. 

Step 4 - Maximise My Savings and Cut Expenses

To accelerate my FIRE journey, I intend to increase my savings rate to target at least 40% or more of my income.   I would reduce unnecessary expenses such as buying luxury goods.

Concluding Thoughts 

Achieving FIRE in Singapore isn't just a dream.  It is a strategic choice that requires discipline, smart investing and a commitment to my long term financial growth. 

By building a diversified portfolio, maximising savings and leveraging passive income, I can create a future where work is optional and a life that is truly mine to design.  Every step that I take today will bring me closer to financial freedom.  

Financial Freedom isn't just about retiring early.  It is really about living life to the fullest.  It is about waking up every day with the ultimate freedom to pursue my passions, spend time with loved ones and explore the world without any financial stress holding me back.  That is what I call really living life!

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S$550K to Retire in SG: Have You Planned Your FIRE Number?
Youโ€™ve probably come across headlines like "How Hard Is It to Retire in Singapore?" on social media or news sites. So, whatโ€™s the reality? In February this year, DBS, Singaporeโ€™s largest bank, analyzed data from 2 million customers and came up with an answer: To retire comfortably in Singapore, youโ€™ll need at least S$550,000. Have you calculated how much your ideal retirement would cost per month? How much are you saving to achieve FIRE? What do you think about the S$550K retirement benchmark? Is your savings on track?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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