Reigning in the spending
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Not yet lah....got about 6 more months left to 40. So better act young now while I still can.Originally posted by littlestream:
You kena cheated liao. gentlerock is in his 40s 
okay, okay, i lied. 
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But can a 45 year old survive on 1k a month, given that the cost of living is always on the increase? Just a thought.Originally posted by Master -_-:i got myself an annuity to be paid out when i reach 45yo
can retire liaoz.. each month pay 1k -
Wah lau eh...........this sure is subtle to announce your birthday ley.Originally posted by gentlerock:Not yet lah....got about 6 more months left to 40. So better act young now while I still can.
okay lah, okay lah......i'll mark it down in my calendar. -
Originally posted by Meia Gisborn:
Thank you MG. For the longest time the military had no 401K until 5 or six years ago. I only wish we had started sooner because we're playing catch up now. I've since increase our monthly contribution since they removed the cap. You sound like a banking man, are you?
If you haven't already done so, look into participating in some kind of company-offered, tax-deferred 401K or 403B retirement savings plan. A well-managed plan should offer a selection of investment options from which you can choose one or several that match your particular risk comfort level. Most of these plans allow you to transfer money between available funds to maximize your overall rate of return. It's a little like playing the stock market (which in effect you are) except that you can't legally liquidate the investments until you retire, and you don't pay any taxes on the capital gain.
Once you've selected the funds to include in your plan, try to maximize the amount of the contributions into the plan from your paycheck. In fact, try to have the maximum amount of pre-tax dollars allowed by law deducted from your paycheck and put into your 401K/403B plan. Yes, I know it takes discipline, and your particular financial situation might not allow you to take the maximum deduction. But consider this: debt levels amongst Americans are currently at an all-time high (currently estimated to be an average of around $9000 for [b]every household), and most will not have enough money to fund their retirement years. A little bit of financial discipline now will go a long ways to help make your retirement years less of a financial stress.
Just a thought.[/b]
You're right. It's a well-known fact that Americans don't save. An article in yesterday's paper says for every $1 they earn, they spend $1.22.
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They are notorious! Just driving through the neighbour you see lots of toys. Four cars in the driveway, RV, boat, etc. One financial expert here commented, just follow the Hummer and you'll see a home that'll be foreclosed soon. Honestly, I don't know how they do it here in expensive California where real estate is high, taxes are high, etc.Originally posted by Rhonda:It's scary the way Americans spend, I tell you!
I've got American friends living in humble circumstances and yet, when I went over to visit them, they constantly shock me with how fast they'll whip out their credit cards to pay for purchases that are really unnecessary.
And then, come Christmas, it's scary how freely they spend! They even spend money that's not earned yet, chalking up huge debts! The gifts they purchase are expensive and whilst it's nice to want to give nice things to your loved ones, I don't believe in going for broke when doing so.
Frighteningly, it's considered 'normal' to be in debt before you graduate and start work over there. I've heard of credit cards that college kids can apply for so they start chalking up the debts long before they can actually pay it off!
Christmas is a spending orgy man. People just go all out, going for broke, finding the perfect gift. -
Please don't anyhow accuse hor? I never mentioned that my birthday was in early November (Scorpio baby) ok?Originally posted by littlestream:Wah lau eh...........this sure is subtle to announce your birthday ley.
okay lah, okay lah......i'll mark it down in my calendar.
And before you accuse me of wanting presents, please also note that I never mentioned I'm in need of some non-iron long-sleeved business shirts, genuine leather wallet in which S$50 notes can fit comfortably and....er....new rims (17" bronze colour preferred) and tyres for my car.
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Have you considered planning for a possible dual income household?Originally posted by Rhonda:Can't do without savings, really! Especially since I'm going to be a single-income household (ie. single and living alone ) I really have to save for rainy days! 
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Originally posted by gentlerock:Please don't anyhow accuse hor? I never mentioned that my birthday was in early November (Scorpio baby) ok?
And before you accuse me of wanting presents, please also note that I never mentioned I'm in need of some non-iron long-sleeved business shirts, genuine leather wallet in which S$50 notes can fit comfortably and....er....new rims (17" bronze colour preferred) and tyres for my car.
Oops, gentlerock, *points to the floor* you dropped somethings.........HINTS. Okay, let's cross the checklist.
Month.........
checked.
shirts...........
checked.
wallet........
checked.
rims.......oops, timed out. boh liao.
fret not. here...........take this
don't leave home without it. -
Me too... pretty clueless when it comes to investing. I seriously wish I have a formal education in investing or finance related planning.
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no no no noOriginally posted by jetta:But can a 45 year old survive on 1k a month, given that the cost of living is always on the increase? Just a thought.
i pay 1k per month until i reach 45 -
i think i'll take a week off soon.. and in that week, it'll be shoulders to the wheel to look at what i need to do to start on this
i still think the insurance things my folks bought for me, which i'll continue paying forever and a day, are scams
p.s. it's "reining in" -
Just curious: is it a fixed-rate or variable annuity? Did you opt for a fixed-term or lifetime payout?Originally posted by Master -_-:i got myself an annuity to be paid out when i reach 45yo
can retire liaoz.. each month pay 1k
It would be nice to retire at 45, wouldn't it? The only thing you have to worry about is an unanticipated medical emergency that could potentially wipe out your accumulated savings... -
Rhonda, sounds like he's proposing to you.Originally posted by DriftingGuy:Have you considered planning for a possible dual income household? -
.. did DG just make a move on the cult leader?Originally posted by jetta:Rhonda, sounds like he's proposing to you.
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Whoops!!!!! Senior moment!!!!Originally posted by the Bear:i think i'll take a week off soon.. and in that week, it'll be shoulders to the wheel to look at what i need to do to start on this
i still think the insurance things my folks bought for me, which i'll continue paying forever and a day, are scams
p.s. it's "reining in" -
I feel the same about insurance things too. I feel that as long as you have a systematic form of automatic savings, no matter how small, it's better than nothing.Originally posted by the Bear:i think i'll take a week off soon.. and in that week, it'll be shoulders to the wheel to look at what i need to do to start on this
i still think the insurance things my folks bought for me, which i'll continue paying forever and a day, are scams -
Does your particular 401K plan allow you to reallocate funds among the various investments within the plan? Most 401K plans offered by corporate America allow only a limited number of free funds transfers in a given month. Go beyond that and a service charge is levied.Originally posted by jetta:Thank you MG. For the longest time the military had no 401K until 5 or six years ago. I only wish we had started sooner because we're playing catch up now. I've since increase our monthly contribution since they removed the cap. You sound like a banking man, are you?
You're right. It's a well-known fact that Americans don't save. An article in yesterday's paper says for every $1 they earn, they spend $1.22.
Nope, I'm not in the banking industry. Just a humble civil serpent... er, servant working in IT for state government.
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No formal education is required. Just remember the cardinal rule: buy low, sell high, and don't hedge!Originally posted by DriftingGuy:Me too... pretty clueless when it comes to investing. I seriously wish I have a formal education in investing or finance related planning. -
Yah it does. We have 6 funds to choose from. Haven't tweaked with it in ages though, I know we should.Originally posted by Meia Gisborn:Does your particular 401K plan allow you to reallocate funds among the various investments within the plan? Most 401K plans offered by corporate America allow only a limited number of free funds transfers in a given month. Go beyond that and a service charge is levied.
Nope, I'm not in the banking industry. Just a humble civil serpent... er, servant working in IT for state government.
You know alot about finances. Envy you.
Hubby's in IT too. Can't wait to retire and really earn some money. Can you believe it? Even with 18 years in the service, we qualify for utility discounts and other programmes for low income folks? Sheesh. -
If you haven't tweaked your fund allocation within, say, the last three years, I strongly urge you to do so. The investment scene has changed significantly in that period; for example, mutual fund managers have apparently learned from the IT stock crash of the late-90s and are moving away from the high-growth/high-risk, IT-heavy portfolios, and into more conservative money market-oriented funds geared towards lower but more stable returns.Originally posted by jetta:Yah it does. We have 6 funds to choose from. Haven't tweaked with it in ages though, I know we should.
You know alot about finances. Envy you.
Hubby's in IT too. Can't wait to retire and really earn some money. Can you believe it? Even with 18 years in the service, we qualify for utility discounts and other programmes for low income folks? Sheesh.
A federal or state job isn't considered glamorous, but it does offer stability and reasonably good benefits.
With at least 18 years in the military, your hubby probably already qualifies for a pretty generous pension with full medical benefits, yes? -
Depends on your idea of generous but better than nothing. Little by little, we're seeing our benefits eroding. They're revamping the health care system, the housing system and more. Full medical benefits for him until he kicks the bucket, co-pay for us after he retires. While we were overseas, dental for the family was free. Not stateside.Originally posted by Meia Gisborn:A federal or state job isn't considered glamorous, but it does offer stability and reasonably good benefits.
With at least 18 years in the military, your hubby probably already qualifies for a pretty generous pension with full medical benefits, yes? -
Thanks for the advice. We've always been very conservative more so out of ignorance and fear. I'll go take a look at our account. BRB.Originally posted by Meia Gisborn:If you haven't tweaked your fund allocation within, say, the last three years, I strongly urge you to do so. The investment scene has changed significantly in that period; for example, mutual fund managers have apparently learned from the IT stock crash of the late-90s and are moving away from the high-growth/high-risk, IT-heavy portfolios, and into more conservative money market-oriented funds geared towards lower but more stable returns.
A federal or state job isn't considered glamorous, but it does offer stability and reasonably good benefits.
With at least 18 years in the military, your hubby probably already qualifies for a pretty generous pension with full medical benefits, yes? -
You mean ignore hedge funds? Hmmm what are hedge funds anyway? Not really applicable to the singaporean context isnt it?Originally posted by Meia Gisborn:No formal education is required. Just remember the cardinal rule: buy low, sell high, and don't hedge!
http://en.wikipedia.org/wiki/Hedge_fund -
No la, I just find it depressing that more and more people are preparing for singlehood instead of family nowadaysOriginally posted by jetta:Rhonda, sounds like he's proposing to you. -
Bo pian...its harder and harder to imagine getting married and supporting a family these days.Originally posted by DriftingGuy:No la, I just find it depressing that more and more people are preparing for singlehood instead of family nowadays