5 Signs You're Financially Ready to Retire

Are you dreaming of your golden retirement years, but unsure if you're financially prepared to make the leap? In today's episode, we cover the top 5 financial signs that tell you that you are indeed ready to retire. On the flip side, if you don't have these signs, you may want to postpone your retirement until you're ready! So whether you're on the brink of retirement or planning ahead now while you're young, these signs will serve as milestones for you to reach -- so that you know that you can finally kick back, relax and call it a day...

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Here are a few more investing tips and tutorials to help you out:

💵 HOW TO INVEST IN DIVIDEND STOCKS

🏢 HOW TO INVEST IN REITS

🏖️ HOW TO GROW YOUR CPF FOR RETIREMENT

📄 HOW TO READ A FINANCIAL REPORT
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[tuatara]

I wish I had met you guys two decades ago. I am almost 44 but I cannot believe how much I am learning from you, young people. Thank you for sharing your knowledge, and I believe I still have time to fix everything. Better late than never, as they say.

[SurendrenApparoo]

Wish I had someone like you guys to give such sound advice when I was 18! I'd be multi-millionaire now, like AK!
Victor, I totally agree with your comment about reinvesting a percentage of your passive income at retirement (or leading up to it). I practice that now, and the journey has been fun, as you keep seeing your quarterly dividend and DPU payouts steadily increase. I'd like to think that that will help me overcome inflation. Plus, maybe move to sedate Ipoh or Taiping in the future to stretch the dollar. Cheers guys!

[canwalk]

A succinct + wakeup calling list!

I have achieved #1, 2, 3 but not #4, 5, and now I know what I need to do!

[jeffnp]

health is the most important.. eat healthy, stay happy and exercise often...

[micTie]

One can semi-retire even though he/she is financially independent, like working on part-time jobs that are less stressful or enjoyable, even though the income might be much lesser.

[KyithNg]

Generally a lot of points that are on point.

Adam raised a good point that most should bear in mind: The retirement is about 20-40 years and it is a long time that you may need equities for the portfolio to keep up with inflation.

The part that you guys may struggle a bit is how do you categorize the role of bonds and equities in retirement. One way to look at it is to categorize your spending into two groups, the spending that is inflexible, which is the base amount that you need (usually the rent, food, transport etc) and the flexible which is like your entertainment food, vacation, giving. If you want greater certainty over the inflexible, perhaps you wish the bonds to address that part and for the more flexible you can have the equities to address that part.

Victor raised a good point about only spending 50% of your income but essentially what he is also saying is that you need to have margin of safety in your income. It also means you need quite a large capital base. Whether Victor is right or wrong, we should take note of the spirit why he suggested that. the reality is income from your plans can be volatile and you may need enough safety to engineer some consistency.

[A.Singaporean.Stocks.Investor.]

Don't know what to do in retirement? Feeling bored? Play video games with AK! 🥳 How to be bored like that? 🤭

[kevinho]

It is so important to plan way ahead, once one reach 50, they are in the danger zone of retrenchment unless they have a skill set that is in high demand. I am 55, did my SA shielding, enhanced my RA, took out all my OA to put in 6% yield stock, built a strong dividend portfolio, debt free, continue to work till I reach 60 or get fired along the way.

The above seems easy but it took me years of planning and active execution to create a future free cash flow supply when the day I do retire. Meanwhile enjoy life within our means and live a purposeful and meaningful life.

[nickdoggett]

Great video again guys! The young really need to listen and pay attention. Enough now will not be enough 20 years down the road. And always look to top up your investments to get even more passive income.

[jmangood]

Thanks for the session! Very good inputs.

[NicoleCarter]

I know nothing about trading /investment and l'm keen on getting started. What are some strategies to get started with?

[ThinkForwardInvestor]

We tend to play on the safe side that what if I live beyond 85? It would also be useful to consider what if I don’t? And I live till 70 only. Will you do things differently?

Also, it is a bit simplistic to just project the same expenses with inflation. Depending on individuals, expenses might increase or decrease as we aged and priority changes.

So a good guide but one really needs to take some time to think about it. We don’t want to risk running out of money.

However, we also don’t want to end up having the money but ran out of energy and time.

[ALim-bsze]

To be ready for retirement financially, it is preferable that the passive income is equal to active income. The assumption is that expenditure will be less than passive income and that the excess can be reinvested such that the passive income continues to grow above inflation. This in theory means that the capital is maintained or increased until the time of death.
Aiming for passive income to only cover expenditure is risky due the effects of inflation and additional expenses like medical etc.

[SuperRambala]

Having Insurance is not the thing, how to pay for it, do we have money to pay for insurance

[payjohnny]

Should consider retiring in Malaysia as an alternate option.

[bennylim]

No house lond
Car lond 100 thousand
All in dbs
Dividen around 100 thousand more.
Can retired.???

[syk]

when cars in Singapore, like a BMW 5S is half a million, having a auto loan debt is definitely a no no, so your advice is wrong as Singapore cars are all 6 figures

[ezekielkokspeaks]

Disagree with striking lottery. That depends on your spending habits. If you are huge spender, you will be much poorer after striking lottery