Singapore Expats

the observer wrote: ↑

Thu, 21 Nov 2024 10:05 pm

https://www.newsweek.com/justin-trudeau ... cy-1988094

Game changer

This had been telegraphed for some time. It was also easy to foresee some of the challenges Canada is now dealing with (many of the issues/problems are common across countries).

The doors will remain open there (they aren't going to zero immigration), but it will be a bit tougher for some (still fine if you can study at one of the more selective universities or are highly skilled/employable).

It's kind of funny that so many countries think they are going to make up for declining birthrates with immigration. They can certainly do so but expect more social/political discord if they do.

And this isn't to say immigration is bad. There are many benefits, but there are also costs. However, most people only think in terms of or see what's good for them (true of people on both sides of the fence).

NYY1 wrote: ↑

Fri, 22 Nov 2024 5:06 am

the observer wrote: ↑

Thu, 21 Nov 2024 10:05 pm

https://www.newsweek.com/justin-trudeau ... cy-1988094

Game changer

This had been telegraphed for some time. It was also easy to foresee some of the challenges Canada is now dealing with (many of the issues/problems are common across countries).

The doors will remain open there (they aren't going to zero immigration), but it will be a bit tougher for some (still fine if you can study at one of the more selective universities or are highly skilled/employable).

It's kind of funny that so many countries think they are going to make up for declining birthrates with immigration. They can certainly do so but expect more social/political discord if they do.

And this isn't to say immigration is bad. There are many benefits, but there are also costs. However, most people only think in terms of or see what's good for them (true of people on both sides of the fence).

To those who are thinking of seeking countries with easier immigration policies, there’s been tightening of late.

Just referencing news sources, rather than saying it out aloud without a news link.

https://www.business-standard.com/finan ... 332_1.html

There’s a need for Plan C now, rather than just B

Plan C = save lots of money in SG and get used to the idea of moving back to your country.

Wd40 is nearly there with his plan C. Planned, now about to finish the execution.

smoulder wrote: ↑

Fri, 22 Nov 2024 2:08 pm

Plan C = save lots of money in SG and get used to the idea of moving back to your country.

Wd40 is nearly there with his plan C. Planned, now about to finish the execution.

Thanks! I am in Bangalore right now for vacation. I got my daughter admission to school for next academic year and the school is about 7kms from my parents house.

My parents live in a landed property and the upper floor is rented out for cheap. I spoke with my parents and they agreed for us to occupy the upper floor. So we have some privacy and at the same time we are close to our parents who are old now in their mid 70s. We have some friends and relatives also in Bangalore.

I plan to give notice to my manager next year around Mar(2 months before my move date, my official notice period is 1 months) and ask him if he can allow me to continue the same work but from home from India, via an Indian outsource contractor, as my bank doesn't have India entity.

I expect that the request should be granted as they will have an experienced resource work for them with lower costs. If it doesn't work out, that is fine, I will resign and then take a break and explore what I can get in Bangalore.

My parents and relatives and inlaws are all excited that we are returning back. However, they all still tell me to do some job even if it is for a low salary as they cannot imagine someone retiring at the age of 45

As my daughter's school is about 7kms from my house, I plan to ride/drive and pickup/drop her, so atleast that will set my daily routine:)

Wd40 wrote: ↑

Sun, 15 Dec 2024 11:05 am

smoulder wrote: ↑

Fri, 22 Nov 2024 2:08 pm

Plan C = save lots of money in SG and get used to the idea of moving back to your country.

Wd40 is nearly there with his plan C. Planned, now about to finish the execution.

Thanks! I am in Bangalore right now for vacation. I got my daughter admission to school for next academic year and the school is about 7kms from my parents house.

My parents live in a landed property and the upper floor is rented out for cheap. I spoke with my parents and they agreed for us to occupy the upper floor. So we have some privacy and at the same time we are close to our parents who are old now in their mid 70s. We have some friends and relatives also in Bangalore.

I plan to give notice to my manager next year around Mar(2 months before my move date, my official notice period is 1 months) and ask him if he can allow me to continue the same work but from home from India, via an Indian outsource contractor, as my bank doesn't have India entity.

I expect that the request should be granted as they will have an experienced resource work for them with lower costs. If it doesn't work out, that is fine, I will resign and then take a break and explore what I can get in Bangalore.

My parents and relatives and inlaws are all excited that we are returning back. However, they all still tell me to do some job even if it is for a low salary as they cannot imagine someone retiring at the age of 45

As my daughter's school is about 7kms from my house, I plan to ride/drive and pickup/drop her, so atleast that will set my daily routine:)

Great to see someone else executing their plan. My wife and kids have been living in the U.S. since September and have adjusted well.

We just got back to Singapore yesterday and are here for 3 weeks to do our final packing. I sadly need to separate from my employer and our passes will be cancelled at year end. Although it seems final, we already have plans to visit in July next year. I have similar pressure from my in-laws about finding a new job. I’ve been looking (in a very casual and opportunistic way), but I think taking a break after nearly 3 decades of working is reasonable.

I believe that you should keep your mind engaged and occupied. If it's not through work, at least through hobbies. I'm sure both of you will figure out what to do in that respect.

If you want to work for a paycheck again, I'd suggest trying to find something sooner rather than later. First, it's easier to switch jobs again if you are already employed. Second, there's a better chance you'll find additional/more interesting opportunities if you are actually working. In contrast, if you are happy to branch out on your own, an extended break won't be an issue.

Lastly, I'm sure neither of you will ever starve (based on your financial position). That being said, asset values / account balances are very high now, and it looks easy to step away. However, at some point there is going to be a reasonable drawdown and/or minimal returns for a 5-year to 10-year period.

I know such scenarios are built into planning tools, but psychologically you will likely feel different when it happens. Both of you probably have 30+ years to go (if not 40+), which is a long time (and possibly beyond the horizon some of these tools contemplate). I'd also add that if you are going to reside in high cost, affluent areas, expenses there are likely to go up faster than average (the biggest item is whether you have housing covered).

Of course, one can always adjust and/or move somewhere else. Hence, you can decide to take a break and if nothing ever materialises later, just enjoy life and whatever it is you can do (most likely, you'll still be better situated than a lot of other people).

Good luck.

All great advice… and I know it’s true.

I have got 15 years to go until I reach full retirement age (67). I expect to be eligible for Social Security benefits, and my wife has CPF.

If given the opportunity, I wanted to work 10 more years with my current employer, so that I would qualify as an official US retiree with medical. That would also give me the opportunity to max out 401(k) because I currently have nothing tax deferred, only a small Roth IRA that I’ve dutifully maxed out during my working career in Singapore.

NYY1 wrote: ↑

Mon, 16 Dec 2024 7:49 am

If you want to work for a paycheck again, I'd suggest trying to find something sooner rather than later. First, it's easier to switch jobs again if you are already employed. Second, there's a better chance you'll find additional/more interesting opportunities if you are actually working. In contrast, if you are happy to branch out on your own, an extended break won't be an issue.

Lastly, I'm sure neither of you will ever starve (based on your financial position). That being said, asset values / account balances are very high now, and it looks easy to step away. However, at some point there is going to be a reasonable drawdown and/or minimal returns for a 5-year to 10-year period.

I know such scenarios are built into planning tools, but psychologically you will likely feel different when it happens. Both of you probably have 30+ years to go (if not 40+), which is a long time (and possibly beyond the horizon some of these tools contemplate). I'd also add that if you are going to reside in high cost, affluent areas, expenses there are likely to go up faster than average (the biggest item is whether you have housing covered).

Of course, one can always adjust and/or move somewhere else. Hence, you can decide to take a break and if nothing ever materialises later, just enjoy life and whatever it is you can do (most likely, you'll still be better situated than a lot of other people).

Good luck.

Thanks for the great advice. In my case, financially I am okay and my asset allocation is very conservative, like 50% in equities and 50% in fixed income. So even a GFC kind of crash will not impact me.

The real concern is lacking a purpose in life and driving myself to boredom.

I plan to take an iterative approach. I will look for a job which is less stressful and if it gives me good engagement without causing undue stress I will stick with it. If it becomes stressful, I quit and look for something else.

I understand the job market is pretty bad for people who are 40 and above and havent risen to management levels. Many of my peers have Open to work status on LinkedIn and have been unemployed for more than 6 months. So the chances of this early retirement happening involuntarily is also quite high in our IT field. So I am not so concerned about it.

For me, this Singapore stint of last 16 years is a bit like a detour in a long journey and now I want to merge onto the main highway, smoothly, especially for my wife and daughter.

The ideal situation is they forget about Singapore quickly and get used to India and it should be as if we never left India at all. Ofcourse, it is not possible, that we live in one place for 16 years which also means we didn't live in our home country for 16 years, that means we have gotten used to the good life of Singapore and we haven't experienced a lot of hardships in India to make us battle-ready. My aim is such that the impact of the detour should be minimal negative although the biggest positive is my networth and the global exposure we got.

It won’t be an easy transition, but everyone adjusts eventually. What can help is if they believe there is no other choice. My wife mentioned early on that she wished this move could have happened later rather than now… but honestly, the longer it is, the harder it is. Humans are creatures of habit.

malcontent wrote: ↑

Mon, 16 Dec 2024 8:28 am

All great advice… and I know it’s true.

I have got 15 years to go until I reach full retirement age (67). I expect to be eligible for Social Security benefits, and my wife has CPF.

If given the opportunity, I wanted to work 10 more years with my current employer, so that I would qualify as an official US retiree with medical. That would also give me the opportunity to max out 401(k) because I currently have nothing tax deferred, only a small Roth IRA that I’ve dutifully maxed out during my working career in Singapore.

You can also consider claiming earlier? While the payments will be lower, you will get them for a greater number of years (in expectation). I think it depends where the markets are at that point in time. If your alternative is liquidating other assets, you may be better off with the lower payments and letting the assets continue to compound (particularly if you'd need to sell them at an inopportune time).

I think some people in the US try to keep working just to get employer sponsored healthcare coverage until they are eligible for the government programmes? Either way, I'm sure you can bridge the gap (although I'd think it is still a noteworthy benefit/cost?).

Getting way off topic here, but…

Yes, many people in the U.S. work until age 65 when Medicare kicks in. Good employers offer retiree benefits to bridge the gap until 65. After the Affordable Care Act, early retirees in the U.S. have discovered ways to manipulate their investment income so that they get free Obamacare. I plan to do the same if I remain unemployed.

I could start payments as early as age 62, but then payments will be 30% lower, permanently. Spousal benefits (which will be 50% of my benefit) are similarly reduced. It’s usually better to spend down investments rather than take it early. You get around 8% more each year you wait. The payments are inflation adjusted and tax favored, which sweetens the deal further.

malcontent wrote: ↑

Tue, 17 Dec 2024 9:13 pm

Getting way off topic here, but…

Yes, many people in the U.S. work until age 65 when Medicare kicks in. Good employers offer retiree benefits to bridge the gap until 65. After the Affordable Care Act, early retirees in the U.S. have discovered ways to manipulate their investment income so that they get free Obamacare. I plan to do the same if I remain unemployed.

I could start payments as early as age 62, but then payments will be 30% lower, permanently. Spousal benefits (which will be 50% of my benefit) are similarly reduced. It’s usually better to spend down investments rather than take it early. You get around 8% more each year you wait. The payments are inflation adjusted and tax favored, which sweetens the deal further.

Unless it has changed in the last 7 years it used to be an additional 8% each year you didn't start drawing it but only up to the age of 70. (I waited and started drawing it in Sept, 7 years ago when I hit 70. And the COLAs are pretty good considering. in the two years post covid (US) total combined increment was just over 14%.

sundaymorningstaple wrote: ↑

Wed, 18 Dec 2024 10:49 pm

malcontent wrote: ↑

Tue, 17 Dec 2024 9:13 pm

Getting way off topic here, but…

Yes, many people in the U.S. work until age 65 when Medicare kicks in. Good employers offer retiree benefits to bridge the gap until 65. After the Affordable Care Act, early retirees in the U.S. have discovered ways to manipulate their investment income so that they get free Obamacare. I plan to do the same if I remain unemployed.

I could start payments as early as age 62, but then payments will be 30% lower, permanently. Spousal benefits (which will be 50% of my benefit) are similarly reduced. It’s usually better to spend down investments rather than take it early. You get around 8% more each year you wait. The payments are inflation adjusted and tax favored, which sweetens the deal further.

Unless it has changed in the last 7 years it used to be an additional 8% each years you didn't start drawing it but only up to the age of 70. (I waited and started drawing it in Sept, 7 years ago when I hit 70. And the COLAs are pretty good considering. in the two years post covid (US) total combined increment was just over 14%.

I would wait until 70 if not for my non-working spouse… she’ll max out at 67 and can’t draw hers until I do. The break-even is over 90, so I’ll be sticking to 67.

For her CPF… if we stay in the U.S., it’ll be better to renounce before 70 and take the lump sum tax free, otherwise, each CPF LIFE payment will be taxed in-full as ordinary income, same as an RMD.

Many people I know in the US that don't need the money have realised it's often better to claim early (despite the lower payments). Just invest the money received and earn a higher rate of return / more years to compound.

This seems to go against the conventional wisdom of trying to maximize the payments you receive.