I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

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Friday, 14 November 2014

Save more than 60%. No need to invest???

Today, at lunch. Uncle8888's female colleague in her early 30s asked this question:

Can save more than 60%. No need to invest. Right?


This is the first time, Uncle8888 tio this type of question: No need to invest!

Hmmm ......

Uncle8888: When do you want to retire?

She: 62 to 65

Uncle8888: How long can you live? 100?

She thought for a while.

She: 100? 

She: OK. 100

Can save more than 60% and that means spending less than 40% per year.

60% saving = 1.5 years of expenses

Assume she retires at 62 and lives till 100 i.e 38 years in retirement

She can work for another 30 years and saves more than 45 years in retirement. 

Plus her earlier saving in her 20s and plus her CPF saving till 62.


Should be more than enough. Right?

Uncle8888: Yeah! No need to invest!

Her face brighten up and smiles!

What do you think?


  1. Replies
    1. You mean I miss the chance to be naughty if she want to learn investing?


  2. Inflation will erode that savings. After 20 yrs, $100 becomes $50 with an inflation of 3.5%. No buffer leh, dangerous..

    1. Her salary will increase every year to help offset inflation. She may have another 2 to 4 promotions over her career with 10% to 15% salary adjustment. Not forgetting her year end bonus saving of 50% for another 30 years.

      Human Asset and High Saver is doable!

    2. How to fight inflation?

      Best way to get promotion every few years by climbing corporate ladder and save more from monthly income and year end bonuses.

  3. But that's for current income. I think if you have more money, you have more to worry about inflation. Those money that you locked up in bank in fixed d are losing progressively more money as you earn more. Not sure if it'll turn out alright. It's like compounding in a reverse manner.

    1. Think you are thinking of preservation of wealth?

      Some is just thinking of doing asset drawn to last their lifetime and not too worry about wealth preservation.

      I am planning for asset drawn too for retirement income for life and less worry over investment return. No need to leave behind too much money. LOL!

  4. Aiyah...傻人有傻福。sometimes we make things complicated. You win some, you lose some.

  5. More dangerous than inflation is lifestyle inflation. This lifestyle inflation is very difficult to catchup or offset. LOL!

  6. Ah, things are much clearer now. If asset draw down, indeed no need to care much about inflation. Thanks for clarifying :)

  7. Hi Uncle 8888,

    Not everyone is comfortable with money in the stock market.

    And since it appears do-able for her, why not? Better than put in the market and everyday can't sleep. =p

    Can get higher returns by pumping into CPF after drawdown (65) since Minimum Sum will keep increasing. 4% interest rate. Otherwise, can consider SGS bonds. ~3% also good!

  8. Nothing is impossible. No right no wrong but no harm learning something new too.

  9. Like my ATM wife. My investment plan for her is to continue to do ATM withdrawal instead of asking her to learn investing and later tio con and asset draw down even faster. LOL!

  10. She got pretty face!

    You can see in Singapore there is growing number of rich, single old men. Right?

  11. These rare super savers can survive in hard times. Good times they are super savers. Bad times they are super survivors. Little doubt about it. Right?

  12. by World Financial Group

    Your savings, believe it or not, affect the way you stand, the way you walk, the tone of your voice. In short, your physical well-being and self-confidence. A man without savings is always running. He must. He must take the first job offered, or nearly so. He sits nervously on life’s chairs because any small emergency throws him into the hands of others.

    Without savings, a man must be too grateful. Gratitude is a fine thing in its place. But a constant state of gratitude is a horrible place in which to live. A man with savings can walk tall. He may appraise opportunities in a relaxed way, have time for judicious estimates and not be rushed by economic necessity.

    A man with savings can afford to resign from his job if his principles so dictate. And for this reason he’ll never need to do so. A man who can afford to quit is much more useful to his company, and therefore more readily promoted. He can afford to give his company the benefit of his most candid judgments.

    A man with savings can afford the wonderful privilege of being generous in family or neighborhood emergencies. He can take the level stare of any man ... friend, stranger or enemy. That ability shapes his personality and character.

    The ability to save has nothing to do with the size of income. Many high-income people spend it all. They are on a treadmill, darting through life like minnows.

    The dean of American bankers, J.P. Morgan, once advised a young broker: "Take waste out of your spending; you’ll drive the haste out of your life."

    If you don’t need money for college, a home or retirement, then save for self-confidence. The state of your savings does have a lot to do with how tall you walk.

  13. CW,

    You are right! No need to invest if one can earn high and save most of it ;)

    Even better if we marry well!

    In my next life, I'll like to become an expat wife. Let that mule work and invest his ass off to pay for my lifestyle ;)


  14. never let your/a woman know how much $$$ you have. It will spell trouble one .

    1. Bias statement!

      Not all women are spendthrift, men have destructive behaviour too!

    2. If we are not publicly known that we have money then we should act poor and don't show off.

  15. Well said by:

    Mr Tan: Then also don't need money mah. Why the need to invest for money if there are no other wants?

    Guess her reason for not investing? Not that many wants. LOL!


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