Read? Save more than 60%. No need to invest??? (4)
Friday, 14 November 2014
Today, at lunch. Uncle8888's female colleague in her early 30s asked this question:Can save more than 60%. No need to invest. Right?
CW8888: That lunch with her and triggered the above blog post.
Last Thursday, Uncle8888 was having lunch with her again. She was glad that that Uncle8888 could retire voluntary. This is something that she doesn't see it happening for herself. She will have to keep working till her retirement by the company i.e. no voluntary retirement on her own as she still don't have faith in investing. It is just too risky!
That is the reason, most female avoid investing and those female who invests turn out to be better investors than men?
ReplyDeleteNot always. Some females like to anyhow spend money. Some females invest already don't know how to cut loss. Some females....
ReplyDeleteJust to clarify... save >60% base on current income
ReplyDeleteHer saving including CPF OA & SA?
No debt (flat fully paid, etc...)
Does she save >60% over the past?
Let's say she earn $2K 20 years ago and now earn $5K; saving is $1.2K and $3K respectively.
However, her living expense is $2K now ($5K * 40%).
So, her saving is not 1.5 years of expense (http://createwealth8888.blogspot.sg/2014/11/save-more-than-60-no-need-to-invest.html)
She could consider using CPFLife annuity concept for perpetual income. She could top up cash to increase her monthly payout, i.e. $2K.
She can save more than 60% of her net take home pay and put in FDs.
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