Uncle8888's Three Taps solution model to build sustainable retirement income for life in his financial independence phase is quite different from commonly adopted definition of financial independence when their investment income exceeding annual household expenses.
Investment portfolio is their key component of cash flow; but not for him. His key component for cash flow lies with the strength of his Tap 1. Different stroke for different folks!
With his Tap 1 future cash flow capacity already covering 100% of total future household expenses till 2038; so he doesn't have that sense of urgency now to increase the cash flow capacity of his Tap 3 (Investment Portfolio). He can afford to wait patiently!
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Uncle8888,
ReplyDeleteMay I ask if your "Tap 1 future cash flow capacity" takes into consideration of the FRS mthly payout 💰 after 65 years old?
Thank you!
No. CPF RA SA MA and some emergency cash is Tap 2 for self insured medical funding
DeleteOIC. Got it, must work hard to make sure the plan can cover left, cover right, oso front & back, top & bottom. 😁 Xie Xie, Uncle8888! ☕️
ReplyDeleteTry to figure out my own formula here which may include the FRS mthly payout once hit 65. hehe...
One has to take note that I only have Medishield and no other insurance coverage. Bo pian and has to cover this too by more kiasu and kiasi
DeleteThat is the problem when people refuse to let go!
DeleteSomething to learn from my relative You die. I die. Doctors also die???
Read? You die. I die. Doctors also die???
DeleteRead? Pursuing Life Independence After Financial Independence??? (2)
DeleteThat is the sad part of life. 66 still consider "young" according to current life expectancy.
ReplyDeleteYup, but even without AMD, if a person is brain dead & being kept alive on ventilator in ICU etc, hospitals will pressure family members to turn off the switch with the huge debts accumulating & debt collectors appearing at your homes & work places. And hospitals can always get court order to allow turning off the switch. The legal bills will be added to the hospital bills!
ReplyDeleteOf course if you're a billionaire then no problem lah! :) :)
Estate planning will become bigger business as population ages & also gets richer. Ideally estate planning should begin once a person reaches adulthood (Sinkie guys should start when enter NS), but 99% will delay until elderly or at least middle-aged with kids.
Wills, nominations, AMD, LPA are basic tools. If got young kids or long-term dependents e.g. handicapped relatives, then may want to consider testamentary trust or revocable living trust.
Sometimes in hospitals can see ugly behavior of family members how they take advantage of the patients. E.g. some children being nice & visiting everyday, convincing the parent to transfer assets (HDB, private property, cash) to them, even got case where children got permission from Dr to bring patient to HDB to sign xfer of HDB flat. After that the children / relatives don't bother visiting liao. Even got some children telling the hospital staff not to contact them regarding their parent anymore.
BTW in hospitals, patients or family members can specify DNR (Do Not Resuscitate). Which basically means if patient collapses --- no pulse, no breathing --- then don't do the usual Code Blue emergency procedures. Just standby until patient confirmed expires by Dr. Otherwise need to do the usual --- activate Code Blue team, get crash cart, start CPR, start oxygen, suction, heart monitor, power up defibrillator, intubation, insert needle cannula into vein if don't have, prepare drugs/IV lines. If can revive then rush to ICU if not already there, followup tests/procedures etc.
For elderly patients in C-class wards with serious conditions, Drs will "encourage" family members to sign for DNR if patient doesn't have AMD. :)
Anyway by 2030 when 1 in 4 sinkies are over 65, I'm quite confidant that euthanasia will be legal by then.
Last few years of my "proper" working life was in hospitals. See death & dying until numb liao. Frankly it's not the dying that gets to me, but more of those (rare) cases where family members take advantage of the patients, especially when they are psychologically vulnerable. As staff we can't interfere in their family affairs, but sometimes we will discretely inform the medical social workers or certain doctors. Most of the time, their hands also tied.
ReplyDeleteThe moral of story is to spend more on ourselves and beloved ones when we are still in control of our own money. May be it is good to let our beneficiaries be aware of the distribution in our Will and avoid guessing?
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