double good if they can do as some forummers had done....put in in Dec take out in Jan.
got tax relief + got >8% roi for 11 months..

Effective return for 25% annual rebate and 4% annual return is equivalent to 10% return per annum

With tax relief of rm8000 and tax bracket of 25%, tax savings is rm2000.
Effectively starting amount is rm8000-2000=6000, average SSPN annual return of 4% on rm8000 after 10 years becomes rm11842.
So using the financial calculator with these figures gives a return of 7.04% per annum. Please correct me if I am wrong.



This post has been edited by MGM: Aug 21 2019, 09:33 PM

https://terrencenotes.com/2019/07/30/how-to...e-in-singapore/

May look at the numbers in this post to see how you can achieve financial freedom by just converting their S$ to RM.

https://terrencenotes.com/2019/08/01/how-to...-singapore-2-0/

All the more reason for one to stay in JB and work in Singapore, if only travelling to-and-fro is convenient, where is the RTS?

if I did not got for SSPN thus I pay RM2000 tax

if i invest RM6k myself, how many % of ROI pa for 10 yrs, must i get recover that RM2000 (tax paid) and beat this SSPN?
(assuming I used that RM2000 tax saving and put into FD at 4%pa if I were to go for the SSPN route)

This post has been edited by yklooi: Aug 21 2019, 10:54 PM

interesting .....

what if the objective itself is "want to retire early (RE), by xx age?" (here RE is a defined objective, but meaningful or not is also up to that the definition of individual, nothing misguided)
thus to be able to RE by xx age, one need to be FI by xx age

Without FI, by xx age, there will be no RE by xx age
With FI, there will be option to either RE or No RE at xx age (up to individual when reached that FI status)

so which one is the main objective and sub objectives to the main objective?


will "Just focus on FI", has the same content as your earlier post?
from this.....

to this? (just exchanged the RE to FI and vice versa)

(Quote)
No problems about RE being an objective. The problem bit is FI.

FI is just completely misguided as an objective.

FI should not be an objective by itself. Examples are those who skimp on their food and affect their health later on in life. Examples are those who didn't do the fun things at the earlier age of their life, and find they are too old when they achieved FI to do those things.

It's about balance and moderation and optimizing what is appropriate over your life span. Not some misguided objective about FI.
(End Quote)

This post has been edited by yklooi: Aug 22 2019, 08:41 AM

You are so loaded. You should discuss it here!

there are some wanted to escape their current (extremely good) pay job that they had been doing, that they feel are going against their religion, personal beliefs or family tradition.

i had a friend, that had to quit & downgrade his income and lifestyle for he believes and feel that his previous job will lead him to hell or not so easy death if he did not quit.

many others may not be born in a lucky family, countries, culture, environment or political situation......but i think in their mind, they too at times, do dreams of "getting away" from their predicaments.

I think he can start by telling more of what he feel and think about

Yes, why?
No, why?
Partial retire, why?

for ONLY he himself knows better of what he wants and don't want and what he can do and cannot do about RE
(since he is already a lot better than most here financially to talk about retirement)

is Early Retirement or early partial retirement his big dreams?

maybe his big dreams is to accumulate as much assets as possible (or perhaps 10 mil) during his this lifetime?

This post has been edited by yklooi: Aug 22 2019, 09:25 AM

If you contribute RM8,000 pa for 10 years, at 4% annual return you get RM96,000 on 10th year.

Now with the relief you only pay RM6,000 pa for 10 years, but you will get RM96,000 on 10th year still - that’s 10% equivalent.

Take each rm8000 separately for calculation. Tax relief amount always changing.

This post has been edited by MGM: Aug 22 2019, 10:09 AM

I don't quite understand his calculation but anyway,
MM2H by an ex-Malaysian converted to Singaporean. Is that possible?

Sorry I don't have info on this.

FI is almost every wage earner's dream. The path to fi could be long and tedious, often longer than one's working life. For reasons, only about 3.5% of adults in this country have over us$100k net worth.

FI basically has two components i.e income and expenses and two stages i.e pre-fi and fi.
In pre fi, income - expenses go-to fi funds.
In fi, fi funds income or drawdown > expected expenses.

Whether one should retire early is a matter of individual preference.

This post has been edited by icemanfx: Aug 22 2019, 11:02 AM

must learn from him, how to accumulate RM1.02 mil in EPF just with salary 8K per month at the age 47.

This post has been edited by utellme: Aug 22 2019, 01:00 PM

Yeah

That does looks a bit out of place.

Might be self contribution?

Hi Iceman,

Mind to share the news where you get the 3.5% of adults in this country have over us$100k net worth.

TIA

I.b wealth report.