Feb 18 2019, 04:37 AM
QUOTE(jojolicia @ Jan 25 2019, 02:30 PM)
NOW, i need to make ONE LAST decision in either below two option >>
option A, take up a 10yrs mortgage loan of 580K@4.45%pa for a 730K DSL (3rd property); pay 6000/mthx12x10yrs = 720K+(730K-580K) = 870K ;OR
option B, pay ownself (in fd@4%) 6000/mthx12x10yrs
for option A, loan just approved last week, that why need to decide soon.
I wish to hear from the sifu, specially FIRE sifus here, is it wise to tie myself at 45 (tail-end employment age) to this next 10yrs mortgage commitment, or just pay ownself (option B), particularly at current property market
option A, take up a 10yrs mortgage loan of 580K@4.45%pa for a 730K DSL (3rd property); pay 6000/mthx12x10yrs = 720K+(730K-580K) = 870K ;OR
option B, pay ownself (in fd@4%) 6000/mthx12x10yrs
for option A, loan just approved last week, that why need to decide soon.
I wish to hear from the sifu, specially FIRE sifus here, is it wise to tie myself at 45 (tail-end employment age) to this next 10yrs mortgage commitment, or just pay ownself (option B), particularly at current property market
QUOTE(jojolicia @ Jan 25 2019, 04:47 PM)
No, not depending on rental income.
Correct it won't run empty, if ONLY annual %/dividends are withdrawn as annual retirement expenses.
my case, i take 1st yrs retirement expenses to be 70% of projected last drawn salary & projected fund size at age 56
age 56; 1st year 10,500/mthx12=126,000pa (with 3% inflation per year) against initial fund projection 2,250,000@4%= only 90,000
so, kena mati age 75 unless i take 90,000/12=7500 pm (1st year)
just my 2cents
Correct it won't run empty, if ONLY annual %/dividends are withdrawn as annual retirement expenses.
my case, i take 1st yrs retirement expenses to be 70% of projected last drawn salary & projected fund size at age 56
age 56; 1st year 10,500/mthx12=126,000pa (with 3% inflation per year) against initial fund projection 2,250,000@4%= only 90,000
so, kena mati age 75 unless i take 90,000/12=7500 pm (1st year)
just my 2cents
QUOTE(jojolicia @ Jan 25 2019, 04:58 PM)
that is what makes me undecided lo.. 
Not sifu and maybe my answer is too late by now. But what I've learned option B, pay ownself (in fd@4%) 6000/mthx12x10yrs <<<<< Do you mean you cash out your FD to pay?
If you don't mind paying a bit extra, Option A sounds good.
Promotional FDs are between 4.2%-4.3% (banks with PIDM. Banks without PIDM are paying even higher) and some are paid monthly, giving a compounding interest of 4.28%-4.38%. So you lose about 0.1% interest to banks (and some legal/stamping fees) BUT save a lot from paying taxes from your rental income.
Other alternatives are dumping more money into EPF (but your money will be stuck until you have $1m or retire) or ASNB unit trust (see the ASNB thread).
QUOTE(shodan11 @ Feb 16 2019, 09:55 PM)
It pains me to see those RM 15 coffee drinks.
It pains me even more when people ridicule me for not spending such money. Or maybe not. I just feel that they're annoying.....This post has been edited by beLIEve: Feb 18 2019, 04:43 AM
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