hi need advice in this LAST decision of my life to make:-

age 45
salaried earner from day 1 till today
never venture into business
never invest in stock/bond/unit trust etc

consider myself FI >2yrs ago but not RE yet.

FI as in
>> 2 houses fully paid in 2017 (1 currently staying, 1 on-rent);
>> current kwsp+fds fund generation if compounded 6%(kwsp) & 4%(fd) the next 10yrs, and start withdrawing monthly at age 55 (Yr2029) as retirement expenses is 9200/mth; and if factored 3% inflation rate thereafter Yr 2029, i should die at age >72 (meaning fund 0)

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

This post has been edited by jojolicia: Jan 25 2019, 02:51 PM

thks for your input.

option B; and start reading on stocks for next 10yrs & start somewhr with the 10yrs mortgage installments accumulation right.

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Correct it won't run empty, if ONLY annual %/dividends are withdrawn as annual retirement expenses.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

This post has been edited by jojolicia: Jan 25 2019, 04:48 PM

that is what makes me undecided lo..

Noted your point with your earlier remark that lending cost is on up-trend... is not exciting.
Thanks

75 death in spreadsheet..hope can live longer

Negatively tail end for a person like me with "3-highs" & on pills daily last 12yrs..i do feel weaker as i near 50 compared to my peers..

Thanks for your inputs.. i have dropped option A (3rd prop) this time, intend to look/see, gut feeling is telling me >> can scoop better bargain in property market coming Yr 19/20

This post has been edited by jojolicia: Feb 19 2019, 11:37 AM

i am still moulding up such a-key of yours. passive income is greater than expenses (here said, expenses is subjective to one's)

This 5:4:1 from monthly take-home pay-cheque has been my own set of distribution since my 1st pay cheque (22yrs since)

Part 1
50% expenses incl commitments, parenting etc all-that-need-to-pay
40% saving
10% protection

Part 2
80% saving on bonus & passive income received
20% spend on whatever that you feel-good