Sunday, July 23, 2017

Gold Coast, Brisbane, Sunshine Coast and Noosa - Day 6 onwards

Day 6 continues from Day 5 where we reach the farm stay place. To read the previous post, click here

Day 6

We woke up early on day 6 for a farm feeding experience. All the animals are feed daily and we could join in this activity. 

They had many chickens on the farm too and we could even get fresh eggs from the chicken there. This is the first time I had the chance to pick fresh eggs laid by the chickens.

After feeding the animals and having breakfast, we proceeded to Eumundi markets which is a famous market near to Noosa. The markets had many interesting stuffs which are the locals produce. After walking the markets for a few hours, we proceeded to Noosa heads beach which is quite a nice place to go to. 

Here, we had our lunch at Betty's burger and it was one of the best burgers I've ever eaten. After lunch, we went to buy some groceries again and went back to the farm cottage for another round of BBQ dinner! 

Day 7

Time pass quickly and its time to go back to Gold coast for the last night there. It was a long drive back, probably about 3 hours. On the way back, we stop by Beefy's meat pies to grab some pies for lunch. They are known as Australia's best meat pies and its really quite good. Its a good rest point also for the long drive. 

Driving back to Gold coast, we went to pacific fair shopping centre for just a short while before checking into our airbnb apartment at Palm beach, Gold Coast. It was near to the airport, just 10 minutes drive, perfect for the night before going to the airport for our flight back to Singapore. 

Palm Beach

This apartment is just about 5-10 minutes walking distance to the beach and had 2 bedrooms plus a living room and also a kitchen. Its a cosy apartment hosted by a great friendly host. You can check out their apartment on airbnb here

Bedroom at the airbnb apartment
Day 8

Day 8 is our flight back to Singapore. The flight is early in the morning and we had to reach the airport by 7am. 

This concludes my 8 days Australia trip in Gold Coast. It was a wonderful experience and a relaxing holiday. 

You can read the rest of my post in this Australia trip series below:

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Thursday, July 20, 2017

Unlimited 1.5% Cashback card is back again! And How to get Air Miles to Travel For Free?

Standard Chartered Unlimited cashback card is back!

A few months back when I launched the new Standard Chartered unlimited cashback card on my blog, it received overwhelming response with more than a hundred sign ups on this blog alone. As I found the card useful and attractive too, I signed up for one myself and received Takashimaya vouchers.

Today, I'm going to bring this card, in partnership with Singsaver, back to this blog again for readers who have missed it. This time, the deal will be $150 Takashimaya vouchers for new customers. For those who are not familiar, the Standard Chartered unlimited card gives unlimited 1.5% cashback on all spending. There is no cap and no minimum spend required. This is very different from the other credit cards in the market which only gives you points or cashback for certain types of spending. There is often a minimum spend too to be eligible for the cashback. This is not the case for this new unlimited cashback card. This card can also be used for public transport with automatic EZ-reload top up function.

Apply for the card through the below link to get your $150 Takashimaya vouchers (Valid till 31st July 2017):

For those who love to travel - How does Air Miles Work?

Do you love to travel? I believe most of us here travel at least once a year just to explore the world or take a break out of our small island in Singapore. The best way to travel and save money at the same time is through redeeming air miles for our air tickets. Let me explain further on how this works.

Many of us have heard of the Singapore Airlines KrisFlyer program which enable travellers to earn miles and exchange it for free air tickets or vouchers. Did you know, you can actually earn KrisFlyer miles on any spend locally or overseas which means you can actually accumulate enough miles for some good discounts or even free air tickets for your travel.

American Express Singapore Airlines KrisFlyer

The American Express Singapore Airlines KrisFlyer Credit Card lets you earn 1.1 KrisFlyer miles for every $1 spend locally. What's more, receive 5000 bonus KrisFlyer miles once you charge your first transaction to your card. You can use your KrisFlyer miles to pay for all or a part of your airfare on Singapore Airlines or SilkAir on, or redeem vouchers for travel on Scoot or Tigerair.

Redemption of miles for free tickets starts from 7500. A look at the Singapore airlines website shows that an air ticket to Thailand is around 12,500 miles. You can redeem a ticket to Japan or South Korea for 25,000 miles and Australia for 20,000 miles.

In additional, you will receive $80 NTUC vouchers when you apply through the below link (Valid till 31st July 2017):

American Express Krisflyer Ascend Card - Get complimentary access to airport lounges and hotel stays

Another similar card which allows you to earn KrisFlyer miles is the American Express Krisflyer Ascend Card. This card has the same benefits as the previous card with additional 4 complimentary access per year to any participating SATS Premier Lounge in Singapore and Plaza Premium Lounge around the world. You also get one complimentary night per year with Millennium Hotels and Resorts worldwide. This card earns 1.2 KrisFlyer miles for every S$1 spent on all your eligible purchases with your Card.

You also get 5000 bonus KrisFlyer miles on your first transaction and additional $80 NTUC FairPrice vouchers when you apply through the link below (Valid till 31st July 2017):

Citi PremierMiles Card

The last miles card I'll introduce is the Citi Premier Miles card. For this card, you can earn miles and redeem on a wide variety of flights including KrisFlyer, Asia Miles, Royal Orchid Plus, Executive Club, Enrich, Infinity MileageLands, Garuda Frequent Flyer, Etihad Guest, Qantas, Qatar and Flying Blue. For every $1 spent, you will get 1.2 Citi miles. A check on the website shows it requires about 20,000 Citi miles to redeem a flight to Thailand, 25,000 miles to Hong Kong or Taiwan and 30,000 to Japan.

For this card, you will get a bonus 15,000 Miles on your first transaction and additional $100 Agoda eVouchers when you apply through the link below (Valid till 31st July 2017):

Whether its the 1.5% unlimited cashback or the KrisFlyer or Citi Premier miles card, all of these represents savings on some of our most common expenses. All offer ends on 31st July 2017.

Thursday, July 13, 2017

How To Have $1 Million Dollars For Retirement

$1 Million is a special milestone for retirement, advocated by many financial practitioners too. Why is $1 Million important for retirement? To lay out the context, $1 Million actually isn't really a lot of money for retirement. Assuming you have $1 Million dollars at the age of 55 and retire and live till 85 years old, you can spend about $33,333 every year from age 55 onward. This is about $2777 per month for expenses which really is just enough factoring inflation in the future.

$1 Million on the other hand is a good base for creating a steady stream of income for retirement. If we can generate 4% annual interest/dividend on the $1 Million, it is $40,000 which translates to $3333 per month. This is quite a good income for retirement.

In this post, I'll provide some realistic scenarios on what a typical average income earner's savings will turn out in his/her lifetime. This will allow us to see how $1 Million can be achieved realistically in our life.

Pure Savings without investment  

If a person just saves money but does not invest, this is how much savings he or she will achieve assuming a savings of about $18,000 to $20,000 annually:

I have added in a $60,000 expense at the age of 30 assuming the expenses is for marriage, house etc, the first milestone of a typical person's life.

AgeSavingsAdditional Savings
26$30,000 $20,000
27$50,000 $20,000
28$70,000 $20,000
29$90,000 $20,000
30$110,000 $20,000
31$50,000 $18,000
32$68,000 $18,000
33$86,000 $18,000
34$104,000 $18,000
35$122,000 $18,000
36$140,000 $18,000
37$158,000 $18,000
38$176,000 $18,000
39$194,000 $18,000
40$212,000 $18,000
41$230,000 $18,000
42$248,000 $18,000
43$266,000 $18,000
44$284,000 $18,000
45$302,000 $18,000
46$320,000 $18,000
47$338,000 $18,000
48$356,000 $18,000
49$374,000 $18,000
50$392,000 $18,000
51$410,000 $18,000
52$428,000 $18,000
53$446,000 $18,000
54$464,000 $18,000
55$482,000 $18,000
56$500,000 $18,000
57$518,000 $18,000
58$536,000 $18,000
59$554,000 $18,000
60$572,000 $18,000

As we can see, just savings alone will not get us anywhere near $1 Million at all even at the age of 60. Now, let's add in investment to see how it will turn out.

Savings with 8% investment

Using the same scenario and adding 8% investment return, this is how much savings we will have:

AgeSavingsAdditional SavingsInvestment return
26$30,800 $20,000 8%
27$53,264 $20,000 8%
28$77,525 $20,000 8%
29$103,727 $20,000 8%
30$132,025 $20,000 8%
31$72,025 $18,000 8%
32$95,787 $18,000 8%
33$121,450 $18,000 8%
34$149,166 $18,000 8%
35$179,100 $18,000 8%
36$211,428 $18,000 8%
37$246,342 $18,000 8%
38$284,049 $18,000 8%
39$324,773 $18,000 8%
40$368,755 $18,000 8%
41$416,255 $18,000 8%
42$467,556 $18,000 8%
43$522,960 $18,000 8%
44$582,797 $18,000 8%
45$647,421 $18,000 8%
46$717,214 $18,000 8%
47$792,592 $18,000 8%
48$873,999 $18,000 8%
49$961,919 $18,000 8%
50$1,056,872 $18,000 8%
51$1,159,422 $18,000 8%
52$1,270,176 $18,000 8%
53$1,389,790 $18,000 8%
54$1,518,973 $18,000 8%
55$1,658,491 $18,000 8%
56$1,809,170 $18,000 8%
57$1,971,904 $18,000 8%
58$2,147,656 $18,000 8%
59$2,337,469 $18,000 8%
60$2,542,466 $18,000 8%

With 8% investment return, this person can achieve $1 Million at the age of 50 with the same savings rate of $18,000 annually. Saving $18,000 a year from the age of 30 shouldn't be too difficult for many of us. Assuming a person earns $4000, he can spend $2500 a month and just save $1500 a month to reach the target.

If you think 8% investment return is too high to achieve, let's bring it down to 5% investment return

Savings with 5% investment

Using the same scenario and changing it to 5% investment return, this is how much savings we will have:

AgeSavingsAdditional SavingsInvestment return
26$30,500 $20,000 5%
27$52,025 $20,000 5%
28$74,626 $20,000 5%
29$98,358 $20,000 5%
30$123,275 $20,000 5%
31$63,275 $18,000 5%
32$84,439 $18,000 5%
33$106,661 $18,000 5%
34$129,994 $18,000 5%
35$154,494 $18,000 5%
36$180,219 $18,000 5%
37$207,230 $18,000 5%
38$235,591 $18,000 5%
39$265,371 $18,000 5%
40$296,639 $18,000 5%
41$329,471 $18,000 5%
42$363,945 $18,000 5%
43$400,142 $18,000 5%
44$438,149 $18,000 5%
45$478,056 $18,000 5%
46$519,959 $18,000 5%
47$563,957 $18,000 5%
48$610,155 $18,000 5%
49$658,663 $18,000 5%
50$709,596 $18,000 5%
51$763,076 $18,000 5%
52$819,230 $18,000 5%
53$878,191 $18,000 5%
54$940,101 $18,000 5%
55$1,005,106 $18,000 5%
56$1,073,361 $18,000 5%
57$1,145,029 $18,000 5%
58$1,220,280 $18,000 5%
59$1,299,294 $18,000 5%
60$1,382,259 $18,000 5%

With 5% investment return, $1 Million can be achieved at the age of 55. Still not too bad.

As we can see, achieving $1 Million is not too difficult in our lifetime with an achievable savings rate. However, the scenarios above assume that our savings is always 100% invested which is rarely the case since we will always have some cash on hand. There should be some buffer when using the above scenarios as a guideline.

Key to a financial free life - ESI

The key to having a financially free life is in our earnings, savings and investing (ESI). If we do not earn enough, we can always try to increase our income. If we spend too much, we can try to reduce expenses to have more savings. The last part is on investing and learning how to invest wisely.

For my life, I've focused on increasing my income for the past 2 years. Increasing income is much harder than reducing expenses as there are a lot of things not in my control. Increasing income is all about creating value in our workplace as well as out of our workplace. Skills learnt will always be valuable which people will be willing to pay us for.

This is how my income has evolved over the years:

As you can see, my income has essentially doubled on some months as compared to the past. Over the years, I've managed to create other streams of income through writing, consulting and investing. These income did not happen in an instant. It took a few years to build it up. I've also changed job for better career progression. There are a lot of things that needs to be balanced to make sure time is allocated efficiently. I've also had to, on some instances, reject additional earnings opportunities because I feel it would be too much for me to handle. 

What are your plans for retirement? Do you think $1 Million is an achievable target?

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