SINGAPORE: Most people dream of settling into a cosy home after retirement, but not this couple. A 21-year-old Singaporean woman shared on social media that her parents, who are about to retire, have decided they want to live in a hotel instead.
On Thursday (Feb 13), she posted on the r/singaporefi forum, explaining that her parents, who are in their 50s, live overseas. They recently sold their house and made approximately S$500,000 from the sale.
According to her, they plan to reinvest S$300,000 into their business, which they believe will generate stable returns. However, they were unsure how to utilize the remaining S$200,000 and turned to their daughter for advice.
“For certain personal reasons, they must live in a hotel (I know it sounds absurd), which will cost around S$1,200 per month,” she wrote in her post, without elaborating further on why this arrangement was necessary.
Faced with this financial puzzle, she asked forum members if her proposed investment strategy was feasible. Her idea was to allocate S$150,000 into an exchange-traded fund (ETF) such as VWRA or VOO, aiming to generate capital gains that could help cover the monthly hotel expenses. The remaining S$50,000 would be set aside as emergency savings.
“They’ve had a bad history with stocks, so [they] don’t want to commit too much. They’re only going along with this because I convinced them not to be afraid of stocks or ETFs, and they believe their reinvestment will earn more than an ETF. Any advice, please?” she concluded.
“Inflation may cause this plan to fail”
The woman’s post about her parents’ unconventional retirement plan sparked Reddit users’ fascination, scepticism, and financial debate.
Many found the idea intriguing, some even joking about wanting to follow in their footsteps. One user quipped, “Please recommend the S$1.2K hotel, I also want to stay there.”
Another said, “S$1.2K a month to live in hotel like quite cheap only.. comparable to renting a HDB room lol.”
A third chimed in, “Wait.. what? S$1.2K a month hotel? Please name this place!”
However, some speculated that the hotel in question might be overseas. One user pointed out, “She said her parents live overseas so I’m assuming at S$1.2K hotel cost per month that’s somewhere else in SEA, it’s definitely not an SG hotel room.”
Beyond the lighthearted reactions, others raised serious financial concerns. Some questioned the sustainability of funding hotel stays through investments.
One user cautioned, “To answer the question, you can’t rely on 150K in VWRA to pay a monthly bill. It could go down 40% and stay there for a few years. You’d be selling it at a loss and recovering your money would be hard”
Another said, “If their business is making money, why not pay for it themselves through their incomes/profit, instead of this round about way to make money using investment to pay for their accomodations?”
A third user wrote, “Inflation may cause this plan to fail since, in the future, the hotel may require more than S$1.2K. Also, during years when investments take a downturn, e.g. GFC or COVID-equivalent periods, how will they fund it?”
In other news, a 30-year-old Singaporean woman recently shared on social media that she’s considering leaving her well-paying job to take a six-month break and travel the world.
While the idea sounds exciting, she doubts whether it was the right decision and seeks advice from others who have made a similar choice.
“For those who have taken a career break like this, was it worth it? Did it affect your job prospects when you returned? How did you manage your finances during the break? I’d appreciate any advice or insights,” she wrote on the r/singaporefi forum.
Read more: With a S$10.5K salary and a career on hold, should she take the ultimate break?
Featured image by freepik (for illustration purposes only)