242 IntroductionMr. and Mrs. Tan, a dual-income couple in their 40s, represent a growing number of Singaporeans who are determined to achieve early retirement while ensuring their children’s education is fully funded. With careful planning and disciplined financial management, the Tans have found a way to balance their aspirations for financial independence with their family obligations. Their approach relies heavily on leveraging CPF (Central Provident Fund) and the Supplementary Retirement Scheme (SRS) to achieve their financial goals. This case study will explore how the Tans are working toward early retirement and preparing for their children’s future while making smart use of CPF and SRS.Meet the Tans: A Dual-Income Couple in Their 40sMr. Tan works as an IT professional, and Mrs. Tan is a financial analyst. Together, they earn a combined annual income of S$180,000. With two children in primary school, their financial priorities include saving for retirement, funding their children’s education, and maintaining their lifestyle. They also aim to retire in their mid-50s, freeing up more time to pursue personal interests and spend time with their family.Income, Expenses, and Budgeting StrategyThe Tans have adopted a disciplined approach to budgeting and financial planning. Their S$180,000 annual income is carefully allocated across multiple areas: CPF Contributions: The Tans prioritize CPF contributions, with about 6% of their income going to the Special Account (SA), earning 4% interest per annum. This helps grow their retirement savings steadily.SRS Contributions: Each of them contributes S$15,300 annually to their SRS account, taking advantage of tax relief while also investing the funds for long-term growth.Children’s Education Fund: The Tans are setting aside around 10% of their income for their children’s future university expenses. Their goal is to accumulate S$200,000 over the next decade by consistently contributing to a dedicated investment fund. They use a combination of their children’s CDA and AutoWealth to help grow these savings.HDB Mortgage: Their 5-room HDB mortgage is primarily managed through CPF Ordinary Account (OA) contributions, allowing them to free up more cash for investments. Planning Income for Early Retirement in Their 50sThe Tans’ goal is to retire in their mid-50s, and while they are maximizing their CPF and SRS contributions, they understand they won’t be able to withdraw these funds until reaching the official retirement age. To bridge the gap, they are also investing a portion of their cash into AutoWealth’s AW+ plan, which is designed for long-term, more aggressive growth. By doing so, they aim to build an additional retirement fund, targeting a 4-6% annual return alongside the stable growth from their CPF Special Account and SRS.Children’s Education Fund: Ensuring a Bright FutureIn addition to their retirement goals, the Tans are actively saving for their children’s education. They aim to accumulate S$200,000, which will cover both local and overseas university options. To achieve this, they: Use Child Development Accounts (CDA): The Tans take full advantage of the government’s matching contributions to their children’s CDAs.Invest through AutoWealth: Just as they do with their SRS, the Tans invest their children’s education fund in AutoWealth’s Global Portfolio, ensuring their savings grow in a diversified and low-cost portfolio. This strategy offers a safer approach, aligning with their goal to securely build funds for their children’s future education. How AutoWealth Simplifies Their Investment JourneyThe Tans chose AutoWealth for its holistic approach to portfolio management, tailored to meet their diverse financial goals. Here’s how they’ve structured their investments across AutoWealth’s offerings: SRS Portfolio for Retirement Funds and Tax Savings: The Tans maximize their SRS contributions, benefiting from immediate income tax relief while investing these funds through AutoWealth. This portfolio is focused on building a reliable retirement fund with moderate growth, helping them achieve their retirement goals.AW+ for Long-Term, Aggressive Growth: To aim for a more luxurious retirement, the Tans invest in AutoWealth’s AW+ plan, which is designed for long-term, more aggressive growth. This higher-risk portfolio allows them to target stronger returns, complementing the stable growth from CPF and SRS.AW Global Portfolio for Stability in Children’s Education Fund: For funds that require more stability, such as their children’s education savings, the Tans opt for AutoWealth’s Global Portfolio. This portfolio offers a diversified and low-cost investment option, ensuring steady growth while minimizing risk, essential for long-term education planning. With AutoWealth’s automated investing, regular rebalancing, and personalized advice, the Tans are able to stay aligned with their financial objectives, all through a single, integrated platform.Challenges and Key TakeawaysWhile managing both early retirement goals and their children’s education fund can be challenging, the Tans have learned that starting early and staying disciplined are key to success. By leveraging CPF, SRS, and AutoWealth’s technology-driven solutions, they’ve been able to take control of their financial future without sacrificing their lifestyle.ConclusionThe Tans’ financial journey offers valuable insights for anyone looking to achieve early retirement while ensuring their children’s education is fully funded. By maximizing their CPF contributions, making the most of SRS tax relief, and investing wisely through a robo-advisor like AutoWealth, they have set themselves on a path toward financial independence.