Saturday, 28 December 2013

Looking Ahead to 2014 (Part 1): To be debt-free

2014 will be a milestone year for me.  I am planning to be finally debt-free by the end of 2014.

My outstanding HDB housing loan will dip below $100K in 2014, making it impossible for further re-financing with the bank.

I have done a loan re-financing in 2012, with 2 years locked-in period.  It was not a bad deal as the interest rates were 1+% for the first year, 2+% for the second year and 3+% for the third year.

I am planning to pay off the remaining HDB loan by the combination of the followings:

1. Matured endowment policy
- Luckily I have one 21-years endowment policy maturing in mid-2014.  Time really flies and 20 years have already gone by since the day I started contributing to that endowment.

2. Housing loan "pay-up fund"
- I have started this fund after the last re-financing, contributing a fixed sum every month into it.

3. Central Provident Fund (CPF)
- I will need to check how much can I use?

4. Fixed deposit or Investment-linked Policy (ILP)
 - Depending on the sum of 1 and 2, I may liquidate one of my FD or ILP, also depending on the ILP price.  I do not need to touch my CPF, but why not if it is available?

The goal is to be debt-free by end 2014.


  1. Good to be debt free.

    One thing less to worry over the next few economic cycles.

    1. CW8888,

      Yes. Good to be debt-free. But debt at 1+% interest also not too bad. Can invest the money for better returns.


  2. Hi Farmer,

    Good to be debt free and you can channel more "bullet" building up your passive income portfolio. Well done.


    1. Hi Gregg,

      Yes. Good to be debt free. More bullets for me in 2015 and probably the next market crash.


  3. Awesome, congrats to being debt free. Not easy in Singapore!

    Definitely a big step towards financial freedom and happiness!

    1. Hi sgftfund,

      Thanks for your compliment. Congrats you on being a father soon.