Securing my family's financial security

I was looking at https://www.my15hourworkweek.com/2021/04/13/the-six-steps-of-the-wealth-ladder/ (again), and thinking that I have probably secured my family's financial security. The family's net worth have reached a point (currently about 10x annual expenses) where I think we will be able to maintain our current lifestyle (till the kids start working, and by then CPF Life will soon kick in) even if I got retrenched and forced to take a lower paying job. 

This is a post that I constantly re-read to motivate/remind myself.

I am highlighting the most important paragraph to me here.

The trinity study assumes a retiree will:

• never earn any more money through part-time work or self-employment projects
• never collect a single dollar from social security or any other pension plan
• never adjust spending to account for economic reality like a huge recession
• never substitute goods to compensate for inflation or price fluctuation (vacation in a closer place one year during  an oil price spike, or switch to almond milk in the event of a dairy milk embargo).
• never collect any inheritance from the passing of parents or other family members
• and never do what most old people tend to do according to studies – spend less as they age

It tells me that 25x annual expenses is very safe to retire on. Let's hope I will really dare to retire then!

*I have reached FRS for my CPF and working towards FRS for J. Upon the age of 55 (16 and 19 years away), I fully intend to top up both CPF to ERS such that we can each have a draw down of $2k (in today's money) when we hit 55.

We will be able to get $4k~ (H and J) per month when J hits 65. $4k should be mostly sufficient then.

Contribution to SRS

I have been contributing to my SRS for some time, to reduce my taxable income. I do not top up my SA. This is as SRS is more flexible than CPF SA. In the event that I need to make an early withdrawal, I can, with a 5% penalty. The withdrawal amount is also subjected to income tax. I reasoned that if I were forced to make an early withdrawal, I am likely not working by then and thus have no taxable income.

I was suddenly thinking, if I have more than $400k* in SRS (the maximum tax free withdrawal from SRS is $400k), do I still top up my SRS if I am still working then and need to reduce my income tax? The answer is a "Yes" for me. This is because only half of the withdrawal amount after the retirement age (62 for me) is taxable! 

Even if one's SRS is $800k, the withdrawal per year is $80k. Half of that is taxable = $40k. According to income tax rates, the income tax is only $550.

This is a reminder post to myself.

*if I have 400k in SRS, I should be staring at FIRE in the face, based on the ratio of my SRS stocks to cash stocks currently :)