Dear readers, how do we define a Singapore millionaire?
Before we get into the definition, there are some facts that many will agree to.
First, a millionaire is defined as someone with a net worth of US $1 million. Yes, that’s right, not SGD $1 million but USD $1 million or around SGD $1.33 million.
Second, a person is a millionaire only if the person is worth a million USD in net worth. And net worth is nonetheless defined one’s Assets minus one’s Liabilities. And that’s where the part on whether one is a Singapore millionaire can be a little blurred.
With so many Singaporeans as CPF members, do Singaporeans count CPF monies into one’s assets? I have looked at quite a few definitions on the internet. One camp argues that CPF monies should be included as these are ultimately one’s monies though there are conditions to the use of the CPF monies. On the other camp, some argued that CPF monies should be taken out of the equation as these CPF monies are not that mobile.
Also, with many Singaporeans as owners of property owners, should properties be taken into the equation? Well, on this, the most common definition of Singapore millionaires that is reported in the media is one whose net worth equal USD $1 million excluding properties. And I believe if one is to still insist on properties being part of the equation, then my thinking is that both the asset (i.e. market value) minus the liabilities (debts and mortgage) of the property should be reflected (i.e. net value of the asset).
A very clean-cut definition of a Singapore millionaire can be one that excludes CPF and Property contributions, i.e. only count those disposable assets but still I believe whether or not CPF should go toward computation of one’s net worth is less clear.