Quote:
Originally Posted by Unregistered
I tend to agree with the poster at 1.26 pm. If $1M is not enough, most people will not be able to retire. Invest the $1M for passive income. 5% returns will generate $50k a year, which is sufficient for most people without a lavish lifestyle. If you want to grow your capital and cater for inflation, plough back some of the passive income into your investments. I feel consistent returns are achievable if one starts investing early.
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I may have inadvertantly offended some forumers here who said I was being insensitive in my postings here. I apologise. It was never my intention to offend anyone. I was in a way expressing some fear and frustration that as a thrifty middle income earner who scrimped for years aspiring to one day sit back and relax and enjoy the fruits until my last day will not see my dream turn out the way my wife and I have hoped for.
Many people who are still working may not have thought through their retirement planning. For me and wife, we are doing it now because we are reaching a critical milestone (55 yrs) and calculating if we could retire without down grading our already frugal lifestyle. In this climate it is getting difficult to have positive return of 3% (net of inflation of 5% or more), not to mention consistent return.
The other worry is the medical expenses. It was reported that in the US, many families were one medical emergency away from bankruptcy. Meaning they were not financially prepared for heavy medical expenses.