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Old 29-04-2013, 08:09 PM
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Originally Posted by Unregistered View Post
Thanks for your story. Could you also share why you are aiming for $120k per year? Is this your annual expenditure? Or have you included a buffer for future inflation and unexpected expenses (like medical?).
The $120K per year income included buffers. Currently our annual household expenses are around $90K - $100K. Not extravagant at all. If we retire, we can remove $20K from that expense immediately - our income taxes. If we don't keep our maid and sell off one car, we can further reduce the expense by another $10K. So we would need around $60K - $70K each year.

The buffers are to address :
1. Uncertainties in the income sources and amount
2. Replacement / maintenance of aging assets
3. Inflation
4. Medical expenses
5. Anxieties of not having savings (not seeing your assets grow)

Anyway, it is always good to have some margins.

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