Quote:
Originally Posted by Unregistered
Interesting forum this. Many views and opinions. Here is my story.
25 years ago, my wife & I set a target of $1M to save (not including the property we stay in) and then retire or to shift gear to a more relaxed lifestyle. We achieved that in 15 yrs. Seeing how the cost of living has crept up, we raised that target to $1.5M. We hit that target in 5 more yrs. Again, with persistent high inflation, we raised the target once more to $2M, we hit that 2 yrs ago. Now at 50 yrs of age, we still have not achieved peace of mind to call it a day. Our target now is $3M. With careful investment and passive income of $80K per yr, we are well on our way to hit $3M in 3 yrs time.
It dawned on us that what will give peace of mind is the continuous stream of income rather than the amount saved. With $3M, I think we could generate a stable stream of passive income of $120K per yr. I think then we could either retire or shift gear.
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From the looks of it, you should shift it to 5 m instead of moving the post every 3 years. That way inflation will be taken care of . If you can hit 0.5 M in 2 years, Doubling your current assets from 2.5 to 5 will take 10 years. So retire at 60. It will perpetually be a rat race. Who knows what you may need by the time you reach 60?
Otherwise , you can still be contented with 2 m. Assuming return at a conservative 3%, it is still SGD 60K per yr. With no debt , it is very managable in today context.