$1.2m is probably sufficient when you are 65 but not for a 55 yr old. Even if you are prepared to live very frugally say at $36k pa, just to maintain the same purchasing power, with 3.5% inflation rate, the amount you need to spend is :
At 55 (now) : $36k pa
At 65 (10 yrs later) : $50.8k pa
At 70 : $60.3k pa
At 75 : $71.6k pa.
Your money runs out in 20 yrs. Mind you, at $36k, we are talking about a subsistence kind of living. Very basic for a couple. So if you increase the expense to $50k, you can start to see that the $1.2m is not going to see you far.
Your best bet is to continue working, if you can, till you are 65. In the meantime, invest and grow your $1.2m but Watch out for risks too.
Quote:
Originally Posted by Unregistered
55, net worth only $2m, including HDB flat worth $800k. Below average. All my friends have net worth of more than $4m. Any advice how I can retire now? My health not that great now, worked too long and too hard for many years. Please advise. Thanks. |