Quote:
Originally Posted by 38andlifetogo
Net worth about 20m and net worth 15m about the same. Both can travel business class, buy branded bags, eats about anything anywhere. 10m I think will need some trade offs. Main problem is that primary house expensive at about 4-5m. Even with some leverage, 10m guy only has about 8m or so to invest. At 4%, that is 320k to spend per annum. I used 4% as I assume bond, property rented and some equities type of portfolio.
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I agree but I must qualify that it is highly lifestyle dependent and assuming you are debt free at retirement. If you have a conservative and frugal lifestyle, 5M is enough. But, who wouldn't want to lace their retirement with little luxuries here and there. Therefore, I think at least 10M in net investable assets would be fairly comfortable in today's expensive Singapore society assuming you do not assume excessive risk in your investment portfolio. With 5M in net investable assets, you can retire but got to watch your spending. 6% would be a good, fairly conservative and sustainable rate of return.
Without recurring employment income, the expenses can add up pretty quickly and its always desirable to have some buffer for the unexpected once off expense.