I am not gloating, just stating facts.
Our $60k pa income is stable. We have our 4 room flat which we could sell and we could downgrade to a
HDB studio for the elderly. This is one option. Another option is for us to retire in 3rd world countries such as Thailand or Malaysia. We will rent out our
HDB flat and earn $3k pm rental or $36k pa. So, with the $60k passive income we have now, we will get $96k pa passive income or RM244k pa, that is more than enough to retire very comfortably in Malaysia. If we retire in Thailand, we will be super rich there. You need to think outside the box.
Btw, don't gloat over your $400k pa income, you and ypur wife may just get retrenched tomorrow and earn zero. Be humble.
Quote:
Originally Posted by Unregistered
Do not gloat. 55, 56 is the starting age for most retirees. In fact the new retirement age is now 62, so you are considered to have retired prematurely. With life expectancy of 85, you have 30 years to go. These are the questions you have to asked yourselves to assess if your money can last the 30 years.
1. Is your passive income of $60k pa stable? Can you expect this same amount every year?
2. Is your passive income source able to keep pace with inflation?
3. Is your $40k expense pa the lowest you are prepared to live with?
4. Are you prepared to downgrade from your 4 rm flat to HDB studio apartment?
5. Do both of you have insurance cover for medical events? Major illness?
If you answer more than one NO to the above, there is a very high chance your money will run out 10 to 15 yrs down the road. Inflation, medical expenses will be the culprit. You can check the numbers out yourselves with the yahoo retirement calculator: Yahoo! Personal Finance Calculators - How Much Will I Need To Save For Retirement?
Although it is tailored for use in US, you can use your own numbers and it will give you a good gauge on how inflation can diminish your $60k passive income and if you cannot afford to lower your $40k yearly expense, it will also show how much that expense will grow again due to inflation.
So do not gloat. Do your sums properly first.
I belong to the group you mentioned whose household income is >$300k pa. Although our combined household income is $460k pa, we don't stay in big bungalows and we don't drive big conti cars. We spend $100k pa and save / invest the rest. We live in a condo with 2 cars. If we want to maintain our $100k pa lifestyle throughout our retirement years, we have to continue working till 65. Inflation and medical expenses are our biggest worry. |