Quote:
Originally Posted by Unregistered
We are already generating $5k pm of passive income. We will need to save another $240k for us to generate another $1k pm ($12k pa) of dividends. We can actually retire now if we want to as our passive income exceeds our expenses but we prefer to have a buffer of $2k pm extra amount. Also getting a monthly payout from our CPF Life when we reach 65 is an added bonus. We will most likely retire at 58 to join our friends who have retired earlier as they are more successful financially than us. |
You seem to be assuming a 5 percent return but have you taken into account inflation? If inflation is 3 percent you should be using only 2 percent of your dividend return and reinvesting the rest. Otherwise your income will not keep pace with inflation