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Old 30-05-2016, 10:59 PM
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Default $5m is the new $1m

Not so many years ago, having $1 million may have been enough for someone or household to be labeled wealthy. Not anymore.

According to a recent survey of investors by UBS Investor Watch, it now takes $5 million in investable assets (with about 20 percent of that in cash -- or highly liquid investments like FDs or money market funds -- for emergencies) for a person/household to feel wealthy and enjoy "no financial constraints."

But what does it take to actually get there?

Having both husband and wife working in professional fields helps. Spending well within your income is an important factor. Are you able to save more than 50% of your income? If your combined income is $350k pa, a 50% savings is $175k pa.

Healthy savings must be combined with consistent investment (stocks, property, unit trusts and bonds) throughout your working career.

Have a long working career without any breaks or fall in income at any time

That was pretty much what we did throughout our working life. We hit the $5m target at 53

So what kind of assets can $5m buy you?
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