- illness
- capability to earn income
- make lost in investment
- inflation
- continue prolong for economy downturn.
OK, let get into our real biz here today to share some good content during the seminar.
What is retirement planning? It is a plan to save and invest to maintina ones' pre-retirement lifesypte during the retirement years. Do you believe in one must have cash reserves of about RM1mil to be able to maintain one's current lifestyle 20 years after retirement? Check out the article below ;)
What is your ideal retirement age? Some said 55? 45? 35? The best retirement age is yesterday and today i do not need to work, so nice :) But are you ready for your retirement? can your retire?
RM500,000 only last for 16.7 years if you spend RM2500 per month. Do you have RM500,000 in your bank?
Table below showed how much of Retirement Fund Needed at Age 55. Is your Employee Provident Fund
(EPF) or Government Pension Scheme sufficient to cover below figure? A person at age 35 with RM2500 monthly expense requires more than RM1million lumpsum in the bank assuming that person live until 77.
I will share about on the inflation and instrument available in the market in my next Part 2 article.
u can use excel to do calculation or use so many other retirement planning software to do it. Public mutual has given me a retirement plan cd and educational plan cd. u can use that too
ReplyDeleteyup, i got the CD to calculate the amount $$ you need for retirement. but i have not chance to try out yet. i will try that.
ReplyDeletePassive income is one of the best way to ensure you retire comfortably. if you have one or a few properties that can help you to generate the RM2500 rental you need monthly, then you can retire @ age of 35 based on your example above.
ReplyDeleteHC, a lot of instrument you can use.. you know the best which instrument suit you ;)
ReplyDeleteThe RM2500 rental is almost equivalant of 3 properties and ~RM800k paid up loan. Got to find the RM800K first ...that's the toughest part :) This excludes your own home property somemore.
ReplyDeleteMr Eng Teng, do you know what is leverage? Leverage means, you only need to pay 10% then you can get the rest from bank as loan. Properties investment have high leverage rating. In other words, you use bank's money to help you generate more money for yourself. In return you only pay a small interest back to the bank.
ReplyDeleteTo own RM800K properties, you only need 10% of the amount. And after that, try to achieve positive or zero cash flow by renting out the properties.
The main key here is you need to do lot's of homework to find the right properties that can give you zero or +ve cash flow. It could require lot's of work, but then you only need to do it once for every property and after that the properties will work for you for the rest of your life.
That's definitely a good tips HC :)
ReplyDeletePS: The other 90% is where it has to pass oneself's phychology that you are not owning the bank RM720K :) Logically you know it's a right thing to do...but phychologically just don't have the balls to do it...darn.
You don't plan to purchase all 3 properties at one go right? I think it's reasonable to buy 1 investment properties every 3-5 years to distribute your risk.. and to reduce your anxiety of owning bank money.
ReplyDelete