I agree, but you can't do this in Singapore on a EP. So I will have to leave Singapore and go back to India, take a sabbatical. Who knows maybe I will get bored and want to get back to work again. I will easily find something to do for a lower salary and lower stress.Max Headroom wrote:Why one or the other? Why not a bit of both? I intend to ease back by 70% by the time I consider myself done work-wise, but will continue to stay active by working, say a couple of hours a day.
This way you kill 3 birds with the 1 stone:
1. You stay active so your brain doesn't wilt. (Use it or lose it).
2. You continue to feel fulfilled, rather than just stoning all day every day. (Sian mah)
3. You get to top up a bit of extra dosh.
The best part is that I 'll consider the work more or less optional, so it's pretty much stress-free.
It didn't ask me for an email. I filled thismalcontent wrote:If you want to check whether you have enough to retire, Chris Hogan put out this retirement IQ tool. Normally I don’t bother with these tools because I’ve done my spreadsheets... but this one is interesting and quick. After looking at this, I may need a little more than expected.
https://www.chrishogan360.com/riq-tool
It asks for an email at the beginning, but you don’t need to verify it - anything will do. Only takes about 30 seconds to get the result, you can then change things and try it again.
Thanks. 1m divided by 24k is 41. That is assuming I am able to generate returns that matches inflation, my networth will last 41 years.Max Headroom wrote:WD, I reckon you'll probably find there's a handy link conveniently placed there about their investment fund or some such. I.e. they'll be inclined to underrate your nest egg.
That said, I used to think 1M would be enough, but frankly, I wonder now, given infinity QE, negative interest rates, yield curve control and all the other Magic Money Tree developments these days. Not to mention imminent (hyper?)inflation.
Whilst 2k a month should be comfy and will likely get you far, I myself am aiming a little higher, particularly since accruing savings is quite doable here and also in view of the typically higher inflation rates in EM, which is where I tend to be by then.
Instead of age, they ask how many years until you plan to retire. The $470k is the estimate of how much you need to sustain $2k/month at a 5% withdrawal rate... $1m exceeds that by more than twofold. So yes, you have plenty to retire. If you change your income needs to say $5k/mo, you should see a different outcome.Wd40 wrote: ↑Mon, 18 Jan 2021 12:22 pmIt didn't ask me for an email. I filled this
Annual salary:100k
Monthly expenses if I have to retire in India: 2k
Current networth: 1m
Not sure whether it is telling me that I need to accumulate another 470k? It didn't ask me my age, which I think is a big factor.
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Thanks. The whole thing finally boils down to whether we can beat inflation or not. Outcomes vary depending on how disciplined we are with our investments and not making stupid mistakes like timing the market.malcontent wrote:Instead of age, they ask how many years until you plan to retire. The $470k is the estimate of how much you need to sustain $2k/month at a 5% withdrawal rate... $1m exceeds that by more than twofold. So yes, you have plenty to retire. If you change your income needs to say $5k/mo, you should see a different outcome.Wd40 wrote: ↑Mon, 18 Jan 2021 12:22 pmIt didn't ask me for an email. I filled this
Annual salary:100k
Monthly expenses if I have to retire in India: 2k
Current networth: 1m
Not sure whether it is telling me that I need to accumulate another 470k? It didn't ask me my age, which I think is a big factor.
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Note that the 5% withdrawal rate assumes a well managed portfolio of stocks/bonds. It would also require using the “target percentage adjustment” method to protect portfolio from exhaustion during downturns. But since you have twice what is needed, you could simply take a more conservative 2.5% withdrawal rate and add inflation each year - even during downturns, you should be fine.
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