As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

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Friday, 16 April 2010

9 in 10 S'poreans do not feel well prepared for retirement - Revisit

9 in 10 S'poreans do not feel well prepared for retirement

Revised version:

Let assume the following:

1) Year 1 draw-down at 4% of  your Retirement Fund at 55
  • expected Year 1 expenses is $40K, then Retirement Fund of $1M (25x$40K) is required
  • expected Year 1 expenses is $30K, then Retirement Fund of $750K (25X$30K) is required
  • expected Year 1 expenses is $20K, then Retirement Fund of $500K (25X$20K) is required

2) Inflation rate at 3%. (More articles related to inflation)


3) CPF Life providing yearly income at $12K from 65 onwards (assuming CPF minimum sum)

4) CPF OA balance at $300K to earn compound rate at 2.5%

5) $500K to invest in stocks with success rate at 40% of $500K providing 5% return
    (40% of a basket of dividend yield blue chips at 5% return is possible by an average investor)

6) $200K cash as liquidity earning compound interest rate at 1%

7) Medisave - additional source of fund

8) Residential home - Only as the last source of funding



You begin your yearly draw down from your CPF OA at 55, and after exhausting your CPF OA, then the draw down comes from liquidating stocks, and lastly the draw down comes from Cash fund.




It is enough to last you from 55 to 78. Cheers!

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