Uncle8888 is no different from anyone else. He is also worried about future inflation so he projected his future annual expenses @ 2.5 % inflation rate from Jan 2015 to Jan 2040 and look like this chart below:
But, in reality, when he looked back at his family of five past years monthly expenses from Oct 2001 to Feb 201; from the chart it looked so differently.
Where is the past years inflationary impact shown in the chart?
To smooth out those spikes in monthly expenses, he added in a 6-month Moving Averages; but still it did not show a clear indication of any up trend in monthly expenses due to inflationary impact. This is not what he expected to see.
So what went wrong?
Has he grossly over-estimated the impact of inflation on his future living expenses till 2040?
Last updated : 14 Sep 2019
I am 63 yrs old uncle living in HDB heartland who has achieved financial independence @ 56 and finally retired @ 60 from full-time job as employee on 1 Oct 2016.
Single household income since 1995 with three children.
Currently, two sons and one daughter are working.
I have been doing 20 years of long-term investing and short-term trading in Singapore stock market only since Jan 2000 so I am that so-called Panda or Koala in the investment world.
I am currently executing my Three Taps solution model to maintain sustainable retirement income for life till 2041 @ 85 yrs old.
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