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

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Sunday, 22 May 2016

Save more than 60%. No need to invest??? (6)


Read? Save more than 60%. No need to invest??? (5)


Assuming Uncle8888 has decided to quit investing for cash flow and use his current War Chest as additional cash flow to fund his future household expenses.

Will he still have enough money to last till 2038 and how bad is it?

Knowing his past annual household expenses for family of 5 members since 2002


 
 
Using the highest annual household expenses since 2002 as the base number with annual inflation rate @ 2.5% to know how much money he has to last till 2038 when he is about 81 years old.
 
His Tap 1 can cover up to 79% so it is not too scary to think about it.
 
 
 
 
 
 


 
 

6 comments:

  1. When it becomes unsustainable, I will cut down on travelling so it is still manageable.

    ReplyDelete
    Replies
    1. You travel budget comes from tape 3, isn't it?

      Just YOLO a bit lah... you have no debt at all (no car loan, no house loan, etc...)

      Delete
    2. Think about time to switch to less time consuming or less stressful investing like STI ETF for lower return and yield. :-)

      Delete
  2. Uncle 8888

    Good post. The real cost starts when one is getting uncomfortable.

    ReplyDelete
  3. True.

    When we have more discretionary expenses it will be easier for us to cut back to more comfortable level. YOLO More now and then YOLO Less when time comes. LOL!

    ReplyDelete

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