(1) It is about knowing our past household expenses history and adjusting for inflation for the future years till 8X, 9X, or 1XX. Use the historical highest annual household expenses as benchmark or reference level for the future years.
(2) Setting up some cash buffer with self-insurance funding in addition to our existing medical insurance coverage
(3) Home as Asset of Last Resort
(4) Is cash flow sustainable over the future assets?
With all these preparation and planning and still fail; then accept it as Fate.
Uncle8888's way of retirement planning using his Three Taps Solution model:
Knowing his household expenses
On monthly basis
Oct is almost there but Nov and Dec 16 are estimated; but should be slightly lesser.
On Yearly basis
CW8888's Wealth Formula
Wealth = Asset Value + Cash Flow
From Oct 2016 as retiree without any earned income from his human asset; his personal Wealth formula is now like this:
CW8888's Wealth = Financial Asset Value + Cash Flow
The important thing he has achieved in his pursue of financial literacy over last 16 years; he fully understood the difference between Good Asset and Rich Asset in relation to Cash Flow.
This is something slightly beyond Rich Dad Poor Dad teaching of Assets and Cash Flow.
You think you know the difference?
This is where he differs from the main stream's loud voices over CPF OA to SA Transfer and SRS.
CW8888's Three Taps Solution model to build sustainable retirement income for life
Financial Asset Value against projected Total Liabilities till 2038 (his future household expenses at 2.5% inflation rate)
Is his Financial Asset value sustainable to support his Total Liabilities (Household expenses) till 2038?
Even without factoring the future cash flow from his financial assets; this graphical showed that it should be enough and sustainable.
CW8888's Cash Flow
He is tracking and watching his cash flow closely. It has to be sustainable over future years with asset draw-down when necessary.
The next few years of deploying his current War Chest in the stock market will determine the amount of wealth he is leaving behind as legacy.