Read? Just Spend Below Our Means During Our Wealth Accumulation Phase We Should Be Financially Secured
Next, based on his 15 years of real savings at Dec 2016, Uncle8888 will do simplified version of retirement planning for his retirement income starting from 2017 (age 61) under portfolio return and its associated withdrawal rate and period.
Assuming yearly inflation rate is at 2.5%
A) 3% Yield, 5% Withdrawal rate, 21 years @ 81
B) 4% Yield, 6% Withdrawal rate, 19 years @ 79
C) 5% Yield, 7% Withdrawal rate, 18 years @ 78
Option A can be achieved by index investing e.g. STI ETF.
He can afford to retire simply as local and JB tourist with his monthly Senior citizen Silver concession pass.