"When we are in heaven, our money will still be in the bank."
"We don't seem to have enough money to spend; but, when we are gone; there's still lots of money not spent. He is planning in terms of future Cash Flow for his retirement life without leaving lots of money not spent.
The sources of his future cash flow will come from:
1) An investment portfolio generating just 4% yield p.a. at flat rate and non compounding.
2) Yearly partial asset drawn on CPF OA and cash FDs till the last withdrawal on 2036 3) CPF RA, SA and MA as self insured fund for medical and health care and also covered by enhanced medical shield. Assume zero growth.
Using actuarial present value of his future cash flow (excluding the asset value of investment portfolio) and total liabilities @ 2.5% year inflationary rate.
Now, he can reduce his tensions and worries over future market cycles.
Last updated : 14 Sep 2020
I am 64 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 21 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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