Uncle8888 strongly agreed with Focus less on Net Worth. Think more in terms of Cash Flow
Read? It’s safe to invest entire life savings in stocks. But it can be safer!!! (3)
"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.
CW,
ReplyDeleteHow do you put a $ value on a good night's sleep?
Peace be with you :)
That why you need to track your past living expenses and track your parents living expenses?
DeleteHow does some charity foundations survive year after year just based on initial founders contribution without further fund?
Do your own research and be at peace?
"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.
CW8888 : Looks like your retirement will be "relax relax eng eng bo dai ji" liao! lol
ReplyDeleteDon't laugh at his tracking here and there. So that we can at least put $ value to delight Future Us!
ReplyDeleteMy late father-in-law spent his last 18 months in a government subsidized nursing home at monthly cost of $2,300 (just the cost of nursing home and exclude other medical, ambulance transportation and hospitalization expenses)
Recently, my colic's late father spent close to 6 yrs in religious supported nursing home at cost about $1,500 per month.