Uncle8888 agreed with the writer's view!
Uncle8888 has been reading books on retirement planning from NLB to prepare for his own retirement.
This is one of the better models that he has discovered so far ...
Read? Future Cash Flow For Retirement Life???
We shouldn't worry too much over asset-draw strategy as we certainly deserve to spend our own money in our lifetime and just leave behind whatever unspent.
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 that is generating just 4% yield p.a. at flat rate and non compounding. It is far better to be conservative when planning for future.
2) Yearly partial asset drawn on CPF OA and cash FDs till the last withdrawal on 2036
3) CPF RA, SA, MA and cash of $XX, XXX as self insured fund for medical and health care and also covered by enhanced medical shield. Here he will assume zero interest growth as it is very hard to predict future draw-down and even harder to calculate future interests growth. Zero is an accurate prediction. LOL!
4) Leaving behind a fully paid asset called home and investment portfolio for selling as guarantee "profits."
Using actuarial present value of his future cash flow (but, excluding the asset value of his investment portfolio and 4-rm HDB flat near Hougang MRT station) and total liabilities @ 2.5% year inflationary rate.
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