Uncle8888 has read many books on NLB shelves and Cyber world to look for more reliable way to build sustainable retirement income for life. He has chosen this Method over 3 to 4% Withdraw Rule advocated by many financial planners!
The Balance Sheet
A more sophisticated way to measure the success of a retirement portfolio is the one used by large pension plans. You compare what's called the actuarial present value of your assets and liabilities. The twist: Instead of looking at current assets and liabilities, you look at the value of all your expenses in retirement as a lump sum as compared with the value of all your assets as a lump sum.
Read? It’s safe to invest entire life savings in stocks. But it can be safer!!! (3)
He also improved this Method with his Three Taps Solutions Model to build sustainable retirement income for life without too much dependency on future volatile market cycles for income support.
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Hi bro cw
ReplyDeleteI think next kopi session is to ask u about how to plan my own tap liao... hehehe
Happy New Year & wish u healthy always :)
Cheers
The most simple or i think the best is Assets generate more than enough cash to cover annual expenses.
ReplyDeleteThat is don't have to draw down on Assets or principles is the best.
One good solid example is CW's CPF PERPETUAL ANNUITY.
Only draw interest.
Even better, best if U draw on the Interest's Interest...
Now how many in this World can do that?
Dream on, my friends.
I do.
Perpetual annuity refer to CPF LIFE?
DeleteOnly draw on interest refer to OA? This OA is also a war chest to be deploy when market crash. So earn interest while waiting.
Ditto for me. Lol
Ya. Privilege for 55 and above. :-)
ReplyDelete