I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

Click to email CW8888 or Email ID : jacobng1@gmail.com



Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

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Wednesday, 10 October 2018

Do We Plan For Our Own Retirement Based On Other People To Provide You The Number?


Every household is different and relative!

 How much is enough is definitely relative?

 Read your Past and forecast your Forecast.

 So far; Uncle8888 still prefer this model after searching through the cyber world and NLB bookshelves on adequacy for retirement planning.

 Read? Is Your Nest Egg Holding Up?


 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.




Posted by Createwealth8888 at 08:37
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7 comments:

  1. Singapore Man of Leisure10 October 2018 at 10:48:00 GMT+8

    CW,

    You made me panic for a while...

    I thought you've turned "grey" :(

    How to poke you in futute?



    Then out it comes: "A more sophisticated way..."

    Phew!

    I'm happy again :)



    ReplyDelete
  2. Spur10 October 2018 at 12:04:00 GMT+8

    Errr .... "Read your Past and forecast your Forecast"

    How to be grey when need to measure your past to 2 decimal places? Kekekeke!!

    Hey as long works for you can already! :)

    Some are numbers people, others are broad brushstrokes people.

    The "more sophisticated way" can be very grey as it involves plenty of predictions & assumptions. That's why many pension plans are running into problems. A 0.5% difference in long-term projected returns, inflation rate, life expectancy, expenses rate, contribution rate etc can (and did) result in unexpected outcomes.

    It's more sophisticated coz the "pros" will tell you yes can meet your projected retirement needs at 90% probability and at 98% confidence level. LOL!

    ReplyDelete
    Replies
    1. Singapore Man of Leisure10 October 2018 at 12:57:00 GMT+8

      Spur,

      You horrible plus terrible!

      I just poked; you twist and twise the bayonet!!!


      Next time when its my turn, please give chance!

      Just tickle me can oredi? Please? I buy you coffee?


      P.S. I remember learning the Discounted Cashflow method of valuation for the first time. It went well until we came to the assumption this, assumption that part...

      Hey! That's no different than wetting my index finger into my mouth and holding it up in the air!?

      LOL!


      Delete
    2. CreateWealth888810 October 2018 at 15:01:00 GMT+8

      Here is safe to poke. Try to poke even harder

      Delete
    3. Singapore Man of Leisure10 October 2018 at 16:08:00 GMT+8

      CW,

      You the best!

      Unlike youths who are super "sensitive" to different opinions (poked a bit cries confrontation), the strength of experience is you have grown a thicker hide and have a lot more convictions in what you say :)


      The PAST is easy to backtest and benchmark - it already happened. Duh!

      As for forecast the FUTURE...


      You assume your liabilities will be "similar" to yesterday, but life is not a straightline extrapolation :(

      1) You never expected it, but what if xiao mei mei starts flirting with you? Mistresses cost money OK?

      2) You think you finished supporting your grown-up children... Wait they come and tell you they want to go for their Masters!!! Sugar daddy scholarship can?

      3) Bored and itchy fingers so start frequenting our "integrated resorts" how? (That's where you find your XMM?)


      Men got money will be up to "mischief" ;)

      Shh....





      Delete
    4. CreateWealth888810 October 2018 at 21:35:00 GMT+8

      I am old, weak and and poor so I should be quite safe from predator xmm.

      Delete
    5. Singapore Man of Leisure10 October 2018 at 23:47:00 GMT+8

      CW,

      You are not poor - your powerpoints say so ;)

      Old and weak are your strong attaction points!

      If I'm a gold digger, the last thing I want is someone young and strong with lots of years ahead of him!

      LOL!


      Delete

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