lichtoefur
New member
Hello Bros and Sis, I just recently got a spark in my brain that having retirement planning is very essential, and I need some advises here. My parents are reaching retirement age and they seem to be in a dilemma, wishing to retire, but financially not able to, while still worrying that they’ll be in negative when they lose/not able to retain their jobs. I need to plan now so that I don’t end up in their shoes 30 years later.
I’m Chinese male, 29. Working in SG as a SG PR with take home salary of about SGD 6,000 (after CPF deduction). Monthly expenses about 2,500 SGD. Savings are sufficient for 6 months emergency, with some small investments in Msia (stock, ASM, PMO) and in US (stock). Currently planning some freelance work to increase monthly income. With this I’m thinking that I have enough to start investing periodically. Planning to retire in Malaysia.
In planning for FIRE, I ran a quick calculation, using formula (annual expenses x 25), a MYR 4M accumulated wealth can sustain retirement life with some leisure.
However , to achieve this, I’ll need to invest a certain amount annually.
Some scenarios I’ve worked out
1. If I annually deposit MYR100,000 (cap/year) into EPF Acc, assuming that the interest payout is 5.35% as per past data, I’ll need to do this for 22 years to achieve the MYR 4M , which I’ll be at 51 y/o
2. if I annually deposit MYR 100,000 into S&P500 via VOO or CSPX, assuming the capital gain + dividend payout is 8%, I’ll need to do this for 18 years to achieve the target
3. half half between epf and S&P500
The obvious result is to go for S&P 500, but is that really so simple ?
The question here is, which is the method you’d go for and why? And if not these two avenues, which other avenue with relatively steady returns will you go for and why?
Note: do forgive if the financial jargons are a mess, trying to improve on that
I’m Chinese male, 29. Working in SG as a SG PR with take home salary of about SGD 6,000 (after CPF deduction). Monthly expenses about 2,500 SGD. Savings are sufficient for 6 months emergency, with some small investments in Msia (stock, ASM, PMO) and in US (stock). Currently planning some freelance work to increase monthly income. With this I’m thinking that I have enough to start investing periodically. Planning to retire in Malaysia.
In planning for FIRE, I ran a quick calculation, using formula (annual expenses x 25), a MYR 4M accumulated wealth can sustain retirement life with some leisure.
However , to achieve this, I’ll need to invest a certain amount annually.
Some scenarios I’ve worked out
1. If I annually deposit MYR100,000 (cap/year) into EPF Acc, assuming that the interest payout is 5.35% as per past data, I’ll need to do this for 22 years to achieve the MYR 4M , which I’ll be at 51 y/o
2. if I annually deposit MYR 100,000 into S&P500 via VOO or CSPX, assuming the capital gain + dividend payout is 8%, I’ll need to do this for 18 years to achieve the target
3. half half between epf and S&P500
The obvious result is to go for S&P 500, but is that really so simple ?
The question here is, which is the method you’d go for and why? And if not these two avenues, which other avenue with relatively steady returns will you go for and why?
Note: do forgive if the financial jargons are a mess, trying to improve on that