unless got big jump in medical tech, I think most of us will be gone before even coming anywhere near smelling 100 years old.

Best to just plan till 80 years old and after that, plan to just maintain principal...

Well. What I know is that I hardly know anyone in person that is older than 80 years old. Like really not many. Just based on this stay (not very scientific), there is absolutely no reason for me to think that I will beat this stats.

Also, like most of us here, my financial planning doesn't involve depleting my principal. So may as well plan that after 80 years old, if still alive, I get to spend all passive income.

Some can say that I am being stupid. Cos why wait until so old only spend all passive income. At current juncture, I don't even spend 40% of my passive.

That would really be a question for your doctor or any doctors reading here.

:-)

well, you can look at this situation in a positive light. It just means the properties increased in price by at least 2.5 times...

Well, properties are not really passive in terms of income generation, and many didn't realize this. Not really recommended for those who are getting on with age. REITs maybe a better alternative.

But since this is a EPF thread, nothing beats EPF in terms of being passive. haha... One can throw it in and forget until age 100....

Check out the concept of FIRE (Financial Independence/Retire Early)... Work out if ur expenditures can be covered by your productive networth.

particularly for you, what the followers of FIRE would call LeanFIRE and/or CoastFIRE.

Nothing is stopping you from working for fun or for additional income. Obviously this new work should be less stressful.
even a normal retail store attendee can get paid like 3K rm pm.... Its to supplement your cashflow....

Your strategy appears to be way too conservative, as you assumed EPF and ASM's return to be average 4.5% pa. Don't know about ASM, but EPF's much better at 5.5% pa if anything.
using your strategy of minus inflation directly from the return, that would equate to 2.5%. your 27K rm just need like 1.08 million ringgit.

A better way would be to assume your 27K spending to increase at 3% inflation, while your whole networth will grow by 5.5% pa. That's more realistic right?
If you put it in a spreadsheet and run the numbers, you are fine already with 1.08 million ringgit.

You have worked out very well/detailed the expenditure side of things. nice.

But I feel the fund management (note on my focus about management, not investment) side of things can greatly be optimized... just because you are assuming 4.5% pa return and somemore, maybe due to inertia, you are keeping your funds in ASM, which is delivering subpar performance.
It maybe worth your effort to optimize your fund deployment.... simple suggestion would be like shifting the ASM funds slowly to EPF as you mentioned... but you can also deploy some portion of your money into stable dividend yielding funds or stocks (one of my fav example of advice is Maybank when the price is right) etc. Its to improve your yield.

Obviously should ask for advice and suggestions from people you trust, or get a "mentor" to explain stuff. Like in your earlier post, I think I read that you are worried you cannot touch your funds in EPF. But this is purely psychological because as of now, you are not touching your funds in ASM and EPF. And based on aging, you will access sooner or later. Like if you are 50 years old, access is not really a worry if cashflow is managed properly.

(sharing a real life example: A friend, for some reason only keeps her funds in FD and EPF. Prior to covid, she was complaining about low FD rates but she refused to throw her funds into EPF via self contribution. Kept on citing wanting liquidity. Finally after showing her different scenarios in spreadsheet her worries, she finally threw as much per year as she can into EPF so that she can reach the EPF liquidity event. Now she is happy as a bird as her funds is deployed more efficiently.

I should have charged her a few K ringgit for work done to convince her. She is earning at least 5K rm pa more now in EPF div vs FD interest... lol )

This country can still stay.... Just to spend money or retire.
the key is to shift one's ability to generate income overseas, so as to be out of reach of the gov (regardless of who is in control).

and then try to make yourself part of the B40, nay bottom 10% of B40, if possible to get the gov's machinery off your back. Filing zero income is a good start I think.

I do believe Malaysia should head into GST regime, rather than stick with whatever we have now... the leakages is just too big and with GST, everyone get taxed more fairly.
What I don't like, and again nothing I can do about it, is all variations of government we have so fair just know how to intro new taxes without proper reform... and to make it worse, tax more to give more subsidies.... unfortunately, this can last way until all our oil reserve is gone.
Plus we can't really run away as most countries have consumption tax implemented, at least countries that I am willing to retire in.

Maybe it is time that you remove yourself from being a company director? or pass it on to your kids, if there is a reason why you want keep the directorship...

I am clearly classified as one of the B40 (since I get to collect the BRIM/STR stuff) with zero income.... gov hinting of changing the game by implement capital gains tax is quite annoying.

hence stupid FM and EM....

want to implement capital gain tax and GST at same time....
but nothing to find out and cut expenditures like subsidies or gov pension etc.

Best to relook into one's portfolio allocation and maybe rebalance out of country.

This post has been edited by Wedchar2912: Sep 12 2023, 03:25 PM

lagi worse.... can be more stupid?

add new subsidies... calling it targeted doesn't make it better..... now, changing the subsidies to targeted to ensure the needy gets them, that is different. and doesn't seem to be what any of the variation of Malaysia gov wants to do.

Oh... now that is a headache.... how about just tell your dad you don't want the company and allow your siblings or your kids to have it? (skip generation should be fine kua.... )

I want to retire in Malaysia.... I am a loyal Malaysian... hahaha.... but doesn't mean I have to be here 365 days of the year.... after I am free to do what I want, the strategy is 8 months overseas (different countries)... while 4 months here to feed the food craving. haha.

I just do normal official thing to move money out, and it will be to my SG's interactive broker account. The amount I move is usually a few hundred K each time, so for safety sake, it will be via the banking system. This round maybe will move a million or 1.5.
(since all my liquid cash is in EPF, I can only drawdown from EPF... won't top up anymore).

Its the lack of details that is the problem.... same thing with the news about capital gains tax....

since the news only state targeted subsidies, it could mean new subsidies or change in subsidies program. I just don't know, and gov is good in introducing new subsides.

if gov of malaysia can provide more details, would be better.

are we sure? whose fault is it to assume this or that?

Gov not providing enough details. Just simply say capital gains tax and targeted subsidies means a lot of things.
This is what gov of Malaysia, in all its variations, is very good in doing. Not giving proper details. haha.

Funny. Who is freaking out?

Just cos one write something here mentioning what gov mentioned past 2 days doesn't mean panic. Panic would be going to Epf building and withdrawing millions and then send overseas. Hehe.

when OPR was not allowed to hike under his watch, we should have realized this gov is just a rebranding of the older gov. same DNA running the show...
I love that saying from the scifi show: a younger grape from the same vine, destined for the same old bottle.

But in our case, it is old grapes... calling them raisins would be more accurate.

highly unlikely.... reason is if they wish to target div from retirement funds, then may as well target FD and CASA interest first. Long ago, interest from FDs 100K and above are subject to tax. That would be a better place to start vs EPF or ASM/etc.

just my opinion...

not enough... we need 10 million ringgit to retire.... and that is retire with worry...

there, I've said it...



// the worry is because don't know if people will start liking my money more than me... haha

agree.... most, if not all, of us believe that FD is the safest storage of value in ringgit terms, but do not realize that banks can go bankrupt.

Do not be lulled into complacency thanks to marketing gimmick of PIDM.... so remember to disburse 250K rm across financial entities and self-ownnerships to get better protection, and treat EPF as another diversification of storage with gov of Malaysia's implicit guarantee.

Disclaimer: all this assume you still believe 100% in value of ringgit... if not 100% trust, then diversify across different fiat money.