Personal Financial Management V3, It's all about managing your $$$
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 Jun 21 2014, 10:15 PM
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#1
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Elite
15,855 posts Joined: Jan 2003 
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Folks,
For people that would like to know a lot more about the 4% Safe Withdrawal Rate (SWR). Check out the below URL http://www.bogleheads.org/wiki/Safe_withdrawal_rates For people that like to check the new idea of Consumption Smoothing Check out the below URL. http://www.esplanner.com/economics/consumption The book about consumption smoothing... http://www.amazon.com/Spend-Til-End-Raisin...d/dp/B004J8HXLI Dreamer |
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Jul 17 2014, 02:31 AM
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#2
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Elite
15,855 posts Joined: Jan 2003
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QUOTE(wodenus @ Jul 16 2014, 11:03 PM) Saver guy C (making 4K a month since 20, retirement 60) - spend 1K, save 3K (not married. no kids.) wodenus,3000x12 = 36,000 a year x 40 = Rm1,440,000 at retirement (not including capital appreciation.) With an average interest rate of 10%, you will be worth Rm15,933,332.00 at retirement. Then you leave it to your nephew or niece or whoever, she won't have to work a day of her life. She can be an artist if she wants to, travel the world learning from the best painters, set up a think-tank to study ways of eliminating poverty.. So how about that?   1) The annual expense of Saver C is only 12K per year. With interest rate of 10%, he only need 120K worth of asset. Saver C will only need to work for 5 years. Hence, he will retire at 25 years old. In the worst case, he will retire at 30 years. Meanwhile, all other 30 years old still work like slave... People with money has THE FREEDOM to stop working whenever that they want. 2) Or, after 10 years, with 360K of asset earning 36K per year, he choose to spend 4K per month and do not save his salary. He can do it and grow his asset at the same time. He can do it and still retire comfortably. People with money has THE FREEDOM to spend and grow their asset at the same time. Dreamer This post has been edited by dreamer101: Jul 17 2014, 02:43 AM |
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Jul 17 2014, 09:06 PM
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#3
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Elite
15,855 posts Joined: Jan 2003
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Folks,
It is VERY SIMPLE. LBYM -> Live Below Your Mean. Save 10% to 15% of your gross income so that you can SUSTAIN your current lifestyle. Dreamer |
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