By the time you retire, imo the house and car should be paid off. I wouldn't retire if I didn't have a fully paid house just to have that ultimate peace of mind. 10k without house and car repayment will be overkill. I enjoy speaking to retirees and was quite relieved when they told me 5k/month for a couple during retirement is mighty plenty!

I plan to use the next 6 months to nail down what exact types and where, because that will impact on downpayment, reinstament if any, rental deficit amount and the probable appreciation % tier. I do real estate research for a living so I just need time to strategize the long-term risk and reward.

Tq. What reading do you use for inflation ?

13K in 15 years if we include 3% inflation would make roughly around 8.5K buying power today. with 8.5K today we are living quite decent, with most of our spending went to food and travelling..

I like to know can I stop work/retire early now, cause I like to spend more time with my son.

I am a single mum 40yo, son is 7 yo.

What I have at the moment is a single story house in cheras(all load paid) value at around RM400k. Am the rental income from the house is RM1800/month
I am living in a condo with my son,this condo still owe the bank RM550k, mortgage at RM3300/month

I have around 1mil in FD and recently I have inherited RM2mil (think of going to pur in FD)
Also around RM200k in stocks and Stashaway My

This post has been edited by frostfrench: Aug 15 2019, 04:31 PM

how much do you need to have to spend per month, if that condo is fully settled?
do you have other liabilities?
you have 1mil + 2 mil + 200k - 550k + 1800 pm income

This post has been edited by MUM: Aug 15 2019, 04:39 PM

It would be easier if you include your monthly expenses/spending etc.

Thank you for your reply.
Please do share on any findings if you don't mind. I would like to learn more about the strategies of my peers.

Thank you for your reply.
Indeed, RM8500 in today's dollar is considered a good life, not just decent. I am living fairly decently right now with RM1800 in monthly expenses lol.
I would be grateful if I could retire with RM5k in today's value in the next 10 years. That is good enough for me as there wouldn't be much to spend during retirement

Wow, RM3mil cash to go into FD?? Aiyoh, invest RM500k out of that amount into Maybank la, you can easily get RM2750 a month, then the rest baru go into FD
Anyhow, RM3mil in FD @ 4% will easily give you RM10k per month, you would still net about RM8500 after adding and deducting the rental/mortgage.
I don't see why you don't have enough to retire comfortably with only one son.

Private and overseas university tuition fees increase faster than inflation rate and myr forex long term down trend has yet to reverse. If you intend to send your son to overseas for university, suggest you prepare early.

Rm2.5m qualify for privilege/priority banking, could get better return than fd. It is important to have capital protected.

If my condo is fully settled, my expenses will be around 5k /month

My expenses would be 3k (condo mortgage) +5k expenses

At the moment holding some Maybank shares, i dont have to courage to increase amount to 500k leh, especially the financial world now.

I went to CIMB, they special rate FD not really good also. They did offered me some bonds in foreign currency and structured investment and I'm not familiar with them

since you needed about 5k-1.8 (from rental) = 3.2k per month expense

you now have 1mil + 2 mil + 200k, after full payment condo mortgage 550k, still balance 2.7mil

2.7 mil x 4% FD rate = 108k pa...or 9k per month, use that to top up yr monthly expenses....

balance about 6k pm....save it in FD again...to earn extra interest for more money for future use....

well, that is just a simple examples to measure to know if you can stop work/retire early now, cause YOU like to spend more time with your son.....if that is your goal

This post has been edited by MUM: Aug 15 2019, 11:06 PM

Normally, structured investment benefit bank more than buyer/investor.

I have the same viewpoint. My daughter just entered a local government university. Due to my income she is not eligible for government aid but I am more than happy to pay for her tuition which is less than 10K per year. Her goal is veterinary medicine so maybe I will build her a pet hospital instead!

In an ideal world i would like my kids to go into a public uni like me and my wife did, I remember my total course fees for 3 years was <RM6,000)! Yet we are doing well in life compared to many people who spent 6-figure in private education.

He can then use up the education fund i set aside to him for i) a few years of gap year, or ii) to have a good head start in life, maybe for a house or investment to make up for the delay in starting his career.

I like your points which get an investment i.e. property that can supports some of the expenses while kids are working and honestly I didn’t think of it before. That’s good way to ensure parents not overspend on education and also teach kids to start investing as early as they can.

Thanks for sharing.

Guys, anyone has already chose to FIRE or knows anyone that passed this stage?

Many of us here working towards FI and some FIRE. But not many shared post-FIRE lives.

What kinds of problems, challenges or whether what they planned pre-FIRE less or more than what they need post-FIRE.

Thanks

I've 3 children and they did twining program @ Mornash uni, I budgeted RM700K for their education however it end up spending close to 900K. Nowdays, Overseas education is extremely expensive hence it's challenge for young parent to send children for oversea education in future.

For myself,...

1) I would pay up the RM550k to the bank and be debt-free.

2) I would then out whatever I have in hand into a few banks as FDs.

3) I would start out to learn investments across the asset classes in the world (since I'm only 40 yo). I would not depend on FD today and into the future because interest rates are dropping.

4) I would decide whether to buy more foreign currencies and invest outside after Step 3) above, learning abt investments. If I decide that this is the correct step, I wuld do this asap before the RM depreciates further vs foreign currencies.

5) I would think abt education plans for my son !

You must use foreign currencies, bro,... no other way for the common, hardworking folks in Msia,...

Unless it's from inheritance,...

Been past the stage and regret not retiring earlier . Slight procrastination for RE and time flies past in a blink of an eye. I have more than met my target . Concentrating most of my cash into KWSP although i have a few properties plus FD. Sold most of my stocks. I am a Malaysian, born, studied and worked here all my life. With the lowest academic qualification possible, i have worked and moved up the ladder carrer wise. In more than a decade in my working life, meeting daily expenses has been quite a challenge.

Only reason i think, of being able to accumulate enough for retirement, is being quite debt free and commitment free for most of my life except for the first house i bought. No purchases were on hire purchases, no buying of insurance n medical. Only local holidays, remember my first overseas holiday was in my late forties.

I am not frugal and do not believe so. Sonewhat remember the story of a lady saving her best crockery set for use on the occasion that never come. Life is made up of wondrous experiences and frugality somehow will crimp it. Do not worry too much and count the number of grapes you have everyday. There is a lot of people sharing their experiences on financial planning that sometimes i have trouble comprehending. My advise is to only do things that we totally understand and results matter no matter whatever the reason may be. Dont really believe in stocks investment eventhough i got my major headstart in wealth accummulation using stocks.

Have a few friends who on mandatory retirement, travel the world. A few enjoyed it very much. One friend who is a former professor in a local University seems quite lost upon retirement. Retirement should be the time when we make new interest and live our life as we were and all our academic and career achievement no longer holds water socially.

In my opinion , a person should aspire to retire early so that we can reconnect with our friends and family that otherwise we dont have time for and also pursue our own interest not because we need to past the time but because we want to.

My monthly expenses is around RM13k. I would think most of it is due to eating expenses as we rarely cook at home.

This post has been edited by magika: Aug 18 2019, 10:56 AM