Point 2 - Keep same lifestyle before and after. In real life it is very hard to keep the same lifestyle. I used to eat a lot at food courts but nowadays i tend to frequent restaurants (not the really expensive ones). In food court, my food bill will be around A$30 (for 2 of us) while in a restaurant it will be about A$45-$60. Very hard esp people like me who loves food. On the other hand, i don't indulge in luxury goods anymore - i used to love Rolexes and expensive clothing but that desire is all gone (probably because i don't need to prove to anyone anymore unlike when i was younger). However i prefer better accomodation when i am travelling overseas compared to younger.

Point 4 - Having a working spouse. Very true. My wife's retirement savings is very close to mine as her pay was about the same as mine even though she elected to stop working at 50. She never paid the household bills as i took care of that so she just saved whatever she made.

P/s: We are very excited now as we can start accessing part of our super as of next year (when we hit our preservation age). My wife can draw a lot more than me because she has stopped working while i can only draw a little (transition to retirement) as i am still working.

This post has been edited by Garysydney: Sep 23 2018, 07:51 AM

hmm.

for those who already fire.

what you guys do after that. for if no work like no objective in life. lol

It doesn't mean you have to stop work if you are quite happy doing it. Like people with businesses, they still go to 'work' (although profit goes into their pockets unlike wage earners where the bosses keep the profit). If you were a wage earner, it gives you the choice of 'firing' your employer (with glee!!). A lot (and i mean a lot!!) of employees are stuck with shit jobs but cannot do anything about it because when 'your hand stops, your mouth stops too'.

FIRE gives you more choices/options in life!! Like nowadays, i can choose my choice of meals (eating in a food court vs eating at a nice restaurant) - choices that makes life a lot more meaningful!!

This post has been edited by Garysydney: Sep 23 2018, 09:11 AM

If you think about it, when you are working for others, no matter how high ranking you are, you are just running other people's "errands".

When you FI/RE, every little task you do is for yourself or family or people you would like to help. In short, you determine how you spend your time.

Which "objective in life" is more meaningful?

It's just so wrong to equate work with objective in life. If you FI, you have the choice to RE. If you find that life is without objective if you RE, then by all means continue to go to work. It's your choice! I know I wouldn't! Ha ha.. just rambling again...

Already FIRE you have plenty of choice. You are basically free to go about your own life as how you see fit.

Go fishing, do tai chi every morning, go jungle hiking every week, no issue.

Bear in mind if only you urself is FIRE, only you have the spare time not most of ur fren. If u have nearly no fren then that is pretty fine.

If ur hobby cant do it alone then probably very fast u will get bored with lack of activity. Only minority of people able to handle the luxury of everyday is weekend. If u are minority then that is pretty fine again.

Some of my female colleague during the 2nd month of maternity leave already dead boring at home, although come back to work full time is not what they want too. lol

This post has been edited by kradun: Sep 23 2018, 12:16 PM

Point 3... frugal is a choice and not a suffer, it just a 2nd nature (perhaps many come from poor family had such trait) but not extreme as our youngter friend. Still go aboard for holiday, buy average continental cars, eating out, etc.

Point 5... investment is like any other skill, u got to learn & practise along the way and gain confident over the time. I dont actually aim for super high return but 5% is the baseline for FI/RE estimation. Compounding works great in long run. Everyone had different situation, no need to be a expert investor (score 12% or above every years) prior retirement. Earn, save, invest... excel in any of 2 will smoothen your journey.


Point 2..perhaps had to clarify, my own personal spending is reduced compare to young time; household wise, the spending ratio vs earning is reduced due to increased earning over the time. Life is progressing like married, extra family member, kids schooling, etc and u can't avoid that unless u choose to be single or voluntary childlessness. In short, household spending is unavoidable but you may choose your car (not the car you afford to pay installment but in cash term), your primary residence (million house or normal condo), and no luxury goods (expensive watches, LV bags, 4-6K premium phones, etc).

This post has been edited by sky18: Sep 23 2018, 02:17 PM

All this talk about FIRE, but at what amount can someone say that they are FIRE? This is especially true for the people where there is a chance of money running out. There has to be a minimum amount.

Ive made some money, and although i can say at the moment i have not much constraints, but i do not think i am anywhere near what i would be comfortable with, having said that, realistically speaking. Many people do not have such financial stability.

On a personal level, i do not feel frugal, however i dont have the expensive taste most people do. I dont splurge much.

Is rm2million enough? Rm5million? Rm10million?

Realistically speaking, how many people have achieved such success? I know many have, but most havent.

How much can a person comfortably have and say, i can do whatever i want. I no longer have money worries.

This post has been edited by flight: Sep 23 2018, 02:38 PM

It depends on whether you are single or have kids. Also depends on your age now as in the older you are, the lesser you need as a safety buffer on top of what you have provided because longer timeframe introduces more uncertainty. Whether you are frugal or big spender, you have a ballpark figure monthly and as long as you can ensure this monthly amount is sufficient for your purpose, you are good to go. That is why some can retire at RM1mil whereas others need at least RM10mil. I am sure you already know... just sayin'

You are definitely heading in the right direction.

Together with your wife, you have way more than enough to retire comfortably

That's what I thought. You must have something to occupy your time and mind. Otherwise, a person will age fast.

What to do depends on each person....for me, I still go office every morning if I am in the country. Then do the things you feel like doing. Sports, hobby, go lunch with friends/relatives/customers/suppliers/bankers/brokers/neighbours etc....anything you like and feel like doing for that moment....

Also depends on the retirement budget you plan. If you plan on only RM2k per month, that's no fun. Only take care of the necessities. So, all depends on individual....

Totally agreed !

Good question, which many non-financial savvy people will ask.

My way of calculation is not to touch the principal. Then :

1. Determine the amount needed for your own retirement budget
3. Determine which rate of return you can generate
4. Work backward to get the required amount

Eg.

1. Monthly expenses is RM8k, so yearly is RM96k. Let's round up to RM100k per year
2. Let's say a person is comfortable to make 5% pa net of tax and expenses from investment vehicle of his choice
3. Therefore, the amount of nest egg required will be RM100k / 5% = RM2m

With principal untouched, then the retiree will have no pressure to live to any age. Many retirees eat into the nest egg to live, which makes him the longer he live, the more worries he will finish up his money

The rm2million will have to be liquid assets, and not including residence.

There is a simple retirement calculator at Great Eastern Malaysia site, I think it do help to compute the nest egg for those who still doubt.

Yes agreed. RM2m of income generating assets, net of tax and expenses (like loan servicing instalment etc)

Unless that person rent out rooms of his residence to get passive income

Ya...there are many retirement calculator. Do you have the link ? It would help the readers here...

Just type at google search : “great eastern Malaysia retirement calculator “ that will lead you to the link.

Knowing a few of the young readers here, you have to give them the link as their time is so precious

https://www.greateasternlife.com/my/en/pers...retirement.html

The above calculator is a better than mine simple calculation as it also take into account inflation rate

This post has been edited by Showtime747: Sep 23 2018, 08:26 PM