It all depends on the standard of the life that you want.
If your standard of luxury only requires RM10k/mth to sustain, then passive income of RM20k/mth is good enough, since it is 100% extra of what you required.

However, luxury is very subjective and varies with different individuals. Once you reach RM10k/mth passive, your exposure will be different. You will be surrounded with people that will expose you to a different level of luxury. So, honestly, you need to first determine what kind of lifestyle you would want, and work backwards.

Not entirely true,
As time passby, your view and lifestyle might differ/change entirely

Some towards more luxurious, some towards frugality/comfortability

But of cos, one thing is certain, u can't have too much of passive income..

You probably want to aim for a higher passive income before you stop working - the last thing you want to happen after you have stopped working (esp if you are over 50) is having to start working again due to you getting your financial plans wrong.

This post has been edited by Garysydney: Jan 24 2019, 11:45 AM

IMO, luxury is less of a concern as we grow older

Yup . Tats why I said can't have too much.. I'm still working despite passive income cover expenses..

Income + interest = re invest

As of now, my tools for passive income only investment
FD, stock and unit trust

I aim so high that im unsure if it is even realistic. like rm40k/mth passive lol.

so you work out from Euro or USA?

you mentioned income just now? what kind of income? mind to know how much is you passive income?

i thought you already achieve that. so you are asking how much passive income you need under those requirement?

checking in & park ... am always interested in FIRE

been saving here and there of salary and have some investment too.
always appreciate new and good tips from anyone.

talking about properties,

found out now many developer give rebate from the bank value to let buyer have higher margin
rebate im talking here up to -30%!
eg. snp 500k, rebate 150k, loan needed 350k = no need downpayment.

is it good or they really desperate to sell units?

hi need advice in this LAST decision of my life to make:-

age 45
salaried earner from day 1 till today
never venture into business
never invest in stock/bond/unit trust etc

consider myself FI >2yrs ago but not RE yet.

FI as in
>> 2 houses fully paid in 2017 (1 currently staying, 1 on-rent);
>> current kwsp+fds fund generation if compounded 6%(kwsp) & 4%(fd) the next 10yrs, and start withdrawing monthly at age 55 (Yr2029) as retirement expenses is 9200/mth; and if factored 3% inflation rate thereafter Yr 2029, i should die at age >72 (meaning fund 0)

NOW, i need to make ONE LAST decision in either below two option >>

option A, take up a 10yrs mortgage loan of 580K@4.45%pa for a 730K DSL (3rd property); pay 6000/mthx12x10yrs = 720K+(730K-580K) = 870K ;OR

option B, pay ownself (in fd@4%) 6000/mthx12x10yrs

for option A, loan just approved last week, that why need to decide soon.

I wish to hear from the sifu, specially FIRE sifus here, is it wise to tie myself at 45 (tail-end employment age) to this next 10yrs mortgage commitment, or just pay ownself (option B), particularly at current property market

This post has been edited by jojolicia: Jan 25 2019, 02:51 PM

Option A riskier than option B. Since u already FI, u have to ask yourself is it necessary for uncessary risk? Only u can answer yourself ...

Option B has the potential to make more... option A is fixed ..

I am just stating the obvious.. in case it is not obvious enough..

thks for your input.

option B; and start reading on stocks for next 10yrs & start somewhr with the 10yrs mortgage installments accumulation right.

Oops.. I mean option A has potential to earn more... potential only ah... if freehold landed , hard to lose money in the long run...but because of the monthly installments , u might free more stressful lah..

Option B - sleep soundly

This post has been edited by aspartame: Jan 25 2019, 03:49 PM

It won't run empty if only the annual interest/dividends are withdrawn... meaning that the annual interest/dividends are enough for your yearly expenses... meaning that the amount saved is enoght to generate the required yearly interest/dividends.

If you are depending on rental income from properties instead of annual interest/dividends, collecting rental every month can be too much "work" and headache when you are at senior age.

No, not depending on rental income.
Correct it won't run empty, if ONLY annual %/dividends are withdrawn as annual retirement expenses.

my case, i take 1st yrs retirement expenses to be 70% of projected last drawn salary & projected fund size at age 56

age 56; 1st year 10,500/mthx12=126,000pa (with 3% inflation per year) against initial fund projection 2,250,000@4%= only 90,000

so, kena mati age 75 unless i take 90,000/12=7500 pm (1st year)

just my 2cents

This post has been edited by jojolicia: Jan 25 2019, 04:48 PM

that is what makes me undecided lo..

Historically, residential property price rise at about inflation rate.

Loan interest is on rising trend.

If you work on the two, property investment is not as worth while you thought.

The monthly expenses or pension fund is usually based on the last drawn salary, not including whatever passive income there is currently. And it is usually about 50%.

If you are targeting 70%, it means that your monthly expenses is currently at 70% of your salary and savings at 30%.

It will be hard to jive the numbers to retire early... and working till age 55 is considered normal retirement age since it was just recently changed officially to 60.