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 FI/RE - Financial Independence / Retire Early, Share your experience

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missfarren
post Feb 19 2019, 12:21 PM

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QUOTE(BooYa @ Feb 18 2019, 04:32 PM)
I know a few friends that save few million RM in bank and not own any property because they think those property for own stay is liabilities.. they achieve FI but havent RE
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if this case, is this good?

cars:

bmw 3 series 4 years old (fully paid off)

honda civic ketam 2 years (bought cash)

House : Loan rm400K to go (will settle in 5 years by paying extra)

other commitments : rm2.5K pm


Monthly no savings as all dump into house (about rm8k per month)

Other passive income : rm3000 per month (accumulating) - in asnb cash rm600k

Expected epf in 15 years : 3.8mil


Summary cash in 15 years including saving : Approx rm5 mil in total with house fully paid off

cars might come n go as need to change every 10 years




missfarren
post Feb 19 2019, 01:10 PM

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QUOTE(ChessRook @ Feb 19 2019, 12:30 PM)
Well from your Assets, Liabilities and a bit of expenses you listed. It looks good. But I hope you also have some risk minimisation in place in case of unexpected events.
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lucky we sold off some properties just before the property bubble burst. Or else we would have been in a debt senario. Now those properties have even dropped below purchase price. so lucky made a correct move.


missfarren
post Feb 20 2019, 10:43 AM

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the most important part is after settle car loan, try to keep it as long as possible instead creating more liabilities buy getting a new car.

control your expenses.

save and dump into more fd or asnb.

for girls, invest in good capable rich husband if possible. older is better
missfarren
post Feb 20 2019, 12:28 PM

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QUOTE(real55555 @ Feb 20 2019, 12:24 PM)
That would depend on what purpose you are getting the property. If for own stay, yes, by all means go and get one.

FIRE that achieved now doesn't mean can be maintained in longterm, so we need to reduce regular expenses that will rise in cost for example rental. Unless your passive income after achieving FIRE surpass your expenses that means you still allow to grow your wealth.

However if you are thinking of getting property to rent out, depending on the outcome, it could severely impact your FI and RE. A good property will benefity u but also bear in mind you could bought a property that does is less attractive in terms of rental market and appreciation and that would bog you down in your FIRE.
EPF in 15 years: 3.8mil. For me I won't worry much with such ammount in EPF.  In 15 years' time. You are looking at interest income from EPF of RM209k assuming you don't withdraw it and assuming EPF can declare an average of 5.5% dividend p.a. (which is quite conservative if you look at last 10 years' epf dividend rate)
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thanks for you view

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