guys, am thinking of taking the next step.

kindly advise if i have left out anything?

assuming if there are flaws or things i left out in the calculation please highlight.

ideally of course hoping that current savings are sufficient to cover and be in self sustaining mode, but of course if inflation rises, can always start "eating" into the current savings.

if anybody is able to help to improve the spreadsheet to say:
inflation rate at 3% to 5%, what would be the current required savings (both basic and upgrade version) value to cover the increase year on year for me to say live another 35 years.
alternatively same scenario applies but without self sustaining model but depreciating savings model.

thanks.

PS: any advise on what to do post retirement? i am currently in mid 40's


Attached File(s)
 Expense_Tracker.pdf ( 193.74k ) Number of downloads: 148

thanks for your reply. in all honesty i find the reported inflation rate on yearly basis a bit unpredictable and rather hard to gauge. furthermore some items goes down too instead of up albeit more on increase rather than decrease though. but i understand your point.
but to argue further, it should be inflation rate on the spending rather than an outright 7-9% return on savings. so it should be 4% + (4% * 4%) = 4.16% the following year and continue on subsequently, no?

yes i forgotten to factor in ang pow and phone/pc replacement say once every 3-5 years.
fyi i got my ip7 from launch and still using it although i think it's time for a change.
travelling is meant for local travel and the "upgrade" which has a factor of RM6k per annum allows me to travel yearly somewhere below that threshold or travel somewhere <rm12k every 2 years. does that make sense?

paid off props - yes
stocks with divvy yield - yes
but not intending to muzzle the already complicated calculation hence only concentrating on return from cash instead.
and forgot to mention, everything is based on individual for the time being.
as the saying goes, help yourself before helping others.

yup. with the slightly higher opr, FD rates are going back to 4% ish and EPF is 5% ish or more.
am taking 4% just to be prudent without taking into account other riskier return which carries some risk of decreasing my capital

a lot of people keeps claiming that xxx amount not enough to retire.
some say rm5mil, some say rm2mil, some say rm10mil also not enough.

reality is majority of people never do hit this "savings" amount in their entire lifetime and majority people still somehow survive it.

true, one may not get to experience the luxury lifestyle that one aspires to or get used to when working in their prime, but let's accept the fact that most people do get by with much smaller savings upon retirement.

KWSP official stand is to target for minimum RM240k by 55. am pretty sure they have certain basis for it. you wanna be better or over achieve it, good for you if you do.

but to what end? continue to chase your RM10mil, RM20mil, etc? work until the day you die?

if based on my tracking spreadsheet shared earlier, definitely yes lor based on your spending pattern.

just wait.... surely expecting someone to tell you rm2mil epf not enough.... lol

see? so many started to claim it's not enough. lol...... that didn't take too long.

point is..... it's unrealistic to assume that the capital will remain untouched.

even a simplistic linear drawdown of say RM10k per month, it will still last a healthy 200 months or 16.6 years.

For those who keeps arguing to purely live off the pure passive income, are you guys really committed to leaving the seed money completely untouched for the next generation or whomever you have nominated in your will?

so assuming if you target a say healthy rm20k monthly expenditure per month post retirement and to generate the say rm20k you are having a capital of RM4mil based on a conservative 6% return (since you are consistently hitting even double digits).

would you have any dilemma at all for not utilising your capital for something to splurge on yourself? and would you "trust" the recipient of the capital you saved to not foolishly spend it?

my own personal beliefs:
1. money changes people
2. when inherited big lump sum, one tends to be a bit foolish in decision making and tends to be over generous

although i may not have a mountain of capital to pass on, yet i still hold on to some of my own beliefs that i ought not to pass too much to my next of kins. but neither am i generous enough to donate my hard earned capital to charitable organisation. lol..... dilemma dilemma

i think i marginally pass this test. hehehe but my phobia is i am not that old hence 25 years may be a tad too short.
and my networth is also partially illiquid.
but then again i am pumping my expenditures to a little bit of ridiculous levels...... lol

been getting some shit from my bosses recently and really trying times.

so can i fire?

conservatively, my fixed and unfixed passive income is nearly double my yearly expenses.

greetings all!
may i enquire any members here have experience with equity wrapper and wondering in opinions whether they are good and safe products in your views?

thanks.

the only tiny problem with this plan is the fluctuation of stock price. in 2008 mbb crash to below RM3.
bola sure kecut like hell if that ever happens.

i am no risk taker. rm5mil in epf at 4.5% also RM18,750 per month tax free and hassle free.

in principle agree. but also need to monitor somewhat.

BAT was a dividend darling stock for the longest time. but their stocks tumbled from RM70 to RM10. but still consistently giving handsome dividend yield peg to their current share price.

but i get your point.
while stocks giving consistent and stable dividend and above FD returns are great but it's still not 100% fool proof.

i was just thinking, in the pursuit of FIRE, i may absorb higher risk with instrument that returns better.
In full retirement mode, perhaps we should also decrease our risk appetite to lower threshold to more guaranteed returns?

i fully agree with your point of views.
it cracks me up each time seeing people commenting not enough. need to consider this lah that lah, inflation lah poorer dividend returns lah etc etc

be real!
needs and wants are two totally different things.

i need medical care i go public hospital but i want classy private hospital.
i need food to survive but i want fine dining to satisfy my taste bud.

those who keeps factoring layer after layer of buffer. that's fine. to each their own.
we never know if tmrw shit hits the fan. good for those who buffer more.
BUT....... what if the person who buffers so much dies the immediate day they FIRE or retire. the entire plan goes to next of kin or charity.

we are talking about life. is life all about generating wealth for future sustainability?

where is the diamond chart again. how many more good diamonds do we have left?

tsk tsk tsk.....
those who keeps saying rm1mil not enough rm2mil not enough, rm4mil not enough..... i can only wish you well to achieve your targets soon.

so true. FIRE is not for everyone.
I also semi-FIRE.
jobless for half a year.
not looking for a job but job found me.

hence i am happy to be FIRE.
but as most others complaint, wifey dunwan.
with work, still enjoy a fair bit. without work, need to tighten the wallet a little.

so i am happy with a job, also equally without a job....

first world's problem i guess.