That is too low. In a developed nation, your savings will burn up in 3 months.

to me fair... your salary also is not fixed through out right...

probably you can afford to save 100-200... when started working..

then throught he years your salary is going to go up and you will eventually be able to pay for 700 but this time you need to chase back maybe additional 100-200 more to bring you back on track... that means practicing delayed gratification.

But people with extra money rather go do something else with it first... buy house, get married before 30, holiday, get/change car... , get new mobile every 1-2 years, get a new gaming rig, gpu, get a nice ps3...

i see, in what context? as i said, i will only move when get a job there, be an expat first, get a PR, only change nationality later, all these will take several years.

This post has been edited by gundamsp01: Today, 09:48 AM

Developed nations jobs are getting less because their cost is high. If low end jobs, you will compete with migrants. Then your quality of life will be like theirs, and they get gov aid and housing, will you get it ?
Rent in developed nation is damn high, like you pay 1.5k their currency for a studio apt. Young local gen z already complaining they live pay cheque to pay cheque.

You better have high value expertise like a surgeon or nurse degree or something.

i just applying the same level as what i am now, i.e.: VP level in financial service sector.

This post has been edited by gundamsp01: Today, 09:53 AM

My main point is actually about how one should think about the spending power of your targeted savings.

Practically anyone can hit one million, it’s nothing in this day and age, a simple rm1000 monthly contribution for 33 years with an average 5.5% epf dividend and you’ll reach 1mil before 60.

However - thats a 10, 20, 30 years projection of spending power, that 1 million in the next 15 years equals to 500k~ today. So if someone said they’re OK to retire with 1mil, they need to understand if it’s TODAY, right NOW, or do they mean 15years down the road - which would be completely different.

Fresh grad/min wage is a completely different issue altogether. However it is the undisputed fact that the prices if almost everything, including your daily necessities will be again doubled in the coming 15-20years.

Classic case of fear mongering about inflation. You think ppl will put the 2-3M under the pillow or saving account mei. At the very least also in FD which is equal to the inflation rate. Majority will put in investment which will give a better return than the inflation rate. Overtime, the 2-3M will grow even more regardless of inflation.

Become scammer after retiring ? Doable ?

To understand inflation... look at my kepci inflation post...

2-3mil is gonna be nothing in next 20-40 years..

https://forum.lowyat.net/index.php?showtopic=5519597

Now you’re talking a different thing. What growing money? What putting under pillow? This isn’t about investment or returns, this whole topic is about after you reached your goal of retirement savings and ready to retire.

You need to go to investment topic if you want to learn about growing money.

Point is - if you target to retire with 1million or however much or less, by the next 10, 20, 30 years in the future, you need to think very carefully whats its spending power by then.

i personally think stuff will get out of control later.
M40 will become M20... B40 become B60... everything price go up only...

If you retired, the next 20 years, you would count yourself the outlier if you are still out and about eating KFC. Most will be half bed ridden and your living cost goes to paying the nursing home entirely

Yeap, that’s my point - inflation is something you cannot escape.

I don’t care how rich or how poor a person is, i don’t care how you reach your goal of retiring with 500k or 1mil or 3mil, and i dont care how you invest or whatever.

If someone said they’re gonna retire with their final pot of 1million savings by 55years old, and they’re 40 years old TODAY - it would mean you’re OK to live your whole retirement with how 500k feels TODAY.

Also by the time you retire and you stop contributing and start taking out your capital returns, it’s when inflation will hit EVEN harder as you’ve just lost your hedge against it, and need to live another 5, 10, 15 years before you die.

Anything that yield higher % than EPF.

If you have no time, then stock would be a good choice. But learn before you invest.

What has retirement got to do with investing?? You can invest from 18yo till you die. I m not taking about investing in risky asset, even FD also can meet the inflation rate unless hide under the pillow.

It is highly correlated. Take into account inflation while ignoring the capability of money generating income/return is a one sided view.

This post has been edited by Singh_Kalan: Today, 10:55 AM

2 important talking point always ignored.

- are people talking from the perspective of never ever touching their principle and always living on dividen returns ?
- do people take into account of having a spouse who also have their separate savings ?

Again, i'm talking about after a person has reached their end goal, while you seem stucked in investment and the journey to reach your retirement pot.

Picture this: Someone already made 1million, at age 55, he's your average joe, 1mil in epf - 5.5% dividen, we're not talking about HOW he made it to 1mil, we're talking about how his 1million is nowhere near how he pictured it when he was 40 years old, saying 1mil is enough for him.

55 year old, retired, can't find a job, no income, eating into his annual capital returns just to survive his retirement, inflation slowly eating into his retirement fund, and the realization hits, eh... why my 1million feel like 500k when i'm 40.

Point is, people need to account inflation into your retirement figure. You're not generating any money if you're relying on your capital returns to survive retirement - infact you've lost your hedge against it. You sound very naive and really should go into the finances sub and read more into it - you're not looking at the bigger picture, you're stucked in the commoner view of "waaa i got money, then money make more money lorrr" without any realistic situation, timelines & facts.

End goal is when u go 6ft under. As i said before and again, you invest until u die not until u retire. As long as u keep invested, your money will outgrow inflation. So inflation is not really a concern.
It is only a concern for those without asset and investment. Your fear resonate fr this group of people.
Why do u want to stop investing right after u retire, just doesnt make any sense.

This post has been edited by Singh_Kalan: Today, 11:40 AM

At this point i feel like i’m just putting money into your pocket by explaining. It’s quite insane that i have to talk about inflation effects on someone’s retirement fund.

Why do people stop investing after they retire? It’s because they are FORCED to use their dividends, investment returns, and at times have to even eat into their capital just to LIVE.

Of course these points are moot if we’re talking about wealthy individuals - but for almost of the commonfolk KL office workers who retire with a final salary of 15-20k without any inheritance or unicorn investment during their younger years - that’s just the fact of life for them.

Don’t look at the outliers, look at the general population, a office worker who isn’t outstanding, who ngam ngam manage to pay off their home right before retirement, who will not have anymore source of income once their paychecks STOPS. Sitting on a pool of rm1 mil with no other assets generating passive income. That 1mil will get burned down with time alone.

You are talking about someone with 2-3M. In Malaysia this net worth will get u to T1 level, that is top 1%.

2.5M at 5% return will generate a return of 125k or around 10k per month. More than enough for most retiree without even touching the capital.

Please do some calculation before u reply