Objectives of this blog:
1) Plan for my retirement.
2) Journal my way to financial freedom for my family and me in Singapore.
3) Share my financial knowledge and wealth management in an easy to understand way.
My current aim is to generate a passive income of $3000.
Tuesday, January 12, 2010
How much will you need to retire?
I have made a simple calculation on how much one will need to retire. I have made a few assumptions:
1) The inflation rate is fixed at 5%
2) The expenses are fixed and are adjusted based on the inflation rate.
3) Totally not working and no investment of any form.
The first column of the table shows the life span left in years. The second column starts with a expense of $2000 per month, third column starts at $3000 per month, fourth column start at $4000 per month and fifth column starts $5000 per month.
Based on the table,
If one has a life span of 10 years left and he spends about $2000 per month currently, he will need about $300k for retirement.
If one has a life span of 20 years left and he spends about $3000 per month currently, he will need about $1.2 million for retirement.
If one has a life span of 30 years left and he spends about $5000 per month currently, he will need about $4 million for retirement.
So do you think you have accumulated enough money for your retirement? If you have not started to spend for your retirement, my advice is to do it as soon as possible.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment