A rule of thumb is when you retire, you would need 10 times your annual ending salary to survive for the next 25 years in retirement. Example: When you are 60 years old and earning RM180,000 a year, you would need at least RM1.8 million to retire. The money would need to be invested with a return of at least between 6%-8% per annum & you would still be able to withdraw about RM180,000 yearly income. It doesnt factor in sudden spending like buying a new house & car, lending the money to friends & families, going on a round the world trip, or using it as a capital to start a new business! Having this amount will help cushion lifestyle & economic inflation during your retirement years & to sustain your daily needs as well as help for unexpected expenses such as medical emergencies.
Posted on: Tue, 07 Oct 2014 03:56:14 +0000
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