[Events] How Much Money Do You Need to Retire?
Hi Tigers
Have you ever wondered how much money is enough to retire comfortably? In a traditional model, that means accumulating enough savings so that you can withdraw some each year to fund your lifestyle while the remainder is allowed to grow.
According to the FIRE movement - short for financial independence, retire early - retirees should aim to save 25 times their annual income in retirement.
Your "FIRE number" is calculated by assuming that you can safely withdraw 4% of your portfolio per year, adjusted for inflation, without running out of money.
Do you believe in this principle ? How much money do you need to live comfortably when you retire? We would like to invite you to share your insights, and win Tiger coins
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Leave a comment below! Tag your friends to join the event
How much money do you need to live comfortably when you retire?
📢Event Details
All Tigers who leave a comment in this post will receive 5 Tiger Coins.💰💰💰
One Tiger will receive 100 coins for the comments that are the most popular and most discussed. (Invite your friends to take part.)
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⏰Event Duration
19 January 2024 - 24 January 2024
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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
🌟🌟🌟FIRE - It's the magic acronym for Financial Independence Retire Early. It is what I aspire to achieve. It is not about having lots of money. It is about having the freedom to live life to the fullest. It is about mindful spending and not spending extravagantly.
What is enough money to FIRE?
It's different for everybody and a very personal perspective. To some SGD 40,000 per annum is enough but to others it's SGD 10 million. I will be happy with just SGD 2 million.
My goal is to have enough money so that I don't have to work if I don't want to. I would love to collect dividends from my investment portfolio as a great source of passive income while I experience living in various places around the world. I love to create wonderful memories of my travels to last a lifetime.
That's what FIRE is for me!
@TigerEvents @TigerStars @MillionaireTiger @Tiger_comments @TigerClub @Tiger_SG
A simple formula to calculate how much you need for retirement!
By rigt everyone should have some idea of how much you will need per month. If you are having trouble coming up with a number, try using your current monthly income and expenses as a starting point. Think about the kind of lifestyle your current monthly pay affords you and whether you will need more or less as a retiree. Remember: many of the things you are spending on in your 20s to 40s (e.g., a gym membership or mortgage payments) may not apply in your retirement. After factoring in expenses to support your dependents, remember to also buffer in some budget for healthcare, as health will become more of a concern as you age.
Once you have arrived at a figure for your monthly retirement needs, follow this simple calculation to arrive at your ideal retirement amount:
Monthly Retirement Needs x 12 months x (Estimated Years of Retirement)
Or you can use Income's retirement calculator to get an estimate of how much you need for a comfortable retirement. The tools are available for free everywhere in the websites.
@TigerStars @CaptainTiger @MillionaireTiger @TigerPicks @Tiger_comments @TigerSG @TigerClub
According to a 2019 study, a single man or woman aged 65 will need at least $1,379 a month to live at the most basic standards of living. A couple aged 65 and above will need $2,351 for the both of them.
however, this does not cover extravagances like air-conditioning, a car, as well as any healthcare and long-term care costs you may need to fork out cash for.
How much money do you need to live comfortably when you retire? - hard to say as it depends on individuals...
as for me I try to be a minimalist and failing at it terribly [Sweats] [Sweats] [Sweats] I try to keep it simple and hope that I can travel around the world and do what I always have passion for...
1st of all, to set aside SG$180k. This sum works out to be 5k of prudent monthly expenditure for 3 years. Why 3 years? Well, the rest of the fund which i’ve intend to place them all in the equity market if were to get stuck due to a bear market, averagly one would need about 2-3 years for the market to get back to its previous high. Thus the emergency fund will kick into gear while waiting for market to recover.
Worked out a Trading/Investing system that will gives averagely 18-20% of annualized returns, every month will pay myself about SG$6k montly living expenses and re-invest the extra to futther compound the base.
At the end of the day, best case scenario is we have a never ending US$1 million to live on.
@CaptainTiger @MillionaireTiger @TigerEvents @TigerBrokers
Based on spending the 4% rule, one can afford to spend $60k per year and reinvest the rest so that the capital will never be dried up.
Should the living standard gets too costly in the garden city, can also consider renting our existing house and move to the neighbouring condo when the exchange rate hits SGD1:MYR4 😉
The rental of SGD4k will be converted in MYR16k per month. One can afford a diesel truck, live in a brand new condo, dine at restaurants and enjoy the Thai massages. The rule is to finish up the MYR16k cos it up be topped up the very next month! 🤩
🔥🔥🔥 All the best to everyone too to achieve FIRE!!! 😃
@TigerEvents @koolgal @Huatster @Huathk
So, I think 25 times of our projected expenditure plus 10% buffer might be more appropriate.
The problem is that many of us tend to guesstimate. If the guesstimated amount is too high like $10M, it may be very hard to achieve. If too low like $0.8M, our retirement might end up miserable.
Try to do our homework!
With $1m as capital, are we able to stomach that $32k dip?💁♂️
To FIRE properly, you have to assess your annual spending (includes your day to day expenses, holidays, loans etc). That will be the amount that you need to get from, lets say dividend.
Thereafter, you set a target for your dividend portfolio that you are going after - 5-10%.
I.e if your annual spending is $40k/year, at 5% rate of return, you will need $800k invested in stocks yielding 5%.
This investible quantum decreases as you seek a higher dividend yield in your portfolio.
However, you have to do your own due diligence as a higher yield may or may not always be a good thing.
One way is through investment.
The earliest one start, it will be easier. You need to stay invested and the investment will compound by itself if you are able to choose the right stocks or ETF.
Currently, US market would be the investment to let you see through the years.
Making the first 100k is slow but if you persevere the next 100k, 200k, 400k will come exponentially. And within 10-20 years, the Millions will be in your portfolio.
No special secret, stay invested. Choose the right stocks (leaders with moat). Don't panic sell. Each time whenever the Market Bear come, buy during big dips in tranches when the intrinsic value of the stocks is reached.
As the market recovers each time, you will see that your portfolio has doubled, tripled and many more folds
Last but not least, remember to give some profit to the community to make the world a better place!
@icycrystal @koolgal @JC888