Scenario Modelling Analysis – why it is so powerful in retirement planning
Do you know that by just reducing your monthly expenses by a few hundred ringgits at the onset of your retirement, (and then increase it progressively with inflation of course), you are actually buying yourself a few more comfy retirement years? Else, the other option is to save another RM 200,000. Is it easier to…
2 Critical Retirement Concepts to take note
It is not about how much you have in your retirement funds. It IS about how you manage your retirement funds post retirement. Also, understand the 2 important things which conventional retirement calculator may fail to take into account. First, is the capital liquidation vs capital preservation method in computing your retirement lump sum needs. Second,…
“When?” you Lose Money from Retirement Fund Matters a LOT!*
It will be folly to assume it’s all bed of roses when it comes to investment return during your retirement. Again, the most crucial thing is how to manage your investment loss intelligently so that your other financial goals are kept as intact as possible. Having said that, the order of occurence this investment loss…
Debunking the Retirement Myths: the 3 Pillars of Spending*
The Retire Method Scenario Modelling is based on the following 3 pillars: Investment asset Preservation & Growth which beats inflation, without utilizing the capital itself Sustainable Spending from Income generated by Investment Asset Creative Life Planning Conventional retirement plan or calculator is built on the assumption that you incrementally withdraw your annual expenses during your retirement…
Use the 3-4-5 Rule to Build a Confidence Interval from Outliving your Retirement Funds*
Let’s start with the 4% withdrawal rule. The rule states that , if you never spend more than 4% of your investment asset balance each year, then you increase the odds of living your retirement life with lower risk of running out of money. But that is just a guideline, not a rule. It is…
Introducing the RetireMethod Retirement Scenarios Modelling System*
With everything thus far combined, we have the Retire Method Retirement Scenarios Modelling system. Conventional retirement model often has this downfall – you get big variations in the amount of savings required to retire by changing the assumptions you put into the model. The fault is not the model itself, but the assumptions, which is…
The Why’s and How’s of the 6% Post Retirement Investment Return*
Throughout this module I only use a conservative 6% per annum return, compounded over the years. Why? It is the yardstick for real estate investment – 6% rental income yield, at minimum. But today, I will show you exactly how to confidently get 6 percent or more from your investment even during downturn. No bold promises…
Module 4D: Build a Confidence Interval from Outliving your Retirement Funds
In Module 4C, we have covered these points: Only increase your spending if your investment asset is growing. Else, keep your previous year expenses. Reduce to 3% spending of investment asset during bad times, when asset not growing. Reward yourself to 5% spending of investment asset during good times, during economic boom. You could spend…
Module 3B: Passing the Purchasing Power
Now that we have grasped the concept of dwindling purchasing power as years go by, we should realized a one million legacy to the next generation is not the same as us having one million now. So now, you don’t only want to pass a legacy, you want to pass on a legacy with its…
Module 3A: Perspective on Purchasing Power
The term “inflation” has been over-used by now. Sometimes, it’s hard to explain this to people; so here, I found a better way to explain it – by the analogy of purchasing power. Even if you know what this is about already, don’t skip this because at the end of the video, we come to…