$1.5million Retirement Strategy

[shingy]

What is your retirement strategy to reach $1.5million retirement funds at age 65?

 

[Perisher]

Start a business? 1.5milion is possible...

Here is a startup business thread in EDMW.
http://deluxeforums.hardwarezone.co...iness-startups-chit-chat-club-5188377-13.html

 

[frenchbriefs]

or u can aim for 500k and retire in thailand.

retirement visa in thailand is granted as long as u have 800k baht in bank account about 20k usd.

cost of living in thailand is dirt cheap even in major cities bangkok and chang mai

u can stay in a hotel for a month for about 400 usd or rent an apartment for 200 to 300 usd per month.

food is dirt cheap,bowl of noodle for 20 baht about sixty cents usd,buffet for 150 baht less than 5 usd,meal at shopping centre can go for around 60 to 100 baht,about 2. to 3 usd,macdonals is expensive though,considered high class in thailand,about 160 baht for extra value meal about 4 usd,cans of beer in seven eleven for 40 baht about $1.50 usd.

for 10k usd a year,u can live like a king in thailand.alot of ang moh retirees in thailand.

 

[Shiny Things]

What is your retirement strategy to reach $1.5million retirement funds at age 65?

1) Start at age 25, saving just $100 per month;
2) Invest my $100-a-month in a boring stock-and-bond portfolio that averages 7%;
3) Increase the amount I save by 10% each year (so next year I'm saving $110 per month);
4) Retire at 65 with $1.45 million;
5) Go to the pub.

 

[reinphd]

1) Start at age 25, saving just $100 per month;
2) Invest my $100-a-month in a boring stock-and-bond portfolio that averages 7%;
3) Increase the amount I save by 10% each year (so next year I'm saving $110 per month);
4) Retire at 65 with $1.45 million;
5) Go to the pub.

Very realistic figures. Bump for visibility

Sent from Samsung SM-G900F using GAGT

 

[havetheveryfun]

1) Start at age 25, saving just $100 per month;
2) Invest my $100-a-month in a boring stock-and-bond portfolio that averages 7%;
3) Increase the amount I save by 10% each year (so next year I'm saving $110 per month);
4) Retire at 65 with $1.45 million;
5) Go to the pub.

how do you calculate to have 1.45 million ?

 

[Shion]

Strike TOTO...

 

[limster]

how do you calculate to have 1.45 million ?

Use compound interest calculator easily found by google.

The calculator I used gives me $1.32m... but different calculators have different assumptions about compounding frequency, how the additional 10% a year is added, etc.

If you think $1.5m is too far away, then set a mid-life target of $500k. If you hit $500k by age 50, you are actually on course for $1m+ by retirement at 65 as long as you continue adding to your investment portfolio at an increasing rate after age 50.

Others like DW have already shared their portfolio is 500k+, since they are young, they are on course for $2-3m by the time they retire.

 

[Squaredot]

1) Start at age 25, saving just $100 per month;
2) Invest my $100-a-month in a boring stock-and-bond portfolio that averages 7%;
3) Increase the amount I save by 10% each year (so next year I'm saving $110 per month);
4) Retire at 65 with $1.45 million;
5) Go to the pub.

Nice.
What would be the number for start at age 45?

 

[strangerjun]

1) Start at age 25, saving just $100 per month;
2) Invest my $100-a-month in a boring stock-and-bond portfolio that averages 7%;
3) Increase the amount I save by 10% each year (so next year I'm saving $110 per month);
4) Retire at 65 with $1.45 million;
5) Go to the pub.

is there any calculator that allow increasing contribution each year? The one i use only allow fixed yearly contribution..

 

[K|muRa^84]

i think if u build a simple 3-fund portfolio over 30-35 yrs, u can expect the terminal value of ur portfolio to be at least 2-2.5x ur cost basis

 

[shingy]

Nice.
What would be the number for start at age 45?

Let's say reaching 1million dollars at age 65. Now age 45.
Plan for 20 yrs of retirement
PV= 1million
Inflation=3%
n=20 years
PMT= $65257/yr (Retirement payout per year)

FV(20)= 65257
n=20 years
Inflation=3%
PV= $36 460/ yr of savings required
That means 3k savings per month.

Omg!

 

[shingy]

i think if u build a simple 3-fund portfolio over 30-35 yrs, u can expect the terminal value of ur portfolio to be at least 2-2.5x ur cost basis

Can elaborate on what you mean by a simple 3-fund portfolio?

 

[djchris]

Let's say reaching 1million dollars at age 65. Now age 45.
Plan for 20 yrs of retirement
PV= 1million
Inflation=3%
n=20 years
PMT= $65257/yr (Retirement payout per year)

FV(20)= 65257
n=20 years
Inflation=3%
PV= $36 460/ yr of savings required
That means 3k savings per month.

Omg!

Totally achievable if one is frugal. Good to know.

Thanks for the calculations.

 

[w1rbelw1nd]

Let's say reaching 1million dollars at age 65. Now age 45.
Plan for 20 yrs of retirement
PV= 1million
Inflation=3%
n=20 years
PMT= $65257/yr (Retirement payout per year)

FV(20)= 65257
n=20 years
Inflation=3%
PV= $36 460/ yr of savings required
That means 3k savings per month.

Omg!

You don't mean inflation... You mean investment return right? 3% returns too low la.

 

[homer123]

I stop saving once I reach 1 million.. Now ready to be layoff and retire in Thailand as suggested by Frenchbrief. If I rent my HDB, I can really live a good life in Thailand.

 

[mummy1234]

I stop saving once I reach 1 million.. Now ready to be layoff and retire in Thailand as suggested by Frenchbrief. If I rent my HDB, I can really live a good life in Thailand.

Hdb has the best rental yield cause can buy cheap with government subsidy, so those who wanna retire overseas should keep their paid up hdb for rental passive income, dun sell it in case need to come back Sg next time....

Good to hear that you have saved up a million dollars...I believe we should all have a early retirement plan in case we r laid off early or illness strikes....or buy income protection plan....

My net asset property value now is S$1.5 mil so wonder if I should sell my properties now and buy an EC again....so as to be debt free....

 

[IronMac]

or u can aim for 500k and retire in thailand.

retirement visa in thailand is granted as long as u have 800k baht in bank account about 20k usd.

It's odd. You still need to show income of THB 65000 a month but cannot be employed. I guess this refers to retirement income in the form of a pension.

Which means you have to be over 50-plus before going to the LOS.

 

[limster]

I stop saving once I reach 1 million.. Now ready to be layoff and retire in Thailand as suggested by Frenchbrief. If I rent my HDB, I can really live a good life in Thailand.

Hdb has the best rental yield cause can buy cheap with government subsidy, so those who wanna retire overseas should keep their paid up hdb for rental passive income, dun sell it in case need to come back Sg next time....

Good to hear that you have saved up a million dollars...I believe we should all have a early retirement plan in case we r laid off early or illness strikes....or buy income protection plan....

My net asset property value now is S$1.5 mil so wonder if I should sell my properties now and buy an EC again....so as to be debt free....

Its good to hear from all those who have made their million already. Shows that it can be done thanks to the power of compounding

 

[mummy1234]

Its good to hear from all those who have made their million already. Shows that it can be done thanks to the power of compounding

Mine was just plain luck, moved house to get my son into a better primary school, bought a terrace within a km in 2010 and 3 years later , the value doubled from 1.1 mil to 2mil....those who bought landed in 2009 and 2010 all enjoyed price rise...

Gonna have a new shopping mall built very nearby so though value now fell to 1.7 mil but still holding on....

So far, property capital appreciation has helped many save quite a lot much easier than working...hopefully , it will still be the case going forward.....