Everyone loves to have early retirement, even wish to retire before age 55 (Malaysia Standard retirement age). Some people might plan retirement before age 40. It is good to have such plan and thought, but have you really take action and plan for it.
How about your “retirement fund”? Have you start to calculate how much money you need to have after retirement?
To retire early, need more comprehensive planning on the “retirement fund”. Basically need to estimate how long you will spend the retirement fund, I will say that you need to estimate the survival years after retirement. For instant example, Retired on age 55, monthly expenses RM3000 (without any loan commitment), will survive 30 years after retired.
RM3000 x 360months = RM1,080,000 (you need about 1.1 million to survive the rest of the 30years)
How much reserve you have in your bank now? Is better to start planning now.
** above estimation without consider yearly inflation effect.
It is important to set aside a portion of your income for your retirement age. Yet many people find it hard to decide where and how to do with their hard earned money. People are always choosy and sceptical in choosing the correct financial instruments to invest in, or else will keep their money at Bank. Everyone knew keep money in normal saving account or FD don’t gives lot of return to fight against inflation (e.g. Medical inflation rate average 10% pa)
Most of the retirees in Malaysia tend to deplete their all source of savings within the first three to five years of retirement. So, what you gonna do about that? To ensure you have save as much as possible and invest/save with highest return possible, you need to ask yourself, what you need todo for your retirement.
Start think about it…
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