In my previous blog, we have derived that in order my friend to retire in accordance to his aspiration he needs to set aside an amount of RM 453,829.80 yearly!
The amount seems to be hugh, isn't? Let's see how possible is he to generate that kind of amount.
Lets assume that my friend has an investment portfolio table 1 as shown above.
From the above table, clearly if he needs to generate an amount of RM 453,829.80 yearly, he needs a capital of RM 5,818,330.70 !!
Surely adding ASM or the Sukuk Bon into this portfolio will not help at all!!
Therefore, my advise to him would be:-
1. Retire later to find more income.
2. Reduce down the expenditure during retirement from 75% of last drawn salary to a lower %.
3. Change his current lifestyle to be more prudent and thrifty.
4. Keep his mind and physic healthy so that his cost of living during retirement will not baloon off.
5. Invest in an investment product that generates higher return.
Regards,
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