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How much do you need to retire?

  1. #21

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    Quote Originally Posted by traineeinvestor
    Depending on where you want to live, you may also need to think about rising taxes - far too many politicians think that they can win office by increasing taxes at the moment.
    Not in HK.

    Rent, school fees, private health care, pollution, creeping CCPisation, etc are for another day, but at least tax isn't one of the worries of HK.
    traineeinvestor likes this.

  2. #22

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    Jul 2004
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    Quote Originally Posted by traineeinvestor
    Coming up with a number even a few years out with the number of kids, spouses etc is still an uncertain exercise.

    That said, putting a number (any number) down on paper gives you an initial target to aim for - the sooner we start planning, saving, educating ourselves and investing the sooner we get there - playing catch up is hard work. Some of my early financial projections and targets turned out to be absolute rubbish - but just going though the exercise and marking a start meant that the effort wasn't wasted.
    For sure, financial education/discipline is very important and any effort in that direction is never wasted.. Perhaps, the same could be achieved by more practical short/medium term goals than FIRE (i.e. Need x amount by the time of marriage/ xx before Kid enter school/ xxx when kid(s) graduate)
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  3. #23

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    Oct 2010
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    Quote Originally Posted by traineeinvestor
    Coming up with a number even a few years out with the number of kids, spouses etc is still an uncertain exercise.

    That said, putting a number (any number) down on paper gives you an initial target to aim for - the sooner we start planning, saving, educating ourselves and investing the sooner we get there - playing catch up is hard work. Some of my early financial projections and targets turned out to be absolute rubbish - but just going though the exercise and marking a start meant that the effort wasn't wasted.
    Even more importantly, the effect of investing in your 20's should lead to significantly better returns than investing in your 40's. Compound returns get a lot more miraculous the longer you go
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  4. #24
    tck
    tck is offline

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    Jul 2015
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    Quote Originally Posted by shri
    By the way @tck - do let us know if you start getting PMs from financial advisors offering to meet you over a coffee to help you plan.
    Haha. Thanks for the heads up. Keeping the forums clear of solicitation? I've definitely bought my fair share of shitty financial /insurance products over a "friendly coffee" to be a bit more leery by this point ><

  5. #25

    Join Date
    May 2013
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    tck,
    Would you like to meet over a coffee to discuss your finances?

    (...not a PM, so you have to allow it, Shri)

    jrkob, shri and hullexile like this.

  6. #26

    Join Date
    Jan 2016
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    Not much, since I've always been a man of more means than needs.

    I'm 37 and thanks to some lucrative investments have been semi-retired for over 3 years.

    Probably, most of you lot is financially worth a lot more, Call me insane or what but $ isn't worth worrying about in my books, a well-stocked fridge is.


  7. #27

    Join Date
    Dec 2018
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    Quote Originally Posted by Jaz Paul
    Not much, since I've always been a man of more means than needs.

    I'm 37 and thanks to some lucrative investments have been semi-retired for over 3 years.

    Probably, most of you lot is financially worth a lot more, Call me insane or what but $ isn't worth worrying about in my books, a well-stocked fridge is.
    The problem with well-stocked wine fridges is that they don't stay well-stocked for very long.
    Jaz Paul likes this.

  8. #28

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    Jun 2011
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    Quote Originally Posted by MandM!
    Assuming 4% return on 30m sounds like a job in itself and not retiring. You'll have to constantly watch it to make sure all is ok.

    If you own your property then the amount of money needed would be less without having to pay rent. Are you planning to lead an extremely active lifestyle?
    I think there might be confusion between 4% return and 4% withdrawal rate. This is a passive income based on a small return and withdrawing from the capital. The pot deceases as you age. Decumulation of assets has been back-tested to show that a 4% withdrawal rate is a relatively safe rate to ensure your investment will last you through to retirement i.e. there will be just enough left when you pop your clogs. This rate is based on the historical returns of the US stock market which have been somewhat unusual and it has been suggesteg that 3 to 3.5% would be a safer withdrawal rate.
    traineeinvestor likes this.

  9. #29

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    This rate is based on the historical returns of the US stock market which have been somewhat unusual and it has been suggesteg that 3 to 3.5% would be a safer withdrawal rate.
    Also, a distinction needs to be made between withdrawing capital v/s withdrawing (or not reinvesting) dividends.

    One should aim for the 0% capital withdrawal for expenses. My opinion - that's for the next generation to decide.
    traineeinvestor and jrkob like this.
    Have a GeoExpat related problem - please create a support ticket.

  10. #30

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    Dec 2018
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    Quote Originally Posted by kittykaitak
    I think there might be confusion between 4% return and 4% withdrawal rate. This is a passive income based on a small return and withdrawing from the capital. The pot deceases as you age. Decumulation of assets has been back-tested to show that a 4% withdrawal rate is a relatively safe rate to ensure your investment will last you through to retirement i.e. there will be just enough left when you pop your clogs. This rate is based on the historical returns of the US stock market which have been somewhat unusual and it has been suggesteg that 3 to 3.5% would be a safer withdrawal rate.
    Also, the studies into the robustness of the 4% withdraw rate were based on a number of assumptions not all of which will apply to every retiree. Possibly the most important were the likely retirement period (around 30 years IIRC), the ability to stay the course and making even withdrawals from your savings. If your retirement period is longer or you anticipate spending more in the early years of retirement (and averaging out by spending less as you get older), it may not work so well.

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