Retirement Planning Is Not Just About Saving That Sum

good retirement planning is simply

Not matter how much money you set aside, whether it is in your CPF or other savings, it can be depleted in just a matter of time. However, an income would not. The untold secret about retirement planning is actually about retirement income, not the fund itself.

Retirement lifestyle and retirement fund

You must have heard a lot about setting a realistic lifestyle that is comfortable yet not overly straining on your retirement fund.

So what is your realistic lifestyle?

And have you calculated how fast will your retirement fund last you till?

If you have not, don’t be too surprised if it didn’t last you as long as you expected. It can actually deplete quite fast.

See the following scribble I draw together with a client on how fast can retirement fund deplete after one leave their full-time job.

 

retirement income.JPG
Retirement fund over timeΒ 

 

Retirement income

This is the key to successful and happy retirement, a good sustainable passive income for retirement.

It could be one or two of the following :

  • Dividend payout from stocks, bonds, insurance etc
  • Profit sharings from stakes of companies, partnership or startups
  • Returns from crowdfunding, high-interest deposits
  • Rental income from properties
  • and the list goes on

All the above has certain risk components in it, you have to decide which is the most suitable for your risk appetite and to start building it now.

Whether or not you are in 20s, 30s or 40s, start today to think about what is your retirement income and plan a way to achieve it.

It is never too late when you start today =)

 

 

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38 thoughts on “Retirement Planning Is Not Just About Saving That Sum

    1. Hi Fadzi, yes small business is the ideal to retirement income. spend a few years to grow it, make the processes simple and hire one or two to run the show for you. drop me a mail and we can discuss in more details πŸ™‚

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