Retirement Planning

Example of Retirement Goal:
Cash assets that will generate dividends / cash flow monthly for RM10K per month.
To hit this goal at 45 years old.

Yearly requirement:
RM10K x 12 = RM120K.

Assume that dividend comes from ASD with dividend 6%.

Therefore I require at least RM2 million in cash capital.

If currently have RM500K at age 35 years old, then need to accumulate another RM1.5 million in 10 years.

So each year need need to accumulate RM150K in cash.

Meaning each month need to accumulate in saving account (almost no interest):
RM150,000 / 12 months = RM12,500.

But if you put a monthly saving in ASD that will return 6% p.a, you need lesser:
Based from Retirement Planning Calculator, you only need to save RM9220 per month.





Reference:
https://www.calculator.com.my/savings-calculator#.Wt2RjPluYdU