I have a very simple DREAM:
i) Debt free with own house and car.
ii) Average RM10K of passive income/month. This RM10K can be a combination of dividend from equity, rental from real estate etc.
iii) Standard of life: equivalent to your example with RM60K/year(RM5K/month) or slightly higher. Thus I will have excess cash each month at the early part of the plan to cover unforeseen happening and also inflation. I do not know how to calculate the present value of the 10K. However I believe the extra 5K/month(10K-5K=5K) should be sufficient to cover inflation.
iv) With (iii), this RM10K should able to last for many years. If there are few unforeseen extra expenses or reduced return(i.e. financial crisis), then the capital can be withdrew at the later part of the retirement when passive income is less than RM10K/month.
v) With that, I hope that I can retire comfortably.
vi) So now, I need to work very hard in pursuing the ultimate dream of RM10K/month.
What is yours?
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