Aug 10, 2013

Cory Diary : Capital and Returns

Today i try to compute retirement amount by deciding capital base.

Monthly Consumption and Reserve : S$3,000
Implied Annual Returns Required : S$36,000

Assuming 4% annual return, you will need S$900,000 capital
Assuming 5% annual return, you will need S$720,000 capital
Assuming 6% annual return, you will need S$600,000 capital
Assuming 7% annual return, you will need S$514,000 capital
Assuming 8% annual return, you will need S$450,000 capital
Assuming 9% annual return, you will need S$400,000 capital
Assuming 10% annual return, you will need S$360,000 capital

Inversely, if you have S$1M with 10% annual return, your monthly consumption can be max to S$8,333.

Investing your money and achieving reasonable returns are so important.
Everyone must do it !


Cory
10th August 2013

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