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  • Retirement Plan

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    ANTU_SLAYER
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    This document estimates the amount of capital needed for retirement based on a person's current age, income, expenses, estimated inflation and returns. It calculates that with a current age of 24, retirement in 31 years, and a desired annual living expense of RM101,599 adjusted for inflation, the required capital is RM1,862,644. However, with no current savings, there is a shortage of that amount. It then estimates that a lump sum investment of RM128,798 or monthly investments of RM924 would be needed to cover the shortfall.

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    This document estimates the amount of capital needed for retirement based on a person's current age, income, expenses, estimated inflation and returns. It calculates that with a current age of 24, retirement in 31 years, and a desired annual living expense of RM101,599 adjusted for inflation, the required capital is RM1,862,644. However, with no current savings, there is a shortage of that amount. It then estimates that a lump sum investment of RM128,798 or monthly investments of RM924 would be needed to cover the shortfall.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    12 views1 page

    Retirement Plan

    Uploaded by

    ANTU_SLAYER
    This document estimates the amount of capital needed for retirement based on a person's current age, income, expenses, estimated inflation and returns. It calculates that with a current age of 24, retirement in 31 years, and a desired annual living expense of RM101,599 adjusted for inflation, the required capital is RM1,862,644. However, with no current savings, there is a shortage of that amount. It then estimates that a lump sum investment of RM128,798 or monthly investments of RM924 would be needed to cover the shortfall.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    ESTIMATING THE AMOUNT NEEDED (edit yellow box only)

    Current Age = 24
    Years to Retirement = 31
    Current Monthly after-tax Income = RM2,510
    Current and Desired Annual Living Expenses = RM30,120
    Estimated Inflation Rate = 4.00%
    Future Value of Annual Living Expenses at Retirement Age = RM101,599

    CALCULATING THE REQUIRED CAPITAL

    Estimated Rate of Return on Investment after retirement = 10.00%


    Inflation adjusted interest rate = 5.77%
    Capital required to generate income to cover Desired Annual
    = RM1,862,644
    Retirement Living Expenses

    CALCULATING THE R-I-S

    Estimated EPF balance at Retirement Age = RM0


    Estimated Unit Trust/Stock/ASB/ASN amount at retirement = RM0
    Total Capital available at retirement = RM0
    Shortage of Capital Requirement at Retirement Age = RM1,862,644

    LUMP SUM INVESTMENT

    Estimated Annual return = 9.00%


    Lump sum investment required = RM128,798

    MONTHLY INVESTMENT ONLY

    Monthly investment required = RM924

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