How much money is "enough" money?

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GeeMan
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Re: How much money is "enough" money?

Postby GeeMan » Mon Jun 09, 2014 10:42 pm

Yep, agreed, which is why I mentioned 'a bit more risk than I would be comfortable with'.

VisionFund offer 11% pa on Riel and 7% on USD$ for 5 years;

http://www.visionfund.com.kh/savings" onclick="window.open(this.href);return false;

But, like you said, I wouldn't be happy that I could trust them enough to invest heavily with them.

Another thing a lot of advisors / calculators fail to take into account is I don't want a cent left when I die. No dependants, no estate. So I don't need to live on interest alone, and can draw down some principle as well.

Firecalc (http://www.firecalc.com" onclick="window.open(this.href);return false;) shows that I have a +90% chance (based on 140 years historical data) of lasting 30 years with a $500K pot, drawing $20K per year and inflation adjusted at 3% pa.

I'll probably want a bit of a buffer before I finally pull the trigger, maybe $600K. Who knows, tomorrow I might just get fed up and jump.

GeeMan
Soi Dog
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Re: How much money is "enough" money?

Postby Soi Dog » Mon Jun 09, 2014 10:42 pm

ozzydom wrote:
Soi Dog wrote:
Cowshed Cowboy wrote:My own philosophy was 20 years education, 30 years work and 20 years retirement. Anything else is a bonus depending on health. So financially for me that equates to a minimum of 20 * £15,000 = £300,000 in today's terms and for my own personal circumstance.
What if you last beyond age 70, though? Outliving your savings and trying to gain income at that age is can be a tough proposition. Hence, my stupid spreadsheets.
In that case being an Australian has its advantages,we get paid $1500 a month for getting old and living disgracefully. O:-)
We have social security in the US also, but that fund has been pillaged by politicians for other uses with no plan (or possibility) to pay that money back. It was always a Ponzi scheme. I wouldn't want to solely rely on government promises for my future welfare. It all has to come crashing down some day.
Soi Dog
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Re: How much money is "enough" money?

Postby Soi Dog » Mon Jun 09, 2014 10:45 pm

GeeMan wrote:Another thing a lot of advisors / calculators fail to take into account is I don't want a cent left when I die. No dependants, no estate. So I don't need to live on interest alone, and can draw down some principle as well.

Firecalc (http://www.firecalc.com" onclick="window.open(this.href);return false;) shows that I have a +90% chance (based on 140 years historical data) of lasting 30 years with a $500K pot, drawing $20K per year and inflation adjusted at 3% pa.

I'll probably want a bit of a buffer before I finally pull the trigger, maybe $600K. Who knows, tomorrow I might just get fed up and jump.
We seem to agree on what we need for our retirement lifestyles, but I plan for 50 more years instead of your 30....just in case.

Thanks for that link. It shows my own spreadsheet isn't too far off possibility.
UKJ
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Re: How much money is "enough" money?

Postby UKJ » Mon Jun 09, 2014 11:35 pm

GeeMan wrote:
Firecalc (http://www.firecalc.com" onclick="window.open(this.href);return false;) shows that I have a +90% chance (based on 140 years historical data) of lasting 30 years with a $500K pot, drawing $20K per year and inflation adjusted at 3% pa.

GeeMan
Good to know. I need about 15 years money until my UK state pension kicks in. I don't need to leave anyone money either. I'll probably jump this winter.
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EdinWigan
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Re: How much money is "enough" money?

Postby EdinWigan » Tue Jun 10, 2014 4:17 am

UKJ wrote:
GeeMan wrote:
Firecalc (http://www.firecalc.com" onclick="window.open(this.href);return false;) shows that I have a +90% chance (based on 140 years historical data) of lasting 30 years with a $500K pot, drawing $20K per year and inflation adjusted at 3% pa.

GeeMan
Good to know. I need about 15 years money until my UK state pension kicks in. I don't need to leave anyone money either. I'll probably jump this winter.
I am with you on this one. I have about 15 years until the UK pension kicks in. I have already paid in the new requirement. So if the numbers add up...

I like the idea of a little business out there, keep me out of mischief. Although the afternoons I spent in un-rushed chat with a certain builder of boats, outside The Cavern Bar, PP were some of the best memories of that last visit and those evening 'Sun Downers' at Kandels Bar, with a wide range of really interesting and nice people. One od whom called my yesterday, for a chat, because he is in the UK, I really am to busy atm, but just wanted to jump a train (270km) just to revisit that 'Have a beer' experience.

I can't wait for the flight I book one way !
Remember your Karma helps a Wet Child In Wigan !
logos
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Re: How much money is "enough" money?

Postby logos » Tue Jun 10, 2014 4:22 am

To arrive st the right figure, You should start with your current budget, top it up with the inevitable extras, then multiply the total by 16 (assuming a 7% return).

For instance , and this is an extremely basic calculation not is probably not quite accurate , my current budget is

Housing costs 600 all in
Transportation 750 (large car + deprecistion over 2,years, no resale value as I suck at maintenance ), parking costs included
"Fun" : 1500(outings , trips within Cambodia , food and gf/wife pocket money)

Let's round it up to 3000/month

Add stuff such as
Traveling abroad 10k!year
Insurance / Medicals. 1500/year
Misc 2500

Thus 50k/year for simplicity's sake

I'd need something like 50k x17 in a bank at 7% to provide enough spending money , thus about 850k

Now the ballpark figure itself is less relevant than the income stream it generates , for instance if you own rental properties with a 50k/year net return in rents then that's your threshold. Not considering the capital gains you're likely to get over the long run.

And if you've got some spare cash to invest, to me old apartments here in the centre are a no brainer. Ignore inflated new properties, go for value investment rather than hyped new places. 40-50 k still gets you a run down 75-80 sq m apartment in a central location. Given the trends in expats influx over the last 2-3,years the existing supply of cheap well located apartments won't last forever. Aim at a 7-12 years range to triple your investment. That's a conservative estimate.
Soi Dog
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Re: How much money is "enough" money?

Postby Soi Dog » Tue Jun 10, 2014 4:26 am

^ where on earth are you getting 7% in this day and age? Deposits in Riels?
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EdinWigan
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Re: How much money is "enough" money?

Postby EdinWigan » Tue Jun 10, 2014 4:29 am

logos wrote:To arrive st the right figure, You should start with your current budget, top it up with the inevitable extras, then multiply the total by 16 (assuming a 7% return).

For instance , and this is an extremely basic calculation not is probably not quite accurate , my current budget is

Housing costs 600 all in
Transportation 750 (large car + deprecistion over 2,years, no resale value as I suck at maintenance ), parking costs included
"Fun" : 1500(outings , trips within Cambodia , food and gf/wife pocket money)

Let's round it up to 3000/month

Add stuff such as
Traveling abroad 10k!year
Insurance / Medicals. 1500/year
Misc 2500

Thus 50k/year for simplicity's sake

I'd need something like 50k x17 in a bank at 7% to provide enough spending money , thus about 850k

Now the ballpark figure itself is less relevant than the income stream it generates , for instance if you own rental properties with a 50k/year net return in rents then that's your threshold. Not considering the capital gains you're likely to get over the long run.

And if you've got some spare cash to invest, to me old apartments here in the centre are a no brainer. Ignore inflated new properties, go for value investment rather than hyped new places. 40-50 k still gets you a run down 75-80 sq m apartment in a central location. Given the trends in expats influx over the last 2-3,years the existing supply of cheap well located apartments won't last forever. Aim at a 7-12 years range to triple your investment. That's a conservative estimate.
I do like the cut of your gib, but isn't capital gains exempt ( UK Tax Laws ONLY ), if you buy and sell correctly ( 5 year rule )

Terms and conditions may apply, your investment may rise or fall. Cold beers can get warm with time...
Remember your Karma helps a Wet Child In Wigan !
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phuketrichard
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Re: How much money is "enough" money?

Postby phuketrichard » Tue Jun 10, 2014 7:38 am

i have been living on around $35,000 for past 10 years an 12,000 of that goes to my daughters schooling ( past 2 years in the us was cheaper than international here). past 4 years with gf with us

And i have found as i age more i spend less so figure if i have $20,000/year for 20 more years i am good.
In a nation run by swine, all pigs are upward-mobile and the rest of us are fucked until we can put our acts together: not necessarily to win, but mainly to keep from losing completely. HST
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beaker
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Re: How much money is "enough" money?

Postby beaker » Tue Jun 10, 2014 11:29 am

Soi Dog wrote:^ where on earth are you getting 7% in this day and age? Deposits in Riels?
Much better with private money lenders. I think it works out to 20% per year ($6,000=$100./mo 1,200/yr) and paid monthly too. ;)
"i'm the one who has to die, when it's time for me to die, so let me live my life the way i want to"
jimi hendrix


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