(03-11-2011, 05:16 PM)brattzz Wrote: [ -> ] (03-11-2011, 03:16 PM)wsreader Wrote: [ -> ]If a couple has sufficient IGA to last until last day, does it follow that their only child will also not need to work for income, since the child will inherit the IGA ?
This can only work when IGA beats inflation yoy.
for the the 30 yrs old couple, now till +40yrs old,
for the 0 yr old child, now till +70 yrs old?
NPV i think kicks in..
Yes, every parents if they can leave behind a legacy that their child/children do not have to work for a living, worry for them that whether they will behave like normal people who have to work for a living. Another words whether they still want to "work for a living" just like everyone else.
When working class like us use our IGA to generate income for our daily living expenses when we stop working, it means we carry on managing our investments until we are too old and senile. Of course the minimum aim is to protect if unable to grow the IGA. And at least to keep up with inflation if not able to beat it.
If of course you do not want to leave a legacy behind, then your plan, calculation, and lifestyle is different. But beware and be warn you may run out of money before you run out of life.
But i like to say it again, your plan is one thing, the actual outcome maybe better or worse.
Anyway, if you can live until 90+(like my mother who has dementia), do you know how much money is needed to support her living expenses?
Nevertheless, i try to practise the Chinese saying : "Knowing enough is always happy".
( 知 足 者 常 乐,). To me means if i know i can afford a BMW, i am still quite happy with a Toyota Vios.
So when you feel you have enough you will be fulfilled and rich.
And everyone of us has a different feel of enough. You have to find what's your "enough" . Or you will never feel fulfilled and rich no matter how much money you have.
(03-11-2011, 10:08 PM)kazukirai Wrote: [ -> ] (03-11-2011, 01:41 PM)Musicwhiz Wrote: [ -> ]Oh, I am actually working on a blog post on this right now. Interesting that you asked haha.
Really looking forward to your post! I have your blog on my Google Reader list so definitely won't miss it.
Temperament-san,
Did you factor how your lifestyle (and hence expenses) might change when having that ballpark figure of whether cashflow from IGA can cover your expenses?
Jared-san,
Yes! I was thinking along the same lines when I asked the question because I'm sure we've all heard of people who are rich but unhappy and if one can be rich and unhappy at the same time, then those who aspire to be rich must ask themselves if they would be happy. If they are happy now, then they must also ask themselves if becoming rich makes them happier. Otherwise, why go there right? (Ok, I'm assuming that everyone's common goal is to be happy(-ier))
Thanks all for sharing too. Not that this is an end to the topic. Still welcoming more views. After all, I'm sure we have buddies from all walks and stages of life with stories to share.
sidenote: I think we've hijacked Happy-san's thread and this portion has kind of gone off-topic. Should we move it the discussion to another thread?
Hi,
The classic retire lifestyle is usually like this:
Age 60 - 65 or even 70, usually still able and healthy to travel for leisure. May spend a bit more money than during working life.
Age 70-75, life slow down, may spend more money for medical expenses than travel. Hopefully not more than during working life.
Age 75 - if still living, medical expenses and personal care usually will be bulk of spending. Again, usually may spend more than during working life.
This is where if you have life insurance you will lightened the burden of your children when/if you have nothing much left.
So we must manage our IGA till we become too old or dementia. Of course, we hope we do not have to reach the dementia stage and hand over the legacy.