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Anonymous

13 Nov 2020

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Retirement

How much do you need to save monthly to earn 50k annually at retirement?

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Elijah Lee

13 Nov 2020

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

This really depends on the expected yield you get from your savings (assuming you don't just leave them as cash or FD)

If it's 1%, you're going to need to save $5M

If it's 5%, you just need to save $1M

Thus, depending on the capital needed, you can work backwards with a financial calculator to see how much you need to save, given a certain timeframe.

You need to calculate the amount you need to generste 50k 1st :

I= invest amount
R= interest p.a.

I = 50000/R

Then use compound intrest calculator then u know how much you need to save

http://www.moneychimp.com/calculator/compound_i...

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