Asked by Anonymous
Asked 2w ago
We are currently staying in a condo mortgaged left 600k 25 years & a car 80k loan left 7 years. Our monthly commitment is 6,500 inclusive of everything eg., house loan misc, car loan misc, maid misc, pub, telco, grocery and only have hospitalization insurance for the 3 of us as we were originally from Msia. We have 90k cash savings. So, concerns are: 1. What are other must-have insurance? 2. Children expenses & education? 3. Aim to retire in the 40s if possible and at least 2M to use? Thanks!
The rules of thumb are:
10 X Annual Income as coverage in the event of death + any liabilities owed
5 X Annual Income as coverage in the event of illness + upgraded hospitalization insurance
Invest a minimum of 20% of whatever you earn for Retirement
Save 5% of whatever you earn for Children's Education
Hold a year's worth of expenses as emergency cash. You can afford to invest everything else.
I'm not sure what other assets you are holding, but if you are planning to save 2m in 10 years, it would be quite difficult. Even investing 100k/yr, you'll need a constant 15% return.
I would suggest sitting with an Independent Financial Advisor to go through the above and create a portfolio that would allow you to realistically achieve your retirement goals.
I can go through a plan for you that would include your accumulation years to compound returns and then a switch to a distribution strategy to start living off dividends from your nest egg.