Content:
– How to plan for RM2500/month passive income
– How to make sure the plan works in 15 years
– How to invest without spending too much time studying it


KCLau
KCLau

Financial educator, author and trainer

    12 replies to "[Case Study] A 27-year-old Mother Plans to Quit Job with RM2500/month Passive Income"

    • Swee Kit Wo

      Can I have the excel spreadsheet ?

    • Wong Choong Heng

      Hi KC, I use a spreadsheet and plugged all the formula for my own retirement fund calculation. But I found that in Retirement Fund sheet. No matter what figure I enter for the “Current Value”. There is no changes on the “Future Retirement Fund”. Only the “term” can change the Future Retirement Fund figure. Could you help on this ?

      • KCLau

        You can share the Google spreadsheet link here so we can take a look.
        Usually, it is the input for the formula. In this case, I guess you are using formula FV. Just check what is the value you insert for Present Value in your formula. If you put “0”, and not a value from your “current value” cell, it won’t change anything.

    • Wong CH

      Hi KC, thanks for your reply. I checked again the FV formula for Future Retirement Fund, it only includes Terms, Return Rate, Current Net Worth, Yearly Saving (from cash flow). Hence, it doesn’t include the Current Value, that’s why if I change the Current Value, it would not affect the Future Retirement Fund.

      However, the Current Value and Term will change the Net Worth Required for retirement.

      Am I right ? Thanks

    • KCLau

      I am not sure if we are on the same page and referring to the same thing. A screenshot or sharing of your spreadsheet will help to clarify the issue.

      • Wong CH

        Hi KC,
        May I know how to post the screenshot picture here ? I don’t see any “attach” function here.

    • KCLau

      Oh I see..
      The process is this:
      #1. When you change the Current Value (what you desire for passive retirement income now), it will calculate the Net Worth Required in the future (3 years down the road). It shows RM 1.27 million

      #2. The Future Retirement Fund is what you will get in your situation, based on what you have, extra saving for the 3 years, and the RONW. This is what you will get, regardless of what you need in #1 above. It shows that you will get RM1.4 million, which is more than what you need (RM 1.27 million).

      You calculate the two different numbers to compare:
      What you need VS what you’ll have

      So congratulations! Looks like you will have enough, and more than what you’ll need.
      Happy retirement!

      • Wong CH

        KC, Thanks a lot for your explanation ! Really appreciate for your effort to answer my question.
        But I have to calculate again to include my 2 children (aged 7 & 10) education fund as it was not included in the retirement planning. I realized this when I watched one of the videos here.
        Am I correct to say so ? And do you have any references or advice how I should include that in my retirement planning calculation ? Thanks again.

    • Li Shan Lim

      Can I have the excel spreadsheet ?

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