Monday, January 11, 2021

Revisiting my FI

 There are a few big assumptions in this FI journey:

1. I am able to grow my assets at 8% p.a. so that the inflation-adjusted growth rate is 5% p.a.

2. I have captured all my expenses correctly, and nothing needs to be added in the future.

Of these, I think 1. is the most difficult. I revisited it again, and frankly, I think the assumption is incorrect.

My assets include my CPF, cash components, bond, whose returns will not hit 8% p.a.

So now to satisfy the 4% withdrawal rule, I am only going to consider my stock portfolio as my starting balance.

My recalculations are below:

Turns out I have 10 more months to go. 

I will call this FI 2.0 to differentiate from my 'achievement' of FI 1.0 a month ago.

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