Financial Calculator

Find out about your financial status when you retired!

It is probably more accurate to call this financial calculator a retirement calculator, hence I'll be calling it the "retirement calculator" instead of a "financial calculator" in here.  The purpose of creating this retirement calculator is to allow us to find out more about our financial status when we retired.

Many of us never gave much thought about our retirement life, simply because:
1. It is still a long way to go (mindset: happy go lucky and still too young to think about it - teenagers and young adults below the age of 35)
2. It is too scary (mindset: avoiding the issue because of the current struggle with financial issues - hardly survive the current lifestyle or just manage to go by, so there is no room to think about the future)
3. Never crossed the mind (mindset: lack of crisis awareness or forgotten about inflation in their calculation - I save money consistently, so I should be able to spend as I please when I retired)
4. No point thinking if it cannot be changed (mindset: leaving everything to fate - let the almighty decide my retirement life)
If you happened to fit into one of the above categories, then this article will be your lifesaver!

Even if you never thought about your retirement age's financial status, you would have thought about the kind of life that you wish to have when you retired.  You may have thought about travelling around the world, pursuing your hobbies, spending times with your family members, catching up with good old friends/colleagues, and so on.  Basically, you hope that you would be able to enjoy your life after working so hard for it for so many years.  However, do you know how much money will you need for the kind of life that you wanted?

The hard and sad truth is, the majority of us most likely will NOT have sufficient money to last us through half of our retirement life!  This is the main reason why most people continue to work after retirement age.  Of course, a handful of them do it because it is their passion, but the rest of them do it because they do not have enough money to survive.  I don't know how you interpret this situation, but to me, this is really sad and it shouldn't be happening.  I truly believe that we are all born into this world for one sole purpose.  To have fun in this world!

Our current society has made it truly really difficult for the majority of us to enjoy life.  How?  By monetizing everything.  Money is needed for everything, even basic survival needs such as water, food and shelter.  Luckily, the air is still free.  However, if the air pollution issue continues to worsen, one day our grandchildren, grand, grandchildren or grand, grand, grandchildren may need to pay to breath unpolluted/filtered air!  It already happened to the water, so it is not surprising if it happens to the air.  The human race is supposed to be a highly intelligent race, but I think monetizing life is the most idiotic idea ever!  Let's find out why.

Since birth, we have been bombarded with one message.  You need money to live!  Throughout our school life, we were taught to equip ourselves with knowledge so that we can earn a good living.  When we started to earn money, we noticed that money is never enough, and when you finally retired, you wonder why you only have so little money despite your every effort in saving.  All those years of hard work ended up with misery.  This is the life cycle for the majority of the world's population.  Although society has made things really difficult for us, there are ways to break free and this is the very reason why I wrote this article.

First of all, let's find out what is your current retirement's financial status.  If it looks good, congratulations!  If it doesn't look good, don't worry, this article has a solution for you!

Let's get started.  Before you proceed, I have a question for you:
Which ONE of the following 4 options, do you think, is the best way to improve your retirement's financial status?
A. Increase your monthly savings - by decreasing your current monthly spendings or increasing your monthly income
B. Decrease your retirement's monthly spending
C. Start an investment
D. Increase your investment's Return of Interest (ROI)

Let's go to the Retirement Calculator below to find out (Cells highlighted in Yellow and light orange colour are editable):

If you are unsure on how to use the Retirement Calculator or what do the figures mean, scroll below the Retirement Calculator to find out.





How to use the Retirement Calculator and What does these Information Means:
Step 1 - Fill in the Yellow Cells under "Personal Information"
Personal Information section is very straight forward, you just fill in your age information and it will calculate the number of years left before you retire (this is also the number of years left for you to save up) and the total number of years you would have worked upon retirement.
=> "Retirement Age" is straight forward.  It is the age you want/plan to retire (you may set it to 55 or 65, depending on your liking)
=> For "End of life age", we'll just stick with the average lifespan of Malaysians, which is roughly 85.

Step 2 - Fill in the applicable Yellow Cells under "Financial Information"
This section is to provide you with a clear picture of your current financial status.  The "Top-up" section will show you the answer to the question I asked above, "Which ONE of the following 4 options, do you think, is the best way to improve your retirement's financial status?".
Before you play around with the "Top-up" section, please complete up to step 3 first.
=> "Current investment amount" is the amount of money that you've invested in financial products such as Fixed Deposit, Mutual Funds, Stocks, etc.  If you did not invest in anything, you should leave it blank.
=> "Investment Interest Rate" is the annual interest rate of your investment.  Eg. If you invested your money in a bank's Fixed Deposit account, your investment interest rate = your Fixed Deposit's interest rate.  If you invested your money in mutual funds, your investment interest rate = your mutual fund's annual interest rate.  If you did not have any investment, you should leave it blank.
=> "Monthly Saving (+ EPF)" = the average amount of monthly savings including your EPF contributions.  If you keep your monthly savings in a saving account instead of EPF account, your "Total savings from now (+EPF)" will be slightly lower than the calculated amount because typical saving account's interest is negligible.  If you do not have any monthly savings, just enter an estimated amount for your monthly EPF contribution.
If you are only saving money in a normal saving account and you do not contribute to EPF at all, you should set "Average EPF Interest" to "0%".
=> "Average EPF interest" = the interest rate of EPF.  Since EPF interest ranges anywhere from 4.5 - 6.8, you may set it to any number between 5 - 6.5.
=> "Inflation rate" is quite a tricky one.  Statistic shows that average Malaysia's inflation rate (from 1960-2017) is 3.1.  However, we know that the past 10-20 years' inflation is higher than that, so I would recommend using 5% for calculation.  You may set it to 3.5% or lower if you honestly think that our inflation rate is that low.
=> "Current monthly spending" is the amount of money you need to sustain your current lifestyle.  This includes everything from daily food expenses to utility bills, to insurance commitments, to loan commitments, to entertainment expenses.  A good way to determine the average is to work out an estimated amount that you spend for the whole year, then divide that by 12 to get the average amount.
**Reminder: Leave the "Top-up" section blank for now.

Step 3 - Fill up the Yellow Cells under "Overview of Retired Financial Status"
=> "Monthly spending power you want" is quite straight forward.  Just fill in the amount of money that you wish you can spend on a monthly basis.  Eg.  Let's say you want to have RM3000 to spend every month, then fill in 3000, if you want to have RM5000 to spend every month, then fill in 5000.
Due to inflation, the amount of money you specified in "Monthly spending power you want", will be totally different by the time you retired.  The actual amount of money you required will be shown in "Amount required after inflation".
Most people neglected the inflation rate, which is why they are forced to look for a job after retirement!
=> "Other savings adjustments" refers to any additional money that you will receive upon retirement, such as a lump-sum payment from a matured insurance policy, inherited wealth, your total savings until now, etc.
This calculator calculates the amount of money you can gain from now until your retirement age, so whatever savings that you already accumulated thus far shall go into the "Other savings adjustments" section.

Is your "Available Spending Years" RED or GREEN?
Once you've completed Step 1 to Step 3, you may check out the "Available Spending Years" to find out how long will your current savings and investments last.  If this figure is in RED colour, it means you do not have enough to cover your retirement age.  If this figure is in GREEN colour, congratulations!  You're one of the very few people who could realize their retirement dream!

What can you do to turn your "Available Spending Years" GREEN?
If your "Available Spending Years" is RED in colour, what can you do to turn it GREEN?
Let's go back to the "Financial Information" section and play around with the "Top-up" section.
Remember the question that I asked earlier?
"Which ONE of the following 4 options, do you think, is the best way to improve your retirement's financial status?
A. Increase your monthly savings - by decreasing your current monthly spending or increasing your monthly income
B. Decrease your retirement's monthly spending
C. Increase your current investment's capital
D. Increase your investment's Return of Interest (ROI)"

If you think the answer is A, try to fill in the Top-up section next to "Monthly Saving (+ EPF).  See how much changes does it makes to your "Available Spending Power I".  How much extra savings per month do you need to turn it GREEN?

If you think the answer is B, try to reduce the amount for "Monthly Spending Power you Want".  I believe no one would like to downgrade their living standard, especially after working so hard for so many years.  So this option is out of the question!

If you think the answer is C, try to fill up an amount that you can currently afford and its interest rate in the Yellow Coloured cell for "Current Investment Amount" and "Investment Interest Rate" respectively.  Use the "Top-up" section to find out how much you will need to top-up for your "Current Investment Amount" in order to turn your "Available Spending Years I" from RED to GREEN.

If you think that the answer is D, delete the Top-up amount that you filled in for "Current Investment Amount" and make some changes to the "Investment Interest Rate" instead.  Assuming that your current "Investment Interest Rate" is 3.5% (typical fixed deposit interest rate), try filling in 6.5% in the "Top-up" section to turn your "Investment Interest Rate" to 10%.

You'll notice that out of the 4 options, D is the only option with the smallest changes to your daily routine, but gives the best improvement to your "Available Spending Years I"!!!  So what does this means?  It simply means that you don't have to fork out extra money for your savings, you don't have to change your current spending habits, and you do not have to do extra works/overtime to improve your retirement life.  All you need to do is to find an investment that could generate you high "Investment Interest Rate"!

If you are interested to start an investment, do feel free to contact me!  We can meet up if you are nearby or if you are willing to travel all the way here.  If you do not like to meet up, online communication is perfectly fine too.

Let's find out what differences can my recommendation makes to your retirement life!

Investment Recommendations - Invest your Money with AE Group!
Scroll down the Retirement Calculator a little and you'll find a section called "Invest with AE Group - Basic Investment" and "Invest with AE Group - Advanced Investment".
This is an investment that I highly recommend!  It earns you money in USD, and it's starting capital is only USD5000 (Roughly MYR23000 @ 4.2 exchange rate.  We'll round it up to MYR25000).  I am 100% certain that saving up MYR25000 is far easier than consistently saving up at least MYR1000 per month from now until your retirement age!  Do whatever you can to save up the initial USD5000!  Once you're done, you may continue with your current lifestyle.

Let's go back to the retirement calculator.
If you've entered an amount in the investment section under "Financial Information", delete them or change them to 0.
Once you're done, you can scroll down to the "Invest with AE Group - Basic Investment" section and fill in 4.2 for the "US exchange rate" (you may adjust this figure accordingly) and fill in 5000 for the "Initial Capital".  If you can invest more than 5000, feel free to fill in the amount that you can afford.  Due to the nature of this investment, your capital must be in the following amount:
5000, 7500, 10000, 12500, 15000, 20000, 25000 and so on (increment of 5000 from 15000 onwards).
Leave the "Invest Longer" section blank for now.

Once you've entered the USD exchange rate and the initial capital amount, you will immediately see the amount of money that you can gain from this investment.

Has it ever crossed your mind that you could actually have this kind of money in your bank after retirement?  I'm sure that most of us never thought that it is possible!

Please note that all the "Available Spending Years" calculations are based on the following 2 assumptions:
1. You withdraw all the money upon retirement
2. You do not invest in anything else and stopped all investments upon retirement

Of course, some of you may think that you could probably live off the interest you get from typical bank's Fixed Deposit account if you put all your savings in it.  This is only true if your total saving is more than 3 million.

Assuming that you managed to get a 4.5% interest rate from the bank, below are the amount of money you can spend per month:
500k: MYR1,875/m
1 million: MYR3,750/m
2 million: MYR7,500/m
3 million: MYR11,250/m
4 million: MYR15,000/m
5 million: MYR18,750/m

At first glance, these figures look really attractive.  They are indeed attractive if there is no inflation.  The younger you are now, the more money you will need due to the effect of inflation.  Compare the above amount to the "Amount Required after Inflation" in the retirement calculator.  How much savings do you need to meet the "Amount Required after Inflation"?  What about other unpredictable factors such as additional entertainment costs, economic crisis, accidents or illnesses?

Scary isn't it?  This is the sad truth of our current society!  You must learn to invest wisely, otherwise, there is no way that you can retire peacefully.

Tips to grow your money endlessly!
Following the investment with AE Group, even if you are only investing in the basic investment, there is a way to grow your money endlessly!
If you only withdraw the amount you required to spend for 1 year and continue to invest the rest of the money, your money will continue to grow, and you'll have more and more money to use each year!
Bear in mind that this calculation is also calculated based on the bare minimum Return of Interest (ROI) from this investment, which is an average of 2% per month, and it doesn't include the increment of ROI as your capital increases.  Therefore, in actual and in the long run, you will receive a LOT MORE than the estimated amount you see in this retirement calculator.

If you are non-Muslim, you should also check out the "Invest with AE Group - Advanced Investment" section.  Due to the Islamic Law, Muslims are not allowed to join the Advanced Investment scheme due to its high compounding nature, but the Basic Investment plan is still good enough for a comfortable and secure retirement.
In this section, the first figure that you'll see is the "No. of years to Reach 1st 100k".  This is the minimum amount required for the Advanced Investment plan.  Since this calculation is based on the bare minimum, therefore the number you see here is the Maximum number of years required to reach your 1st USD100k.  Once you have accumulated USD100k, you can switch from the basic plan to our elite plan that would generate you a minimum ROI of 4% per month.  Once you managed to invest in the elite plan, you can say goodbye to all your financial worries.

Notice that the difference between "New Estimated Total Wealth" and "Estimated Total Wealth" is very huge?  This is the power of compounding!

Feel free to contact me if you are interested to invest your money with AE Group!

Why do I highly recommend this investment?
1. It is 100% legal and legitimate
2. The company has been around since 2000!
3. Proven track record!  The company's performance over the past 18 years has been consistent and outstanding! (It is currently 2019)
4. Your investment is protected by legal agreement!
5. I do not know any other fund manager that manages funds exceeding billions!  The largest individual account that our fund manager manages is USD10million, while the largest enterprise account that our fund manager manages is USD1.1billion!

Are there any risks involved?  Definitely!  There is NO investment that carries NO risk.  So what are the risks involved?
Your major risk is the reliability of the fund manager!  Since our fund manager is so reliable, this risk largely reduced.
In the worst-case scenario, you're only risking a maximum of 15% of your capital + one-off processing fee (8.5% of your capital) of this investment.
So far, this has never happened (from 2000 until now), therefore you can invest with confidence.

If you have further queries or worries, do feel free to contact me.  I'll be more than happy to answer them for you.

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Change your investment, change your life!
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