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charlotte

When do you want to stop "working"?

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He was at the beer fest at Bankei......my mate knows a few of the people he was with.

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Getting back to retirement but a lot of articles out there it seem to start with "so if your portfolio is worth $1 million...." :lol: :lol: :lol:

 

:sadface:

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We've just gone into debt for more than a mill.....retirement is a ways off yet.

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I wonder how many people with a 1 million dollar portfolios have to google retirement advice anyway. I would be too busy going to restaurants and planning holidays!

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What exactly it a "portfolio" anyway - is that the sum of everything you have like cash in the bank, under the bed, your car and invested in a home etc?

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Haha, me too -- but then doing that, I probably wouldn't have $1 million for very long. :doh:

 

The traditional advice is that you can take 4% a year, so that would be 40 grand or 4 million yen a year. Given that the assumption will be that you own your own home, 330,000 yen a month with no housing cost will pay for a lot of fun!

 

Of course Shinzo has promised to deliver on the long awaited inflation, so that 330,000 a month may only pay for a packet of bean sprouts. Provided they're in season.

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Mr Wiggles, might be being silly but can you explain this 'take' 4% 330,000 yen thing?

:friend:

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Thank you sir!

 

It's pension basics, but anyone with savings, investments when they hit retirement can live on some combination of

 

1. the return/interest on such savings, investments and

 

2. using up the savings, investments themselves (referred to as draw down, withdrawal etc.)

 

To live on return/interest alone, you need a much much bigger pile. If your pile is in a Japanese bank, the interest on eleventy billion yen will get you one kara-age teishoku a year! Most people do not need to die with their savings intact, so its normal to use at least some of them up. It then becomes an issue of modelling how fast you can do it without running out of money. In reality, you won't run out of money without seeing it coming a long time beforehand, so it mightn't be as dramatic and terrible as the pension industry presents to get more money out of you.

 

I have googled some articles about draw down and how much is typical but they all start with "so if your portfolio is worth $1 million....." :)

 

Living in a country with no interest for savers and a man who actually wants to create inflation just makes it more complicated. :eyes:

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Evidently they have (or had) some sort of open-ended reverse mortgage system in France, where you sell your property at a price the buyer calculates but still live there. The property goes to the mortgage holder when you die.

I read about some lady who took one of these out when she was something like 70, and was still alive and kicking at about 98 and the buyer had pretty much given up. Good for her! :lol:

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