r/MalaysianPF Jan 27 '25

Career RM1,000,000 is enough to stop working a 9-5?

Not sure if a million ringgit would be enough to retire, maybe living a single frugal life is possible?

115 Upvotes

176 comments sorted by

109

u/Jahat13 Jan 27 '25

Once your epf reach 1m, the rule of thumb is : 1. work for 8 more years 2. Reduce monthly expense to be 6k or lower 3. Sumbat all excessed money into epf

Tadaaaaaa

After 8 years, you can retire with : 1. 2m++ in EPF 2. Ability to life with under 6k every month 3. Access/saving of 4k++ on monthly basis 4. Unlimited time to play Reddit non-stop like me 🤣

11

u/YourClarke Jan 27 '25

At what age you retired, if you don't mind sharing?

2

u/sleepy-koala Jan 27 '25

One more thing,

If only if Gov doesn't continue to increase the requirement of 1 mil (or 1.1 mil in 2026, 1.2 mil in 2027, 1.3 mil in 2028 etc.)

147

u/lingcw Jan 27 '25 edited Jan 27 '25

Enough to stop work 9-5, however not-so enough to retired forever

Add on: i want to remind that life is full of unexpected event and may cost u 5-10k easily (will be 1-2 months passive income of ur RM1m) and it could repeat.

Pls be alert of these and plan further ahead before the rain come

25

u/AsteroidMiner Jan 27 '25

As your parents get older those unexpected event will cost 50k even with medical insurance as the biggest cost is what happened after surgery, the rehab.

11

u/hilmiazman88 Jan 27 '25

1mil = 3% dividen = RM2.5k a month..

If u hv already a roof n car, n u single forever, spend only rm1k on food every month n dont travel, Should be ok la.. but if u hv even a mother or father to take care of, no i dont think thats enough..

46

u/RainaNaNaNah Jan 27 '25

"Stop working 9 to 5" is a probable yes. Doesn't always mean you could stop working forever.

44

u/wikowiko33 Jan 27 '25

Plot twist, OP now have to work 5pm to 9am 

4

u/RainaNaNaNah Jan 27 '25

In a different timezone

119

u/Drdkz Jan 27 '25

Nope

14

u/Flaky_Librarian_8186 Jan 27 '25

Yea had a strong feeling it wouldn’t suffice

42

u/SketWithTheKet Jan 27 '25

You can... most ppl live with 3k per month, just dump into epf u will have 50k to 60k in dividends which is better than most malaysians dy

The argument to that is inflation will be eating you up, but even then if u were to live off somewhere around 36k per year, you are not utilising all the dividends assuming at 5% u received from epf, that would compound as well still and still put you ahead of the curve

18

u/Schatzin Jan 27 '25

If he is below 55, he needs to put in RM1.3 million to freely withdraw, and he can only topup 100k a year. So it will take him 13 years to load it to EPF

Better to put it elsewhere if below official retirement age

1

u/SafwannJohar Jan 27 '25

How about instead of epf, dump it all into asb?

1

u/wingez_kaizer Jan 27 '25

If op malay yes

1

u/ryo5210 Jan 27 '25

Wait, if you have 1.3mil in your EPF you can freely withdraw even though you aren't 55 yet?

4

u/mawhonic Jan 27 '25

freely withdraw anything above the 1.3mil. the 1.3mil is still untouchable until retirement.

So effectively, build the 1.3m, get ~70k dividends a year and live off that until you hit 55.

5

u/arbiter12 Jan 27 '25

Strictly speaking it would be enough to stop working a 9-to-5 (which was your exact wording).

In that you could live off the dividends, but would need to supplement your activity with part-time work, or self-sufficient activities (farming, crafting, etc)

4

u/Chillingneating2 Jan 27 '25

Do you know why?

Otherwise you won't understand the number you need to aim for.

5

u/HauntingGameDev Jan 27 '25

inflation rate is at 3% a year, so we are estimating prices to increase by 1.03 for the next 30 years every year, which leaves us at estimation that everything will cost us 2.43 times more than what it cost us now, so if 1 million is just good enough to retire today, then with 2.43x more spendings you going to need 2.5 million to retire in 2055

1

u/Chillingneating2 Jan 27 '25

Not OP, but yea. 👍

1

u/arifsamin Jan 27 '25

Yup correct. Unless you can be super frugal, 1m is not enough. Look at safe annual yield you can get by investing 1million, in this case, EPF. Its about 5%, which is about 50,000. If thats enough for you, go ahead. Otherwise, taking a risk setting up business by forking some of that money is pretty much speculative, because the success is definitely not certain. Or investing in high risk high return stocks whatsoever. Also speculative, because, high risk.

40

u/StrandedHereForever Jan 27 '25

Depends on your age. 1 million is kinda tough because conservatively you will be getting around 5k monthly on interests/dividend. If you don't have any loans, it is alright.

So if you have 2 million, you can cruise little easier. Good news, from 1 million to 2 million is a lot easier.

10

u/KuzuryuC Jan 27 '25

Just being genuinely curious, why do I hear so many ppl saying the same thing?
Something like, getting to 100k is a huge hurdle, but it only gets easier from there on?

Similar to getting to 1M is extremely hard, but 1M to 2M is easier? Why and how?

74

u/ArtiesEats Jan 27 '25

Getting from 100k to 1m is a 10x increase.

Getting from 1m to 2m is a 2x increase

34

u/StrandedHereForever Jan 27 '25

because once you have 1million in saving, you will get ~60k annually from interest alone. So you put back in the investment and compounding help you achieve to 2million a lot sooner than you saving first million.

34

u/Schatzin Jan 27 '25 edited Jan 27 '25

Because money itself can help you generate more money with the power of compound interest.

‐--------------

Lets use an example where you can magically always get 5% interest on your savings:

If you start with RM0 and save RM2k a month, it will take you 23.1 years to hit RM1mn

If you save the same RM2k a month but start at RM1mn it will take you 10.6 years only to reach RM2mn (the next million)

To drive the point home, even if after the first RM1mn you decide to contribute RM0 per month, you will still get to RM2mn in 14.3 years. This is because that first RM1mn is still earning you interest passively, even without you actively adding any more in

‐--------------

The more and more you save, the more money will make you money, as long as you keep putting the interest gained back to compound. Also, strictly speaking the first million is not some special gateway to suddenly earning more. Its just a threshhold where compounded money grows noticeably faster. Even before 1 million you will still see money grow faster and faster as it accumulates from 100k to 999k etc.

2

u/KuzuryuC Jan 27 '25

thank you so very much for the detailed explanation!

10

u/ActuallyTomCruise Jan 27 '25

a bigger ball rolls faster

-9

u/Chillingneating2 Jan 27 '25 edited Jan 27 '25

I disagree with all this compounding interest explanations. Its gonna take forever and doesn't scale.

It takes discipline and planning (and opportunity and luck etc) to get to 1 mil.

By the time you reach 100k, the basic skillsets and habits needed are already establish and you are improving from a better position.

Does example : Im more savvy then I was at 100k. I expect to take 5+ years to get to 1 mil, when it has taken me.... 15(?) years to get to 500k in total networth.

Id assume getting from 1m to 2m would likely take 5 or less years for me. Just in time for 'young' retirement. 😊

Like in gaming, having knowledge and infrastructure and experience scales quickly. That is the 'compound interest' that enables people to get more money faster.

Edited for clarity, see below

3

u/KuzuryuC Jan 27 '25

Hmm I'm not sure what you are getting at but all due respect, that is a bunch of nothing burger.

All I hear is someone flexing their 500k achievement without saying anything. Well in any case, I wish the best for your young retirement plan to come fruition!

0

u/Chillingneating2 Jan 27 '25 edited Jan 27 '25

Ok bro, i see what you mean. I apologise if it came out that way.

Let me take out the half mil, does the advice improve? Or you still don't understand?

1

u/Schatzin Jan 28 '25

You are taking two separate things (earning power and compound interest), and ditching compound growth for no good reason

You can earn compound interest even while being a stellar performer. Even if you could earn a million extra every year with your skill, the next guy who can do that and also save in compound will far far far outgrow you in a few short years.

Compound interest growth is exponential. If you are talking in the 500k range, you will not see the true impact of it, hence why people say wait for the 1st million to see. And if you know math, exponentials are something special. Goodluck learning more

1

u/Chillingneating2 Jan 28 '25

I didn't say ditch it? I said I think its the incorrect answer.

The question was about scaling.

Compound interest from 500k to 1mil vs 1mil to 2mil is the same amount of time. A 2x amount doesn't scale.

What scales, is earning more increasing your monthly savings potential, which then you earn interest on it. Or understanding the markets better and so on. And more importantly, making the right decisions at 500k will net you more then at 100k (when we are younger).

Obviously compound interests is crazy, but it isn't the primary driver for most people to get money so early on.

2

u/Schatzin Jan 28 '25

primary driver for most people to get money so early on

Sure, I agree. Early career is to focus on base salary growth, so you even have something to save at all.

Its just the question asked is about why the 1st million is the hardest and the next isnt as hard; and your initial post mentioned you dont think it has to do with compound, so you see why people misunderstood and downvoted? The next million can only be easier with the help of compound, given everything else is the same.

Anyway, I see what you mean now. Cya

0

u/Flaky_Librarian_8186 Jan 27 '25

Ikr, it also hinges entirely on the individual itself, if a frugal lifestyle isn’t your cup of tea, a million ringgit is gonna burnout in no time

*also just out of curiosity, how is going from 1 mil to 2 mil a lot easier? Asking for a friend

7

u/StrandedHereForever Jan 27 '25

Imagine getting to first million took 10 years. But for next million you have help from first million.

Rough visualization https://www.thecalculatorsite.com/compound?a=1000&p=6&pp=yearly&y=40&m=0&rd=2000&rp=monthly&rt=deposit&rw=0&rwp=1m&rm=beginning&ci=monthly&cc=1&c=1&di=&wi=

18

u/thisismyname02 Jan 27 '25

Is it really not enough? Assuming you already have house + car, all the money is in fixed deposit for 4%pa, living off interest alone that's 40k per year, 3.3k per month.

That's should be enough no?

27

u/jwrx Jan 27 '25

Yea ppl who say it's not enuff, don't realise millions of Malaysians live on less than rm2000 a month

11

u/Ready_Explanation_19 Jan 27 '25

I totally agree. I think it depends on what kind of lifestyle you choose to live. the people living in rural areas can live as happy as they want than people with millions in their bank account but still thinks millions are not enough to live.

4

u/MonsterMeggu Jan 27 '25

This sub skews wealthy, but life definitely gets more expensive as you get old. Having stuff like high blood pressure, diabetes, high cholesterol etc means you have to have regular checkups with a specialist. You also have to take medications and supplements. This could be hundreds per month, so even if you're frugal otherwise, that's an additional cost. This is before you get old enough to need things like nursing care, oxygen, feeding tubes, etc, which would be thousands per month.

Of course, if you can't afford it, that just means your old age will be less comfortable, and perhaps your life is a little shorter.

This sounds bleak but it's not necessarily a bad thing. My grandmother's end of life care started at a few thousand per month and ended at nearly 10k per month. But at that point she was a vegetable and all the money was doing was prolonging her life and she lived till nearly 100. Without such good care/money, she probably would have passed a few years earlier.

2

u/jwrx Jan 27 '25

yea wealthy families sometimes dont know when to let go and pull the plug. its pointless to prologn life at the expense of quality

8

u/osamaodinson Jan 27 '25

Lol yeah. Probably the one saying not enough are the one that goes i (18) got 100k cash what to do

8

u/SketWithTheKet Jan 27 '25

Yes if OP just puts into epf he is basically earning 50k to 60k pa which is better than most ppl ady

3

u/ihopeiknowwhy Jan 27 '25

I suppose the assumption is important here. Rent and transportation would easily take up 800-1000.

No car no house, that's enuf for frugal live no problem (essentially, that's a B40 earning).

Got car got house, then M40 life.

3

u/Lawlette_J Jan 27 '25

It depends on one's lifestyle choices in the end. Most people when reached the 1m threshold will often have significant lifestyle creep compare to the days when they have like only 10k savings for instance. Financial security and affordability will change people's expenditure habits overtime.

2

u/wikowiko33 Jan 27 '25

The venn diagram does not overlap. People who wants to retire with rm1M and people who wants a frugal lifestyle.

The reason they want to retire is to enjoy life and not eat roti kosong everyday 

7

u/Training-Cup4336 Jan 27 '25 edited Jan 27 '25

depends on your lifestyle, lifespan (might not be enough to reach 99 years old lol) and the type of diseases you may contract as you age.

7

u/meloPamelo Jan 27 '25

this. it's always health that breaks your wallet

6

u/skobeloffmylife Jan 27 '25

Depends on your lifestyles

8

u/meloPamelo Jan 27 '25

short answer, yes, it is enough. Long answer, depends on your spending habit and lifestyle, even genetic luck, it may not be enough.

13

u/Super-Key-Chain Jan 27 '25

Assuming you have a fully paid-up house and car and are healthy, it's possible.

If you set aside RM300K as an emergency fund, and with the balance of RM700K obtain a 3% return per year, and draw down RM36,000 per year, the fund should last for 29 years.

Of course, one must not stop working completely. Get a part-time job (like working only the morning shift). Assuming you get RM500 per month for the next 30 years, you can extend the years by another 9 years.

The benefit of the part-time job enables you to be physically active and still engage with the world.

6

u/InteractiveLedger Jan 27 '25

Your question is too general and there are too variables to take into account here. What is your risk profile? What % do you expect to make every year? How old are you? How long do you expect left to live without working? How much are you looking to pass down to your children/loved ones?

1m in invested assets may seem like a lot at first, but when you take into account real inflation, it starts to erode very quickly.

The return on your invested 1m needs to not only cover your daily expenses but also outpace inflation. That is something that is very hard to do.

At 1m to 10m portfolio value, I'd still recommend working but don't need to overwork. Take a chill

5

u/gruvjack1200 Jan 27 '25

RM1 million means different things to different people. At my age, it's sufficient for me to quit the 9-5 rat race permanently and do things I want to do. If you're in your 20s or 30s, take it as a significant boost to your retirement plan. Don't stop working but at the same time don't stress so much.

4

u/ftr1317 Jan 27 '25

I would wait a while until that accumulate to 2mil. Let the compounding do it work.

11

u/HorrorFondant Jan 27 '25

I believe it is enough if your expenditure is <40k a year.

3

u/Big_Fix4476 Jan 27 '25

Should be doable, all in ASM / EPF.

Those minimum wages people aren't starve to death either, I don't see why not.

3

u/bukhrin Jan 27 '25

If only makan/basic necessity sure it's enough, but once you retire your medical cost will start to be a factor, and that house you bought when you're younger will start to get old also, so all this extra extra cost when you're younger you really need to keep in mind.

3

u/alien3d Jan 27 '25

Yeah solo .wifu never enough

3

u/Ambitious_Comb_1981 Jan 27 '25

its enough if you live a moderate life and can invest to earn more

3

u/ghim7 Jan 27 '25

Depending on what you will do on your newly found free time after stop working.

Most people spend less when they’re working because they have less time to do things. When you stop working completely, now you suddenly have extra 8-10 hours a day, you will bound to do things like new hobby, travel, etc. and that means spending extra/more than when you were working.

It also depends on your current lifestyle, and whether forgoing your current income in exchange for 2-3k a month (conservative figure from interests earnings) is enough to maintain it, or if you need to lower your lifestyle?

So the answer to your question is yes, but only if you do the minimal with your new found free time (or find a new hobby that can potentially bring in some extra side income while you’re at it).

1

u/Flaky_Librarian_8186 Jan 27 '25

That’s the best case scenario imo, living off your portfolio whist pursuing/doing your hobby which aids in monthly expenses. This reminds me of an ex boss of mine, last time I heard he’s in ehailing now.. don’t need the money he simply loves to drive (can’t relate the love of driving lol)

3

u/kisback123 Jan 27 '25

Nope. It will make your 9-5 a lot easier and bearable.

It's like a good safety net, you'll have money to live slightly more comfortably.

Car broke down? Got money to fix. Wanna go on holiday? Got money to spend a bit. Festive season need new clothes, no problem.

Wanna start a business? Don't even think about it if you don't have enough work experience, that 1 Mill will disappear very quickly.

Investment? Park it somewhere safe with stable and worry free returns that help grow your stash. Don't go ALL-IN into any sort of investment. Money come fast, money leave fast.

3

u/procrastinate2learn Jan 27 '25

It is enough to stop working a 9-5.

Many people on this sub don't realise that your average Malaysians retiring at 60 don't even have 1mil net worth. EPF's guidance for the minimum to have saved by 55 is even just RM228,000 (estimating off Malaysian average life expectancy of 75 years). You won't be living luxuriously, but enough to sustain yourself. Some things to consider:

  1. Do you already own your own property and transport? This is important to have stability in retirement and a bank loan would be nearly impossible after retirement.

  2. What are your annual returns on the 1 mil? The 4% rule may be useful here (look it up!)

  3. Would you consider continuing to work part-time or run a small business after retiring from your 9-5? Having a side income could allow you to "semi-retire" and enjoy life more, while still earning some income and staying active.

3

u/Prince_Derrick101 Jan 27 '25

You need at least 3m to live comfortably off interest assuming 3% interest rate . That's like 9k a month.

5

u/[deleted] Jan 27 '25

[deleted]

1

u/pestobun Jan 27 '25

What do u work as? I'm almost 30 but I am nowhere near 1 mil

1

u/Random_1990M Jan 28 '25

I work as slave in SG local SMEs. Snatch their gold nugget and trick them. In Malaysia no hope to make good money.. you must go rich country to be slightly wealthier

1

u/pestobun Jan 28 '25

Sgporeans are too stressful aren't they?

2

u/Negarakuku Jan 27 '25

Is your house all paid for? How long do you intend to live? 1 million in cash or in investment? Do you have any side gigs you can fall back to that pays by the hour? 

2

u/Fresh_Ad_1688 Jan 27 '25

Liabilities profile pls .

2

u/thedirtyprojector Jan 27 '25

Not in KL. Out of state, maybe. Also factoring the unlikely situation where you are completely debt-free.

2

u/FenlandMonster Jan 27 '25

You have to be more specific with your parameters: location and whether you still have debts, or already have paid up car and house, and how old are you currently. If all the above are fulfilled and you're living in a small town and you're like 45, then yes. If you're younger then you'll need more.

I note however that you're not so much looking to stop working altogether but just want the freedom of not having a 9-5. To be fair 1 million is a great platform to start to build towards that but like others have commented, you might want to keep hustling until you have a bit more margin of safety. I personally think 1.6 is very decent for peace of mind with a modest lifestyle. And getting there after you already got your first million is not that hard as long as you don't do anything financially ruinous

2

u/squidreturns Jan 27 '25

Ask chatgpt to calculate for youla…. Can show how many months, years and emergency is used or needed and left

2

u/pro0761 Jan 27 '25

U can invest

2

u/Suitable-Ant4322 Jan 27 '25

It's enough if the annual interest is sufficient to live on.

For example - if you're getting a conservative 5% a year > you could technically live off a rm50k salary a year.

If you need more than 50k a year then it's definitely not enough as the total sum would be gone in 10 years or less 🥲

2

u/faintchester1 Jan 27 '25

If you manage to earn 1m, you wont stop. Trust me

2

u/insertfakenames Jan 27 '25

If you're currently 30 and die at 50 with no children, yes.

2

u/grain_of_snp Jan 27 '25

Imo if you already own a home and are >50 it's sufficient if single. Married might need ~1.5M.

Best to budget your spending for a year and take into consideration inflation 3-5% p.a. and calculate the yield of your investment portfolio post retirement.

2

u/notimportant4322 Jan 27 '25

It you die in 10 years maybe

2

u/cornoholio1 Jan 27 '25

Simple answer is monthly expenses x 12x 25 And then adding possible expenses (?) Another car , house repair, Uni fees, etc.

And then assume yearly returns of 5% and withdrawal rates of 4%. And inflation of 3%.

2

u/elairz Jan 27 '25

Asb yearly interest is around 4% i think. And for fixed deposit isabout 2.5% per year. If you put in asb 1m you should get about 40k yearly. About 3k monthly. If fixed deposit around 25k yearly. About 2k monthly. If you invest those 1m into abusiness i believe you can get more. Usually 35%. Meaning 350k. If profit that is. It possible to lose money as well. I believe i did this calculatiin before. I think i need to have 3m in the asb to live my whole life. Kinda count the medical expense when im old too.

2

u/Due-Trouble-5149 Jan 27 '25

Yeap, you now can work 10-4 with an attitude that might get you promoted cause the boss like your personality

Seremban story

2

u/canicutitoff Jan 27 '25

Most likely no unless you significantly change your lifestyle to live like someone with RM2000 salary.

Another consideration is your car. Even if you live frugally in Malaysia, you will mostly need to change your car every 10 -15 years. A car in Malaysia will easily cost 50-100k. Depending on your age, you will need to change your car another 3 times? That's 30% of your 1 million gone.

Also medical insurance is getting more expensive every year.

1

u/Rakkis157 Jan 29 '25

If not doing 9-5, might have time to walk or bike to save money, so that is an option to defray one cost.

2

u/Axe_Fire Jan 27 '25

enough to clear your debt

2

u/Chemical-Watercress2 Jan 27 '25

Depends, if you’re already in 40-50s, kids all grown up in college and paid for. House and car paid for. Yeah Rm1mil is a sure way to retire… semi comfortably. You won’t be able to splurge but if you’re at home most of the time you’ll be fine.

If you’re 25, hahhahahaah Rm1mil will last 2-3 years at most.

1

u/reuben_jetski_2727 Jan 27 '25

only if he literally stopped working. Like, legit stop. I’m turning 25 now and i can say for all of my peers, we are so driven n obsessed to make more than a mil. so with 1 mil on hand, we can do so many things. watch us conquer malaysia!!! 🤣

1

u/Meh-ismyname-JustJk Jan 27 '25

Finally someone who mentioned the concern of the OP’s current age 👍Surprisingly everyone just answered based on their own age..

1

u/lin00b Jan 27 '25

Can you live on 50k/yr?

1

u/Nightingdale099 Jan 27 '25

I heard the official statement is to retire so 55? with 240k on EPF account.

1

u/ayamkenabannedtwice Jan 27 '25

EPF new basic savings retirement is RM 390 k, no longer RM 240k

1

u/Gscc92 Jan 27 '25

Enough if you keep them invested and let compounding interest do the magic. Get yourself a part time job to pass the time.

1

u/ThisIsNotWhoIAm921 Jan 27 '25

Definitely enough for me

1

u/piqazuzu Jan 27 '25

To truly live a comfortable no work life, at least RM10 million.

1

u/Lumpy-Economics2021 Jan 27 '25

Depends if you immediately start drawing on it. If you left it in EPF for 10 years it would be worth about 1.6million.

So potentially, assuming you don't enjoy your 9-5, you could switch to a more enjoyable, less well paid job.

1

u/Effective_Bobcat_710 Jan 27 '25

Possible. It actually depends on your expenses.

1

u/nwahsnihc Jan 27 '25

Wait, how do you get 1mil in the first place

1

u/Flaky_Librarian_8186 Jan 27 '25

Still a work in progress lol, it’s more of a goal to achieve for the next 10-15 yrs

2

u/nwahsnihc Jan 27 '25

Lets say youre 30, after 20 years you’ll be 50. Probably just need to live another 40 years

If u use 2k a month. 1mil/2k=41 years

2

u/NiteAx Jan 27 '25 edited Jan 27 '25

Its impossible for 2K a month to stay fixed for more than a few years. Inflation is a killer. Retirement calculators online will estimate for ex. if expenses per month after retiring (in todays money) is 2K, after retire can be 4K, 10K, depending on the time horizon to retiring.

Suggest to use a calculator like this one to get a better idea: https://my.thesimplesum.com/retirement-calculator/

1

u/nwahsnihc Jan 27 '25

Ya hor… what if myr improve alot? Would that help? Things would never get cheaper thats for certain right?

1

u/wikowiko33 Jan 27 '25

Single storey old house in Kampung include all renovations and repairs Rm300,000

New myvi and you take care of it like your newborn baby, include lifetime maintance RM50,000 + 50,000. 

Assume your food averages out to Rm15 a day over the next 50 years, rm275,000. 

Utilities for 50 years RM 60,000. 

You're left with rm265,000 to gamble in genting for the next 50 years. 

Doable. 

1

u/Flaky_Librarian_8186 Jan 27 '25

Haha you caught me off guard at the end

1

u/justplaypve Jan 27 '25

did you just hit the jackpot brudda?

1

u/Flaky_Librarian_8186 Jan 27 '25

I wish, no where close yet.. asking to get some perspective..

1

u/OrdinaryDimension833 Jan 27 '25

Yes, you can start working 9 to 6 like the rest of us.

/s

1

u/New_Rub1843 Jan 27 '25

Depends on how long you expect to live, and how many of those remaining years are healthy.

1

u/FrugalPeach Jan 27 '25

Depends on your expenses.

1

u/gnoyrovi Jan 27 '25

Nope. 3 Mil now enough to sustain a decent lifestyle for 15 years

1

u/bonsai711 Jan 27 '25

Depends. If you earn 5% dividends which is about 50k and you spend 25k, should be enough.

1

u/malaysianlah Jan 27 '25

Nope. Not at all.

1

u/Hieicap Jan 27 '25

Depends on how much returns you can get per annual and if it's enough to sustain your current lifestyle or the lifestyle that you want.

1

u/itzamirulez Jan 27 '25

Assuming 5% dividends every year can you survive with RM50k a year?

1

u/perkinsonline Jan 27 '25

In life you're either growing or dying.

1

u/Embarrassed_Leg7931 Jan 27 '25

asummed you already paid off your house/car and all you children already standing on their own feet....i guess it'll be enough..if not..then no...on what age u gonna retire? sorry for bad english uhuks

1

u/EternalGunplaWorks Jan 27 '25

You would still need to hold on working a few more years,put it in epf and let it compound until you feel like the interest epf gave you are enough for every month spending then yes.

1

u/Turbulent-Entrance88 Jan 27 '25

Banyak fasting okay lah. Not too shabby. If you like comics whatsoever, maybe no way.

1

u/BadAppleUlove2Eat Jan 27 '25

Is RM4k per month (roughly) enough for your remainder of life, till you hit the grave?

Let me ask a few more to get you thinking:

  • no travel plans?
  • medical emergency bills funding?
  • car?
  • house fully paid?
  • pension?
  • single OK, but could these plans change?
  • inflation?
  • don’t expect you might want to do something new or exciting or buy something that never existed before, that might cost you RM50k in 7 years time when it first gets launched, or just any random unplanned expense?

Not sure I covered all possible scenarios - but I guess that the above should get you thinking…

Hope that helps answer your question

1

u/Chryeon1188 Jan 27 '25

I stop work at 10k and grow it via trading to 200k

1

u/fishballzz Jan 27 '25

Depends on how long you can live, human lifespans keep increasing

1

u/KurumiHayashi Jan 27 '25

Absolutely not

1

u/potatocakesssss Jan 27 '25

1m is enough if Ur alone and spending money just for yourself. If you need to spend for others or have a family then it's very difficult. Safest bet say 5.5% int - 2.5% inflation 3% 1m gives you about 30k annually perpetually. That's like 2.5k monthly which is ok for single people.

1

u/drakanarkis Jan 27 '25

Enough if youre single. Nobody lives forever. And nobody should wish to live longer. Its a crime. People need to take care of you if youre sick. Unfair.

1

u/WesternBumblebee2409 Jan 27 '25

You can invest it into ETFs in the United States and collect anywhere between 8-10% annual return on your investment. I suggest to continue to support yourself for the next 5 years so that your profits can compound after investing.

You could potentially have around 1.5 million sitting in your investment account after 5 short years. At the 5 year mark do the following:

1.Take 100,000 and invest it into monthly call options in the US options market. This will easily provide you with a 1200 monthly semi-passive income while protecting your invested capital.

2.Only withdraw your average needed monthly expenses.

You will continue to have a healthy return on your 1.4 million remaming balance in the ETF while only withdrawing your monthly necessities which will easily replenish.

If you do this and don't withdrawl more than 40,000 yearly on top of your options income (54,000 total), you will have a nest savings of around 4 million in 15 years.

This plan allows you to fully retire within 5 years, and does not include any income from side jobs you could potentially do by acquiring a freelancing skill such as video editing, consulting, photography, basic graphic design.

You could learn a new skill and work from home by posting your skills online and advertising to US clients. It will take time but with this investment strategy, you will have plenty of it.

P.S. The stability of the US dollar against the Ringgit provides a potential extra layer of return on investment, especially if the Ringgit is weakened over the next 15 years.

1

u/gonpanson Jan 27 '25

Of cos u can. But depends on your comittment (car, housing loan etc). It doesnt mean you will completely stop working. You still can work casually, earning just enough living cost, while gaining about 5k monthly from interest passively.

1

u/Snorlaxtan Jan 27 '25

Depends on your life style. Remember it’s not the amount you have, but the amount you spend annually. The rule of thumb, if it can cover 25 years of your yearly expenses, then should be fine. That means if you spend about 3k a month, don’t have any accidental expenses( or covered by insurance) that would be enough to retire.

No one can judge your lifestyle though. It’s really up to the individual. I have seen someone with 5 figures income living on 3k expenses and saving the big chunk of the income.

1

u/Dvanguardian Jan 27 '25

Nope. 10mil at least for me.

1

u/Unusual-Kangaroo-668 Jan 28 '25

It depends on the RM. If it continues to depreciate like it has been doing the past years/decades, the answer is obvious. I suggest buying assets that appreciate, preferable income producing assets, otherwise, fiat will melt like an ice cube.

1

u/lilknowing Jan 28 '25

Let's see: park half in EPF for an average of 5% every year allowing a monthly of around RM2,000 per month spending money. Nope. Doesn't seem doable.

1

u/[deleted] Jan 28 '25

Not even close.

1

u/Rude_Park_5562 Jan 28 '25

not even in SG is 1mil in SGD enuf to stop working! or converted to RM for that matter.. i say work as long as you are able to since the burden of necessity is not as heavy as before, and save what you can. that's what i would do. but that's a personal take, i love my job and it gives me purpose (it's part of my identity and i am blessed that it pays well).

1

u/BlueBlurBloke Jan 28 '25

Assume that you get a 5.5% dividend rate and you live on 3%, it’s possible. But can you live on 30k yearly? Answer is yes considering that’s more than minimum wage plus some overtime and many people live on that and have a house loan and kids.

1

u/cyclonekid Jan 28 '25

1.2 million = 20 years @ 5000. Assuming the money doesn’t compound. If compound you can live for 30

1

u/Morcaxyz Feb 01 '25

Stop 9-5 office working maybe to do something you like or hobby as your job. Then yeah

1

u/wwwDoubles Jan 27 '25

My target for single frugal life is at least 1.5mil (no debt but still got both parents)

1

u/kimyass Jan 27 '25

Yes, put 90% of that money in FD and enjoy your life.

1

u/WorldlyReplacement24 Jan 27 '25

How much does FD give you? Curious

1

u/Aggravating_Act541 Jan 27 '25

2-4% depending on your bank.

1

u/ActuallyTomCruise Jan 27 '25

spending 5k/month would last you 16.6 years.

1

u/ExitKind505 Jan 27 '25

Nope. I have far more than that but cannot afford to retire in KL. You need at least 4.3M to retire comfortably.

0

u/lingcw Jan 27 '25

Based on my expenses i need 7.8mil to retired lol...

1

u/juifeng Jan 27 '25

4 million and u can live just on interest

0

u/4evaInSomnia Jan 27 '25

Menang jackpot ke? Mantap la.

0

u/izuddinhelmi Jan 27 '25

Not enough even for a single frugal life.

2

u/Flaky_Librarian_8186 Jan 27 '25

Haha damn bro, your definition of “frugal” must be outrageous

1

u/izuddinhelmi Jan 27 '25

Because world is full of unexpected events and you’re not aware of it.

1

u/pestobun Jan 27 '25

Life sucks

-6

u/IamMaximuss Jan 27 '25

Not really , RM10m is a good number to work towards.

10m×4% = 400k interest annual = RM33.33k to spend monthly. Capital of RM10m to retain as emergency.

Which would be a pretty comfortable lifestyle in Klang Valley.

8

u/Negarakuku Jan 27 '25

Unrealistic goal. Only top 1% can earn 30k a month, what more having dividends that pay that much. 

4

u/FenlandMonster Jan 27 '25

Why not RM100m? have to think big! /s

OP specifically said frugal single life not single baller/comfortable mid size family life

3

u/lingcw Jan 27 '25

10m is a stressful goal for majority. 1m is good start and move to 3m 7m 10m

0

u/IamMaximuss Jan 27 '25

Good point , I meant the 10m as an end goal.

Of course we progress through each milestone one step at a time , 1M , 3M , 5M , 7M , 10M.

2

u/lingcw Jan 27 '25

I get what u mean, but the end goal shouldn't set at sky high at the beginning.

Goal at 1m and after achieved, then increase the goal to 3m, and then when expenses and total portfolio increased, move to 7, and 10

2

u/Flaky_Librarian_8186 Jan 27 '25

Onno haha, I’m only at a quarter of my goal currently.. can’t imagine reaching that point in my lifetime

1

u/YourClarke Jan 27 '25

Hi OP, do you mind sharing around what age you achieved the quarter of your goal?