Planning my retirement

If you are 43 now, and plan to retire at 60, you only have 17 years left to accumulate your retirement fund.
Assuming that inflation rate is 1.83 p.a. (this is the average from 8/1993 to 5/2005). If your monthly retirement expenses (today's value) is $15,000, the future value of this expense will be $20,416, and your total retirement needs will be $5,571,369.
If you can save $12,000 from now up to 60, the return of your investment should be around 9.06% p.a. to achieve your goal.
This rate of return is not difficult to achieve, but I would suggest you invest in a balanced portfolio with funds from different regions and asset classes so that the risk can be diversified.
If you are interested to know more about how you can achieve your goal with a balanced portfolio with minimized risk, you may email me for further discussion, or go to my forum:

you want to get retired when you are 60 so you have 17years to save the money for your retirement life.
if you want to have 15000 every month for you and your wife retirement life .
by the historical data ,the average inflation rate of the past 25 years would be ~3.8%
assume the deposit interest rate= inflation rate,
then the 15000 at that = 28278 after 17 years.
so you have to save 8.5 million for your 25 years retirement life.

but you didn't mention the total asset you have (your cash flow, stock value or other investment.)
so i will assume the saving for your retirement will only come frome your MPF and your monthly saving you will start now.

assume your MPF have a 5% return
the value you have today is 171000
and after 17years the total value of your MPF=1,044,000

so you have to use your monthly saving to save 8.5m-1.044m=7,456,000 after 17 years
assume your saving plan have 11.5% return than you can meet your own retirement requirement .
however, 11.5% is not a easy task to make for a long period (more than 10years)
it may be more safety to meet your retirement target if you lowers return rate to 9% as the 9% can be acheive more easily.
to do so , you may do it by place 400000 on a investment plan , and the plan have a 8%return per year. than you can lower the risk of your retirement plan and secure you have a retirement life you want.

i work as a financial planner,if you have problems you may e-mail: [email protected]
Mr .chan