Concept of FU money

Have been reading more about this concept of Fu*k you money. Typical american phrase but what it means is money that once you get, you can say that to everyone because u do not need them for money anymore.

Link : http://www.urbandictionary.com/define.ph...+you+money

I think this is what we mean by financial freedom here... but the phrase is so inferior to the american way of saying it...

Anyway, here is a link to spreadsheet also that can use to calculate FU money. Based on my assumptions of 3.5% inflation and annual investment returns of just 5.5% and luxury level expenses of 360K per year, looks like I need to have 12M to retire at 39 and live until 90 and still get to let my kids inherit back the 11-12M... though it will be worth a lot less due to inflation.

http://www.tonywright.com/2010/no-you-ca...r-startup/

After playing around it a lot... i come to the conclusion that about 10M SGD today is probably what i can call FU money for my household. This is quite useful extrapolation knowledge as it means I can take everything above 12M (add a 2M buffer) and do high risk business with it knowing that i have a lifetime safety net already.

Quite fun... try it guys and share your results. I am curious to know how much is enough for different people.

(17-11-2011, 05:27 PM)greypiggi Wrote: Based on my assumptions of 3.5% inflation and annual investment returns of just 5.5% and luxury level expenses of 360K per month, looks like I need to have 12M to retire at 39 and live until 90 and still get to let my kids inherit back the 11-12M... though it will be worth a lot less due to inflation.

You must be staying in a huge mansion with a small army of workers to upkeep the place to require so much per month!

For me, I "ONLY" need $100k/yr (not per mth) which already factor in inflation and a big margin (I hope) for any potential investment losses due to foolish mistakes or a major recession. Any extra I have will go towards a fund for buying a bigger property plus donations to charity.

(17-11-2011, 05:57 PM)KopiKat Wrote:

(17-11-2011, 05:27 PM)greypiggi Wrote: Based on my assumptions of 3.5% inflation and annual investment returns of just 5.5% and luxury level expenses of 360K per month, looks like I need to have 12M to retire at 39 and live until 90 and still get to let my kids inherit back the 11-12M... though it will be worth a lot less due to inflation.

You must be staying in a huge mansion with a small army of workers to upkeep the place to require so much per month!

For me, I "ONLY" need $100k/yr (not per mth) which already factor in inflation and a big margin (I hope) for any potential investment losses due to foolish mistakes or a major recession. Any extra I have will go towards a fund for buying a bigger property plus donations to charity.

Oops I meant per year. Changed already. 100k for travel. 200k for living expenses, 60k for gifts to parents, misc.

(17-11-2011, 05:57 PM)KopiKat Wrote:

(17-11-2011, 05:27 PM)greypiggi Wrote: Based on my assumptions of 3.5% inflation and annual investment returns of just 5.5% and luxury level expenses of 360K per month, looks like I need to have 12M to retire at 39 and live until 90 and still get to let my kids inherit back the 11-12M... though it will be worth a lot less due to inflation.

You must be staying in a huge mansion with a small army of workers to upkeep the place to require so much per month!

For me, I "ONLY" need $100k/yr (not per mth) which already factor in inflation and a big margin (I hope) for any potential investment losses due to foolish mistakes or a major recession. Any extra I have will go towards a fund for buying a bigger property plus donations to charity.

Kopikat,

I used to think that. But strangely my level kept changing. I am already quite thrifty and value conscious (that is why i came to this forum!). For me, the utility curve of the finer things in life starts to only taper off after I can :

1) order whatever I want from any restaurant without caring about price
2) order wine at every meal if i want but for this one i still look at price

Also, last time, i used to think stupid to fly business class but now i have changed my mind and will fly for longer flights of 8 hours just for the better comfort. Right now, i still think first class is stupid.

A simpler example, when i fresh out of NS, just to be able to go overseas and backpack was fantastic already. Can survive on 1K a month and damn happy. But now, cannot imagine still putting self and family to stay in bunkbeds and take public transport overseas all over the place? Frankly, would much rather not.

But of course must keep living within means and stuff.... but does everyone here feel the same inflation in expectations?