How Much Is Enough To Live A FI/RE Lifestyle?

Many are keen to retire early. The notion is to work hard, save, invest and retire as soon as possible. But how much is needed or what is the minimum amount to make this a reality?

Is it RM500,000? RM1,000,000? RM2,000,000? RM8,800,000?

Here at Uno Advisers, we set that magic number at RM1,000,000. 

The reason behind this number is because RM1 million invested at a conservative 5% return per year will give you RM50,000 each year. Which means about RM4,000 per month for living expenses without spending the RM1,000,000 in capital.

We recognise that RM4,000 does not bring about a luxurious living, but a single individual would be able to sustain their most basic needs for many years, hopefully indefinitely!

The precise amount will need to take into account factors like living expenses, inflation, dependents, homeownership and lifestyle preferences. So whilst the figure might differ for everyone, an initial RM1,000,000 is the first step that everyone needs to start with at retirement.

Anything beyond that is built upon this first RM1 million. This is the inspiration behind our name Uno Advisers. Uno being Spanish for ‘one’ means the team is centred around helping all our clients to achieve RM1,000,000 at minimum upon retirement.