Update: ffree analysis is dominated by black/white swans, not Fuller Wealth.. See ffree^carefree^cashflowH/L ground

https://www.mrmoneymustache.com/2013/02/22/getting-rich-from-zero-to-hero-in-one-blog-post/ and many other FIRE discussions mention that a portfolio of “25Y worth of burn rate rate” would basically last you forever.

ERE author said his 7k/Y burn rate will deplete his (800k) savings in 114 years , and his wife’s 7k/Y will last 62Y.  The two of them maintain separate personal assets. If I were to do the same, I can last somewhere between 62 and 114 years. I do have my wife and kids to support, so I’m about 33Y. However, if I ignore my net asset value and simply match my nonwork income to my burn rate, I could last a million years i.e. forever.

Anyway I like the simplicity in this 25Y estimate, a concrete illustration of Fuller wealth.

— minimum reserve size in SGD

• assuming a basic validity in the 25Y calculation, as a widely held estimate. I won’t verify this calculation.
• assuming reasonable liquidity of the portfolio, so you can withdraw on an annual basis
• assuming healthcare cost is taken care of largely by Singapore government.
• assuming kids education cost doesn’t skyrocket through the roof
• assuming net housing cost is below $1k/month in the long term
• assuming you have the option of selling your home in X years (perhaps when your kids grow up and move out), but in this discussion you decide to keep it for wealth preservation or other reasons.
• assuming you don’t have NNIA like CPF-life

25Y = 300Mon. At SGD 4k/M, we need a SGD 1.2mil portfolio, without counting the home net equity value. This amount is very hard for most people. It’s not easy for me.

At SGD 3k/M, we need SGD 900k. More realistic.

At SGD 2500/M, we need SGD 750k. I think this burn rate is still realistic. See burn rate: 80%@median family income: wbank^BT #Khmer and the blogposts on BizTimes article