Long-horizon Financial planning, either pre-retirement or retirement planning, is all about uncertainties. These Uncertainties get foggier the further out you plan ahead. Some people give up in frustration, but I spend lots of mental energy mapping out the key drivers and identify the stable, predictable factors.
It’s important but tough to look beyond the medium-term challenges such as job security, college funding, ,,
At the core (and the base) of my long-horizon financial planning, here are the three beams:
- burn rate (incl. medical) in SG context. Actually SG feels fairly stable.
- for my financial planning, day-to-day burn rate control is more important than monthly saving rate
- passive income — diversified, well-hedged
- healthy and in-demand — requires long term planning