Retire A Millionaire

I was reading this article in www.Kiplinger.com which said:

Find out how much you need to save each month to reach $500,000, $1 million of $2 million by age 65. The road to $1 million starts early, but if you're a late bloomer, help is at hand. The information below shows how much you need to save each month to accumulate $500,000, $1 million or $2 million by age 65, along with strategies for achieving that goal. At age 25, you're starting from scratch. At ages 35, 45 and 55, we assume you already have money in savings, on which you're earning 8% annually.

Sadly, this 8% earnings does not apply here in Singapore. With current interest rates on savings account being 0.25% per annum, while inflation stands at 3% (or more), how can our savings reach our desired amount to retire? Besides, with cash in the bank, there is a tendency to spend it than leave it.

The usual advice on cash distribution is:
- keep cash amount equvilant to 6 months of your current spending
- Invest some cash in high liquidity investment (eg shares)
- Invest some in short-term investment
- Invest some in mid-term investment
- Invest some in long-term investment (eg insurance)

Singapore's economy has been robust and booming in the last 2 years (2005 & 2006) and the same applies to 2007 (2007 overall economy results not out yet) and the next few years ahead. Since economy is doing well and job creation is high, it is easier to get a job should one decide to change. As such, I feel cash holdings can be reduce to 3 months.

Among some really good ways to make sure we are able to save in time for retirement is to invest our savings in some reliable source that provides very good returns with very low risk.

Being a Investment Consultant, I have invested some funds in this vehicle that provided me guaranteed returns (avg 15-20% p.a) with capital protection. Being mid-term investment, with capital protection, I won't need to monitor my investment, not exposed to market turbulance, not worried about broker dealings, etc.

Prudent savings and investment will put me on track to saving for my retirement.