Retirement Fund

I know that in Money Talks I said I wanted to talk about Emergency Fund first. But after thinking it through, I think I'm comfortable with first talking about Retirement Fund.

Note: This post will talk about money in IDR currency.

Everyone plans to retire someday, right? To be able to enjoy your senior years without struggling about work and money anymore. Now, let's do some math with the help of

Please click it for bigger image.

So if I am now 28 years old, and I want to retire working at 55 years old, and I expect to live until 80 years old, that means I have 25 years of enjoying my retirement life. The problem is I will still have expenses, right? And because I will have retired, I will no longer have income.

25 years of having to spend for expenses without income. Oh no.

Perhaps you will say that it will be easy because by then we will already have saving. So now, let's calculate how much we need for that 25 years of my retirement life, still using the help of

Please click it for bigger image.

My expense is now around 4 millions a month (husband and wife living a simple life), and it will be around 52 millions in my retirement years (because of inflation). I will need 12 billion (12,000,000,000) to enjoy a simple life.


But I still have 28 years to accumulate my saving, right? Let's see. Twelve billion in 28 years, it means I have to save around 35 million a month.

Haha. Mission impossible.

So, what to do? If you are like me, dreaded by this truth, I urge you to start reading blogs and following twitters of good financial planners.

From months of reading and researching (which I'm still doing now), I am now investing only 500,000 a month in mutual funds (reksadana) and precious metals, crossing my fingers that they will grow at least 15-20% a year. A worse scenario would be that it will not grow that well, or if they will grow downward. (That's where we need Emergency Fund, baby! I will talk about that in another post).

But the worst scenario would be if I don't invest because I know I will not have enough to enjoy my retirement years, and I will have to burden my children.

You can count how much money you should invest per month, according to your retirement needs and the growth expectation in You should login first and bla bla bla, but I know you will go through all the hassles if you care about yourself. And I believe you can browse and find the growth expectation percentage of precious metals, mutual funds, stocks and bonds, etc. yourself ;)

And remember: the earlier you start, the better!


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