I came across this interesting article that attempts to inform us how much we would need to have to live comfortably during retirement.

Is a million enough to last you through retirement years?

The table shows that if we want to have RM3,000 to spend, then we would need to have RM1.58 million earning about 3% return, or RM1.31 million earning 5% return and so on.

If a retired couple really wanted to do the things they want to do, such as eating fine food, traveling to different places, learn new skills, then the couple would probably need to have at least RM5,000 a month to spend with. From the table above, even at a rate of return of 10%, the couple would need to have at least RM1.46 million. The more realistic rate of return is between 5% to 7%. Even at 7%, the couple would need to have RM1.84 million.

The simple analysis above stoned me. After reading it a second time, I realize the article did not mention how this sum of money could be amassed. If one were to imagine amassing this fortune solely by way of savings, then it is indeed a near impossible task. However, there is another way. The smarter, and easier way to amass this fortune is by investing in appreciable assets.

When you buy assets that appreciate, then you have time working on your side. As time goes by, these assets will increase your net worth, thereby increasing your fortune bit by bit. These assets could be antiques, paintings, wines and so on.

Some types of appreciable asset also generate income. These are stocks, properties, businesses and so on.

I have already decided for myself long ago that I would amass my fortune by way of properties and stocks. This article has strengthen my faith that my decision is correct. I will never be able to save up this kind of fortune. Therefore, I must invest.

Even though this global financial crisis has resulted in many stocks depreciating and properties declining in prices, nevertheless it is the correct direction I must head towards.

During the peak of the crude oil bubble, the Government increased the retail petrol price from RM1.92 per liter to RM2.70 per liter. This led to a huge uproar from the consumers. As a result, the Government came up with a cash fuel rebate plan for motorists. This plan would last for one year.

I have recently renewed my road tax and collected my fuel rebate. I welcome this additional money. The purpose of this rebate was to help cushion the financial impact of rising petrol costs. But now petrol price has come down to RM1.90 per liter. So, I will just put this money into my bank, or invest it into the stock market.

I did something today that normally a sane person would not do. I gave a loan to a stranger. It’s not a huge amount, but the amount is not small either. Equivalent to a month of salary for alot of people.

I first came across this person about 6 months ago via the internet chatroom MIRC. She got into trouble with some loan sharks after her boyfriend defaulted on the loan and disappeared. She was seeking for financial help. At that time, I resisted helping her.

Today, I met her again on the MIRC. She’s still seeking financial assistance but at a much lesser amount. After much persuasion, I decided to help her. I helped her because I was in heavy debt before and it was a horrible experience. This girl is still a student and I wanted her to be able to concentrate on her studies without worrying about the loan sharks harassing her.

Time will tell if I had made a good decision, or not.

Next week is the Chinese Lunar New Year. And I could not feel any festive atmosphere around me. Except for the beautiful decorations at the shopping malls, there isn’t much happening around me to indicate the Chinese New Year is coming. Consumer sentiment is way low. I can feel it in my bones.

In previous years, I could see people carrying cases of Mandarin oranges. Many businesses would buy these oranges, and also hampers, to be given away to their clients. This usually happens two weeks before up until Chinese New Year. I could barely see this happening this year.

Many businesses have cut down on spending. This year, none of my company’s suppliers printed any 2009 calendars.

My parents came back from shopping to buy groceries for donating to orphanage. We did this during the Chinese New Year last year, and we want to do it again this year. My parents were surprised with how expensive the groceries have become. People are finding it more difficult to stretch their budget.

The Chinese New Year is one of those times when businesses would spend, and consumers would buy. If this period is already difficult, I cannot imagine how much worse it will become after the Chinese New Year.

As for myself, every year, I would buy new clothes for Chinese New Year. But this year, I may only buy a new T-shirt.

This is the funniest story related to the global financial crisis that I have ever read. Here are some links to this story.

http://www.earthtimes.org/articles/show/249406,porn-industry-seeks-government-stimulus-as-economy-slows-sex-drive.html
http://www.dailynews.com/breakingnews/ci_11400986
http://www.msnbc.msn.com/id/28549145/

Enjoy the extract below

Extract:
Los Angeles - Banks get it. So do automakers. So why shouldn’t the ailing US porn industry also get a government bailout?That’s the reasoning behind an unprecedented request from infamous pornographers Joe Francis and Larry Flynt, who according to celebrity website TMZ.com are heading to Washington to ask Congress for a 5- billion-dollar bailout.

Francis, creator of the notorious Girls Gone Wild video series, and Larry Flynt, legendary founder of porn mag Hustler, claim that porn movie sales went flaccid last year, plunging 22 per cent amid the limp economy.

“With all this economic misery and people losing all that money, sex is the farthest thing from their mind,” Flynt is quoted as saying on TMZ. “It’s time for Congress to rejuvenate the sexual appetite of America.”

TMZ quoted Francis as saying: “Congress seems willing to help shore up our nation’s most important businesses; we feel we deserve the same consideration.”

The duo are adamant that the industry will have the staying power to survive - thanks largely to surging web site traffic. But nothing less than the country’s health and future demographics are at stake, they claim.

“People are too depressed to be sexually active,” Flynt said. “This is very unhealthy as a nation. Americans can do without cars and such, but they cannot do without sex.”