Income

Before going on with my calculation, I pushed forward a further question to PC, "Can you elaborate what you mean?"

"Very simple. I have a place to live. That's settled. All I need for retirement is a sum of money that could generate a sufficient amount of income - as interest, dividend, or whatever."

"I see..."

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On the face of it, the calculation is straightforward. There are only two variables in the equation: the monthly income you need, and the interest rate.

Say, if we assume HK$30,000 each month and 4% per annum as the rate, we need HK$9M to start with. Similarly, if you need HK$50,000 each month but the interest rate is 2%, you need HK$30M before submitting the resignation letter. If you do not own an apartment, then you need to add the cost of renting to the monthly expenditure.

But, the critical question is: How about inflation?