Oh my, is this another sign that AK is ageing? Did he just say save "100%" of our take home pay? Maybe he meant 10%.
Well, no, I really do mean 100%.
What? AK is not only ageing, he is growing senile! How is it possible to save 100% of our take home pay?
OK, assuming that we had a gross annual income of $50,000 and we took home $40,000 after CPF deduction, could we, at some point in time save $40,000 a year, assuming that our take home pay remains constant?
The answer is "yes". How?
1. Save 50% of our take home pay each year. This amounts to $20,000.
2. If we invest to enjoy at least a 6% yield a year, in the second year, we would be able to save $21,200 or 53% of our take home pay.
3. Invest again to enjoy at least a ......