Can You Retire with 1 Million Pesos?

In today’s episode, let’s talk about the common goal of earning 1 million Pesos and recheck if you can actually retire once you’ve hit the millionaire status. I think the 1 million goal is a common theme in our culture especially when it’s usually the grand prize money from the TV shows that we grew up watching. And true enough, when I was a kid, I wanted to have 1 million Pesos myself. Think about all the things that we can buy, right?

Can you retire on a million pesos let’s answer that question hello what is up guys emman from pesosmartpage here welcome to a new episode shout out to all the podcast stations as well i appreciate you all so let’s get started for a lot of filipinos the main goal is to become a millionaire or hit that one million milestone and i shared that same goal with a lot

Of people and fortunately enough for me i was able to hit that mark last year because of the bull run and then the main question here is can you retire on a million pesos well yes technically yes but only for a limited amount of time and then after that period has passed then you’ll have to get back to the labor force not much of a retirement right and let’s

Do some math here so if your monthly expenses on average is around 20k per month then 1 million pesos will last or get you by for about 15 months that is four years and two months then let’s say you only spend 10k a month which is a bit of a tight budget especially if you live here in metro manila but with that frugal budget you’ll get by or that can support

You your 1 million pesos can support you for around 100 months or 8 years and 4 months but let’s say you have dependents you have a family you have a child you have a spouse and they go to school and you support them then you monthly expenses of let’s say is 40k per month then one million pesos will be drained after two years and one month take note that these

Examples are based on a lump sum amount of 1 million pesos and it’s going to be much different if your money is invested so let’s say if that 1 million pesos is invested in stock market and the average dividend yield per year is five percent then you get around 50k per year after taxes that’s 45k net 45k per year is just 3750 pesos per month so definitely not

Enough to live on and then let’s say for you to get an average of 10k per month you will have to invest at least 2.7 million pesos so that’s more than double with an average yield of 5 that will be 135 000 pesos per year and after taxes that’s 121 500 pesos this will give you a budget of around 10 000 pesos per month and to be exact 10 125 per month if you

Invest your money and only spend around four percent to five percent per year or just the average yield or growth of the stock market then this is essentially the unlimited money glitch you’ll be able to support yourself through your investments without actually spending your initial capital or your initial investment that’s why personally for me my main goal

Is to hit or grow my portfolio to 10 million pesos if the market yields on average 5 then i will get 500k per year after paying taxes of 10 for dividend income that is 450k per year or 450 000 pesos that will give me a monthly income or budget of 37 500 pesos and i think that i can live comfortably with that amount of course this will vary and this will change

Depending on your current financial situation if you have debts if you have like liabilities if you have dependents but for me i’m single right now and i’m just basing my lifestyle currently from from this example and hopefully this sheds some light about this million peso gold that i think we all have if you have any questions just let me in the comment section

Down below and by the way guys i just want to clarify that all of the figures and the numbers are all estimates sometimes the market will for example yield a negative amount in the stock market but if you’re invested in profitable companies like for example blue chip companies in the philippines like pldt meralco or aev ap or globe then even though if their

Stock prices plummets like for example this year they will still give you dividends which again on average is around four percent to five percent per year so you don’t really care about the price of the stocks if you’re invested in profitable and proven companies because they will give you or they will pay you dividends consistently as again as i’ve said the

Examples that i’ve given all those blue chip stocks that give out dividends they give or they pay these dividends for more than a decade now so you can you can somewhat rely that they will continuously pay that as long as they are profitable so yeah you don’t really have to worry about the volatility of the prices in the stock market because you will invest in

Dividend paying stocks and that’s what i’m doing and that’s what i’m currently building and all of the stocks in my portfolio are all dividend paying stocks because again i want to retire on dividend paying stocks and when i achieve that again i’m going to share i’m going to share it with you guys but that is that is a long way to go let’s end the episode here

Guys and the fumabot ko at the end of this video thank you very much i appreciate you if negotiating content go give this video a thumbs up and if indeed a man give this video a thumbs down if you’re new to the channel click the subscribe button and ring the notification bell parabola will miss out someone uploads go every single day you may support the channel

By becoming a youtube member my link giant descriptions have about alternatively you may also support the channel by using my affiliate links with the shoppi and lazada if my art can be done thanks again for watching and listening everyone stay safe i’ll see you on the next episode always remember be past smart you

Transcribed from video
Can You Retire with 1 Million Pesos? By Peso Smart PH