Calculating Financial Freedom with Mutual Funds (Reksadana)
📌 The goal is achieving financial freedom by living off the returns generated by mutual funds (Reksadana), a strategy the speaker and their mother are implementing.
🎯 The first step involves calculating monthly living expenses (e.g., a baseline of 5 million Rupiah/month) to determine the required investment return and capital needed for a "back-of-the-envelope" calculation.
📊 Mutual funds are managed by professional investment managers and categorized into types like Money Market Funds (RDPO), Fixed Income Funds (RDPT), Stock Funds, Balanced Funds, and Index Funds.

Determining Required Capital (Modal)
🔢 A simple calculation for required capital involves taking annual expenses (e.g., 60 million IDR/year) and dividing it by the expected annual return (e.g., 6-7% for RDPT) to estimate capital needed (around 857 million IDR).
📈 A more rigorous calculation must account for inflation and the time value of money, often using tools or the 4% rule concept, which resulted in a required capital of approximately 2.2 billion IDR for a 55-year-old aiming for retirement at 65 with 5 million IDR monthly spending.
📉 If calculated capital is too high, options include increasing monthly investment amounts (e.g., from 2 million to 12.8 million IDR/month) or delaying retirement age.

Selecting and Utilizing Mutual Funds
🛡️ Fund selection depends on the investor's risk profile and retirement timeline; for a conservative investor retiring in 10 years, Fixed Income Funds (RDPT) with projected returns between 4% to 10% annually are suitable.
🔬 Historical data shows that some RDPTs have achieved returns of 10% to 15% annually, a possibility again as interest rates decline; high-performing options with large Assets Under Management (AUM) over 1 trillion IDR were identified (e.g., Syailendra Pendapatan Tetap Premium - SPTP).
💵 If a target capital of 1.5 billion IDR is placed in an RDPT yielding 7.5% net return, it generates 112.5 million IDR per year or 9.375 million IDR per month, exceeding the 5 million IDR baseline expense.

Key Points & Insights
➡️ Flexibility of Mutual Fund Returns: Unlike stock dividends paid semi-annually, mutual fund returns accrue daily, allowing investors to sell only the returns (the "eggs") without depleting the principal capital (the "chicken").
➡️ Inflation Impact: Ignoring inflation significantly underestimates the capital required for future financial independence, highlighting the need to let money work through investments.
➡️ Actionable Strategy: Investors can cover current expenses by selling a portion of the monthly gains; otherwise, the returns can be kept invested to compound further for higher future income.

📸 Video summarized with SummaryTube.com on Nov 30, 2025, 14:25 UTC