As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

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Tuesday, 13 January 2015

Investing Legend John Bogle Has A Refreshing Outlook On The Meaning Of Money

Business Insider 

John "Jack" Bogle founded Vanguard Group in 1974 on the idea that low-cost index funds, which reflect the performance of the entire stock market, would outperform actively managed funds.  

He turned out to be right. Index funds consistently outperform most high-fee mutual funds; investing gurus like Warren Buffett fervently endorse them; and Bogle's company, Vanguard, is now one of the world's largest financial institutions, with nearly $3 trillion assets under management.  

For his new book "Money: Master The Game," Tony Robbins asked the investing legend what money means to him. The famously thrifty Bogle, who is 85 and still works every day, had the perfect response.

"I look at money not as an end but as a means to an end," Bogle said.  

To underscore his point, Bogle told a great story about the writers Kurt Vonnegut and Joe Heller.  

"They meet at a party on Shelter Island," he said. "Kurt looks at Joe and says, 'That guy, our host over there, he made a billion dollars today. He's made more money in one day than you made on every single copy of 'Catch-22,' [Heller's novel].'"  

"And Heller looks at Vonnegut and says, 'That's OK, because I have something he, our host, will never have. Enough." 

The investor knows something that many of us forget: Striving for more will never be as satisfying as having enough.


How about you?

Have you work out your magic number?

How much is enough for your family to maintain sustainable retirement income for life?



  1. Hello CW,

    To answer your last question, I would deem to be 'sustainable' when my passive income can pay for all of my monthly expenses.

    I would deem to have 'enough' when my portfolio can generate such an equivalent amount of passive income consistently year after year.

    1. Do you compute future monthly expenses with inflation e.g. 2 to 3% rate?

    2. That's a good question. I didn't factor in the assumption. In fact, everything now is still fuzzy for me. I would expect my expenses to increase dramatically as my sons grow up. Right now, I am only focused on building up the portfolio.

    3. I think at this stage your asset value (net worth) has higher weightage than cash flow; but I suspect you are likely to disagree as your blog's nick say so. LOL

    4. Haha, possibly so. But I have never really measured my net worth. I suspect it is negative because I am still a slave to my housing mortgage. :(

    5. It is okay. Usual problem for married man with kids. How about looking at portfolio's asset vale. :-)

      Actually, high asset value can be converted to sustainable cash flow when it becomes necessary to do so.

  2. Content is the key, it's needs versus wants. Once you worked out what you need hence you have enough.

    1. i always feel in our parent's time, almost every family had very little, we also like that ma! Now every family has more why still never seems to have more than enough? Where is the meaning of the word - Contentment in today context?

      i think no one can say better then Paul:-

      "Not that I speak from want, for I have learned to be content in whatever circumstances I am. I know how to get along with humble means, and I also know how to live in prosperity; in any and every circumstance I have learned the secret of being filled and going hungry, both of having abundance and suffering need.I can do all things through Him who strengthens me.…"


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