Our wealth will be measured at all times in both absolute and relative term. It is extremely difficult to escape from this measurement. In fact, no way to escape. How about becoming a sage living in high mountain?
When in doubt on how to look at our wealth; how about Uncle8888's Wealth Formula:
Wealth = Asset Value + Cash Flow
Our cash flow will be measured in absolute, receive in absolute and real, spend in absolute and real; and save in absolute and real.
But, our Asset Value will be measured at all times in both relative and absolute, and both in imaginary and real!
What we can control is how we periodically re-balance between absolute and relative value; and between imaginary and real!
We cannot possibly escape from both absolute and relative. Right?
I am 61 yrs old uncle living in HDB heartland who has achieved financial independence @ 56 and retired @ 60 from full-time job as employee.
Single household income since 1995 with three children. Eldest son and daughter are now working and youngest son still in his 2nd year uni in SUTD.
I have been doing long-term investing and short-term trading in Singapore stock market only since Jan 2000 so I am that Panda or Koala in the investment world; but I am still surviving well in the wild.
I am now executing my Three Taps solution model to maintain sustainable retirement income for life till 2038.
Last updated: 3 Sep 2017
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