As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

Welcome to Ministry of Wealth!

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

It is here where I share with you how I did it! FREE Education in stock market wisdom.

Think Investing as Tug of War - Read more? Click and scroll down



Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Sunday, 15 November 2015

What Next After Reaching the EDGE of Financial Independence???



Read? Your Investment Portfolio is your Accelerator on the Road to Financial Independence!

What next after reaching the edge of financial independence?

Everything well done?

How about SUSTAINABLE retirement income for life planning? 


When we read about retirement planning in the public sources, social media and cyber world, many of them will mention about having an investment portfolio that provide passive income from dividends or/and rental income, adequate or comprehensive insurance coverage, some emergency fund, and other sources of fund e.g. CPF OA, SA, MR, CPF Life, annuities, etc.

BUT, when retirees or financial independence folks live long enough, will they have the necessary financial resources or strength to overcome many future years or decades of inflation?

So it is beyond financial independence or plain retirement planning; after reaching the edge of financial independence, Uncle8888 begins to realize that there are still some works to be done i.e. create SUSTAINABLE retirement income for life. The evil of future inflation is going to affect him badly. Future bad market cycles are going to hit him even harder. Since he cannot possibly escape so it is better for him to prepare and get ready to mitigate for these bad things that are going to happen.


After years of drowning in the vast domain of financial and investment, Uncle8888 has finally managed to simplify his idea or concept on wealth into one slide, one image and less than 10 minutes to explain the ideas and concept behind his Wealth Formula to help ourselves to reach the EDGE of Financial Independence.

Read? The most important chart in CW8888's blog to remember on Wealth Formula!!!



Similarly, he has taken the same approach on retirement planning.  He has been changing and refining his artwork to simplify his idea on retirement life planning into one slide, one image and less than 10 minutes to explain the ideas and concept behind his SUSTAINABLE retirement income for life beyond the EDGE of Financial Independence.

We should always remember bad things across future market cycles will eventually hit us directly at our investment portfolio. Our future passive income will NOT be sustainable after that many years or decades of inflation, we will need more than just our investment portfolio to maintain sustainable retirement income for life.  We may need to take our retirement planning one step above or higher to include sustainability. 

What is the best way can we make it sustainable for life?

One slide, one image and less than 10 minutes to explain it. 

CW8888's Three Taps Solution to Sustainable Retirement Income For Life ....

TAP 1: Interests from non-market volatile assets as cash flow and additional cash flow to offset future years or decades of inflation for household living expenses when it becomes absolutely necessary will be from asset draw-down till 2038 (Age 81+).

TAP 2: Self-insured medical and health care funding from CPF SA, RA, MA, and $XXk emergency cash on top of Medi-Shield Life.
 
TAP 3: Investment Portfolio of local stocks from SGX to generate cash flow from dividends and trading gains.


Last Resort: Where everything else failed, the value of his home will be the asset of last resort!




 




 

9 comments:

  1. Uncle, I been thinking of doubling my wealth during my retirement. Possible?

    ReplyDelete
  2. possible when we can time the market. buy near low and sell near high.

    ReplyDelete
  3. It seems to be possible as you "only" need to have a CAGR of 8.0%

    My CAGR calculated by Microsoft Soft money is 10 % UTD.
    But i suspect it is much less than 10%.
    May be about 6 to 7 %.
    Remember for any software it's your data i/p accuracy that counts.
    After so many years, i must have missed some data i/p and perhaps i/p some "rubbish" data too.
    Ha! Ha!
    Can't escape the "Rubbish In, Rubbish out" as far as software bounds operation.
    Hey! Not 100% accurate who cares?
    Who is to give me a pass or fail in examination?
    When i invested in the first place, i invest more like a grasshopper, rarely like an ant.
    It's not i don't want to be an ant, i can hardly too.
    i only have "Fuzzy Logic" not so much "Ant like Logic"
    But managing my money, i think i apply "Ant like Logic" very much lah.

    Why i tell my long winded story?
    Is there a moral?
    i don't really know.

    ReplyDelete
    Replies
    1. A smile flashed across my face as I sip my morning coffee.

      I really know why ;)

      Delete
    2. Really!?
      May be you can help me to see in my Blind Spot or some kind of "enlightenment"?

      Delete
    3. temperament,

      I meant I really know why I smiled reading your comment about grasshoppers and ants ;)

      As for why you told that story and the moral of it all, if you don't know yourself, why would I care?

      Wink.

      I am responsible for my own thoughts and actions :)

      Delete

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