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.

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"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

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Thursday, 18 May 2017

F.I.R.E before 40???


F.I.R.E before 40 on just investment portfolio income?

With another 40 to 50 years of inflation ahead of them; can dependency on just investment income be sustainable?

May be single it is still possible; but for those married with kids and that will mean more wild cards to manage. Wild cards are unpredictable!

How much is enough?

Uncle8888 shivered at doing the Maths.

Or F.I.R.E before 40 just means doing other sort of activities with less emphasis on compensation, rewards or pay.


2 comments:

  1. Whether retire at 20 or 80 depends entirely on (1) F.I. i.e. ability, and (2) willingness. How able you are can determine how willing. E.g. if someone has passive income that covers all his & dependents basic expenses, he may still not be willing because he wants to provide a bit more luxury. In this case, he may still continue working part-time etc.

    Similarly, for someone who is highly social or extroverted, even if he has more money than he can ever spend in his lifetime, he may find it deadly boring to keep going on exotic holidays while all his friends & social circle need to work. He may decide to do consulting projects or venture investing.

    BTW, for real retirement, basic foundation need to be accomplished first: e.g. zero debts, emergency funds for 1-2 years, insurance for health & property, housing settled for the long-term, passive income much greater than expenses (at least 50% higher, more the merrier).

    The main questions then are "Can your principal survive thru thick & thin?" and "Can your principal continue paying you sufficient passive income?".

    For people having to work to survive or enjoy, that's their main principal --- the ability to generate income from one's time & efforts. Nowadays this principal's lifespan has been reduced to 20 or 25 years for more & more people. Even if able & willing to extend beyond 25 years, many corporations are only willing to pay reduced returns for this human principal.

    ReplyDelete

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