I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

Click to email CW8888 or Email ID : jacobng1@gmail.com



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
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Monday, 4 August 2014

Home for Living and not for profit taking (10)


Read? Home for Living and not for profit taking (9)


One way to avoid evaluating it too emotionally is to ....

Think of it in term of Mathematics.

 
Read? Passive Income??? Why must have more of it!

Uncle8888's Wealth Formula:
 
Wealth = Asset value + Cash flow   ------ (1)

 Substitute "Asset value" with "Home" ---- (2)
Wealth = Home + Cash flow   

Does your Home currently generate any cash flow to supplement your living expenses?

Yes or No?

Don't defend your answer with your emotions.

In our retirement phase with no or little earned income, we will need to have good level of cash flow coming from our current assets to support our living. 

Can our Home provide that level of cash flow now?

Our Home is our future Asset that can generate cash flow with some trade off. That trade off is the necessary Evil!


 
 



 

 
 
Posted by Createwealth8888 at 07:47
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4 comments:

  1. Createwealth88884 August 2014 at 07:51:00 GMT+8

    Rich Assets. Poor Cash flow = No really Good

    Rich Assets. Good Cash flow = Wonderful assets that we have.

    Peng yu tio bo?

    ReplyDelete
  2. RayNg4 August 2014 at 09:31:00 GMT+8

    Poor asset & Poor cashflow = Dog

    Rich Asset & Poor cashflow can be turn around. For example, my friend father in law stay with him and rented the fully paid HDB flat and collect >2K income every month.

    ReplyDelete
  3. Anonymous4 August 2014 at 21:31:00 GMT+8

    No wonder people say how much your net assets doesn't count, it's your cash flow. And if you can't control your cash flow, you may have to sell some of your assets cheaply. In fact with little personal assets but proper leverage (OPM), you may have quite good cash flow.- Rental property is one of them.

    ReplyDelete

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