Thursday 15 January 2015

The Most Important Number


 Read? The Most Important Number


Uncle8888's Wealth Formula
Wealth = Asset Value (aka Net Worth) + Cash Flow
Once we have accumulated our desired net worth, then we should switch gear to refocus on cash flow to maintain sustainable retirement income for life and to avoid having to force sell assets at wrong market timing.


 You can see that Uncle8888's Net Worth is very volatile so it is very important for him to refocus on sustainable cash flow and avoid selling at the wrong market timing.



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5 comments:

  1. SS15 January 2015 at 09:30:00 GMT+8

    Hello CW,

    Wow, you measure your net worth in S$M... I am not even in that league. Hahaha...

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    Replies
    1. Createwealth888815 January 2015 at 09:50:00 GMT+8

      You and together with other financial and investment bloggers will be there in X or XX years.

      Just matter of time!

      LOL!

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  2. Jimmy L15 January 2015 at 13:09:00 GMT+8

    consider your humble beginning, you now have a S$M portfolio
    that's very cool and amazing!

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  3. RayNg15 January 2015 at 14:44:00 GMT+8

    Cw, your definition 9f net asdet value is excluding property that you are stating. Tio bo?

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    Replies
    1. Createwealth888815 January 2015 at 15:12:00 GMT+8

      I exclude asset value of my residential home for computation of net worth; but it will be the asset of last resort when all financial goals and planning failed so badly.

      Not into investment property yet.




      Delete