Read? Put More into Building Wealth Early, then divert Income to More Spending for Higher Income Couples
.... I got triggered by someone exploring the possibilities of front loading their wealth building, such that after a certain age, they can stop putting money towards wealth building, yet have enough to retire at the age of 65 years old.
Uncle8888 fully agreed with the above as he has achieved it.
On his human asset ...
On his Financial Assets ...
Since Jan 2000, Uncle8888 didn't put in a single cent into his investment portfolio as he believe he has enough war chest for his investment portfolio. More importantly, he has to mitigate the Risk Of Liquidity Needs and recognizing the effect of his depreciating human asset. At anytime, he might be retrenched in the next economic crisis so he has to build up his emergency fund in term of X years and not the typical 6 to 12 months. An old human asset is extremely difficult to get another job. It may take years to do it!
Read more on risks? Your Personal Finance and Investment - Three Risks That Are Seldom Actively Discussed by Personal Finance and Investment Bloggers
May be some financial and investment bloggers became more successful with their investment portfolio due to this front loading effect?
In investing, our account size really matters - CW8888
May be the truth is due to this front loading effect?
Read about? Embracing Three Taps Solutions to Retirement Income For Life Model
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For young ones, spending your limited time and energy on improving your human asset or financial assets as early as possible. Bear in mind, we really have limited energy and time to do too many thing well at the same time. Something have to be trade off at certain time?
ReplyDeleteWhich is within our control? Human asset or financial assets? Maybe both, or maybe none.
ReplyDeleteDepending on the entry value of our human asset when we first enter the job market. For lower value human asset like non-graduates, they still have control to upgrade themselves through educational path e.g. Diploma or Degree. There are job level that requires minimum educational level like Diploma or Degree. But for higher value human asset like graduates; there will be fewer job level that requires Master or PhD so there is less control for them.
DeleteBut, higher value human asset will enter the job market with higher pay and it is still within their control to save more to build up their financial assets.
For our human asset, we have some control up to certain level and after certain point in our time we will have little influence over it. But, for our financial assets; most of the time we can decide to take back or return control to Mr. Market. But, that decision is often too difficult to make. :-(
Uncle 8888 no jump ship all these while ? Once you got degree , your promotion comes much faster compared to your diploma years .
ReplyDeleteRead? 10th Anniversary???
DeleteCondemned human asset has no bargaining power and can consider quite lucky of not becoming disposed asset.