Friday 2 October 2015

To Know How Much Is Enough? (2) - The Balance Sheet Way!



Read seriously for your retirement planning. This is the best model found after Uncle8888 has been researching for model to follow --> Is Your Nest Egg Holding Up? 

Read? To Know How Much Is Enough?


CW8888's Wealth Formula:

Wealth = Asset Value + Cash Flow

Wealth = Human Asset + Financial Asset + Cash Flow

Human Wealth = Human Asset Value Cash Flow

Financial Asset = Market Asset Value + Cash Flow


When our Human Asset value is approaching to ZERO, we will have to fully shift gear to Financial Asset to generate future sustainable cash flow; BUT, some financial asset likes holding stock portfolio by nature will give us terrible emotional roller coaster ride. 

So how to be calm and steady over market cycles?

Think of having strong Balance sheet of future cash flow. Probably, this is the better to stay calm and steady for long, long time till RIP!








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