What next after reaching the edge of financial independence?
Everything well done?
How about SUSTAINABLE retirement income for life planning?
When we read about retirement planning in the public sources, social media and cyber world, many of them will mention about having an investment portfolio that provide passive income from dividends or/and rental income, adequate or comprehensive insurance coverage, some emergency fund, and other sources of fund e.g. CPF OA, SA, MR, CPF Life, annuities, etc.
BUT, when retirees or financial independence folks live long enough, will they have the necessary financial resources or strength to overcome many future years or decades of inflation?
So it is beyond financial independence or plain retirement planning; after reaching the edge of financial independence, Uncle8888 begins to realize that there are still some works to be done i.e. create SUSTAINABLE retirement income for life. The evil of future inflation is going to affect him badly. Future bad market cycles are going to hit him even harder. Since he cannot possibly escape so it is better for him to prepare and get ready to mitigate for these bad things that are going to happen. After years of drowning in the vast domain of financial and investment, Uncle8888 has finally managed to simplify his idea or concept on wealth into one slide, one image and less than 10 minutes to explain the ideas and concept behind his Wealth Formula to help ourselves to reach the EDGE of Financial Independence. Read? The most important chart in CW8888's blog to remember on Wealth Formula!!!
Similarly, he has taken the same approach on retirement planning. He has been changing and refining his artwork to simplify his idea on retirement life planninginto
one slide, one image and less than 10 minutes to explain the ideas and
concept behind his SUSTAINABLE retirement income for life beyond the EDGE of
We should always remember bad things across future market cycles will eventually hit us directly at our investment portfolio. Our future passive income will NOT be sustainable after that many years or decades of inflation, we will need more than just our investment portfolio to maintain sustainable retirement income for life. We may need to take our retirement planning one step above or higher to include sustainability.
What is the best way can we make it sustainable for life?
One slide, one image and less than 10 minutes to explain it.
CW8888's Three Taps Solution to Sustainable Retirement Income For Life ....
TAP 1: Interests from non-market volatile assets as cash flow and additional cash flow to offset future years or decades of inflation for household living expenses when it becomes absolutely necessary will be from asset draw-down till 2038 (Age 81+).
TAP 2: Self-insured medical and health care funding from CPF SA, RA, MA, and $XXk emergency cash on top of Medi-Shield Life. TAP 3: Investment Portfolio of local stocks from SGX to generate cash flow from dividends and trading gains.
Last Resort: Where everything else failed, the value of his home will be the asset of last resort!
I am 61 yrs old uncle living in HDB heartland who has achieved financial independence @ 56 and retired @ 60 from full-time job as employee.
Single household income since 1995 with three children. Eldest son and daughter are now working and youngest son still in his 2nd year uni in SUTD.
I have been doing long-term investing and short-term trading in Singapore stock market only since Jan 2000 so I am that Panda or Koala in the investment world; but I am still surviving well in the wild.
I am now executing my Three Taps solution model to maintain sustainable retirement income for life till 2038.
Last updated: 3 Sep 2017
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