Long, long ago Uncle8888 as Baby Boomers already went big on Big Data and now he knows his Numbers and can show the Right Thing about CAGR between Human Asset and Investment.
Singapore's blogosphere is lucky to have old folk like him who is also financial rubbish collector who can now present real big data on the truth behind the scene of retail investing.
Read? Speaking And Sharing With Track Records!!!
Unless you are super investors or "Gurus" making most of their money by teaching others to reach financial freedom; you may be better off focusing on your human asset and that is the sure way to increase your net worth from saving without squeezing yourself too hard to live for the future instead of living the present.
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The real benefit of becoming active competent investor is that we are able to extend the generation of at least some minimum level of cash flow from our investment portfolio when our human asset ceased generating income. You may want to seriously think about while your human asset is still generating comfortable income. Investing will require full commitment and discipline like your craft at your job. o different. Just like that you have no supervisors or bosses. You are on your own.
ReplyDeleteCW,
ReplyDeleteAiyoh! Wait for me to compliment you lah!
"Singapore's blogosphere is lucky to have old folk like him..."
You ownself praise ownelf, I do what? LOL!
What you've shown is the hard reality. Most of the bloggers that have bigger portfolios all share the same trait as you - career CARG exceeding 20% or more.
That's how we can add new cash injections to grow our portfolios year after year, especially during the bear market years! With size, even a not so sexy investment CARG will produce a sexy sum in dollar terms ;)
Its those with career CARG around 7% that are most vulnerable to the spin of investment snake-oils dangling promises of investment CARG 20% plus. Just like you believing in miracle healers when you've got a terminal illness. Clasping at straws...
Sometimes newbies get their strategies mixed-up. If I got high career CARG, then an income investing strategy may make more sense - the multi-bagger compounding is done by my earning power.
But if our career CARG is very "average", then you need huge capital gains from your investments to do the heavy lifting as your corporate career not going anywhere. But if I embarked on a income strategy... I guess nothing wrong as CPF Life can make up the shortfall?
temperament,
ReplyDelete7% is not sexy by any matrix.
But in dollars and cents like what you have calculated, then $600K is not too shabby ;)
That's because you started with $100K.
If you had started with $10K... then no, $60K after 29 years is nothing to shout about :(
Size matters.
Start with 10K on a 7% income goal/strategy is barking up the wrong tree. But if you can complement it with an annual $50K cash injections per year, then we're talking!!!
This $50K per year cash injection can come from our day job; the surest way.
If no, then it has to come from capital gains from investments or profits from active trading. And maybe boosted by leverage.
Buy Toto strategy will not work here. Where got so lucky every year win $50K from Singapore Pools one!?
Uncle Temperament,
ReplyDeleteWhat is tong tong hee?
Some millennials that I know quite scary their thinking. Short-term track record win big......and think they are invincible. >.<
Now market bullish I'm getting slightly jittery. Think I should take profit first......
1) temperament,
ReplyDeleteIts never about how we start, its always about how we end ;)
2) Unintelligent Nerd,
That's Teochew. In Hokkien, its "jo bo lan".
In Singlish, its "lepak".