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?
CAGR of 7% for 17 years is VG. liu.
ReplyDeleteAnything more than beating inflation rate is O. K. one
Try losing money for 17 years @CAGR of 3% of $100,000.
You will lose $165,284.76 Accrued Amount.
On interest alone you will lose $65,284.76
Real calculation:-
$100,000 CAGR@7% for 17 years absolute Accrued Amount = $315,881.52
Interest = $215,881.52
So compare to one who can't beat inflation or worse still lose money.
i think anything CAGR of 6% is good enough if inflation stays about 2 to 3 %
And many people forget because of CAGR of 7% for 17 years, the CASH or Assets accumulated from this CAGR also is not sleeping you know.
For me?
i got no complain, in fact i am very happy if i got 7% CAGR.
You know lah, i got 29 years to compound.
i really not sure what's my CAGR for 29 years.
i only know be careful not to invest like when i first started - 'Lock, Stock & Barrel" into the market.
If, only if i got 7% CAGR for 29 years for $100,000, i would have Accrued Amount $711,425.7.
ReplyDeleteInterest is $611,425.7.
So if the stock market is my "bank", giving this CAGR of 7 % with a deposit of $100,000 for 29 years, do i for want to complain?
You tell me which bank will gives you this CAGR@7% for 29 years?
Ha! Ha!
temperament,
Delete7% 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!?
Ha! Ha!
ReplyDeleteYa lol!
Don't forget, i started at the age of 40.
Dual Income some more.
No debt.(aka my wife's fund i manage till today).
Starting late may got some advantages too provided have been doing a lot of prior home work.
If i started at 25 or younger, i just don't know what's the difference in result.
And yes both of us use CPFIS to the MAX.
ReplyDeleteAt 25 i still "Sub Buay Sek" & "Tong,Tong Hee"
ReplyDeletei think i was just one of the late developers lol.
Uncle Temperament,
DeleteWhat 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......
Ask CW or SMOL, i think they are "pure KaKi Lang" about "Tong, Tong Hee"
Delete1) temperament,
DeleteIts 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".
"A hard beginning maketh a good ending".
Deleteor
"A good beginning makes a good ending"
/////
Both are possible.
Which one would you prefer?
It's like from "Rags to Riches" or born as another "Donald Trump"?
The truth is somewhere in between that is, "A good start is a job half accomplished"
i don't actually believe if you are young(aka a lot of HC) you can take a lot more risk in the stock market and still come out O.K. at the end.
In fact i believe if i started at age 25, i would suffer a lot more and may never make it in the stock market if my capital was wiped out. Being an ordinary wage earner.
May be i would have started as a short-term trader than as a long-term trader who find it very difficult to bring himself to short the market even in an obvious Bear, Bear market.
Buying is always very easy one.
ReplyDeleteGot money can buy liu.
Sell........Hm....
For some stocks WB never sell one.
Only go and check in 2008/2009 what happened to all the SGX stocks.