I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

Click to email CW8888 or Email ID : jacobng1@gmail.com



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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

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Friday, 10 November 2017

Should you follow the 3% or 4% retirement rule?


Uncle8888 doesn't follow the 3% or 4% retirement rule!

 After researching the cyberspace and also reading available NLB's books on retirement planning; he is convinced that his three taps model to build retirement income for life is more sustainable across market cycles as he doesn't have to draw down on his investment portfolio pay for household living expenses during market low. Any draw down on our investment account size will make very difficult to recover. 

 In long term investing; our account size really matters!

 Read? DIY Annuity (Jan 2018 to Dec 2038) With CPF OA





Posted by Createwealth8888 at 08:13
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3 comments:

  1. Maggie10 November 2017 at 12:03:00 GMT+8

    Is your 3 tap model similar to bucket strategy for retirement?
    I mean, you keep the next 5-10 years in cash/liquid form, the next 5-10 years in balanced portfolio (with heavy emphasis on capital preservation) and the last bucket in risky assets (equity). In this model, you first draw down from bucket 1 (liquid/cash) and exceed proceeds/returns if any from bucket 2 and 3 move into bucket 1 as you progress into retirement.

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    1. CreateWealth888810 November 2017 at 12:51:00 GMT+8

      About the same concept, the idea is that we shouldn't be funding bulk of cash flow ONLY from our investment to avoid any significant draw down during market low. Forced to sell is painful. When we need additional cash flow it is better to draw down on fixed assets that is non volatile over market cycles.

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  2. CreateWealth888810 November 2017 at 23:52:00 GMT+8

    That is Tap 1. When Tap 1 is enough to provide sustainable retirement income for life, investing is no longer critical as wealth accumulation tool. We can either quit the investing game or treat it as hobby.

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