Without losing any income investment back to Mr Market?
Chun bo? Remember that you said that Losing is part of investing game. LOL!
3Ms - Method, Mind and Money Management
Method
Uncle8888 has two bank accounts i.e. one joint bank account for investing which linked to joint CDP account and another joint account for saving to fund household expenses.
Investing is investing. Liquidity for household is spending. Never mix up investing with saving/spending. Never!
Whatever investment income i.e. dividends or trading gains will be transferred from investing to saving for liquidity to fund household expenses.
Mind and Money Management
During his retirement phase; he is no longer investing to build up more wealth for his retirement as he is already retired. He is investing for income to spend and using his war chest to calibrate investment income to try to make it sustainable across market and economic cycles.
His investing capital has been fixed since inception of investment portfolio on Jan 2000; he has not injected a single cent into invetment portfolio for the last 20 years of investing journey. He is kiasu and kiasi. He can only afford to lose what he can put into the stock market as single household income with three children.
Mai cheong in the stock market! He is not those Early Retirement Masterclass type of retail investor. He is as slow as Panda or Koala.
That is the nature! Slow!
If he is still good at investing; he will be able to generate investment income with his fixed capital. If he has lost his capital significantly in the future; he will have to retire from investing and lives off his CPF and quit investing game! Game over for him!
How not lose back money to the stock market?
Once this investment income is already spent; how to lose this money back to Mr Market. Right?
Posts
Uncle 8888
ReplyDeleteYou are disicplined and always coming out with presentation to remind not to be greedy.
:-)
Delete长话短说
ReplyDeleteLong story short.
Ya, i had lost 30 to 40 K for short term speculation b4.
Why so boh 4Ks leh at that time?
Wrong psychology leh - money from the market not like my money leh.
Never , never again will think like that money from market can anyhow risk one.
No never, never again.
长话短说
Long story short.
Never lose back what U have made from the market (Aka don't be too greedy lah).
Hi CW,
ReplyDeleteMy hats off to you for your consistent and disciplined way to investing. You have also highlighted one very important point in this sharing - and that is: Know your objective. Whether it was to build up more wealth (before retirement) or for income for retirement sustenance (now that you're retired).
Different approach for different objective.
Like all your posts before, I am learning something everytime.
Thank you!
:-)
Delete