We often read in blogs, forums or social media Passive income > Living expenses. Pom pi pi!. Can FIRE liao! LOL!
Lean FIRE or replacement income for retirees on dividends may NOT be sustainable over prolong market or economics crisis. We may need Plan B to level up our dividend income! Plan B. How to do that during our decumulation phase?
Lucky or unlucky; Uncle8888 learnt first-hand lesson on the ground after 3 years surviving on replacement income as Panda in local market, SGX and CPF during COVID-19. Now; he no more kpkb on rotting cash in his war chest! That is his Plan B and Plan C is to tap on his CPF RA tap for monthly cash flow:-)
Uncle8888 has to double up his investment costs during this crisis due to drastic drop in dividends from his top 3 counters to sustain his dividend income level!
Posts
CW,
ReplyDeleteIts never about press one button and relax on the beach forever and ever right?
Like the ebb and flow of the tides, and the different phases of the moon, markets got cycles.
I'm a market timer (or at least I try to be in sync).
Those who never time the market is really saying, "Don't worry! Stocks only up up!"
I wonder who put that idea in their heads!?
LOL!
Traders can still make some money during good or bad times. Thumb up to traders! :-)
DeleteThank you for your frank sharing CW! Very few bloggers would share the "painful secrets" to investing for dividend income.
ReplyDeleteTo "maintain" my desired dividend income this two difficult years, I have been pumping in more money into the stocks. Some stocks cut or totally stopped their dividends. I had to invest in new stocks to make up the shortfall! And I dont think I could ever make the same dividend received in 2019 which was $78,800. Now I am just aiming for $60,000 a year.
Luckily it was the other way around for rentals. The Covid pandemic led to a new "trend" --- Work from Home and increased demand for rental space, and thus increased rental income for us.
But the safest of all, and the backbone to our passive income source is still the humble CPF. This is one source where one can confidently project the interest income many years down the road. Heck, who can predict what the stocks or property values would be next week, next year or even tomorrow?
Still try not to put all eggs in one basket. CPF or not.