Read? Why Pursue Financial Freedom? (6) - Refresh!
Read? FI or FIRE? What Next? What Other FIRE Bloggers May Have Not Mentioned These
Read? You think it is so easy to retire early???
FIRE is more than just financial readiness or financial independence! We will need solid reasons or meaningful objectives to retire early. Uncle8888's block has two early retirees but they didn't called themselves Stay-at-home-dad. Women who early retired are more likely to label themselves as housewives or stay-at-home-mum. See the gender inequality or difference. LOL!
Uncle8888 just came across another case of FIRE and then back to office. It shows that early retirement is NOT that easy. It is always more than just financial means to FIRE!
Case 6 is an interesting one as he is Trainer for Early Retirement Masterclass!
Never mind! We can always FIRE and then De-FIRE after that! LOL!
Posts
Hi CW,
ReplyDeleteHow about yourself? You have retired for 6 years no? Are you bored yet?
Personally I think we must retire to something, and NOT to retire from work. Otherwise we will be bored very quickly
What is more worrying is if we retire early and need to go back to work because money not enough!
I shared my thoughts with the blogger Alpaca investment and advised him NOT to retire based on dividend income alone:
I am still doing this Part-Time And Free Lance Jobs and COVID-19 in 2020 taught me this even part-timers or free lancers can be out of jobs. No jobs are safe at all!
DeleteRead? COVID-19 strongly reminds us ...
Senior citizens who are strong walkers have advantage with their monthly concession pass. Just go wherever we want to go. Find food or hiking or just passing time on B.M.W. when we started feeling restless or bored at home. Get OUT at no extra transport cost and may find something out there! :-)
DeleteRead< a href=https://createwealth8888.blogspot.com/2019/01/something-behind-our-luck-factor-and.html">Something Behind Our Luck Factor And Chance In Randomness Environment Where We Have No Control
Hi Alpaca,
ReplyDeleteGood start to your passive income investing journey. As a fellow passive income investor, hope you dont mind my sharing on our 12 year journey on passive income investing. What we encountered, lessons learnt and what we achieved.
As wage earners all our lives, the lure of passive income is strong. Cash flow without effort on your part! Whats not to like?
Intrigued by it, We started to build our own passive income streams in 2011 (comprising dividends, rental and interests from CPF) at the tender age of 50. It was good that we started late because the first lesson we learnt was you need capital to generate passive income. Starting late in life meant we have decent capital to play with.
Year 1 (2011) passive income came in at a grand total of $46K. And it gradually grew to an all time high of $196,800 in 2019. Then Covid struck, and it all came tumbling down... to $182K in 2020. Lesson number 2 - dividend and rental incomes are not reliable. And interest from CPF is. (Lesson number 3). Thus DO NOT plan a retirement on dividend nor rental income. Doing so will result in a retirement with anxieties. Instead plan a retirement lifestyle base on steady income streams. For us, that source of steady income happens to be the CPF savings.
If you build up your CPF Savings well, it can create two dependable passive income streams; namely the interests from your OA&SA savings as one, and the payout from CPF Life. Plan your retirement lifestyle around the dependable income streams and treat those not so dependable income streams as bonus incomes.
2020 was the time I went into the market and bought more stocks on discount. With that, the following year 2021, the passive income grew back to $196,700. And this year 2022, it hit a new ATH of $226,000.
This would be the projection of our passive income down the road (to sustain our retirement) :
What we achieved in 2022:
Dividend : $88,000 ($7,300 pm)
Rental : $3,500 pm
Interest from CPF : $99,000
From 62 (2023) to 69
Gold Tap
1. OA&SA interests : $65,000
Silver Tap
1. SRS drawdown : $52,000
Bonus Taps
1. Dividend : $80,000
2. Rental : $40,000
Annually : $237,000
From 70 onwards
Gold Tap
1. OA&SA interests : $65,000
2. CPF Life : $60,000
Bonus Taps
1. Dividend : $80,000
2. Rental : $40,000
Annually : $245,000
We are planning on a lifestyle supported by the gold and silver taps only, that is, on $10,000 per month. If our bonus taps are doing well, we would most probably not be touching the OA/SA interests and let it compound.
CW,
ReplyDeleteWe are the few bloggers in the community who are sharing what's life like strolling down the mountain - for HDB heartlander lifestyle.
I guess we act as counterbalance to those who are still striving to reach their own summits?
Especially for readers more interested in what's next after retirement.
It would be interesting to read those youths who have achieved FIRE at 35 share what's life like!
However, most of these multi-million dollars youths are not retiring as they are Business Owners happily engaged with their empire building phase!
We just have to wait another 4 years. Then mysecretinvestment can also share what's private property lifestyle retirement is like!
We are sharing real life stories on the ground. :-)
DeleteHi SMOL,
Delete4 years later, I will be 65, my planned target for retirement. But we all know, plans and reality can be quite different. The four years is to give myself the time to hit our financial goal. As each year passes, and as we get older, the financial goal is getting less important as compared to good health and having a fulfilling life.
But barring unforeseen circumstances, we should be hitting our financial target in two years before I turn 64.
mysecretinvestment,
DeleteWishing you good health and happiness!
You don't sound like someone seeking financial independence to "escape".
Good talent with experience is hard to find. I won't be surprised you'll move the goal posts if your landowner offered you a "minister mentor" position. Wink, wink.
Lao Lee and Dr Mahatir where got "retire"?
There's no need to "retire" if we are doing what we love!
Some people FIRE to do what they like, then realize it is not really what they want, and go back to what they were doing. That's ok. It's a good experience. No big loss anyway.
ReplyDeleteWhat is more unfortunate is when one FIRE without having a comfortable cushion to FIRE, some unplanned event forced them to go back to what they were doing but they are no longer able to find a similar position anymore.
temperament, I think you could be the oldest FIRE person in this community. Hope you are enjoying good health and accumulated good wealth to enjoy your days.
ReplyDeleteMaybe one of these days, you can share with us how you spent your time and enjoyed the past 22 years after you FIRE yourself and FIRED your company.
I wonder what happened to Temperament. I wanted to respond to his good reply to me last week but his online presence seemed to have vanished.
ReplyDeleteTemperament, I hope you are fine. Take care, if you are reading this.
Hi Temperament,
ReplyDeleteGood to hear from you. As long as you're fine, that's good enough.
Your past comments on financial blogs should still be stored in your email.
Nowadays, there are several investment communities that you can participate besides financial blogs. Plenty of investment-related groups on telegram and there are active discussion forums on hardwarezone like MoneyMind.