Sunday, 30 September 2018
Updated: Size does matter for income plays!
I would like to update this old post with new information:
Size does matter for income plays!
What if you don't even have the minimum $500K?
Easy.
Leverage.
Brokers give 2 to 3 times leverage - now $200K enough oredi! Just like that, you can be financially free too!
No $200K?
Save more?
What?
It will take you 10 years to save $200K? Can't wait that long... You want to retire at 35. Don't like and don't want...
Eh...
How about Earn more?
What now?
Too hard and difficult? Anything easier?
OK, I know just the solution for you!
Try Toto.
Or marry rich!
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Yeah, so we no need envy those financial bloggers who are flashing 5 digits or more dividends annually.
ReplyDeleteDO ALL THOSE SUGGESTIONS ABOVE. Very good suggestions. (Last 2 options need intensive praying.)
Rainbow girl,
DeleteIntense praying may help with Toto.
But marry reach is a very ACTIVE exercise in manipulation! Not when other bitches are also targetting your man!
Think those palace intrigues dramas involving the 后宫 ;)
Marrying rich is half the battle.
Keeping your man after marriage is another ACTIVE effort as there are no shortage of 小三 who harbour dreams of disposing the queen and supplanting themselves in your place ;)
Passive is a recipe for ...
Leverage on property and hope En bloc?
ReplyDeleteCan also?
I know of someone kena enbloc twice .... win toto lol
Sorry. Group 1 once and group 2 thrice
DeleteSillyinvestor,
DeleteWow! Really?
When we enbloc, we normally get a new unit as compensation.
That means your someone is defintely not anyone and everyone!
He/she must have decided to take the compensation and choose another property that is super old with a SHORT lease remaining...
Others complain about 99 years is not "ownership" or fear their leasehold property will expire worthless 60 to 70 years down the road (ownself frighten ownself), your that someone games the system and positions himself for 2 bites of the enbloc cherry!
Clap, clap.
Either that or he super lucky! Lightning has struck twice!
CW,
DeleteIdiot. I buying Toto for more than 25 years now.
Highest I got is Group 5 - 4 winning numbers :(
Oh well!
Hope spings eternal :)
What's the ROI like? I bought once or twice a year but have nv even struck $10. Haha
ReplyDeleteRainbow girl,
DeleteBuy $1 Toto quickpick.
Strike the smallest prize for 3 winning numbers - $10.
Now you can go tell everyone you got your 10 bagger liao!
See?
That's why when we do presentations to "sell" our proposals, its a lot easier to play the misdirection gamed by using percentages ;)
LOL!
I think that it is better to be practical. Focus on saving as much as possible during the working years whilst keeping the expenses constant (if possible reduce). The less expense one needs, the less one will need to accumulate for the portfolio.
ReplyDeleteBen
Ben,
DeleteWe are polar opposites in this regard ;)
For someone like me who started out with $500 per month, I don't think I'll be where I am today had I stuck with a Save More strategy ;)
But then, had I earned $5,000 per month when I were 16, I believe I would be more receptive...
LOL!
Different strokes for different folks :)
Smol,
DeleteEarn more and save more? This is the best of two worlds. "Save More" is much more easier to implement as per my perspective.
Ben
Ben,
Delete开源节流 :)
Simple math.
If I want to save $50K per year to grow my opportunity/financial freedom fund, I cannot be earning less than $50K per year, can I?
Of course I can be "coy" and stress I'm able to "save" $50K per year due to my frugal lifestyle and habits...
Who is kidding who?
LOL!
Until someone shows me that it is possible to leverage an income portfolio across one or two market cycles to reach financial independence. Hard to believe as of now!
ReplyDeleteLeveraging on margin or share financing is nothing new!
CW,
DeleteIf being fully vested is a train wreck waiting to happen, what more is there to say about those using leverage?
Of course its not new.
Anyone interested in finanical history can survey and ask those highly leveraged retai; "investors" who were caught with their pants down in 1997, 2000, and 2008 ;)
But then, "this time its different" is a powerful spell to use on bei kambings ;)
At some point in the last few years, I realised I may not be at the end to collect. Thus, I am already drawing on the dividends when I have time and, especially, energy which I will not have later.
ReplyDeletepatty,
DeleteI was on a local tour in Greece with one senior Australian couple in their mid 60s.
The man was a Building Inspector in Australia. As a Greek descendant who emigrated to Australia when he was eight with his parents, this was his first trip back to the land where he was born.
Unfortunately, his knees were as bad as my mom's...
He spent most of the tour in the coach; can't walk anymore without pain :(
He told me with regret he should have come out on tours when he was in his 50s and in good health.
Now that he is retired, got time and money (that time Australian currency super strong due to commodity boom), his health has deteoriated...
It seems more people are more afraid to outlive their retirement funds than fear what if tomorrow never comes?
Hi Smol,
DeleteI agree with U that tmr may never come. Life is unpredictable. Cherish the present moment is the way to go.
Ben
Greece... I loved Greece. In a past life, I followed a hellenic beauty from the mountains in Thessaloniki across the Aegean, saw the sunsets of Santorini and the story ended in Cretes although not in a happily-ever-after kinda way...
DeleteAnyway, I just crossed the big 4 and had already seen friends who lost their siblings to cancer, diseases, accidents, etc. It is prudent to leave something behind and not inconvenience others should the same thing happen to me... just have to not overdo it.
Patty,
DeleteI've lost 2 colleagues both younger than me to illness - one Singaporean; one German - both in their early 40s.
Then there are divorces; some amicable, most acrimonious.
Well, there goes those overplanning of leaving estate to wife and insurances for children no longer in your custody...
You are so cool to cycle in Japan!
That's the best!
Want to do, do!
Don't just talk about one day I'll do this and that... Or put in useless bucket list...
Most people forget the idea is not to have anything on our bucket list!!!
Hi Smol,
DeleteThe optimum trade-off between being kiasu/kiasi and risk-taking is an individual decision which depends on the individual's unique personal situation, temperament and outlook on life. For those with more family responsibilities, I think it is more prudent to be biased towards the kiasu/kiasi direction. As for personal taste, using myself as example, I would rather be that Australian Building Inspector who regretted not coming out on tours when he was in good health than risk outliving my retirement funds. A responsible parent should ensure enough wealth for himself in old age so as not to burden his own children because the children need money to support children of their own. A responsible citizen should ensure enough wealth for himself in old age so as not to burden other taxpayers.
One more thing. Conservative people need to be self-aware not to use noble-sounding reasons like being responsible parent/citizen to hide his cowardly kiasu/kiasi tendencies. I'm referring to myself, not other people.
hyom hyom,
DeleteWe are what we are.
You are more self-aware than those who can "suddenly" become someone else just because their circumstances or roles have changed ;)
Everyone wears a mask; some have wore them for too long they have forgotten what their original faces look like...
SMOL,
ReplyDelete100% agree with you on size does matter. Any big building is started with a single brick or stone.
千里之行，始于足下。
Sanye兄，
DeleteIt is up to the individual to determine their own "recommended" absolute dollar amount to achieve their financial freedom comfortablly.
"Comfortably" is grey and not precision in 2 decimal places - to some a modest $1 million will do; to others it could be $10 million; and to high achievers, if earning $500K per year is considered "mediocre", then I would think they would not settle for anything less than $50 million?
CW had a great analogy with the 3 little pigs when it comes to taking short cuts.
Like what you have said, the prudent way is to take baby steps and build our financial freedom brick by brick, ensuring we based them on a strong foundation.
But when we start to cut corners and try to lower the minimum requirements even lower by building our financial freedom house with straws or branches...
Of course we can do it in double-quick time than with heavy bricks, but we know how that will end when the big bad wolves of 1997, 2000, and 2008 came knocking again :(
We can empathise with those in a hurry. If we had to drag ourselves to work everyday, instant noodle fast is much more appealing than planting durian tress and waiting for the 1st harvest ;)
Hi Jared,
DeleteAs usual, the more important message is found in your comments and not the main post. Dessert always taste better than the main course on your blog. Your important message: Don't cut corners and lower minimum requirements to define financial freedom.
Defining financial freedom is actually not hard. It is simply a numbers exercise.
- How much is a person's normal monthly expense? Also, think of worse case scenarios in which expenses can balloon. Like family members falling seriously sick with a huge hospital bill. Add some conservative margin to be on the safe side.
- What is a convervative estimate of his investment gain to cover his expense?
- How much is his cash savings? How long can it last him if the markets are not cooperative?
The keyword is being conservative here. Like Benjamin Graham says, margin of safety.
A wiser investor once told me that for safe income generation from investments, use bonds and not equities. Many Singaporeans have taken to REITs instead to juice up the income. Although this is more risky, I think this is still acceptable but I will not do this myself. However, I cringe when I read about applying leverage on REITs to boost the juiced-up REITs income. This will appeal to those with small capital. However, the concept of margin of safety is thrown out of the window. For the general public, it is better to be conservative and always bear in mind margin of safety when it comes to deciding whether financial freedom has been achieved. Don't take dangerous short-cuts to financial freedom. A person may make the wrong life decisions thinking he is financially ready when he is really not.
hyom hyom,
DeleteMy posts are just "invitation to treat" or 抛砖引玉 ;)
On the other hand, we should also be away of overly kiasu and kiasi behaviours where we cover ourselves with layers over layers of margin of saftety...
Enough is never enough :(
The goal posts get moved again...
Kiasu and kiasi are double-edged sword. To me,, these two behaviours sound like negative mindset. It will be deja-vu for those who have short lifespan. It is akin to an example which you mentioned as "Retire at 35 and gone at 40". The individual with short span will definitely have different approach had he/she knew of such circumstance.
DeleteBen
Ben,
DeleteIt can be a bit tragic to climb our ladder of "success", each steps representing our goals and milestones that we have carefully planned, to reach to the very top only to find our ladders have been leaning against the WRONG wall!?
The successful female CEO who finally made Chairman of the board... Only to regret the unborn children she may have had; the man she let go as career came first...
The alpha male CEO who retired with full accolades and glory from his peers in the industry to a home of strangers... The price of working 80 hours a week...
What is success?
Its what we have to sacrifice to achieve it.
The ceiling is limitless. There are always higher mountains when one's target is achieved.
ReplyDeleteI do not follow such trend. I set my own target (less than a million). I reached this target about a year ago. I hesistated for a year before calling it a day recently. Be oneself. Know what is enough and stick to the plan. I am late by a year. It's better than never.
Ben
Ben,
DeleteIf enough and comfotable, what else matters?
Young that time one year is a long time!
Now? Every year passes by so fast!?
Everything is subjective.
Financially free at 35; die age 40.
Financially free at 65; long life and heathly like Mahatir.
Who is better off?
Like our 5,000 years of Chinese wisdom says, "Mr Ong lost his horse. Good or bad? Its too early to tell..."
LOL!
Smol,
DeleteThe first might be better to some extent. For some who cannot walk when they are old, it may be deemed as restrictive being immobile.
Ben
Ben,
DeleteIts too early to tell...
Too many what ifs...
Then there's long and wasted life versus a short but meaningful one...
"... understand that accumulation of money cannot be left to chance, good fortune, and luck. One must realize that all who have accumulated great fortunes, first did a certain amount of dreaming, hoping, wishing, desiring and planning before they acquire money."
ReplyDeleteAbove are lines taken from the Napoleon Hill's book, not my words. I am not sure why you are against 'planning' but I think planning is the part that puts all the grey and messy stuffs into organized and deliberate acts. Or do you have other thoughts?
Rainbow girl,
DeleteFirst, beware the person of one book only ;)
(You figure this one out on your own)
For every brilliant idea or advice, they would always be another equally brilliant idea/advice that's exactly opposite.
Why I don't set goals
Those who have crossed the river, focus on sharpening the saw, practice, competence, craftsmanship, mastery that sort of thing.
Those who have yet crossed the river, focus on the tools... If I had a better sword or my spear longer than your spear that sort of thing ;)
Its like doing sports or going to gyms classes. Its easy to spot the newbies as they usually have the newest and "bestest" equipments and attires!
LOL!
Rainbow girl,
DeleteOh! Forgot to promote my own post :)
We see what we want to see
:)
The best approach is to be postive in all aspect. Seize every moment. One will have no regret.
DeleteBen
Smol,
ReplyDeleteI re-read your narrative of two former colleagues of yours. This goes to show that the unexpected event can occur to anyone regardless of his/her age. Therefore, I think that it's better to take action on any decision which come to the mind of one. This is more prudent in my view.
Ben
Ben,
DeleteMy no study hokkien street smart friends would say, "Mai tu liao!"
That's the inspiration for my Bucket List post ;)
Smol,
ReplyDeleteWell said. Cool decision is the way to go. Procrastination is not desired. Ppl tend not to make decisiom in fear of the outcome. Few do not know that procrastination is also a decision. Do and Don't Do. It's worthwhile to do it. There will be no regret regardless of the outcome. I experienced such circumstance on numerous occasions. I can sense a relief upon the execution of my decision. It's awesome and sweetening.
Ben