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Originally Posted by Unregistered
On your third question, it is easy:
Get your passive income up to 2 times your families current expenditure. You will save at a rate much higher than inflation and it will handle even your extreme kiasu syndrome.
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Yes, I am trying to see how I can maximise the income from my portfolio and get it to a fairly predictable and recurring level. Taking more risks does not guarantee higher returns and that's the problem.
Quote:
Originally Posted by Unregistered
BTW, this what I think:
You will be able to travel first class until you are sick of it.
You will be able to buy the full carbon bike with $10,000 carbon wheels
Your age will make it frustrating trying to learn anything. Dementia, Alzheimers.
You will be able to buy a top restaurant and have the chef cook for you at home.
If your investments earn twice your expenditure, why fix something which isn't broken. If you get demented, you might screw up an lose it all. Just leave it.
From the way you write currently, I wouldn't try writing
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Sadly for me, I am not as rich as you think I am. Travelling business class will be sufficient luxury for me. Buying a fanciful bike is something I have been thinking of but don't want it to sit around and collect dust. I could always let my son use it but I am worried about his safety if he rides on the road.
I am also not that old lah! Most people my age will still be building their careers. It is also not a given that you would develop dementia or Alzheimers when you get old although they are certainly risk factors. I think learning because "you want to" vs "you have to" is quite different. More importantly, learning keeps the mind active.
Cooking is a different form of enjoyment, at least to me. I can always go out and eat at restaurants but cooking a delicious dish on my own is a form of achievement. It also keeps the mind active! So, if I am retired and have time on my hand, why not? For me, eating out at a good restaurant is a form of pampering. They serve different needs.
Lastly, I have to agree to disagree with you on the point about actively managing an investment portfolio. We just have to do the best with the cards that we are dealt with - illnesses and accidents may or may not happen. They can't be planned for so in the meantime, we manage based on our circumstances. E.g. I have invested in Datapulse for some years which has been paying fairly good dividends (about 10% pa). The stock doesn't appreciate much but it provides good dividends. But, the world is moving away from what the company does i.e. CD and DVD replication services. As high speed broadband becomes increasingly pervasive, consumers find it more appealing and convenient to download their songs, movies, games and software online instead of physically buying the discs. Some of this has even gone to a cloud based model. I recently divested my entire holdings in this company as I am no longer confident that its business is sustainable in the long haul. It may remodel itself into something more promising in the future but at the moment, if it continues the way it is, I am not that upbeat about its business prospects. It has provided me with a good dividend yield all these years but the time has come for me to say farewell to it, take the money and move on to another better investment hopefully. It's still paying a good dividend and the share price has stayed up and it would be easy for me to leave it as it is but I think that investment is getting riskier for me.