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Old 16-04-2015, 09:23 AM
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It is wise to continue working as long as you can. Should try not to count on your children contributions to household expenses as they will need to start off their own lives and families.

How much would you need to generate the $6k pm passive income and how far away are you from it now?

From my experience, if you are depending on stocks dividends for passive income, it is a slow and challenging process.

For eg. to grow a passive income from $40k pa to $45K pa at 5% dividend returns, you will need to invest another $100k ! (or from $800k to $900K investment!). Meaning for every additional $5k pa returns, you will need to inject $100K investment!

The initial steps or build up was difficult for us, but with constant re-investment of our dividends and savings, you will start to see the real impact/benefit of compounding returns in the later years. We have now achieved $120k pa. moving slowly but surely to our goal of $150k pa.

The compounding effect kicks in because you find your passive incomes more than adequate to cover your annual expenses leaving you to save all of your yearly incomes! And when you invest these savings yearly, the returns really grow and fast! Imagine how fast it can grow for a couple earning more than $300K pa combined. If they invest this amount yearly, it gets them conservatively $15k additional passive income every year. And some more this does not include the capital appreciation!

Originally Posted by Unregistered View Post
We are in our mid 50s and plan to retire soon. Currently I make $130k pa while my spouse makes $139k pa. We own a 2 year old condo valued at $1.4m and it is fully paid. Our children are now grown ups. We will retire once we generate a passive income of $6k pm as we estimate that we will need $4k pm for the two of us. Our children contribute to the household expenses plus they gives us a monthly allowance.

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