hould I exit the rat race?
The past 3 years I had been contemplating exiting the rat race and go to my dream job - Full Time trader. I had been honing my experiences in trading for the past 7 years. I think in terms of practices, it should be sufficient. Am confident of getting a 120-200K return pa on trading.
Current Situation
Age : 42
Dual income : 600K pa ( 300K each for both me and spouse)
Cash : 1.6 M ( FD)
Shares : 100K
Investments : 300K (4% pa)
CPF : 200 K ( OA) 350 k (SA)
Value of property : 4.5m
Existing Loan : 2m (10K monthly payment)
Strategy
Assets
1) Reduce to 1 income (300Kpa)
2) Trading profits ( FX / Stocks / Etc) (120Kpa)
3) Increase passive income ( Dividend stock / bonds ) from 400 K to 1 M
3.5% return - 35 K pa
Gross income : 455K
Liabilities
1) Reduce Housing loan to 1M (5 K pa or 60Kpa)
2) Income Tax - 30 K
3) Household Expenses : 60 K pa (Inclusive of car)
4) Holidays : 20K
5) Emergency Funds : 20K
6) Charity : 20K
Net Expenses : 210K
Savings : 240K pa ( To add to passive income yearly . Aim to pay off housing loan in 10 years)
I figured even without trading income, it might still work. Would not downgrade property as it is meant to be a heirloom for kids (I do not intend to leave them too much cash)
Am I missing any variables?
Stepping off the rat race is scary . Not only would you lose you income, but you would also lose your safety net (
CPF contribution, medical insurance, etc)
Nonetheless, I figured I should do it when my mind is still nimble and I have the energy to monitor positions.
Too ambitious or a realistic dream?