When investing for passive income, its all about the SIZE of your capital.

The maths laid bare. Given the following desired passive income and the expected ROI and you will see how much you need to have as capital for investment.


Desired passive income: $100k pa

ROI: 3%, Capital required : $3.3M
ROI: 5%, Capital required: $2M
ROI: 8%, Capital required: $1.25M

So if you desire a passive income of $150k pa with an expected ROI of 5%, you need to have an investment capital of $3M.

Will you be able to achieve the above targets?

What is your current investment capital? How much can you grow it year on year?

If you are now 40 yo, with an investment capital of $500k, and you wish to have $150k pa of passive income by the time you reach 55 with an ROI of 5%, you will need to grow your capital by $167k pa over 15 years.

From 40 yo to 50 yo, your household expenses may still be high so harder to save. But from 50 yo onwards, you should be able to accelerate your savings as your financial obligations and commitments taper off. So dont retire too early and miss the golden period of accelerated savings.

In our case, we saw our savings rate accelerates only after we turned 50. From $200k pa to the record high of $400k last year.