Unregistered |
19-08-2014 07:58 AM |
It is good that you asked these questions. It showed you have thought things through.
Think I will just highlight the following points. Hope they will help you in your plans and clear some misconceptions.
1. We would be comfortable with $150k pa living as we did then and now. We have 2 kids. We are definitely frugal in our lifestyle. But that is moot now, as things turn out, my wife went back to work when we returned. Now our combined income is above $400k. Our passive income boost it to above $500k annually. We are still living the same lifestyle as before, meaning our expense is still within $150k a year.
2. As you can see, we can save and have been saving around $300k per year for the last 5 - 6 years. This allowed us to build a substantial investment portfolio comprising stocks, property and other investment instruments. Contrary to what you perceive, we don't spend much time managing our investments. We bought stocks but never sold them. We just derive dividend income from them. The investment property - rental income.
3. We also realized it was risky to just depend on one income as we have seen a close friend who got into financial difficulties when the husband fell too ill to work as the sole bread winner.
Quote:
Originally Posted by ampie
(Post 54888)
Oh okay sorry for the misunderstanding. Got it now. :)
But your "income" when you were posted overseas, included the allowance, which would cease upon return. What made the both of you feel that without the allowance, it would be the same as when you had it?
Do you mind revealing what is the amount of your annual salary that you are comfortable with if/when you hit it, for your household to be single income and your wife to stop work?
Also, how do you get a passive income of 120k a year? That is totally out of the world for me! Wow. Even with a capital of $1 million in cash, you'll need a 10% profit to generate that type of passive income. I could never understand how anybody could make so much in passive income, it takes way too much effort and brain power to monitor and stress about, and actually takes away the bandwidth of energy that is needed for main career. My husband has always focused solely on his career as the main income generator.
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