My Retirement Plan At 35

(24-06-2012, 07:51 PM)wsreader Wrote:

(24-06-2012, 01:04 AM)d.o.g. Wrote: 2. For the active investor, bonds offer a lower-risk route to capital gains. In a crisis, investment grade bonds often get marked down below par. This means that a buyer at that point can reasonably expect to obtain capital gains when the bonds are redeemed at par. Since there is a maturity date, he locks in his rate of return at the point of purchase.

If the YTM is < inflation rate, the bond investor is actually locking in his loss at the point of purchase.

In such a case, I would not call the purchaser of the bond an "investor".

The current mainstream thinking is to work until retirement age and then re-contract and continue to work pass retirement age. Maybe even drop dead during work. It is always refreshing to hear of people who can retire young.

A few years ago, at the end of an agm, I was eating the little food that I manage to collect after the uncles and aunties had their shares. As I looked down at the glittering waters at the mouth of singapore river from a dizzy height of 62 storeys, a young man beside me asked how I had the time to attend the agm. I told him that I had applied leave from work to attend the agm. When asked the same question, the young man revealed that he was a full time investor.

Therefore I believe there are already people who had retired young and are spending time doing whatever they truly enjoy. Whether one achieve it at age 30s or 40s is immaterial. Coming to this forum to link up with others similar minded or others in similar situation is a good start. At the very least, it provides a counter balance to the many nay sayers out there.

Good for you Janjansen!

I won't comment on the lifelong sustainability of your assets/investment plan because there are much more qualified individuals here.

Just want to say that it's inspiring to know of Buddies that achieve financial freedom (an admirable thing in itself regardless of age one reaches there). Good to know that you're now able to think about the ends since you have the means.

I don't think I'll reach where you are anytime soon, reasons being, a) my current job won't ever pay me enough to get me there, b) there's a very higher chance kids will be coming in the near future. So I can only hope that the markets will be kind to me so that I can get there sooner than later.

there will be many other young full time investors coming soon because 1 in 6 households in singapore is already a usd-millionarie and their children will probably have to uphold the responsibility to safeguard inherited wealth properly if they were to manage monies themselves.

Hi Janjansen,

Just 3 things I wonder if you've thought of:

First, Housing. Are you 100% sure you will always be single and that willing and able to live with your parents forever? Maybe factor in if you want to pay for a small HDB once you are 35. Anyway, I think Singapore is a nice place to live if you don't have to work.

As a side note: if you want to live overseas, what are the immigration requirements (usually some combination of employment skills, speaking the language, marrying a local, or investing a chunk of money)?

Second, if you stop working a few years at around 35+, is it possible for you to find work again later if you change your mind...Is the decision reversible? For example, I work in the IT industry, and if I took a couple of years off, I would be unemployable in this line. Once I retire, there's no going back.

Third, it may be better to wait for a recession before long-term investing. That way you can get 30 to 50% off when you buy. I've no idea when the next recession will occur. If you do wait, its painful to lose 5% per year due to inflation, and you may be doing it for a few more years. If you don't wait, its more painful to lose 30 to 50% when the bear comes....like being punched in the stomach.

There are two things I feel strongly: An investor/trader should experience at least one bear market, before deciding to trade/invest for a living. Also, an investor/trader should always wait for opportunity to come, then react to the market; you cannot be in the frame of mind that "Oh...I really need some thing now...like a holiday, want to retire, need money for my kids schooling, etc....so I am going to trade/invest and make some money now". You have to wait for opportunity, then strike when the time is right. Buffet said something about waiting for the fat pitch. Need that mindset: for me it came with experience from losing money when I was too impatient.

Myself, I am around 35, married with no kids, except 2 cute furry ones. Currently holding cash and looking to buy international and local stocks in the next recession. If I can make 100-200% the next time round, I can safely quit the rat race.

I think you've done a great job accumulating savings so far (more than I have), and you seem quite a down-to-earth guy who enjoys simple things. I'm sure you will be financially free, either now or in the near future. If the things I mentioned above are (financial) risk factors to you, maybe you can reduce your risk by keep working a few more years while investing, (or studying the market) part time.

Good Luck!

sometimes, the trouble is not with the investor himself but the people around him who are septical about him being a fulltime investor.

shooting questions include:

u sure u are not based on luck?

what if u lose all ur money?

what makes u so sure that u can earn money consistently

don't dream, better continue ur fulltime job

if its so good, everyone can don't need to work liao

(how I know, I am in such a situation!!!)

(24-06-2012, 10:02 PM)paullow Wrote: sometimes, the trouble is not with the investor himself but the people around him who are septical about him being a fulltime investor.

shooting questions include:

u sure u are not based on luck?

what if u lose all ur money?

what makes u so sure that u can earn money consistently

don't dream, better continue ur fulltime job

if its so good, everyone can don't need to work liao

(how I know, I am in such a situation!!!)

You are lucky if your family ask those questions.

If you have convincing answers to those questions, then it should not be a trouble.

If you don't, then it is a big trouble

thus, i leave quite a big safety margin and reserves...just in case...... (since i am not finance trained or worked in any financial institution before)

so now my annual stock returns is around $90k. my annual income is about 5 times that.

the one thing which attracts me to value dividend investing is that of passive income. using money to make money.

once i manage to compound to a stock returns consistently which matches or nearly matches my annual income and have figures to show to my family...it's syonara to my job.

Nothing in life is predictable to plan for retirement so early ... I just don't see it will turn out well. Also health is not guaranteed, now at 35 health maybe tip top condition bad times can come suddenly. I've seen friends in the 30's very healthy when turn 40+ all the problems comes out. One of my friend had a promising career drawing good income respectable suddenly became sick and cannot work for almost 5 years now approaching 50 even if he recover I don't think can go back to his industry even if he wants to. And here we have some people want to throw in the towel at 35. It's an irony of life

I have been investing almost 20 years already I think investing not very easy. Everybody want to become like warren buffet and want to have his successful run but I think only 2-3 out of 100,000 can really do it. You only see him make money but when he had his problems, when he got badly burnt, when he lost money, when he was down early in his investing career did you all see it? Were you there to feel the pain his sense of failure and hopelessness? No right?

There's no such a thing as can win all the time. You see discovery channel about cheetahs and lions. Out of 10 chases maybe they get 1 kill and even then maybe a pack hyenas will come and chase them away and steal their hard earned kill. This shows nothing in life is for sure or certain.

I already stopped work several times in the past and already struggled beside myself with all these questions whether should quit the rat race or switch line. I learned that your heart will tell you what to do listen to your heart. After reasoning with yourself, If the heart feels heavy is a wrong decision but if it feels light and easy then yes.

I plan to carry on working until I cannot, I want to be good in my craft and my work that is my goal. That and side income from investment just in case I get laid up or sick

What? Retirement?
There is no such thing in life. Even if now you have 2 million in cash don't you still have to make sure this sum of money can at least beat yearly inflation? So that you won't run out of gas first before money. Besides, don't think you want to lower and lower your life style as you grow older and older. When you don't have to work for somebody, doesn't mean you don't have to work for yourself. Unless you want to become a real Buddhist monk who gives up all worldly possessions and join the monastery. Ha! Ha!