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(05-06-2013, 09:55 PM)Penguin Papa Wrote: (05-06-2013, 09:24 PM)Dividend Warrior Wrote: (05-06-2013, 08:00 PM)paullow Wrote: from my personal experience,
its hardest to go from 10k to 100k, once you get that 100k, its easier to make 1M.
With one still holding on to a fulltime job with the right investment strategies and living fugally, I think 1M is very easily achieveable by 40yr, cos by then one would have already worked a good 15-20years anyway.
I agree. Breaching that 100k mark is the hardest. But journey gets smoother after that.
I have invested around 190k so far over the past 4 years and I can already start to see the compounding effect.
However, if a man has a wife and kids to support, reaching 1M by 40 is unlikely.....
It's all on how prudent and determined is the family. Consider a graduate couple both start working at 25, each earning an average salary of $50,000 per annum over 15years, they should have earned a total of $1,500,000 when they are 40. Take $500,000 divide by 15 gives $33,333 a year of average spending, or $3000 a month. Is that too much or little? Definitely too little at today cost of living. Especially if you have more than one kids and schooling too. Not to mention about occasional leisure outings. You and your family need to live the nows too. Though you have to invest for the future.
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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05-06-2013, 10:28 PM
(This post was last modified: 05-06-2013, 10:29 PM by yeokiwi.)
(05-06-2013, 09:55 PM)Penguin Papa Wrote: It's all on how prudent and determined is the family. Consider a graduate couple both start working at 25, each earning an average salary of $50,000 per annum over 15years, they should have earned a total of $1,500,000 when they are 40. Take $500,000 divide by 15 gives $33,333 a year of average spending, or $3000 a month. Is that too much or little?
Most graduate couples will earn more than this amount over 15 years. But for most couple, the initial years required the couple to sink in significant amount of money.
1) Tuition fee, around $20k to 30k per graduate.
2) Housing, $300k to $500k. depending on expectation
3) Renovation, $50k
4) Wedding, $10k to $50k, depending on expectation.
So, the above expenditure will easily cost half a million.
For a typical couple to reach net positive liquid asset of a million(not considering the house they live in) before 40 is achievable but it requires well paid jobs, good expenditure control, good sense in investment and some luck.
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I have come to a conclusion
its much better to be single and not get married?
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make money here and retire overseas
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i think dividendwarrier is feeling it. i saw ur blog. ur investm now is ard 200k n giving u ard 1kpm. it already gets easier for u now, esp if u only need 1kpm now. if u have 10x that investment sum, ur dividends wld have grown to 10kpm. u can certainly use a lot of it to grow ur wealth further. at 10m, the possibilities grow immensely diverse.
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(05-06-2013, 10:48 PM)felixleong Wrote: I have come to a conclusion
its much better to be single and not get married?
Still can get married. But it is the kids that is heavy on expenditure......
That's why the birth rate is dropping. Many couples choose not to have children.....
But having said all that, children are priceless to their parents. So, we cannot judge it based on monetary rewards.
My Dividend Investing Blog
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05-06-2013, 11:01 PM
(This post was last modified: 05-06-2013, 11:04 PM by Penguin Papa.)
(05-06-2013, 10:25 PM)Temperament Wrote: (05-06-2013, 09:55 PM)Penguin Papa Wrote: (05-06-2013, 09:24 PM)Dividend Warrior Wrote: (05-06-2013, 08:00 PM)paullow Wrote: from my personal experience,
its hardest to go from 10k to 100k, once you get that 100k, its easier to make 1M.
With one still holding on to a fulltime job with the right investment strategies and living fugally, I think 1M is very easily achieveable by 40yr, cos by then one would have already worked a good 15-20years anyway.
I agree. Breaching that 100k mark is the hardest. But journey gets smoother after that.
I have invested around 190k so far over the past 4 years and I can already start to see the compounding effect.
However, if a man has a wife and kids to support, reaching 1M by 40 is unlikely.....
It's all on how prudent and determined is the family. Consider a graduate couple both start working at 25, each earning an average salary of $50,000 per annum over 15years, they should have earned a total of $1,500,000 when they are 40. Take $500,000 divide by 15 gives $33,333 a year of average spending, or $3000 a month. Is that too much or little? Definitely too little at today cost of living. Especially if you have more than one kids and schooling too. Not to mention about occasional leisure outings. You and your family need to live the nows too. Though you have to invest for the future.
True. My family monthly expenses is close to $5,500. So only through proper investment, then it is possible to reach $1,000,000 at age 40. For my case, my family will need $1,500,000 to get the dividend needed for both of us to retire.
(05-06-2013, 10:48 PM)felixleong Wrote: I have come to a conclusion
its much better to be single and not get married?
Get married and don't have kids. At least for some expenses, eg a roof over the head, fixed utilities, etc, can be shared during the accumulation phase. You can reach your target earlier, assuming both earning the same income.
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not really. let it auto compound if u are not too ambitious.
at 200k start point, 5%yield ave plus cap appreciation of ave 4-6%pa over a decade could see ur 200k double in 7yrs due to compounding.
just keep ur job. use active income to.pay for ur expenses.
in 14yrs, u will hit 800k! n enjoy 40kpa passive.
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(05-06-2013, 11:01 PM)Penguin Papa Wrote: True. My family monthly expenses is close to $5,500. So only through proper investment, then it is possible to reach $1,000,000 at age 40. For my case, my family will need $1,500,000 to get the dividend needed for both of us to retire. 1.5mil for 5.5k monthly expenses. I dont think that dividend (assume 5%) can last long taking into very conservative inflation rate of 2.5% and medical inflation of 6%.
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(05-06-2013, 11:14 PM)paullow Wrote: not really. let it auto compound if u are not too ambitious.
at 200k start point, 5%yield ave plus cap appreciation of ave 4-6%pa over a decade could see ur 200k double in 7yrs due to compounding.
just keep ur job. use active income to.pay for ur expenses.
in 14yrs, u will hit 800k! n enjoy 40kpa passive. nice to hear that. really, in life, it is about discipline and consistency.
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