'Now I know who my real friends are'

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#25
(29-05-2012, 07:35 PM)sgd Wrote: Personally my take is if you are investing ideally you should also be working. Personally I find it quite hard to invest if I'm not working, the experience for me is very different because you have a sum of investible capital that needs some time to work out. What if the market tanked for 1 or 2 years what other income do you have? Big Grin

At least when I have a job even if the market tanks I can still go around "half smiling" because at least I still have some bacon to bring home. Big Grin just my 2 cts.

(29-05-2012, 09:04 PM)Jacmar Wrote: In my opinion if you don't have an amout of $1million it's not worth the time to go into full time investing by choice.this is bcos as WB said the realistic long term return is about 4-6% for most investor. So for $1million you get about $40-$60k/ yr to spend. For those with lower/higher needs you can adjust the amt accordingly.I would advocate holding your day job. There are many benefits besides the constant CF. You get to know how businesses makes money and help you in the circle of business knowledge.

Both of you are very right in that one should continue to work as long as one is able to. Nothing beats the FCF coming from a full time job - one gets paid on the dot, month after month. You can skive anytime you want to (as long as you don't get caught or mess up any major projects). You even get paid while you are sick (MC + Hospitalisation), when you have kids (maternity, paternity) and even get paid when you go on leave! You can claim for this and that (Health/Medical Benefits,..). So, why even quit at all?? You actually get the best of both worlds if you were to continue working and do your investing at the same time (extra income). Tongue

The alternative of investing for a living is actually quite scary. If you plan to survive only on a 4% to 6% returns, then yes, you'll most likely need $1Mil, assuming you don't plan to touch the original Capital.

In fact, if I'd not gotten retrenched all those years back, I wouldn't have had the guts to even try. No, I didn't start with a million bucks. In fact, I was in a negative equity position if I'd factored in my outstanding mortgage loan.

In my case, luck played a very strong role. Like 'swakoo' mentioned in an earlier post, I was lucky to have participated in the super bull from '03 onwards, which helped to turn my position to a very positive equity situation. I stumbled on this forum's predecessor in '05 when I was trying to get my act together, learnt a lot from the many gurus, ... and looking back, everything seems to just fall in place. But, I don't deny that it was a very, very stressful period of my life! It's only now that I looked back, it seems to have gone so smoothly and the ride seems to have been rather fun and enjoyable! Tongue



(29-05-2012, 08:22 PM)CityFarmer Wrote: If I goes for full time in investing, a suitable portfolio with sufficient % in slow-grower/stalward companies (for dividend) as anchor. On top of that, a larger emergency fund of 1.5-2 years (compare with typical 6 months) should be able to survive when market tanks. Big Grin

I don't think there's a one-size-fits-all solution. IMO, each of us have to find an approach that's suitable for themselves.

In my case, I'm getting ~6% Dividend Yield as my anchor + ~2% from 'active' dividend management routines (cd/xd) + ?? % from other active switching routines. Most months, I have dividends coming in (I don't do cd/xd to all my stocks) and need to watch my cash flow closely only in Jan/Apr/Jul/Oct as these are usually zero/low dividends month. As I have 'switching' transactions (blame it on Peter Lynch) almost every week, I can also tap on the sales proceeds for my cash flow if required.

I'm used to not having any fixed emergency funds set aside (I do set aside some funds in a few different bank accounts to pay my different bills - GIRO, Visa and that does add up to a few months' worth of funds and which I top up whenever it gets depleted). My thinking is that I can easily liquidate any of my Stalwarts if I do suddenly need some extra funds urgently. In fact, the only time I have lots of free cash idling around in my bank accounts would be when many of my stocks have hit my selling price and I can't find any alternative to 'switch' to. Tongue



(29-05-2012, 06:42 PM)Temperament Wrote: Of course, some people will still try to avoid you for their own reasons.
Who cares? Definitely not me.Big GrinTongue

Yes! Who cares! Cool



(29-05-2012, 10:25 PM)Jared Seah Wrote: I guess the hawkers first suspect I was on shift work. But after 2-3 months, some I frequent more often will tease me: "You so free no need to work one?"

My clothes must have been the give-away that I'm a jobless poor. Have to maintain my jobless image, you know... Big Grin
Luck & Fortune Favours those who are Prepared & Decisive when Opportunity Knocks
------------ 知己知彼 ,百战不殆 ;不知彼 ,不知己 ,每战必殆 ------------
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Messages In This Thread
RE: 'Now I know who my real friends are' - by sgd - 28-05-2012, 09:20 AM
RE: 'Now I know who my real friends are' - by sgd - 29-05-2012, 02:49 PM
RE: 'Now I know who my real friends are' - by sgd - 29-05-2012, 07:35 PM
RE: 'Now I know who my real friends are' - by KopiKat - 29-05-2012, 11:46 PM

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