My Retirement Plan At 35

[sgd]

nice story but highly unlikely. because nobody can eat fish all the time there are other bills to pay, also boat runs on fuel how to pay for the boat fuel?
in fish?

also you look at global fish stocks are being depleted everywhere so there's not enough fish to catch to live a content life more likely fishermen have to work hard just to catch enough for their existence.

Another big difference from the fisherman story is the fisherman is still a fisherman, where as our friend investment banker wants to throw in the towel and give it all up.

[CityFarmer]

There was once a businessman who was sitting by the beach in a small Brazilian village.
As he sat, he saw a Brazilian fisherman rowing a small boat towards the shore having caught quite few big fish.
The businessman was impressed and asked the fisherman, “How long does it take you to catch so many fish?”
The fisherman replied, “Oh, just a short while.”
“Then why don’t you stay longer at sea and catch even more?” The businessman was astonished.
“This is enough to feed my whole family,” the fisherman said.
The businessman then asked, “So, what do you do for the rest of the day?”
The fisherman replied, “Well, I usually wake up early in the morning, go out to sea and catch a few fish, then go back and play with my kids. In the afternoon, I take a nap with my wife, and evening comes, I join my buddies in the village for a drink — we play guitar, sing and dance throughout the night.”

The businessman offered a suggestion to the fisherman.
“I am a PhD in business management. I could help you to become a more successful person. From now on, you should spend more time at sea and try to catch as many fish as possible. When you have saved enough money, you could buy a bigger boat and catch even more fish. Soon you will be able to afford to buy more boats, set up your own company, your own production plant for canned food and distribution network. By then, you will have moved out of this village and to Sao Paulo, where you can set up HQ to manage your other branches.”

The fisherman continues, “And after that?”
The businessman laughs heartily, “After that, you can live like a king in your own house, and when the time is right, you can go public and float your shares in the Stock Exchange, and you will be rich.”
The fisherman asks, “And after that?”
The businessman says, “After that, you can finally retire, you can move to a house by the fishing village, wake up early in the morning, catch a few fish, then return home to play with kids, have a nice afternoon nap with your wife, and when evening comes, you can join your buddies for a drink, play the guitar, sing and dance throughout the night!”
The fisherman was puzzled, “Isn’t that what I am doing now?”

I read this story before. Then after my definition of been rich changes to

Fixed Income > Family Expense by a predefined margin.

Instead of

As rich as Peter Lim in Singapore.

[KopiKat]

The fisherman was puzzled, “Isn’t that what I am doing now?”

The businessman explained, “In the first instance, your livelihood is dependent on catching that fish and for whatever reason that you're unable to catch any fish for a proloned period of time.. there goes your happy and easy going life style... In the 2nd instance, you are fishing for the fun of it... You have a choice to do whatever you want to!”

[yeokiwi]

nice story but highly unlikely. because nobody can eat fish all the time there are other bills to pay, also boat runs on fuel how to pay for the boat fuel?
in fish?

also you look at global fish stocks are being depleted everywhere so there's not enough fish to catch to live a content life more likely fishermen have to work hard just to catch enough for their existence.

Another big difference from the fisherman story is the fisherman is still a fisherman, where as our friend investment banker wants to throw in the towel and give it all up.

Unless our friend here is only capable of doing investment banking.
If you are hardworking, diligent and preferably smart, it is not that difficult to pick up new skills and knowledge to expert level.
Master level is normally not achievable in a short time span though.

Maybe some forumers will disagree, BUT, how difficult is it to learn value investing, read financial statements, calculate financial ratios to allow a person to reach a level that he can use the skills?
Seriously, among all the domains of knowledge that I come across, the above skills do not rank very high in difficulty.

If you think you are a capable person, you can always make a living somehow and somewhere.

[Janjansen]

Thanks all for your views. I have made up my mind on what to do and updated my first post (Extract below).

Updated: 17 July 12

Thanks to all forummers who offered their views and advice.

After much thought, I have decided to stay in the workforce and bid my time until the next great market crash. Investment opportunities are limited and the yields on blue chips are not attractive at current valuations. The equity markets have rallied quite a bit and going in now does not offer the downside protection that I require. The confirmist mentality amongst my family and friends is also strong, and it seems like most people have submitted to a life of paid employment until 65 and cannot accept other alternatives. So, I will continue going to work, earning a regular income and accumulating cash.

My views on the eight to five worklife routine has not changed - it is paid slavery. Everything from the daily commute on the crowded transport system, lunch hour squeeze and unhealthy sedantary lifestyle of being stuck in a tiny cubicle for 80% of one's waking hours. And at the end of the day, you are just a statistic to the company, to be trimmed down during the next cost cutting exercise. However, having some cash buffer does make the situtation more tolerable. I no longer "need" the job to pay my next bill, it becomes a choice rather than a neccessity. This is a subtle but important difference. It does ease the pressure to perform and score a fat bonus at year end. In fact, I am quite content to be an average performer and leave work earlier everyday.

Now I pray everyday for a repeat of the 2008 Subprime, 1997 Asia financial crisis or a Great Depression. Dirt cheap valuations await the patient investor. It might be next year or it might be 10 years. It doesn't matter - good things come to those who wait. When that happens, one can easily build a portfolio with good yields and potentially significant upside valuation gains. Meanwhile, I will continue waiting and will leave it to Mr Market to decide my retirement date

[Temperament]

Quote from yeokiwi:
{Maybe some forumers will disagree, BUT, how difficult is it to learn value investing, read financial statements, calculate financial ratios to allow a person to reach a level that he can use the skills?
Seriously, among all the domains of knowledge that I come across, the above skills do not rank very high in difficulty.
If you think you are a capable person, you can always make a living somehow and somewhere.}

[/quote]
Unquote:-
Ah.............WB again:
Warren Buffett: Temperament Ranks above IQ When Investing.

[Jared Seah]

You mean after listing a company - with the fleet of bigger boats, can factory and the distribution network - not dependent on catching fish?

Oh, you meant cashing out completely during the IPO like Facebook insiders? What a "perfect" IPO from the viewpoint of insiders

Are we the businessman? The fisherman? Or are we the fishes?

[CityFarmer]

nice story but highly unlikely. because nobody can eat fish all the time there are other bills to pay, also boat runs on fuel how to pay for the boat fuel?
in fish?

also you look at global fish stocks are being depleted everywhere so there's not enough fish to catch to live a content life more likely fishermen have to work hard just to catch enough for their existence.

Another big difference from the fisherman story is the fisherman is still a fisherman, where as our friend investment banker wants to throw in the towel and give it all up.

In fact, if we only consider the necessary expenses, rather than "luxury" expenses, you will surprise how little we had spend to support our life. You will also surprise how little we need to spend for real happiness in life

The global fish stocks depleted when fishermen are fishing more than their needs.

[Musicwhiz]

My views on the eight to five worklife routine has not changed - it is paid slavery. Everything from the daily commute on the crowded transport system, lunch hour squeeze and unhealthy sedantary lifestyle of being stuck in a tiny cubicle for 80% of one's waking hours. And at the end of the day, you are just a statistic to the company, to be trimmed down during the next cost cutting exercise. However, having some cash buffer does make the situtation more tolerable. I no longer "need" the job to pay my next bill, it becomes a choice rather than a neccessity. This is a subtle but important difference. It does ease the pressure to perform and score a fat bonus at year end. In fact, I am quite content to be an average performer and leave work earlier everyday.

I can't help but comment that your views on working life as in 9-5 are rather extreme (using the term "paid slavery").

After all, every country and city needs productive workflow, and office work contributes to this in every tiny way. As a paid employee, you do get certainty of cashflows, a purpose (goals and objectives), something to do daily and also social interaction (with colleagues). Though one may see it as a form of "slavery" in the sense that you NEED the job or else you'll go hungry, there are other ways to appreciate the 9-5 worklife.

I for one have been going through the drudgery of 9-5 worklife and I admit I don't relish the idea of going to work daily, but there are some aspects of my job which I enjoy and I do look froward to new challenges everyday.

I can imagine that if I did not have a job, I'd have to find something else to occupy my time and that may be a challenge in itself.

That said, it's a personal view and I am glad you shared yours.

[corydorus]

The beach no more like before. More tankers sail through here and tourists dirtied the beach.

Fishes getting less healthy and smaller. As his members get old and sick, but the medical cost risen significantly.

Before he knew it, was being forcibly removed from the land for further development. A property near beach is a pipe dream.

As his children get older, they do not have good study environment and they played all days because that's the way of life.

Having not enough money to move nor see doctor, his children need to go oversea to study, but couldn't ... all this classmate has ipad, iphone and iLife but he couldn't, his aspire home of equal which is not, his livelyhood gone, ... the fisherman starts to despair ...

Then he realizes, the World continues to move when he stopped.