What can we do?

[doody_]

*Cough* I have another dumb question. When we say we invest into a stock.. and it yield 5%. So where does this 5% come from? Dividend yield? Capital gain?

In a healthy company it would come from profits. Say you were talking abt Old Chang Kee, then your dividend would have come from the many people buying their curry puffs everyday.

I would also like to say, DON'T BE SO HARD UP OVER FINANCIAL FREEDOM.

Being a realistic person, I can tell you most people will never achieve it. They will work as an employee all their life until retirement, then scale back a bit and relax until it's their time. This is a fact. If there were a lot of people who could achieve financial freedom, who is going to be out there working as an employee in all the companies? So what you said is correct, it's not that easy.

I would probably define financial freedom as someone who has ALREADY quit his job and is already living on his passive income. Having passive income > expenses and still working is a different matter. That step of quitting is a huge one to cross.

 

[ValueInvestor]

*Cough* I have another dumb question. When we say we invest into a stock.. and it yield 5%. So where does this 5% come from? Dividend yield? Capital gain?

From earnings

Same as u run a hot dog stall or sell chicken rice

End of the day profits is paid out as cash dividends

 

[ValueInvestor]

In a healthy company it would come from profits. Say you were talking abt Old Chang Kee, then your dividend would have come from the many people buying their curry puffs everyday.

I would also like to say, DON'T BE SO HARD UP OVER FINANCIAL FREEDOM.

Being a realistic person, I can tell you most people will never achieve it. They will work as an employee all their life until retirement, then scale back a bit and relax until it's their time. This is a fact. If there were a lot of people who could achieve financial freedom, who is going to be out there working as an employee in all the companies? So what you said is correct, it's not that easy.

I would probably define financial freedom as someone who has ALREADY quit his job and is already living on his passive income. Having passive income > expenses and still working is a different matter. That step of quitting is a huge one to cross.

Yup, most people will be stuck in the rat race
U see fb u know le
All the fancy restaruants and overseas trips

People rather take on debt to have face
Then save up more to invest

 

[wintersonata1234]

hello gummy bear

actually working life is not too bad...as long as not too stressed out and one is able to support family, have nice colleagues.

too bad i dont have a job now.

 

[Gummy Bear]

I thought you gonna have a big sum of inheritance? Why suddenly so emo?

Yes I am going to but just dunno when. I have waited for more then 1 year and im still waiting. Well maybe I waited for too long.

All you need to do is try and save 50% of your take home pay, invest in something that yields at least 6% a year, and in 13 years you will be getting back dividends equivalent to your take home pay.

So the 6% you mention is dividend yield that re-invested??? Sorry I am abit confused down here.

"1. Save 50% of our take home pay each year. This amounts to $20,000.

2. If we invest to enjoy at least a 6% yield a year, in the second year, we would be able to save $21,200 or 53% of our take home pay.

3. Invest again to enjoy at least a 6% yield a year and in the third year, we would be able to save $22,472 or 56.18% of our take home pay.

Just keep repeating the process and the numbers are:

4th year, $23,820. 59.55%.

5th year, $25,249. 63.12%.

6th year, $26,764. 66.91%.

7th year, $28,370. 70.925%.

8th year, $30,072. 75.18%.

9th year, $31,877. 79.69%

10th year, $33,789. 84.47%.

11th year, $35,816. 89.54%.

12th year, $37,965. 94.91%.

OK, for those who are superstitious about the number 13, this is where you might change your mind.



In the 13th year, we would be able to save $40,243 or 100.6% of our take home pay."

 

[doody_]

Yup, most people will be stuck in the rat race
U see fb u know le
All the fancy restaruants and overseas trips

People rather take on debt to have face
Then save up more to invest

They might not be in debt. I rather enjoy my restaurant meals and overseas trips rather than save everything and not enjoy myself. I don't work to save, I work to spend. As long as you spend within your means and do some investing, there's no reason not to enjoy yourself now and then.

 

[Sinkie]

Is it really safe to rely on dividend payout for our financial freedom? Whats the catch here? Can we really quit our job after we have achieved total monthly dividend $$$ more than our salary? If its that easy.. why are so many people still struggling in their day job? I once had a conversation with my friend. I talked about how we can achieve freedom on investing and get dividend income. He said his mum invested and lost huge amount of her saving. So he never believe in investing and dividend. He called it BS.

I am really sick and tired of my job now. What is the purpose of our life if we need to stuck in our job for most of our life time?

Sorry for being so negative now. I went to visit one of my friend's father in ICU recently. He is in critical condition. He is a very hardworking person. He never have time to enjoy his life. Being a victim of the "system", he spend his whole life supporting his family and now he ended up in this situation.

I cant help but feel really sad for him and for most of us who need to work and work and work till we die. Is our life really all about working to survive? DW is my inspiration.

I strongly believe no job is worth it. No matter how high your salary is or how fast you can climb the ladder. You are still working for others and you do not have the "real" freedom at all.

Hi TS, I felt for you.

Working (like eating and sleeping) is just part and parcel of life, try find something to do that you like and enjoy. You will find Life is actually meaningful after all.

Don't think so much about finding passive income so that you can quit your job. Try quiting your job and stay home for 1-2 years doing nothing. I bet you will finally find the true meaning of working and earning your children's money.

 

[ValueInvestor]

ya, at the end of the day

must really see what u want in life

 

[Sinkie]

ya, at the end of the day

must really see what u want in life

Yeah, I know someone, who is in her 50s. Devoted all her life to her business and she is still single. 2-3 years ago sold her business away for like $2m, then everyday nothing to do just go Mbs and go on cruise every now and then and burn $50,000-$100,000 each time.

End of day when she move on, who will remember her?

 

[ValueInvestor]

Yeah, I know someone, who is in her 50s. Devoted all her life to her business and she is still single. 2-3 years ago sold her business away for like $2m, then everyday nothing to do just go Mbs and go on cruise every now and then and burn $50,000-$100,000 each time.

End of day when she move on, who will remember her?

I got a friend in his 40s now sold off his IT company for 1 mil plus 8 years ago when he was 30s
Single and nerdy one, everyday at home play WOW for many years
He happy can liao ba hehe

 

[NewInvestor]

I got a friend in his 40s now sold off his IT company for 1 mil plus 8 years ago when he was 30s
Single and nerdy one, everyday at home play WOW for many years
He happy can liao ba hehe

As long as he is happy playing WOW, he is the luckiest guy in the world. Just be happy. Be free of worries.

 

[havetheveryfun]

Yeah, I know someone, who is in her 50s. Devoted all her life to her business and she is still single. 2-3 years ago sold her business away for like $2m, then everyday nothing to do just go Mbs and go on cruise every now and then and burn $50,000-$100,000 each time.

End of day when she move on, who will remember her?

why need ppl to remember u when u move on?

as long as u enjoy urself while on this world is the most impt...

 

[Perisher]

His happiness comes from ppl remembering him for something perhaps. To each his own. Happy can liao as all you of said.

 

[Sinkie]

His happiness comes from ppl remembering him for something perhaps. To each his own. Happy can liao as all you of said.

Yeah, my happiness comes when I see my loved one such as my children and wife or my grandchildren are able to reap my fruits and hard work even if I am not around anymore.

I don't work and earn to plan to enjoy my life. My job is my enjoyment and trading/investing/gambling give me joy. End of day, when I make money or receive my salary, It's for my family and my children's education and expenses.

To me, investment and passive income quicken and accelerates my wealth, that's all.

Yeah Perisher, to each its own ba, just sharing my views

 

[winorlose]

Looking at other countries crisis, r u glad singapore has a system? Teenagers and grads in greece cant find jobs and now country in a mess. Hong kong in a mess caused by those youngsters. Spain over 20% unemployment rate.

All these factors, r u glad that u still hv some work to be in.. A salary to get by..

If country mismanaged by buey kan poltician how?

Im neutral on singapore system..

 

[Perisher]

9am...

edit: it's not a crash afterall... just a small small small correction.

 

[IronMac]

Hong kong in a mess caused by those youngsters.

I'd like a bit more clarification on this statement please. What do you mean by HK is in a mess? And how is said mess caused by what youngsters?

 

[bobbytkc]

Looking at other countries crisis, r u glad singapore has a system? Teenagers and grads in greece cant find jobs and now country in a mess. Hong kong in a mess caused by those youngsters. Spain over 20% unemployment rate.

All these factors, r u glad that u still hv some work to be in.. A salary to get by..

If country mismanaged by buey kan poltician how?

Im neutral on singapore system..

The Singapore system obviously works. Just look at our neighbours.

 

[Dyhalt]

Singapore has lots of opportunities with good systems compare to lot of our peers, in fact its unrealistic to think the success we are enjoying now can last forever.

Personally I've been working overseas for nearly 10 years, I've achieved financial freedom if I choose not to go after flamboyant lifestyle, theres one thing I can share here:

Its true you can rely 100% on investment income for a living, but work is the most reliable source of income which guarantees you some money... so why throw this safe source of income away? Also the best investment are usually related to your work, because you know inside out what this industry's strength & opportunities are... which are usually much more reliable compare to the investment reports written by the brilliant analysts about each company.

 

[bobbytkc]

Singapore has lots of opportunities with good systems compare to lot of our peers, in fact its unrealistic to think the success we are enjoying now can last forever.

Personally I've been working overseas for nearly 10 years, I've achieved financial freedom if I choose not to go after flamboyant lifestyle, theres one thing I can share here:

Its true you can rely 100% on investment income for a living, but work is the most reliable source of income which guarantees you some money... so why throw this safe source of income away? Also the best investment are usually related to your work, because you know inside out what this industry's strength & opportunities are... which are usually much more reliable compare to the investment reports written by the brilliant analysts about each company.

I am happy that you are able to achieve that kind of success. I still have a long way to go.