How much is enough in order to be able to invest full-time and probably find a part-time job that we enjoy doing?
What yield should this portfolio generate to be considered adequate and/or good?
How much? What do you guys think? I really wanna know. Do share with me folks what you guys think.
Hi Paul
ReplyDeleteI think investing full time presents a totally different target altogether because you are then liable for the income you are receiving from because of the main source of income.
When you say you wanted to invest full-time, does it means that it allows you more time to research on the companies that somewhat hold you back right now?
My ideal would be in the range where it can provide passive income equivalent to 1.3x of my annual income. That way, I have the to other 0.3x for the extra margin of safety in case expenses arise.
Hi B
ReplyDeleteMy goal and for this blog as well is very clear. As my current job and career is extremely stressful and intense, I aim to be able to invest and research on companies full-time and work in part time jobs that bring fulfilment to me and my life (work that I enjoy doing). A big part of making this happen is passive income that would supplement what I would be earning from a lesser paying, exactly what you pointed out. I have a rough gauge of how much I would need (approximately a $1 million portfolio) so was very curious to know how others are planning theirs. Thanks very much for sharing :)
ReplyDeleteWealth = Asset Value + Cash flow
At your age at 34, probably you may like to benchmark against your future earning e.g. earned income at your next 10th year as your FIRE investment portfolio to generate at x% for future cash flow or passive income.
But, can you realistically generate this X% from your investment portfolio?
If not, you may have to wait longer and to accumulate more asset value from your earned income.
In investing, our account size really matters. Passive income is the function of portfolio size. Right?
Btw i just read your blog and i like alot of what you have shared. Have added you to my bloglist. Hope you reach your target of reaching full retirement in 2 years time very soon! :)
DeleteCreatewealth8888, i agree with what you shared. Especially on the part with regards to the function of portfolio size which is why i'm trying to ramp up my portfolio bit by bit. In fact, placing the building blocks brings part of the joy as am thoroughly enjoying the process.
ReplyDeleteIn terms of yield i have more or less a target in which i feel is feasible, and its all a matter of reaching the target asset size. Glad to know your thoughts!
Hi agree with with cw. To me, casb flow is akin to blood in human. The skill to create n increase cash flow is wat separating most from great wealth.
ReplyDeleteimo tens of k can start building meaningful wealth.
Find a job u truly love n u dont have to feel like u working another day.
paul
Thanks for your words of wisdom Paul. Truly to feel blessed is to do something you love or at least enjoy what you are doing. Everything started small somewhere. Let's endeavour to a more fulfilling and less stress life ahead :)
DeleteI think you'll atleast have to earn 7 to 8.000 Euro a month in order to quit your day job.
ReplyDeleteYou'll always have to keep in mind that i's pssible you'll lose some of your invested cash.
So you'll need to build a reserve capital in order to maintain your lifestyle for another 12 months.
Thanks for sharing jesse!
ReplyDelete