How to become financial independent in 11 years time or less

[zsin02]

Hi all Sifu,

Please study the case below and give comment if this really can works.

Assume that monthly expenses for a family avg. $3000/month, if we can have a passive income of $3000 monthly, then we can say that we are financially independent. If we have enough capital to general a constant passive income flow of $3000 monthly, we acheive our goal. We can pick up a high dividend yield stock with a consistence payout history, 10% yield annually is not difficult, you can browse through SGX website under REIT, there is quite number of potential stock can give 10% return, eg. Cambridge Reit. So we just need to have the capital of $360,000, we can already acheive the goal. Does this sound right?

As for a typical young graduate came out from Poly/Uni, after working for 2-3years, have save just enough to pay off the tuition fees loan, getting married and lucky one will have save enough to buy a HDB flat. The balance of the bank account mostly is zero. To achevie the financial independet goal, I've tabulate the table below to show the figure. If one couple can save $2600 ($1300 each) monthly, and invested into a 10% annual dividend yield stock, and then reinvested the yield, they will achieved the goal in 11 years with even inflation rate of 5%.

Please enlighten me if I'm wrong.

[Dennis Ng]

Hi zsin02,

not sure whether you attended How to Save and Accumulate One Million dollars seminars? In the seminar, I shared to become Rich, the focus should be to achieve Massive Cash, have at least S$1 million, ie. through Capital Gains, NOT through Cashflow or Passive Income (3rd step).

I reached S$1 million in year 2008, and if I want, I can choose to have passive income of S$50,000 to S$100,000 easily...but I continued to grow the money...now at S$2.8 million, if I want, I can choose to have passive income of S$140,000 to S$280,000 a year...

Cheers!

Dennis Ng

Hi all Sifu,

Please study the case below and give comment if this really can works.

Assume that monthly expenses for a family avg. $3000/month, if we can have a passive income of $3000 monthly, then we can say that we are financially independent. If we have enough capital to general a constant passive income flow of $3000 monthly, we acheive our goal. We can pick up a high dividend yield stock with a consistence payout history, 10% yield annually is not difficult, you can browse through SGX website under REIT, there is quite number of potential stock can give 10% return, eg. Cambridge Reit. So we just need to have the capital of $360,000, we can already acheive the goal. Does this sound right?

As for a typical young graduate came out from Poly/Uni, after working for 2-3years, have save just enough to pay off the tuition fees loan, getting married and lucky one will have save enough to buy a HDB flat. The balance of the bank account mostly is zero. To achevie the financial independet goal, I've tabulate the table below to show the figure. If one couple can save $2600 ($1300 each) monthly, and invested into a 10% annual dividend yield stock, and then reinvested the yield, they will achieved the goal in 11 years with even inflation rate of 5%.

Please enlighten me if I'm wrong.

[shazamnick]

Hi zsin02,

I'm not a expert/mentor but just passing by.

I have similar mindset like you after graduation when I was young: To climb higher in corporate ladder, earn more to save more, and invest the rest. However, along the way, saving tends to disappear due to many, many commitments such as babies, entertainment, retrenchment, family, parent, holiday, car, investments go bad, etc. In other word, expenses tend to catch up with savings, especially when you are belong to "sandwich" generation. In fact, among my peer, i dont see any of my friend accumulate at least $100k cash from 10 yrs of working, only see more wrinkles and white hair, ha, ha.

Finally, i came to realise property is the fastest way to achieve massive cash. That is how majority of people earn money.

My 1 cent opinion.

tks