Every time when Uncle8888 read this formula shared in the cyber world by the someone. He will shake his head! It is unbelievable simplistic.
Financial Independence is NOT based on a simple formula like that.
You think it is like TV Ads on Visa Pay wave Uncle said it : "So simple!"
Financial Independence is about choosing one of those financial models on assets and cash flow and then simulate it for sustainable retirement income for life and factoring future inflation and building up some buffer and determine what is the asset of last resort when retirement planning failed badly. In short; it based on modelling and not a simple formula with no simulation.
Don't ever believe that our current dividend income is sustainable over future market cycles and economics cycle.
Think for yourself!
How can it be? ......
Agree.
Dividends from shares are not within your control. Your only say is confined to some noises in AGMs. The monetary sums fluctuate base on profitability, management strategies, and business climate. Though diversifications attenuate some impact, they pose uncertainties. The factor of expenses can spike up greatly esp. in the final stage of life. Consumer inflation may be a tepid 2-3% average, but medical inflation is an astronomical 15% per annum!
Your 3-Tap method is encompassing and has depth.