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Retirement planning
By Rainbow Coin  •  November 2, 2019
In simple terms, one can retire when one's annual passive income is more than one's annual expenses. A common rule of thumb for the sum needed to retire is the rule of 25 - based on the assumption of a 4% yield, your net worth should be 25 x annual expenses before you can FIRE. So let's say you are a lean spender who spend $1000 a month, theoretically you would need 25 x 12000 = $300,000 This theory has many assumptions. It assumes: 1) Spending remains the same and predictable Which means zero inflation and minimal lifestyle changes. At different phase of life, our lifestyle may change, our spending may change to match our expectations on quality of life. At some point in time when we are old and need hospital care or stay in a home, the expenses are often not predictable. The younger we choose to...
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By Rainbow Coin
I began exploring the financial world in year 2010, hoping to get out of the rat race and be financially independent. 2010 was the aftermath period of the Lehman crisis when a pretty shaken up market was struggling to recover. On hindsight, that was the perfect time to catch multi-bagger stocks should I be a veteran or at least had some basic knowledge of picking up 'gems'. My learning curve was steep then, as I have absolutely no friends or relative who could shed some light on what's investing about.
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