Many of you are aware that my long term target yield for my portfolio is 5%. I believe it is a sustainable yield and it has been a target that I have been working on for sometime for my passive income post retirement. Just to put some numbers in … assuming my family need $80k a year for expenses, to enable this via passive income will require a cash portfolio of $1.6 Mln. I am still far away from having this amount but I will work towards it to my best abilities – i.e. I cannot retire just yet. If I am unable to achieve this amount by my “retirement” age, then my annual family expense will have to be adjusted to match the corresponding “5%” amount. Some lifestyle changes would be needed – For the moment, I am aiming high and I hope to succeed.

I recognize that this 5% target is a higher rate than the famous “Four Percent Rule“.

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