Saturday, 12 September 2015

Thoughts about Financial Freedom part II

Previous: My thoughts on Financial freedom.

Financial freedom is defined as having the passive income so that you do not have to work or can choose to work to sustain your current needs and lifestyle. The key word is PASSIVE. This is usually the case when one invest sufficiently in businesses and have enough savings to generate a hefty sum of interest from bank or whichever source (ok... 'hefty' is pretty subjective here).

As I thought about financial freedom, I have these questions popping into my head:

Is it possible to achieve financial freedom in Singapore on retirement by relying on our good o' CPF and good o' HDB flats?
Aiyo... retirement age is getting older and older. Resale HDB lease expiry getting nearer and nearer. At least the minimum sum in CPF is getting higher and higher. =.=

Can we really achieve financial freedom solely through investing? Then we won't have to wait till the gov-dictated retirement age...provided you don't lose your capitals and your pants.

Or... can we depend on our children / spouse as a source of passive income when we choose to retire?
Hmm.... being a tai tai doesn't sound too bad.

How much money do we need for maintaining financial freedom now or into the future, factoring in yearly inflations?
My maths sucks how...

What would be a realistic time frame to set for ourselves?

I am still trying to find my answers to the questions raised above.

To some people, it is about working very very hard for many years, invest smartly and diligently then rest and be lazy later in life.

Then the FF non-believers would say "Aiya stop worrying and planning lah. We should just enjoy what life throws at us, YOLO" - Just spend the money, work when it runs out and then repeat the process.

There is no so-called a right answer I guess.


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