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Passive income made by passive income? Yes!

Friday, February 22, 2019

This blog material is taken from a reply I recently gave a young reader who is doubtful that a comfortable retirement is achievable in Singapore for the average worker.

The reader also wonders why AK seems to be pretty calm about losses in investments while he is likely to get rather depressed.

AK says...
If we are right more often than we are wrong, we should do well enough and I think I have been lucky that way.

After so many years as an investor, I am more forgiving towards myself and try not to dwell too much on losses because no matter how good an investor we are, it is bound to happen.

What helps to give me peace of mind is investing for income.

Investing for income, I am less bothered by daily price fluctuations.

You might be interested in the blog where I said we could save 100% of our take home pay if we do the right thing.


Save 100% of your take home pay!

Invest for income and we will get "free money" (i.e. passive income).

Why spend the money we earn from working when we can spend "free money"?

I am even more forgiving towards myself these days because I am now in a situation where the "free money" I have is from the "free money" made by the money I earned years ago.

Now, give that a moment to sink in and, maybe, a light bulb would turn on above your head.

Yes, for some time now, my passive income is made by the passive income made by my earned income.

What is better than passive income?

Passive income made by our passive income!

If we do the right things, i
t is definitely possible to retire more comfortably in Singapore.

If AK can do it, so can you!

Related post:
To achieve financial freedom, most of us have to create Dividend Machines.


laurence said...

The reader also wonders why AK seems to be pretty calm about losses in investments while he is likely to get rather depressed.

Calmness is a result of richness. AK is rich, therefore he's calm.

AK71 said...

Hi Laurence,

Everyone has different risk appetites and not everyone is able to stomach volatility well.

We should know ourselves and not follow others blindly.

K said...

Hi AK,

Do you get tax relief for your Voluntary Medisave Contribution? I am assuming you have NO net trade income.


AK71 said...

Hi K,

The recipient of the VC to MA will get income tax relief.

So, if you VC to your own MA, you will get the tax relief.

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