4% Percent Rule

There have been posts in other blogs which mentioned whether 25 years of annual expenses accumulated in terms of a saving pool, is sufficient for one in a lifetime. I note that there are differences in the responses for such topics. I observe that the majority of the readers are of view that the saving pool is not sufficient. I will like to indicate that this is a subjective circumstance and differs from people to people.

My take is that such saving pool is enough for me. This is due to the minimalism approach adopted by me and I tend to have less activities which cost much money to incur. I previously mentioned about the three buckets theory which I adopt as a way to ensure that I will never run out of money without having to be in the full-time employment.

The uncertainties in life do not ensure 100% success in all circumstances. I make full use of the best approach to make the investment portfolio to last as long as possible. The flexible approach will ensure that I have the leeway of adjusting the expense to a lower level. The lower expense will mean that the investment portfolio will be under lesser pressure to generate the required dividends to cover the expenses.

I believe that the above approach will be able to last me for a lifetime. Nowadays, I do not monitor the progress of the investment portfolio regularly. The weekly monitoring is now changed to monthly monitoring which I opine to be sufficient as per my perspective. The true purpose of the investment portfolio is to allow me to have more free time to do things of my interest. This include the need to monitor the investment portfolio on a regular basis.


Author: firewtk

A middle-age Singaporean currently having a minimalist and simple lifestyle. I am not longer in full-time employment with effect from 1 May 2019. I try my very best to write one post per day on this blog. The purpose is to share my prevailing thoughts to interested readers. It is up to the interested readers to decide whether they want to take action in embarking on the FIRE journey. I do not gain anything from this blog and it is solely for sharing hopefully for the benefits of all interested reader. WTK

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