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Tuesday, August 30, 2011

Inv: Financial Freedom by dividend income


In Singapore, many people focus on passive income and hope one day can realize financial freedom.
I do a rough calculation, if maintain a normal life quality, eg. 50K expense per year, and assume 5% dividend yield (can't bet on 8%, otherwise the choice is limited), then must put $1M into dividend generated stocks, that's a lot for most of people.
So I don't think it's feasible to rely on it.
As my plan, I will like to invest half in dividend stocks, half in growth. And, actually, there is another higher priority in my mind, to buy residential property and rent out, use rental to cover loan payment, the fastest way I think so far to grow wealth.
Your thought?

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