Sorry to digress but let’s keep stock and talk about finances, which IMHO, is critical when we want to chiong and engage in ECAs… if you don’t like my post, by all means zap me
Now, I totally agree with bro WB. But first we need to work hard and smart to earn that pot of gold. I think the first pot of gold (like the first million) requires dumb luck. The second pot (2nd million) would be a little easier and faster to achieve than the first. But the trick is to get to about $10 million which is the hardest and to me means having achieved a “critical mass” so that by then you will be able to generate a passive income of about $1 million every 2 to 3 years – that’s about $333K to $500K per year, or 3.33% - 5% p.a., an achievable return. So I’m working on getting to critical mass, which is by far the hardest thing to do and I’m nowhere near it, and time is running out.
What I have also done is bought some universal life (UL) policies that gives my kid a guaranteed sum when I pass on. There are 2 things I learnt about ULs:
1, you may have a portfolio or net worth of $10M now but 5, 10, 20 years down the road, your net worth will change, for the better, or worst (if you get hit by another financial crisis along the way). UL is able to freeze that $10M and prevent it from shrinking because you dictate the cover.
2, if you want to leave behind all your money, say, $10M, to your family, you can’t spent it. But with UL, and based on my age and health condition, I am able to pay $1.25M for a $10M cover and then spent away the rest $8.75M. In fact, I don’t even have to come up with that $1.25M premium cos banks will be able to finance it!
So, like all kinds of vice, when we chiong n BY SYTs, we have to chiong responsibly. And only with what we can afford to lose – not what is meant for the family. When the family and finances are taken care of, then bonk away!!!
Bro WB is relentless in his pursue of the best pussies, never compromise and pays top dollar when he finds one. I’m different, I am like a value investor – I seek out value, nevermind a little imperfection here and there. I need to generate more mileage from my limited dollars until I achieve critical mass or bro WB’s financial prowess.
Lastly, I’d like to quote something I came across…
Life is not a journey to the grave with the intention of arriving safely in a pretty and well preserved body, but rather to skid in broadside, thoroughly used up, totally worn out, and loudly proclaiming,
“Wow, what a ride!”