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Monday, 18 March 2013

Early retirement

I wonder if one day I can just wake up everyday, relax and need not worry of going to work. I am sure everyone out there think of this before unless you are really a workaholic.

Being just an ordinary middle income person, I wonder early retirement is possible. As a result, I did some simple mathematics. Assume if I invest in a stock portfolio with 5% dividend every year and I want a monthly income of 4000 generated from this stock portfolio, the capital needed would be 4000x12/0.05= 960,000. Wah, that is almost a million.

What if I just want a small start for 100 per month, the capital needed is 100x12/0.05=24,000. Hmm, this sound more achievable for me. Well, this will be one of my target to achieve 1200 dividend from stock market this year. One step closer to my early retirement plan.

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