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FIRE by 2020 has officially failed

Back in 2015, I never thought I would have to work past 2020.  

The idea was that I would have accumulated at least 1.7 M by Jan 2021 and would be comfortably returning 110k a year in passive income based on a 6.5% yield. 

How laughably naive. The optimism is commendable but misguided. 

Covid struck hard.  

Several terrible decisions were made.

EHT is bankrupt. A 50k write off.  Ouch is right.

First REIT is trading around 20% of my cost price. Never again Riady. Never again.

Yields have been severely compressed  with "quality" REITS, e.g., MINT, PLife, Ascendas REIT all returning paltry yields of 3-4% or, gasps, less.  

With the view of improving portfolio resilience, I made a conscious decision to rebalance my portfolio to go REIT-lite (well, lighter) and increased my holdings in DBS, UOB, OCBC.  The MAS cap on banks' dividends does mean that these companies are returning 3% or less per annum.  

Sigh. 

All in all, projected dividend income for 2021 is 85k on a portfolio size of 1.7M, which translates to a modest (but perhaps more realistic) yield of 5%.  

Which also means, in order to realize my original goal of 120k passive, I would need at least 2.4M (based on a more realistic 5% yield).  

To add 700k more to my portfolio means working for at least another two years, i.e., until end of 2022. I would be 40 by then.  Hopefully, not too old yet to enjoy "retirement".  

A bit demoralizing to be honest.  

Another 24 months of late nights, chasing billables, and dealing with clients.  My spine chilled at that thought.  

And you know what's the worst thing that could possibly happen? Come Dec 2022, I might be writing again saying I "need" another 2 more years.  HAHAHA.   I won't put it past myself.  Fucking pussy.

Also, "need" is such an elastic term. 

Does one really NEED 10k a month? 

Does one really NEED a car? 

Does one really NEED condo living and a 3k monthly credit card budget ? 

It is all vanity and lifestyle inflation. 

But then again, we have got but ONE life. 

I don't want to go through life second guessing myself all the time. Should I get a new laptop? Should I buy those shoes?  Should I take an expensive holiday?  

Fug that. 

I want to just do it when i want to.  Just buy it if I like it.  Just pay it if that money grants me convenience. 

I am keenly aware, of course, that there is no end to greed.  I might think 120k passive income a year is sufficient now. But who knows, perhaps 150k a year would be the "bare minimum" come 2023.  And 200k a year is "absolutely essential" come 2025.   Wrecking myself down that slippery slope, I would die an overworked, broken, and lonely man. 

Shudders. 

Whoever said FIRE would be easy. 

Sigh.

I sure hope you guys have better luck. Onward to FI!




Comments

  1. Nightmare_AngelMay 8, 2021 at 11:17 AM

    woah to have SGD $1.7m net assets (excluding CPF) at age 38 is super impressive especially as an employee! You must be holding a senior role or is a sales machine (or both) in your company allowing you to save SGD $700k in just 2 years! No matter how stressful the role is, many would be envy and wouldn't hesitate to jump right into your position but of course almost all wouldn't succeed and I do believe you have earn your rights to command your current remuneration. Hope you can achieve your SGD $2.4m target in 2022! :)

    ReplyDelete
  2. JCMay 8, 2021 at 10:32 PM

    I believe you are in the consultant industry. Your working hours seem long, then should not have time to spend money. If you cut down your expenses, you should achieve financial freedom. Sometimes it is tough to cut down on expenses, isn't it?

    ReplyDelete
  3. Super RingDecember 18, 2021 at 10:19 AM

    Got time show us your latest holding. I beleive it will be only a minor setback.

    ReplyDelete
  4. ^_^November 21, 2023 at 7:34 PM

    can try barista fire or youtube fire lol

    ReplyDelete

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