Fabio1,

So, how long can you SURVIVE without any income??

Dreamer

Folks,

I have enough emergency fund to last 2 years. With dividend, I can last another 2 to 3 more years. This is all without affecting my lifestyle or selling anything.

Dreamer

wodenus,

How LONG can you SURVIVE without selling anything??

Answer that FIRST...

Dreamer

kevyeoh,

So, I still can last at least 2 years without selling and without income.

What is YOUR NUMBER??

How long can you last without income and not selling anything??

Dreamer

edyek,

Increase LEGAL retirement age to 75. Keep the EPF money 20 years longer.. Sell the IDEA as helping RAKYAT to save for retirement..

Dreamer

prophetjul,

The BEST part of this is IT does not affect civil servants since civil servants are not on EPF.

Dreamer

SeeD,

How long can you SURVIVE without income and WITHOUT SELLING any asset and / or investment??

Answer that question FIRST. Make sure that it is AT LEAST more than 2 years before you say it is not a big deal...

Dreamer

SeeD,

1) You still not answer the question. How LONG can you SURVIVE without income and selling anything?? Before you say it is or it is not a big deal, I would like to know how well can you SURVIVE.

<<Well, RM72k is a huge sum of cash to be staying idle. >>

2) It may be a HUGE SUM of money to YOU. But, it might just be a small percentage of somebody else total asset.

3) I have 2 years of emergency fund. They are EXCLUDED from my total investment portfolio.

Dreamer

howszat,

It is VERY SIMPLE.

1) You DO NOT INVEST your emergency fund.

2) Ditto, I do not include the house that I lived in as an asset and investment.

Dreamer

howszat,

Need versus want.

1) Yes, I do not need to. But, I can afford to do this and it does not affect my road map to FIRE.

2) I BELIEVE the GLOBAL RECESSION is bad enough that 2 years emergency fund is MINIMUM that I am comfortable with.

3) Your concept of FUNDS only works if the GLOBAL RECESSION plus loss of income is 6 months or less. Longer than that, you have to SELL something in a RECESSION. Then, you will take a BIG HIT. Your 18 months worth of funds will not worth that much.

4) Please note that I could survive anywhere from 3 to 5 years dependent on how well my dividend payment is holding up WITHOUT SELLING.

It is a BAD IDEA to prepare for RECESSION by counting on selling FUNDS.

Dreamer

This post has been edited by dreamer101: Sep 17 2011, 07:58 PM

howszat,

1) Silly or not is DEPENDENT on how LONG that you THINK this GLOBAL RECESSION will last. IMHO, any plan with LESS THAN 2 years emergency fund is NOT good enough.

2) Liquid versus non-liquid

All those funds can be liquidated in a RECESSION. But, at what cost?? Half or less of the original value?? With 2 years of emergency fund, I do not have to sell at the LOW. For people with 6 months of emergency fund, they have to sell after 6 months at the LOW if the recession continues...

3) I am PESSIMISTIC enough that this will last a long time. Please note that this recession is triggered by USA REAL ESTATE BUST. USA REAL ESTATE has a boom and bust cycle of 7 to 8 years historically.

4) You ASSUME that any loss of income will not last more than 6 months.. I wish you best of lucks...

Dreamer

MGM,

You TRUST the government.. I wish you best of luck...

Dreamer

MGM,

Bingo...

I only invest on one counter in KLSE and it is NOT a GLC. Most of my investment are all over the world.

<<If these bodies fail then Malaysia would collapse and there is no place to run accept offshore>>

Now, you UNDERSTAND what will happen next in Malaysia.

What makes you THINK that Malaysia is not on the threshold of collapse??

Dreamer

This post has been edited by dreamer101: Sep 18 2011, 09:10 AM

MGM,

I wish you best of luck.....

It is VERY SIMPLE.

Either

A) You had seen enough signs to know that it is coming

Or,

B) You do not believe and have not seen any signs....

Looks like in your case, it is (B)...

<< What makes you THINK that offshore countires are not on the threshold of collapse? >>

You live in Malaysia and you DO NOT KNOW that Malaysia is SPECIAL?? Aka, Malaysia is DIFFERENT from all those countries??

Dreamer

Folks,

http://www.powerswitch.org.uk/portal/index...d=2079&Itemid=2

Lessons from Argentina's economic collapse

<< The third pyramid showed the communist society. Where arrows from the low and middle class tried to reach the top but they bounced off the line. A small high society and one big low society, cushioned by a minimal middle class section of pyramid. Then we turned the page and saw the darned fourth pyramid. This one had arrows from the middle class dropping to the low, poor class.

“What is this?” Some of us asked.

The teacher looked at us. “This is us”

“It’s the collapsed country, a country that turns into 3rd world country like in pyramid five where there is almost no middle class to speak, one huge low, poor class , and a very small, very rich, top class.”

“What are those arrows that go from the middle to the bottom of the pyramid?” Someone asked.

You could hear a pin drop. “That is middle class turning into poor”.

I won’t lie, no one cried, though people rubbed their faces, held their heads and their breath.

No one cried, but we all knew at that very moment that all we thought, all we took for granted, simply was not going to happen.

“You see, the income from the middle class is not enough to function as middle class any more. Some from the top class fall to middle class, but the vast majority of the middle class turns into poor” Said the teacher.

I don’t know how many people in that room suddenly understood that he/she was poor.

The teacher continued “You see, we have a middle class that suddenly turns to poor, creating a society of basically poor people, there is no more middle class to cushion tensions any more. Middle class suddenly discovers that they are overqualified for the jobs they can find and have to settle for anything they can obtain, there for unemployment sky rockets, too much to offer, too little demand. You see they prepare, study for a job they are not going to get. You kids, you are studying Architecture because you simply wish to do so. Only 3 or 4 percent of you will actually find a job related to architecture.”

We all sat there, letting it all sink in. After a few months, it all proved to be true. Even the amount of students that dropped out of college increased to at least 50%. They either so no point in studying something that would not make much of a difference in their future salaries, had no money to keep themselves in college, or simply had to drop college to work and support their families. >>

Dreamer

This post has been edited by dreamer101: Sep 19 2011, 07:14 PM

OneBuck,

You have not look FAR and WIDE across history of many countries and places.

Malaysia has 1.2 millions to 1.6 millions civil servant and GLC employees. This is out of 8 millions to 10 millions working age people. So far, we did not have any crissi that affected this group of people over the past 50+ years. Not even in 97/98. In worst case scenerio, the government run out of money and laid of half or more of those people, can YOU imagine what will happen next??

Dreamer

arthurlwf,

A) WHY do you use the word "will"?? Isn't this happening right in front of your eyes now???

B) When the same EMPLOYER is feeding 1.2 to 1.6 millions people, every tax will hit the same group of people and they need more money to survive... Hence, they will DEMAND more salary. Things just spiraling down from here....

Dreamer

This post has been edited by dreamer101: Sep 20 2011, 01:19 AM

arthurlwf,

50+% of the KLSE is owned GLC and GLIC. The G stands for Government. Haven't you seen and hear more and more implicit tax increase??

The latest one is the prepaid card tax... Then, you will get GST too...

<<You mean the government had impose more than 60% on income tax?>>

That is TOO OBVIOUS and will drive out all the rich people that can leave any time... Plus, it will not raise enough money anyhow. Only 1+ million people pay income tax....

Dreamer

arthurlwf,

You still do not get IT.

Why would they tax themselves?? They are the ONE that bring money out....

They will tax people that cannot do anything about this.

For example, sugar price. Rice price.. Cooking oil tax... It is ALL happening now...

Dreamer

firee818,

The MAJORITY supported this GOVERNMENT. So, they reap what they sowed.

What is the PROBLEM??

Dreamer