U guys sure want to retire early....

I'm just 1 month into semi retirement month and I got bloody culture shock by being dumbfounded on nothing to do....I worried if this prolongs I may lose my mind...gotta fast find a hobby

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some UT funds has no dividend distribution policy
some UT funds has auto reinvest the distributed dividend
some UT funds can select either Auto reinvest or pay out cash

if profits can be made constantly and if it need to take out the profits to use then it can be considered passive income
like ex...CMF constantly giving out about 3.X% pa...then that "profits" if taken out for use, can be as a form of passive income

if it does not required to be taken out, then it is asset accumulation stage...just let it grow while doing rebalancing of % allocation in the portfolio

Dividends declared/distribution amount is usuall a very small percentage of the funds (somehwere in the range of 1.5% pa). So unless you have a very huge amount invested in unit trust, that distribution amount will not be able to cover your retirement expenses.

As an example, if you want a RM3k monthly retirement lifestyle, you will need to have RM2.4mil invested in unit trust that distributes an average of 1.5% pa.

Do take note that the distributions that were reinvested may or may not be charged a front load fee. If a fee is imposed on the reinvested distribution, then it will further erode your dividend returns.