AdventuresAddict
Dryer sheet aficionado
- Joined
- Mar 8, 2008
- Messages
- 31
To reply:
1) why am I here? Just to learn and discuss, just like all of you guys. I am planning for my early retirement now also. Not to sell to anyone. As most of you guys are Americans, and few if any would be Singaporeans like I, this would be the wrong place to do e-marketing! Haha.
2) Regarding the DIY preference. I think I had explained why from a retirement planning perspective, sometimes we need to transfer the risk to a financial institution in areas where the risk is undesired. As a retiree, you wouldn't want the risks of running out of monthly income as much as you wouldn't want to be down with long-term care, hospitalization, etc uninsured. As such, I argue that the survival income portion of your planned income stream should be an insured source. The principle is the same as why you'd--even as a retiree---want to buy long-term care and medical insurance. It's for risk transfer because you do not want to self-insure this risk. It's even more important, in my view, if your nest egg is not big, because a major slide in the financial market could reduce your capital significantly. As George Soros says, the situation today is totally different. The financial system and economic order have totally changed today, with financial derivatives (such as CDO) spreading like epidemic. You don't have to agree with me. But in a forum like this, everyone is here to share his ideas. My point is that you should seek more protection for your survival income stream since the volatility is much higher today than it was decades back, from which data supporting the SWR research is derived.
1) why am I here? Just to learn and discuss, just like all of you guys. I am planning for my early retirement now also. Not to sell to anyone. As most of you guys are Americans, and few if any would be Singaporeans like I, this would be the wrong place to do e-marketing! Haha.
2) Regarding the DIY preference. I think I had explained why from a retirement planning perspective, sometimes we need to transfer the risk to a financial institution in areas where the risk is undesired. As a retiree, you wouldn't want the risks of running out of monthly income as much as you wouldn't want to be down with long-term care, hospitalization, etc uninsured. As such, I argue that the survival income portion of your planned income stream should be an insured source. The principle is the same as why you'd--even as a retiree---want to buy long-term care and medical insurance. It's for risk transfer because you do not want to self-insure this risk. It's even more important, in my view, if your nest egg is not big, because a major slide in the financial market could reduce your capital significantly. As George Soros says, the situation today is totally different. The financial system and economic order have totally changed today, with financial derivatives (such as CDO) spreading like epidemic. You don't have to agree with me. But in a forum like this, everyone is here to share his ideas. My point is that you should seek more protection for your survival income stream since the volatility is much higher today than it was decades back, from which data supporting the SWR research is derived.