Can this work? Ocha 100k per month ni mingi sana. Chakula iko kwa shamba. so watu wa inflation kaeni kando kidogo
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Has he accounted for inflation and capital gains tax?
What exactly are his portfolio that makes 100k per month?
Interesting assumption.
Kes. 20m invested in an infrastructure bond with a 12.5% interest would pay Kes. 2,500,000 per year. That’s 208k tax free. The work here is committing 20m to the bond.
Hehe, pesa haijawahi tosha
Someone who has accumulated 20m or such amount, hata iwe ni luck, cannot live on a 200k budget without other sources of income. Tricky sana.
The idea here is to live on 6% and reinvest the other 6% to beat inflation.
I’d differ on that.
Most pensions are accumulated over a period of 20-40 years. So even if this guy was accumulating 500k-1m a year, that’s setting aside either;
- 80k a month in savings for 20 years
- 40k a month in savings for 40 years.
- a more realistic graduation from 20k a month in the beginning into an 6% per annum interest bearing account, at tail end of 30 yrs he’d have Kes. 20m.
So, tell me how a civil servant setting aside 20k a month can’t accumulate this and live of 208k per month?
There are two levels of wealth/financial freedom, local and international. Lets start by defining what financial freedom is: the freedom to live where you want, eat/drink what you want, educate your kids where you want, visit any establishment/concert/event/national park/conservancy you want etc without having to work an 8-5 job. Personally, I believe this can best be achieved from dividends and rents because they are hedges against inflation.
For purposes of this discussion, I will define passive income as income that requires less than 3 days of work per month. I know that no income is 100% passive.
Level 1 Financial Freedom: Local
Income of $30,000 per month (not active income).
Earn that figure in rent and dividends and you will have the freedom to live in any address in KE, tour every inch of the country, use choppers, educate your kids at ISK, become a lifetime member of any decent golf club, afford the best medical services etc. Basically, wewe na Uhunye mtakuwa ligi moja (minus the influence/power) despite the humongous difference in real wealth.
Level 2 Financial Freedom: International
Hapa I will say you need at least $500k per month income in rent and dividends. Chartering a private jet for 50 hours to the USA kama tourist ni $500k. Chartering a sizeable yacht at the French Riviera/Monaco will set you back at least $10k per day. The most expensive school on earth charges over $100k per year in school fees pale Switzerland. I used private jets and yachts as examples because those are the most expensive luxuries. If you can afford those without sweating, there is nothing else you can’t afford. Heck, even a huge mansion pale California Beverly Hills with all the luxury ni $50k per month. At that level wewe na Elon mko ligi moja despite the huge difference in wealth.
Basically, earn $30k per month passively and you win the local league. Earn $500k per month passively and you win the international league. The real work iko accumulating stocks and properties to give you that income. You might need $3M+ and $50M+ to get that income.
That’s basically my opinion about wealth and retirement. I know people have different views and its their right to those views.
if the company goes under?
More than enough…30k inatosha