Do you have an idea for how long you are willing to work before retiring? Are you willing to sell your time for money for most of your life? Have you thought when you will reach financial independence? This topic came up last week when I was having a chat with my dad. I admitted to my old man that I enjoy my job but it is stressful and I deal with a lot of traffic during my commute. I can’t see myself doing this for another 40 years before being able to slow my life down enough to spend time with my family.
Because of my stressful career, I’m not able to focus on hobbies that I enjoy. These are mainly blogging and tinkering with small electronic projects. There just isn’t enough time to wind down, relax, spend time with my family, and enjoy my hobbies. My dad, now in his early fifties, completely agreed, saying that he doesn’t want to work for another fifteen years either. He’s actively trying to bank money to retire early so that he can quit his job might work better here and focus on the projects that he enjoys doing.
Are you planning to slow down before 65?
In my opinion, we live in a world that moves too fast. We work hard, constantly on the go, and so we should be retiring earlier than the member(s) of previous generations. Where I’m from, most of those people had industrial jobs. There were no emails or cell phones. They got up every morning, did their job, and went home. There was a limited amount of worrying about work. You punched the clock and checked your work issues at the door and went home to relax with your family. Those days are long gone. With modern technological advancements, your employer can and does contact you after you’ve left work for the day. Emails, text messages, phone calls. There are half a dozen ways for your boss to contact you and make you feel obligated to reply or answer immediately. I want and need that after work relaxation. I don’t want to talk to my boss during dinner. And you know what? I shouldn’t have to.
I work in IT tech. Everything that I do while at work has to be done quickly and I’m constantly having to update my skillset and even retrain myself on a monthly basis. I enjoy learning new things but eventually, I’m going to reach the age where I’m going to be overwhelmed to the point where I won’t be able to maintain my current speed of learning and training. On top of that, my pension plan frequently changes. As of the last negotiation, I need to work until 58 before retiring. It’s four more years than what I was supposed to work. I feel like the constant changes to my pension make for an unstable retirement plan. I want and need stability. This is why I’m investing. My goal is to invest to the point where a substantial part of my income is coming from dividends. I want to wake up in the morning and be there for my kid as opposed to worrying about packing a lunch, getting dressed, and dealing with an hour commute.
Here’s is my investment plan for financial independence!
I’m looking to put 50% in ZSP, 25% ZDV, 15% FIE and 10% ZRE. I’m looking to invest 10% of my money into a non-North American ETF but still doing some research. This will bring FIE and ZDV down by 5% each. This is for my core long-term investment plan.
Buying and selling stocks is addicting and a portion of my portfolio will continue to have stocks in it. Sure, it’s pretty much the same as buying a weekly lotto ticket, but I have intentionally allocated some cash into a “fun stock money” section of my portfolio. I personally do not recommend this idea and in my mind, most of it has been written off as a loss. Buying risky stocks is part of the fun of investing and I know that if I don’t allow myself at least a little bit of fun, I’ll never stick to my ETF plan.
Why buying ETF?
Also, since my ETF are free to buy, I can buy regularly without my profits being eaten by the fees. Personally, I feel safer in long term with them. These investments are my plan to generate monthly revenue. Working is exchanging your time for money and my investment will give me money without having to exchange my time for the same money. This is the best way I could see to slow down a bit and make my choice base on my wants and not my money needs.
In the end, my hope is that these investments will bring me to financial independence and I can start making decisions based on what I want to do with my life and how I want to live it. I can live off of $3000 a month after tax. Once I’m able to live the way I want, I would like to travel, focus on writing for my blog, and maybe even starting my own business.
Readers: Are you looking for a path to financial independence?
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