24 May 2013

What If I Win Lottery?

I bet most people will ask themselves this question at least once in their lifetime. So what if I win? Let's say S$1 million. I will dump it all in government-linked stocks with at least 5% dividend yield, without considering the trading fees, the rough return is S$50,000 a year, and I don't have to do anything, every year I'll get paid.

I asked my wife what she will do if she have that kind of money, she say she will help people in need, gosh, not that I'm against helping people in need but I think before we help others, we should help ourselves first i.e. achieve financial independence and then help with whatever spare cash.

Having S$1 million in cash doesn't mean I will be financially free, it just mean that I have that kind of money to spend, question is how long can it last if I keep spending? So it's better to setup passive income, dividend stock is a very good choice.

Daydreaming on a public holiday is kind of silly huh.

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