SOS Rich

A statement made by someone:

"If you were in my shoes, every month has passive income coming in and it will continue after I pass away.  Why do I have to worry about making more money by investing."

The issue here is, if your passive income is more than your expenses, even more than you can spent for next life, would you be worry about making money by investing.

No, if you have no one to inherit to.  (so sad)

Yes, if you wish to inherit it to your children or family members.

However, I agree with the statement that "you do not need to worry about making money by investing."  But, as a financial planner, we believe it is a rational move to allocate your assets into different assets, disregard how rich you are.

You ask any billionaire to retire, they will ask you to …… To them, the motivation as an entrepreneur is no longer about money, could be leaving a legacy behind or even helping others.

So, does, that mean this billionaire do not need to ALLOCATE his assets, like put a portion for investments. Yes, he need not worry about it, because, he cannot finish using the money he made.  Neither should he be worry of letting his money to work harder for him, i.e. getting a better return on money.  I am of the opinion that it is RATIONAL and RESPONSIBLE to let your money work harder for you, of course, not to the certain extent that you are worry for it.

Investment, to me, is merely an avenue to let you excess savings to work harder for you.

Investment in good value EQUITY if done rationally, systematically and prudently, will provide you a higher yield than merely FD.

It would be a bit overly optimistics that you will get your passive income forever, when you group gets old, some may not want to continue the biz, their next of kin may not want to continue it, so the group will become smaller and smaller.  Or during a crisis or world depression, people may run out of work, and sale of the product may not be good for a period of time.  Hence, isn't it RATIONAL to invest, part of your hard earn money, so that, the money can work harder for you.  Of course, not to the certain extend you have to worry for it.

The principle here, I believe, is No everyday is SUNDAY.  The world do not move in a linear way, it happen in a mysterious way.