'Now I know who my real friends are'

[CityFarmer]

If I goes for full time in investing, a suitable portfolio with sufficient % in slow-grower/stalward companies (for dividend) as anchor. On top of that, a larger emergency fund of 1.5-2 years (compare with typical 6 months) should be able to survive when market tanks.

I don't think there's a one-size-fits-all solution. IMO, each of us have to find an approach that's suitable for themselves.

In my case, I'm getting ~6% Dividend Yield as my anchor + ~2% from 'active' dividend management routines (cd/xd) + ?? % from other active switching routines. Most months, I have dividends coming in (I don't do cd/xd to all my stocks) and need to watch my cash flow closely only in Jan/Apr/Jul/Oct as these are usually zero/low dividends month. As I have 'switching' transactions (blame it on Peter Lynch) almost every week, I can also tap on the sales proceeds for my cash flow if required.

I'm used to not having any fixed emergency funds set aside (I do set aside some funds in a few different bank accounts to pay my different bills - GIRO, Visa and that does add up to a few months' worth of funds and which I top up whenever it gets depleted). My thinking is that I can easily liquidate any of my Stalwarts if I do suddenly need some extra funds urgently. In fact, the only time I have lots of free cash idling around in my bank accounts would be when many of my stocks have hit my selling price and I can't find any alternative to 'switch' to.

Well said. I am planning now (full time investor) as plan B if i am fully out of "normal job". No harm to have a contingency plan in place.

Your advice is useful to fine tuning the plan B. I am getting around the same ~6% from my anchor stock (stalward), I will sharpen my rotating skill to increase the %. Target to have 10% return (feasible?), and will adjust accordingly in due course.

The focus should on high-grower/Turnaround/Asset-play. Hope to grow the portfolio with this group.

Emergency fund planning? Your approach make sense. I will consider anchor stocks + emergency fund as single entity for emergency needs. Fine tuning it is necessary to maximize the return.

For me now, the dividends coming mostly during Q2/Q3, the least is on Q1 (where the most $ needed, NY, CNY etc ). But it is less of a concern for me, i can always have a fund to buffer it.

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Both of you are very right in that one should continue to work as long as one is able to. Nothing beats the FCF coming from a full time job - one gets paid on the dot, month after month. You can skive anytime you want to (as long as you don't get caught or mess up any major projects). You even get paid while you are sick (MC + Hospitalisation), when you have kids (maternity, paternity) and even get paid when you go on leave! You can claim for this and that (Health/Medical Benefits,..). So, why even quit at all?? You actually get the best of both worlds if you were to continue working and do your investing at the same time (extra income).

The alternative of investing for a living is actually quite scary. If you plan to survive only on a 4% to 6% returns, then yes, you'll most likely need $1Mil, assuming you don't plan to touch the original Capital.

In fact, if I'd not gotten retrenched all those years back, I wouldn't have had the guts to even try. No, I didn't start with a million bucks. In fact, I was in a negative equity position if I'd factored in my outstanding mortgage loan.

In my case, luck played a very strong role. Like 'swakoo' mentioned in an earlier post, I was lucky to have participated in the super bull from '03 onwards, which helped to turn my position to a very positive equity situation. I stumbled on this forum's predecessor in '05 when I was trying to get my act together, learnt a lot from the many gurus, ... and looking back, everything seems to just fall in place. But, I don't deny that it was a very, very stressful period of my life! It's only now that I looked back, it seems to have gone so smoothly and the ride seems to have been rather fun and enjoyable!

My wish is to repeat your story and success on mine in the next bull run (near future?).

I am active in the last bull run, but following a less efficient and effective approach.