I attended a free talk by Chris (http://treeofprosperity.blogspot.sg/) today and have some thoughts that I would like to share on this blog. The talk was pretty well done with a great response. These are some of the takeaways that I have obtained from this.
a) Personality test
In order to know myself better, I have taken this test online and I have found myself to be ISTJ (Introvert, Sensing, Thinking, Judging). This is pretty true. I am quite the introvert and find comfort in smaller groups rather than bigger ones. It turns out that this is the Carl Jung test rather than the MBTI, but the questions asked in the link below do tell me more about myself.
You can find the link here: http://www.humanmetrics.com/cgi-win/jtypes2.asp
b) Comparing leverage with a dividend yield strategy
There was some talk about this and personally, I have experience with having leverage as I do own a property which I am renting out. One of the things about leverage is that its a double edged sword. Once you have a mortgage, your interest rates are more or less determined by the bank and the economy. In addition to that, there is also the thing about getting the right tenant and ensuring that he or she will take care of your place while renting it from you. Its also a bigger purchase in nature, compared to that of buying equities.
In the case of a dividend yield strategy, one can buy 100 leveraged properties at a smaller price in the stock market. I feel that this strategy gives a better peace of mind. I do not need to worry about getting tenants for my properties, I just need to monitor the company news to ensure that all is in order.
c) Cutting expenses and improving income
The strategy to gaining financial independence is really to cut expenses and improve your income flows. If you can have a great salary and live like a undergraduate/student, you are really on your way to financial independence. Coupled with a great investment strategy, the dream to retire by 40 makes it a lot more realistic and not just building castles in the air.
You can find the link to the presentation slides here: http://invictus666.github.io/blk71_talk/#1