Do you think the promise of the FIRE movement has severely been hit due to a black swan event like COVID-19 which removes the ideas of stable dividend income? - Seedly
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Anonymous

Asked 4w ago

Do you think the promise of the FIRE movement has severely been hit due to a black swan event like COVID-19 which removes the ideas of stable dividend income?

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Hi Anon,

That goes without saying. I'm quite sure most investors who only focus on REITs for their passive income are severly hit, especially the retirees. Even though REITs have always been deem as low volatility and stable dividend payout, this is true only when things are going well. As investors, it's important to adapt your investment with any black swan event and adjust accordingly. A 30% drop in unit price would have just wipe out 6 years worth of 5% dividend yield, assuming that your unit price has always stay constant till then. Just have to take note nothing is stable forever so never should we let our guard down. At the same time, always ensure adequate diversification and evaluate personal risk tolerance.

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