A reader asks,
What should one do if one has repaid all debts, owns a home, leads a simple life (no cars, clubs, or expensive holidays), is sitting on a pile of cash (most of it in fixed deposits) and has no continuous stream of income except for paycheck. Is this person very close to financial independence? Any thoughts?
Brilliant. You’ve ticked most points in this checklist.
But have you covered the other basics — health insurance and life insurance? And will the monthly after-tax interest earned from your fixed deposits be adequate to meet your monthly expenses on a continuous basis? If not, you aren’t.
What do you think?