@kb_snn I understand the calculation that you have mentioned, which emphasises on having your annual expenses fuelled by the dividend income from your portfolio.
Based on this calculation you would need 100x your annual expenses (including margin of safety). So if my annual expenses are 12 lacs (1 lac per month), then I will need 12 crores to have 1-2% dividend to fuel my lifestyle and expenses.
I have another naive question.
On this journey to be a full-time investor and also be financially independent, wouldn’t it be prudent to have 2 Cr of this portfolio into lifetime annuity options like LIC Jeevan Akshay for example which will give sureshot 14 Lacs per annum (7% approx.). I understand that this will not beat inflation over next 30 years. But this will make sure that you do not panic in situations of market crash and go into poverty mindset. Rest of the 10 Cr and dividends from it will take care of the additional surplus and also help beat inflation in the coming years.
I am sure people will be using some sort of steady income like house rent or annuity than to completely rely on dividend income with enough margin of safety. What are the other options?