Read this today
For the 2nd case, it brings up good points/lessons. Don't over-react and make drastic changes to "imaginary" worst case scenarios that play out in your mind. If you are not mentally/financially prepared and something bad happens, don't over-react and make wrong decisions, especially on issues that could be very hard/impossible to reverse.
Even if mentally prepared, when the risk materialises, you will still need a cooling period to absorb the event, and make a sound decision. Don't rush into things.
When Uncle decide to take a career break, Uncle also play out worst case scenarios in my mind, and see how I could handle it. But Uncle also didn't act on it immediately, and took on a more moderate approach, but adjusting exceptions on probability on what could happen realistically.
Here were some drastic decisions I could had made as I transitioned to a career break
1. Liquidate stocks and bonds and use it to clear off mortgage of my condo
2. Sell condo and move to a cheaper one (or move to HDB)
The above are purely from financial long term perspective, but it did not consider the impact on other things like my kids and wife. Distance to school, environment, adjustment time, time and effort to plan and move again...
I have since put these extreme/drastic plans in back pocket. I think it's always good to plan for worse cases, write down your action plan so you can refer to them when bad things happen and when you are in panic mode.
But I am not executing these plans now, because the situations that call for them are not happening, and would likely have a very low chance of happening. (yes, shit happens, but when shit happens, just bring out your backup toilet paper lor)
So Uncle instead decide to work out the sums, budget the amount required for my break, and realised its workable, and we can continue staying in current place.
Plans are meant to be flexible anyway, and Uncle will monitor and adjust as my break goes on, perhaps take a check point every 3 months to see if all things are still going in safe direction. I think this is a more mature approach to deal with complex issues, vs a binary/extreme way of doing things (or rash way)
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