How Long Will it take to RETIRE on SHARES

Discussion in 'Financial Independence, Retire Early (FIRE)' started by MTR, 5th May, 2017.

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  1. lamecrocs

    lamecrocs Well-Known Member

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    I'm a newbie here but I've invested in both property and shares. From reading most of your posts in this forum, you're no doubt an "experienced" investor but bias towards property.

    For one, properties require a large capital to start off with (excluding REITs etc.) and it's easier to go bankrupt if you don't know what you're doing.

    Because you mentioned the word "safe" and "shares", I would like to give you an example: if you invest $1000 (peanuts compare to property and your total portfolio, imo) into one of the index funds or LICs... and assume you lose it all (worst case scenario), would you regret? Yes, it might be unwise but I think you would still be ok by losing the whole lot, $1000. But the experience you'd gain from this process is quite enormous, imo. At least, you're in the game and won't die wondering shares or properties.
    This is like me considering... Should I go and travel overseas? cost usually >$1000, but by spending the amount, it won't send me bankrupt and would give me an experience that I couldn't have otherwise.

    Like others may have said, why not try by doing. start small and grow it if you like it. otherwise, just treat it like an overseas travel :)
    When you've reached the amount that is beyond my experience here, just ask the veterans on here.
     
  2. SatayKing

    SatayKing Well-Known Member

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    Ok this will be the first and the last time I'll ever do this as it s inappropriate in many ways.

    How long does it take? Depends on whether you win Tattslotto, receive an inheritance, have a darn good income, live frugally and invest a heck of a lot of it. Or you may be very, very smart/lucky and able to trade/time the market. Or you may throw a dart and pick a blitzer of a share. And sheer luck in place and circumstances.

    Add into that mix attitude.

    One small aspect to stir in to complete the recipe. Time.

    How does all of that impact on a person like me? Tomorrow about to get a dividend not too far short of the married rate aged pension. And more to come.

    I now walk.
     
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  3. Nodrog

    Nodrog Well-Known Member

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    Difficult to offer an opinion on this as whatever happens in the US stockmarket will have a big impact globally. And although it’s unknown when there might be a major US correction / bear market it would appear that the cycle is well advanced.

    The general advice here for those new to investing in the sharemarket is to buy a broadly diversified index fund and buy it regularly over time so not too much capital is put at risk at any one time. However @MTR is this what you want to do in that you want to be an ongoing long term investor in shares or simply looking for a contrarian opportunity whilst property is on the nose?

    There’s always that other powerful alternative when the way forward is unclear and / or global market risk appears higher than normal - DO NOTHING! Cash alone or accumulated in offset accounts, debt reduction to fatten up LOCs might turn out to be a better investment in the short to medium term? Then there will be loads of dry powder to take on risk that is well rewarded. If not on shares then the next property cycle.

    That said, market forecasting is often regarded as a mug’s game. I’m no better at it than most. Each investor needs to be comfortable with the risk they’re taking on and whether at this point in time they’re being rewarded appropriately for it.

    PS: I would normally answer this differently but I do get a bit more concerned / cautious when Property investors are looking for “safe” investing in shares.
     
    Last edited: 14th Feb, 2019
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  4. pippen

    pippen Well-Known Member

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    I would of loved some Mirrabooka in the early years too!;)
     
    Last edited: 14th Feb, 2019
  5. willair

    willair Well-Known Member Premium Member

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    Does that equal every 2 weeks or a total of 52 weeks as I just looked the married rate pension rate ,makes me think you can do nothing all your life saves nothing and still do very well..
     
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  6. SatayKing

    SatayKing Well-Known Member

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  7. Nodrog

    Nodrog Well-Known Member

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    Since when has being inappropriate been an issue:D.
     
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  8. willair

    willair Well-Known Member Premium Member

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    Well done that sort of unwittingly looks a lot better then the every 2 weeks..
     
  9. SatayKing

    SatayKing Well-Known Member

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    It makes me very uncomfortable hinting more than usual where I stand financially.

    I will certainly be inappropriate after I grow up to be a dirty old man and drop a Falconer V12 into the walking frame but until then...
     
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  10. Silverson

    Silverson Well-Known Member

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    I pictured you, like a rock star, just saying your bit, dropping the mic and walking into a swarm of passive income groupies !!
     
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  11. SatayKing

    SatayKing Well-Known Member

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    I feel I should explain. There appears to be a general theme shares are risky. Well, it depends on what you define as risk. Risk exists in many forms and at many levels within those forms. Essentially it is a degree of fear. Sure, share prices can be and are volatile. So what?

    All goes round and round on the question of Are you able to retire on shares?

    Answer is a sound and loud Yes.

    But when someone goes with the "Oh sure but.." bet you it will never happen for them.

    Decide what you're prepared to give up now, how you want to or need live now (Mercs, gold bling, $400 dinners or Maccas) and just bloody do it. I don't give a rats how you do it or what present lifestyle you want now but just do it and cease with scaredy cat garbage.

    And you may not reach nirvana due to resources available but I'm in no doubt you'll be way, way better off then doing naught but continually questioning whether you should.

    And all the above thoughts are a mixture of a number of reasons why I went slightly beyond hinting where I currently stand.

    Mic drop.

    SK has left the building.
     
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  12. Nodrog

    Nodrog Well-Known Member

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    A7C89074-EFD2-4012-9759-A8B1CDDFDCBA.jpeg
     
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  13. SatayKing

    SatayKing Well-Known Member

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    Nah. Sorry. Total rubbish and seriously underpowered.

    This is more like it..

    [​IMG]
     
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  14. Nodrog

    Nodrog Well-Known Member

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    That’ll fry your ar*e.

    This is more sensible:
    8EBC2B86-B2CF-4A92-84A8-7530357F127A.jpeg
     
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  15. SatayKing

    SatayKing Well-Known Member

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    Hmm, maybe. Does it take two superchargers or up to four turbocharges plus a water-methanol injection system? If not, the ar*e fry it has to be.

    Somehow I feel we've drifted off the original subject of this thread. I suppose age can do that. My excuse and I'm sticking to it.
     
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  16. Nodrog

    Nodrog Well-Known Member

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    ECF791BF-9F16-4F99-A333-EB3441D57C95.gif
     
  17. kierank

    kierank Well-Known Member

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    Total agree.

    We bought our first share in our direct share portfolio over 16 years ago (in 2002).

    We are B+H investors (same with property), only used cash (no debt) and we bought in our SMSF.

    Over that time, we have seen many scary events on the world stage including GFC, Donald Trump, multiple sacking of Australian PMs, ...

    We have been true to our strategy and, as of today, shares have given us returns greater than the capital we have invested. And this is after being forced to withdraw the minimum mandatory pension payments (4%) over the last 8 years. I know, this is only a paper gain (which some say is not real).

    Could we have done better? Probably

    Could we have done worse? Definitely

    Could we have done better with IPs? Couldn’t give a ****

    Would we be better of if we did nothing? Fcuking hell no!!!!!

    Main thing now is:- we are living the dream and it appears our situation is more than sustainable to the day we croak it.
     
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  18. Perthguy

    Perthguy Well-Known Member

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    Is property "safe" and are shares "risky"? It depends on who you ask.

    Ask an investor who got heavily into mining town property during the boom is property is "safe".

    Ask someone who invested heavily in Dick Smith shares if shares are "risky".

    There is no correct answer. Either can be "safe" and either can be "risky" depending on how you invest.

    Personally, I have found both to be "safe".

    Not advice.
     
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  19. Mac Fields

    Mac Fields Well-Known Member

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    Yep, agree. All i can say is that shares are waaaayyyyy less work and worry (for me) Follow Thornhill 's broad approach, add some index funds and let the very low cost managers do the evaluating and buying. With hundreds of thousands of dollars under management in the established lics/ETFs, I'll leave it to them to manage.
     
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  20. sash

    sash Well-Known Member

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    Based on what I am seeing...you can accumulate $1m to $1.5m in index funds in about 10-15 years...if you are ploughing say 35-45k per annum. More if you leveraged slightly. I am just at the start of this.

    Too many people are on trick ponies - ie. properties only, shares only. ....you need some level of diversification.