Discussion in 'Financial Independence, Retire Early (FIRE)' started by MTR, 5th May, 2017.
Didn't you put all in cash under the pillow last year fearing the recession crash coming?
Nope...I moved back into shares .some in Dec and most by Jan/Feb this year.
I have now gone back to Conservative Balanced and Balanced Index finds. I reckon...that Oct/Nov is going to get choppy.
The market is always changing......
How do you measure your performance? Do you compare your returns vs the market? Would love to know how you perform vs a buy and hold who doesn't have to send the brain power making the number of decisions you are having to make
I don't do metrics...I do more the sentiment and psychology of the market. Oct has been a volatile in lots of years. I ma happy to take a lower return...for a few months..
Good the hear you are actively changing strategy on your money.
I have put mine on conservative balance fund since April 2018 after the big scary drop on the share market.
Will review once the sentiment of the market change as it needs to be manage with one eye open.
How do you know that you are only accepting a lower return for a few months? If October is a great month, then you will need to outperform in November in order to break even from that point forward. I guess what I'm saying is given that returns compound, if you miss out on the return "for a few months", then what you have missed out on for a few months will compound quite considerably over the course of the next 30-40 years. Also, if you are buying and selling as freq as your comments suggest, wouldn't CGT become a bigger issue also impacting upon your after-tax returns?
Even though I am not much of a traveler I do like your budget for travel.
Spouse and I need around $250K (each around $125K) year for living, that has increased from year 2000 when we started investing with goal of $50K each to replace then our incomes with some surplus. Will probably generate more if will access SMSF as the older we become the more are we required to take out!
I am wondering whether any on this forum actually hold IPs for at least 20-30 years or with intentions of never selling and 8 digits portfolio with low LVRs?
Even though one share made us x30 in value, the proceeds were directed towards property instead.
I continue to hold and do what worked for us, even though rent may be lower in income terms as compared to stocks' dividends, but CG amounted to millions.
I don't know I just sleep better at nights having most in IPs. Liquidity is in offsets accounts sitting as cash if ever required to use it instead of selling IPs.
Say, if you have $10M to invest into shares how would anyone go about it? Would your strategy differ based on different amounts or not really?
Savings rate for us 60%, so I am a bit baffled it shows we can retire in -17.6 years (meaning about 18 years ago if it's negative is this correct?).
I actually feel partly retired for the last 20 years or so....what I continue to do is what I like to do hence why stop at any age?
As my mentor LB said, "Don't let others opinions of you make it your reality!".
Good on you, live on your own terms, I do!
The stuff I am planning with in Super. ...for my non super assets I have left it on Vanguard VGS and VAS funds.
I have done this a few times and have done okay. The difference between the Conservative fund and high growth balanced is only 1-2% difference...but the later is more volatile....
I am already there...but pushing ahead with diversification into shares.
I am also going to own less but more really bluechip properties going forward.
I'm curious to know what you spend $250k per year on? Where does it all go ?
Sex ...drugs...and rock and roll...
For the record 250k net is an obscene amount 100 to 120k net is plenty. That even includes 1 to 2 business class flights.
What if you want to travel more frequently than once or twice a year? What if you like driving very nice cars? Or drinking very fine wines to wash down very fine meals? I agree that 100 - 120K net , with no other debts, makes for a very comfy life, but it’s equally the case 250K net makes for a more comfy, more frequent flyer life. 20K per month provides for more than 10K per month does. As does 30k per month, or 40k per month
Get real...how many people retire on 250k plus....maybe 0.1%!
Hey for that coin you could do the Danza Kuduro...like an El Rey!!
It really depends what life and expenses or giving you are accustomed to, wouldn't you agree? We are all different and so are our wants, as opposed to needs.
Say if you are living on such earned incomes wouldn't you aim to at least retire on such incomes if not more?
As LES BROWN said, "Don't let other people's opinions define your reality!". So what one perceives a lot others may perceive as not so much. What one perceives as useless spends others may not and so on.
What one person wants or spends is irrelevant, and only relevant to that person. And why are we bound by any limitations, there's abundance of wealth in this world for everyone that wants it.
For the record wealth to me personally encompasses other aspects, such as health, family, gratuity, social, spiritual and then another aspect is 'financial' wealth.
As mentioned before 'obscene amount' is only perceived by those that think it is. It think otherwise. Why limit to any number, and then who defines that number?
If we compare to 'mediocrity' or what others define is acceptable then that's other people's belief, their prerogative. Am I allowed to think otherwise?
Doesn’t make it obscene. What wrong with someone wanting to be better than the average bear?
This jogged a memory from long ago. Not about shares as such but adverse ramifications of decisions which does involve compounding to some extent.
Fella was a Federal public servant in the old CSS. About to pull the pin with the early retirement thing but couldn't work out why the calculations showed he would get a smaller defined-benefit pension than some of his mates who had similar length of service.
Turns out early on in his working life he had taken a year off without pay and had not elected to continue his membership of the fund for that year and contribute the required amount for the period. He could have done that under the rules of the fund and paid the relevant contributions on his return. Sure what he had contributed before the year off was still working for him as did his future contributions when he returned.
That decision early on in his life apparently cost him about $20,000 pa in pension.
Short-term decisions having a long-term effect.
No judgement here, I was/am genuinely curious as to the breakdown of how one might spend an annual budget of $250k per year.
As in roughly, giving $25k, travel $50k, car finance $50k, gardener/cleaner $40k, food/eating out $30k, utilities/insurance $15k, hobbies/shopping (including wine purchases for Euro and Kierank) $40k. For some with children I imagine one or some of these to be replaced with private school fees.
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