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. standtall

    standtall Well-Known Member

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    My friend offered to invest some of my money and I said no for following reasons.

    1) it's a huge bubble and bound to burst like Japanese stock market did.

    2) market risk is very high plus currency is volatile.

    3) Most importantly, I have been actually getting better returns than him in Australian real estate because of the use of leverage. Given a choice, I will keep investing in one of the safest and most premium asset class i.e. Aus RE markets.
     
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  2. jins13

    jins13 Well-Known Member

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    Already have some money in shares and not interested in the quick buying and selling process fire sales. I think like property going to let time do the work and invest in relatively safe shares which is not that impressively but has small increments of growth over time. Yes, it is boring but that's what I want to do and is another income stream. I already have a somewhat aggressive investment on my super as well so it's pretty well balanced with that and my current IPs.
     
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  3. Gypsyblood

    Gypsyblood Well-Known Member

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    You make good points.
     
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  4. mues

    mues Well-Known Member

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    If you invest in shares the best plan is not to try and time the market. Invest early and often.

    Also, if you want to know the amount you need not to run out, better to estimate more like 8% returns and only taking 3% out per year.

    Use firecalc to figure it out.

    FIRECalc: Why another retirement calculator?
     
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  5. standtall

    standtall Well-Known Member

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    if anyone's investing in stocks, please read Tony Robbins' book called 'Money'.

    A very profound book that may change your life.

    (Make sure to suspend any previous biases against Tony but this book is really good)
     
  6. MTR

    MTR Well-Known Member

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    Jack
    Well done
    How many years did it take to retire on property?

    Mtr:)
     
  7. Nodrog

    Nodrog Well-Known Member

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    No doubt there will be some great education in the book in developing excellent financial habits but it will be interesting to see how the All Weather portfolio will perform in the future:
    The backtesting on this portfolio included the massive 30 year bull market in bonds. With interest rates at historic lows the bond bull market appears to be at an end. So this bond heavy portfolio may not be as successful in the future.

    Personally I sleep much better investing in Shares for income.

    But just one of many views which I'm sure will have no impact on Tony's book sales:D.
     
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  8. Barny

    Barny Well-Known Member

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    MTR how many years did it take for you to retire through property?
    Developing included. Can you show ruff figures please, time frames. Curious to know a different approach to just buying and holding or any methods you used to get to where you are.
     
  9. devank

    devank Well-Known Member

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    I believe, the attached screenshot is what you are talking about. Wife made me buy it :)

    I'm not a good reader and finished only few pages. Going ok so far.
     

    Attached Files:

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  10. standtall

    standtall Well-Known Member

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    Yep, try the audio book if you don't like reading.
     
  11. Jack Chen

    Jack Chen Well-Known Member

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    Hi @MTR, My first purchase was in 2007, 2nd year out of uni. Been accumulating 2 bedroom flats walking distance to train station and short commutes to CBD. Buy and hold.

    I don't ever plan to retire in the traditional sense. But truth be told, even if I wanted to, I'm nowhere near hitting passive income targets if I were to employ a live off rents strategy. However, I do have the option of selling down my entire portfolio and converting proceeds into shares for a fully franked dividend stream that'll easily smash my passive income targets.

    My thoughts are summarised in my earlier post:
    Why Property is Better Than Shares
     
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  12. Nodrog

    Nodrog Well-Known Member

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  13. Jack Chen

    Jack Chen Well-Known Member

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    That rehab centre did a real number on you @austing ;)

    While I've got you, I wanted to say a huge thanks for all your contributions over the years...since the good old somersoft days. Been investing in LICs/ETFs since 2012 after reading all your words of wisdom.
     
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  14. Nodrog

    Nodrog Well-Known Member

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    He he, you're welcome. Yes who would have ever thought I'd have 'I love property" as my avartar:D. I haven't had any home brew for 4 days so yes I think the rehab has done a real number on me:confused:.
    IMG_0209.JPG
     
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  15. Hodor

    Hodor Well-Known Member

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    I've seen him hiding in the corner of the Boglehead room too.
     
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  16. Zenith Chaos

    Zenith Chaos Well-Known Member

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    When should you buy shares? The answer is the same as the days that I drink; that is, those that end in "Y".

    Seriously, there are plenty of indicators you can follow but I like the process of @Anne11 Who looks at dividend yield. That is, if the grossed up dividend yield is greater than 6% (for example) then that is a time to buy. However, this is on the proviso that the share you are buying is decent, not something that could be a potential yield trap. Buying LICs and index ETFs this way is sensible. If the market tanks 5% the dividend triggers will all start to kick in and you will be like a kid in a candy store or an example closer to home - @austing in a craft beer bar.

    With regards to selling you property, why don't you use a loan against the equity to buy shares? It's a strategy Peter Thornhill uses. Obviously it comes with risks.

    My current plan is borrowing against PPOR with deductible interest and buying shares. However, I am only doing small parcels periodically. I pay the loans off with the dividends. When the market tanks my plan is to go all in assuming I don't get cold feet. When I say all in I mean everything I can possibly borrow which is 80% of the value of my PPOR. In theory, the share growth will be significant and the dividends will pay off the loans.

    Not advice.
     
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  17. Redwing

    Redwing Well-Known Member

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    We're on the same road, just driving different vehicles :D

    upload_2017-5-6_17-13-27.png upload_2017-5-6_17-17-25.png
     
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  18. MTR

    MTR Well-Known Member

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    7 years, one boom cycle 2001-2007 Perth. I did build land and house packages during this period

    Developing started in 2013
     
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  19. hash_investor

    hash_investor Well-Known Member

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    That stock market was at 18000 before it dropped to 1500
     
  20. MTR

    MTR Well-Known Member

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    Second photo got me very confused initially, maybe the women on PC will get this one
     

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