Invest a pack a day of cigarette money into managed funds

Just reading some Noel Whittaker literature and he mentioned investing in blue chip share trusts (managed fund) with the equivalent pack a day money for cigarettes $29 dollars a day, $882 a month with a 3% inflation and 3% increases per year with a 9% return starting from age 25 to 65 to equal a cool 1.4 million in todays dollars!

Not bad going for just a pack of smokes a day! Good lesson in compund interest!

 

What if you’re a non-smoker? Why does investing have to be so complicated ... . For example how much would a pack of these cost? Now that brings back memories:



Is that an early photo of Noel W?

 

I guess if you are a non smoker just invest the cost of a pack of smokes !

I was waiting for a question such as which fund, what if its at a discount or premium, etf v lic v retail v wholesale!

 

If you're a non-smoker how would you know the price of a pack of gaspers? Take up smoking to find out the price* and then give up or ask some fella who is searching the gutters for f a g ends?

See there are issues within issues which NW has not addressed! Very poor suggestion indeed and not well thought out by the gentleman.

* Maybe NW could do that and then let his audience know.

 

I had a primary schools teacher who's husband quit smoking in '93 and invested every dollar into cba, would love to know what hes worth/dividend income today.
Wish my bloody folks bought cba shares instead of putting coins in the Dollarmites passbook now!

 

Yeah @pippen, stop trying to confuse everyone.

 

A non smoker pointed this out to a smoker, if you stopped smoking and invested the equipment you would have had $x mil by now.

The smoker asked ` do you smoke?'

Nope

Then we're are your millions of $?

 

Smokers would need to invest less as they die earlier.

 

'IF' The teacher was in the first cab off the rank with CBA and reinvested every cent from day one then compounding on compounding..I bought in on the second round through the 2 installment plan total cost was
$10.45 for 1000 and everyone laughed every cent reinvested till the BRC then went and sat outside bulldogs cafe in Amsterdam for a month..

 

Upon rereading this thread it becomes quite obvious that with greater age comes greater maturity.

Fear not @pippen see what you’ve got to look forward to.

 

I could confuse you even more by mentioning david bach and his latte factor (saving the cost of a coffee a day and investing in index funds) for even more long term compounding and investing!

 

Likely not funny to present generation but it might bring back some memories for baby boomers:

 

Keep plugging away @pippen and you too will reach the particular nirvana as highlighted in the above quote. And you don't have to work hard to reach it either. I'm proof of that.

 

Noel wouldnt be impressed with all those savings going up in smoke

 

Depends whether he was selling it rather than smoking it. Young entrepreneurialship.

 

C'mon guys, this is a property forum. Stop talking about shares .

About 20 years ago, I told my two teenage kids that, instead of smoking, put those $'s into a rental property and it will be easily paid off over their working life and they won't have to contribute anything more than their smoking $'s.

They couldn't believe it.

I can't remember the numbers from that time but, using today's dollars, the numbers would look something like:

Packet of Cigarettes: $29 per day
Per Year: $10,585
Per Couple Per Year: $21,170

Purchase Price of House: $600,000
20% Deposit: $120,000 (between 5 to 6 years savings by not smoking)
80% Loan: $480,000
Loan Repayments: $27,500 per year (P&I loan, 30 year term, 4% interest rate)

Weekly Rent: $550 (< 4.8% yield)
Annual Rent: $27,500 (allowing 2 weeks vacancy)
Rental Expenses: $11,000 (40% of gross rent, probably more likely to be closer to 30%)
Net Rent: $16,500
Smoking Savings: $21,170 (from above)

Net Rent + Savings: $37,670
Loan Repayments: $27,500 (from above)
Net Funds: $10,170 (say into an Offset to be used as a cash buffer)

In less than 30 years, loan will be paid off and our couple will be a lot healthier.

 

Oh, is that what this thread is about?

 

Well, many non-smokers have experienced their money going up in smoke in the share market. Don't even have to sell because they can't. One-Tel, Babcock and Brown, RCR Tomlinson and many more.

 

Investment advice from Cheech and Chong

 

$1,340.00 invested in CBA in 1993 and investments increased per annum at cigarette growth rate over the years @ a little over 9%.
Would be close enough to $700K today with 15% tax rate and all dividends reinvested.
Last dividend cheque per annum would have been roughly around $55,400.00.