Thank you for the Growth.........It's Time for Cash Flow!

Most of us start with that in mind.
Way back in the 90s I was putting numbers in spreadsheets to get an idea of what it woyuld take. In practice it turned out a bit different.
Easy for people not in the situation to say "sell that...buy this...go there" reality is not theory though.

I rotated some to CIP devs and still holding liquid. Bought some shares, sold others.
Unlike many others here I'm not a fan of index ETFs, reducing the volatility also means reducing the gains, and I'm not old enough to go fishing or play golf. I'll probably just build my own index over time buying the dips that always come.

I've never had this convo where the reply wasn't "And what would I do with the money"
Reply with "Spend it on yourself and enjoy it, buy youself something nice" and watch the look of disdain and contempt on their face.

 

CBA were trading at the end of the GFC, at about $30 a share. A family member in there 50’s were looking to buy 2500 CBA shares worth $75K instead they invested in 20,000 CBA self-funding instalments with the $75K with a final payment of $525K. Over the next 8 odd years, the dividends CBA paid, cleared the final payment.

They currently around hold 25000 CBA Shares outright, last year their income was around $90K or $130K gross.

Instalment warrants can be very useful when used well.

Main point is dividend yield to be greater than the interest payments.

 

Yep...been there done that....100% the disdain....

 

I went down the path of building our own share portfolio in our SMSF, started 20 years ago.

Total returns of 14% pa, even after the impact of GFC and COVID.

For first 8 years, we re-invested dividends. Then we retired. For last 12 years, we used the dividends to fund our pension payments.

So, I am happy with our decision.

 

Cool. (If that is 14%pa over 20 hrs then massive props Great returns btw) - roughly what is the breakdown of actual dividends vs gains or trading profits? What is your approximate hold timeframe for each stock?

 

Very good question.....

Based on what I know shares is about 6-8% over the longer terms both booms and crashes. May go higher as inflation is higher thus higher returns 8-10%.....

 

It's a secret...Buying the dips will always beat the market in percentages.
My method would be to (low) leverage only on a >20% dip, though after 30yrs bull market even this may take many years going forward.

The counter is that idle cash doesn't earn or get eaten by inflation which is debatable unless term deposits is the plan.

 

I would be extremely happy with that but I am not that good .

According to Sharesight, 9% growth and 5% income (+ dividend imputation).

I view shares as an income play and property as a growth play, especially with debt.

I am a B+H investor. So basically until I pass on.

 

Awesome post, same, thinking of next step, refinance now, continue business, have a look in 5 years, perhaps Airbnb prime property after a year or so

 

Depends on the situation I guess. I've said that, Our cashflow is now more than we spend. I buy whatever I want (loving my new car). Can't see the point of selling something just to buy things you don't need.
Mind that will change a bit next year when I take off overseas for a few months a year.
I am going to start buying business class flights. So over cattle class. It's only money!

I have seen the situation where people live and deny themselves things while having lots of assets though. I'm not a big spender and have lived frugally because I had to. We don't need to now. It is hard at first changing your spending habits. My hubby is so confused. LOL I've always told him not to buy stuff. Now I say- just buy it of you want it. .

 

With your economical spending your children can travel business all the time

 

This is me. Have this argument with the Mrs all the time. Regardless if you can afford it or not, I would rather spend it at the destination than on the flight. For an extra $8k on accomodation, you can stay somewhere special for the whole week or 2 your away compared to spending it on the hours you will be on the plane. Yes business class will make the flight less painful but either way flying is not fun for me.

 

I love flying.. the entire experience from beginning to end...doesn't matter the class, I've flown all classes. I love the movies.. the peanuts....the refills....following the planes route...most air hostesses.....

 

I enjoy flying, to a point. I hate long haul flights. I'd rather pay for a stopover though and have two smaller flights with a break in between, than pay an additional $8k for a better seat.

 

I hear you. Many people don't like the long flights...I think it's an individual liking or not. I've always loved planes, airports, travelling. I'm probably the extreme when it comes to enjoying planes.

 

Lol, I once sat on economy class with my friend’s father while coincidentally my friend/his son was also on the same flight but in the business class. So I asked him why didn’t he join his son in the business class, his reply was priceless, “His father is rich while my father was not”

 

If you have time, otherwise long flights (10+ hours) business class is worth it when you use mileage like KrisFlyer etc

 

I'm done with OS travel but the final time I got a great deal (I use travel agents) on business class to Europe for approx $6.5k. A better deal came on offer so the agent cancelled and rebooked and overall saved me $800. Better part of the deal was I was upgraded to first class.

And there can be some joy (?) where you meet an acquaintance at a transfer point and see the look on their faces when boarding and you turn left but they turn right.

 

… if it is First Class