Lifetime chilling price...

[Sid70]

In fact, how much do you need? I figured 1,230,000 would be enough. 200k for a decent home, 30k for a good wheels, 10k month for living comfortably allowing some travel and toys from a diversified 1 MIL deposit ...

[sperbonzo]

You think you are going to safely make 12% on a I million dollar investment?



You are going to need to double that amount if you want to have investments that are really safe but still net you a monthly income of 10k




.

[Sid70]

Originally Posted by sperbonzo

You think you are going to safely make 12% on a I million dollar investment?



You are going to need to double that amount if you want to have investments that are really safe but still net you a monthly income of 10k




.

Diversified is a key word.

[Due]

Originally Posted by sperbonzo

You think you are going to safely make 12% on a I million dollar investment?



You are going to need to double that amount if you want to have investments that are really safe but still net you a monthly income of 10k




.

Don't forget about inflation

[Adraco]

Originally Posted by Sid70

Diversified is a key word.

No, RISK is the key word. You will not find an ever so diversified portfolio anywhere today that can bring you risk-free 12% on a yearly basis, not long term. You will, over time, in an ever so well diversified portfolio have ups and downs which might last for a few years either way. And along the way, you will need to absorb a few heavy misses where you lose high. then your investment base will shrink, requiring the remaining part to be even more profitable to make up for it.

The price of risk-free investments in today's world will not give you anywhere near 12%, and then you have to pay capital gains tax, which will dig into your yearly profits to live off.

[Sid70]

Originally Posted by Adraco

No, RISK is the key word. You will not find an ever so diversified portfolio anywhere today that can bring you risk-free 12% on a yearly basis, not long term. You will, over time, in an ever so well diversified portfolio have ups and downs which might last for a few years either way. And along the way, you will need to absorb a few heavy misses where you lose high. then your investment base will shrink, requiring the remaining part to be even more profitable to make up for it.

The price of risk-free investments in today's world will not give you anywhere near 12%, and then you have to pay capital gains tax, which will dig into your yearly profits to live off.

You can argue with it as long as you need, but I would be happy with 8k this month and 12k next, may be i will be happy with 10% profit. My concern is where do I get that 1,230,000.

[sperbonzo]

Originally Posted by Adraco

No, RISK is the key word. You will not find an ever so diversified portfolio anywhere today that can bring you risk-free 12% on a yearly basis, not long term. You will, over time, in an ever so well diversified portfolio have ups and downs which might last for a few years either way. And along the way, you will need to absorb a few heavy misses where you lose high. then your investment base will shrink, requiring the remaining part to be even more profitable to make up for it.

The price of risk-free investments in today's world will not give you anywhere near 12%, and then you have to pay capital gains tax, which will dig into your yearly profits to live off.

Exactly correct. To have a diversified portfolio, that is low risk, even with the best investments spread out all over the place, you will NEVER make more than 5 or 6% on a 1 million dollar portfolio. (Not if you want to ensure that it will still be intact in 15 years). ....and also, the administration is planning to raise capital gains taxes, so not just 15%, but probably more, will have to be paid on that income. This takes your monthly income to about 4,250 or less.

If you really want to have a safe, diversified investment portfolio with very little risk, and still make 10k a month AFTER capital gains taxes, you are looking at a 2.5 million dollar portfolio.




.




.

[Adraco]

Originally Posted by Sid70

You can argue with it as long as you need, but I would be happy with 8k this month and 12k next, may be i will be happy with 10% profit. My concern is where do I get that 1,230,000.

You trying to argue with this shows exactly how little you know or understand about long term financial investments.

To get to 12 % yearly interest, one would have to leave the money in there the full year. If you are going to withdraw money each month, that would accumulate to more than 12% on a yearly basis (read up on "how to calculate interest rates" if you do not believe me). The more often the interest is paid, the higher it becomes on a yearly basis.

And to even believe that your earnings, on a diversified portfolio would conveniently follow and pay out according to the months of the year is downright naive. One month might be $1000 and the next $10000. Consider that most publicly traded companies pay their dividends in the spring, after they have held their yearly shareholders meeting. That dividend will come as a lump sum, once per company and year.

You will have ups and downs which will definitely last longer than one month, do you want to sell part of your portfolio just when it dipped just because it's that time of the month again?


You definitely need to go back to the drawing board, because you're doing it wrong and thinking it wrong in so many ways I don't even know where to start in correcting you.

[Sid70]

Originally Posted by Adraco

You trying to argue with this shows exactly how little you know or understand about long term financial investments.

To get to 12 % yearly interest, one would have to leave the money in there the full year. If you are going to withdraw money each month, that would accumulate to more than 12% on a yearly basis (read up on "how to calculate interest rates" if you do not believe me). The more often the interest is paid, the higher it becomes on a yearly basis.

And to even believe that your earnings, on a diversified portfolio would conveniently follow and pay out according to the months of the year is downright naive. One month might be $1000 and the next $10000. Consider that most publicly traded companies pay their dividends in the spring, after they have held their yearly shareholders meeting. That dividend will come as a lump sum, once per company and year.

You will have ups and downs which will definitely last longer than one month, do you want to sell part of your portfolio just when it dipped just because it's that time of the month again?


You definitely need to go back to the drawing board, because you're doing it wrong and thinking it wrong in so many ways I don't even know where to start in correcting you.

Man, you live in a different world. Here we use simple interest paid monthly and with 100k in each bank id be a king here. No fucking equity market involved.

[OneHungLo]

SidDoesntDoInvesting.com

[Sid70]

Originally Posted by OneHungLo

SidDoesntDoInvesting.com

Suddenly. Out of the closet. Where have you been?

[bigluv]

Sid I think what you should do is start a financials newsletter instead where you tell people what to do with their money on a weekly basis and charge $20 a month or so.

Clearly your expertise is equal to the task..

[Due]

Originally Posted by Sid70

Man, you live in a different world. Here we use simple interest paid monthly and with 100k in each bank id be a king here. No fucking equity market involved.

Where is that place ? Some of the best rates I've had was about 5%

[Sid70]

Originally Posted by Due

Where is that place ? Some of the best rates I've had was about 5%

Ukraine can offer you that. Been talking that for years.

[Sid70]

Originally Posted by bigluv

Sid I think what you should do is start a financials newsletter instead where you tell people what to do with their money on a weekly basis and charge $20 a month or so.

Clearly your expertise is equal to the task..

SanQ!