1Yr·

#dividendsthursday

~~~"THE PLAN"~~~

Hello my dears ✌️☺️

As promised, today it's about my cash flow projection and how much I can expect after certain years and until retirement.

It's nothing earth-shattering, just 3 simple examples of what is possible thanks to compound interest.

The starting position

This year I expect a net cash flow of approx. 6500€-6700€.

I want to reach the €10,000 mark at the age of 40, and I still have 3 years to do so. With expected €20,000 in dividends in the next 3 years alone, cash reserves and continuing to diligently save €7,500 to €10,000 per year from my salary, the €10k should be quite feasible.

I will show you 3 examples of how it could go on after that.

Reinvest only the dividends

Assuming I manage to reinvest the annual cash flow with 3% net dividends and the dividends are increased by the AGs on average by 4% per year, this would mean that the cash flow increases by 7% per year, in cash this means

14.025,52 € from the 5 year
19.671,51 €
10 years
27.590,32 €
15 years
38.696,84 €
20 year
54.274,33 €
25 year
62.138,68
27 year (pension)

The cash flow over 27 years would total 796.976,91€ would amount to

This also means a lot of work to reinvest all this, I hope I can calm down all the "critics" who are constantly complaining about the small positions.

Reinvest dividends and keep on buttering up

Similar example as before, only with an additional €7500 to increase the cash flow by €200 per year.

15.175,67 € from the 5th year
22.434,80 € 10 year
32.616,12 € 15 years
46.895,94 € 20 year
66.924,14 € 25 year
77.035,45 € 27 year (pension)

No more saving, part-time, dividends out

Assuming I reach 10k and then take everything out every year, the cash flow would still increase by 4% due to dividend increases.

12.166,53 € from the 5th year
14.802,44 € 10 year
18.009,44 € 15 years
21.911,23 € 20 year
26.658,36 € 25 year
28.833,69 € 27 year (pension)

I still have to think about which method it will be in the end, most likely a combination of all 3.

There are only 3 simple examples and in the end it turns out quite differently than you planned anyway, both in a positive and negative sense. Nevertheless, I don't see the numbers as unrealistic and pi times thumb it could well work out.

Many thanks ✌️☺️

104

46 Comments

Moritz@leveragegrinding

1Yr

Am actually neither a fan of your self-built stock ETF nor of dividends, but have huge respect for the plan and your determined implementation.👀

•

Homer@Simpson

1Yr

@leveragegrinding thank you Moritz 😊👍 After I have made the projection, I myself got respect for this mammoth task 😱 😂 let's see what becomes of the plan 😊

•

Ella Marie Waschbär@DividendenWaschbaer

1Yr

Thanks for sharing. Variant 1 and 2 are mine. I also invest similar amounts, with my goal being 10k every year, plus all dividends. Just like you, I've already added that up too. And the position size doesn't matter at all, as long as dividends are always paid nicely ❤️ 😁

•

Homer@Simpson

1Yr

@DividendenWaschbaer as long as the others discuss whether you can beat the World ETF with individual shares, we 2 will shoot our cash flow to the moon 💪😁

•

Kai@Dividenden-Sammler

1Yr

@Simpson @DividendenWaschbaer I join you in this. Also dividend strategy with about 12-13T€ p.a. which are invested via monthly savings plans plus dividends that are still invested annually for re-buying. For me it will be variant 1 which is pursued only the term will be about 10 years shorter.

••

SGP@Koenigmidas

1Yr

I love your plan. And really appreciate your thinking. If I had the possibilities I would build it 🙃 I keep my fingers crossed that it goes as you imagine it ❤️

•

Homer@Simpson

1Yr

@Koenigmidas Thank you ☺️ 👍 It's just a plan but the numbers motivate you to keep going💪😁 but plans change, maybe I'll decide to buy an apartment someday and all the compound interest would be wasted 😂

•

Pope Donkey XXI@DonkeyInvestor

1Yr

@Koenigmidas Just finally sell your dump 😁

••

SGP@Koenigmidas

1Yr

@DonkeyInvestor leave my Beuchbude alone. I'm not saying anything against your stall 😏

••

Pope Donkey XXI@DonkeyInvestor

1Yr

@Koenigmidas I don't want to worry you, but your hovel is my hutch

••

Sparfuchs@Reinecke

1Yr

You have made a calculation error. You still have 30 years until retirement.

•

Ella Marie Waschbär@DividendenWaschbaer

1Yr

@KleinviehmachtMist No, because the calculation starts from the 40th birthday.

•

Sparfuchs@Reinecke

1Yr

@DividendenWaschbaer ahhh 😌 anyone who can read has a clear advantage.

•

Marcel@Lalarobo

1Yr

@KleinviehmachtMist the calculation is based on early retirement at age 67. 😂

•

Schweizer_Investor@Alumdria

1Yr

For me, it would be a combination of the second and third strategies. I would reinvest all my dividends and continue to invest my monthly savings quota. Nevertheless, I would treat myself from time to time to something from the dividends, such as a vacation or if something important breaks down, such as a washing machine or something. On the other hand, I would actually like to avoid touching the dividends through a nest egg and so that I also benefit from the compound interest effect. In any case, good luck to you in achieving your goal🍀.

•

Wolfgang W.@Wuzz1983

1Yr

Mega plan, mine is also a mixture of retiring early and also now and then what "rausballern" life is just too short .... 😃😃

•

CashDividendGamer@CashDividendGamer

1Yr

It's on. It's going to be really good 👍.

•

Toni M.@INOT

1Yr

Have also small position but as they say small cattle also makes crap numbers are nice and good but it really all comes differently also did not want so much positions but could not let it have me now just more busy with it

•

Dividende > Zinsen@GoDividend

1Yr

I like the way.. Hope you do not run out of breath..✅🚀

•

Homer@Simpson

1Yr

@GoDividend with my extrapolation I scared myself whether I really want to do that to me 😱also I'm worried that I run out of gifs 🤣 somehow everything comes down to the 3 method 😂

•

Ronald@AlterMann

1Yr

That's it! 👍🏼

•

N@Khlmysee

1Yr

May I ask how big your current portfolio is with a corresponding net cash flow? It's also enough if you give a rough direction. 😊

•

Homer@Simpson

1Yr

@Kohlmeyse currently about 240k even if I invest nothing more this year should be 7k next year in it 😊👍

•

N@Khlmysee

1Yr

@Kohlmeyse a tidy chunk. I think I'll also manage to net 3 k this year (with 90 k in the portfolio). However, I have a very unconventional strategy.

••

Charlyfirpo@Charlyfirpo

1Yr

Respect!!!! Position size 250-300k currently? I don't think the dividend growth is particularly strong, otherwise you don't need to worry too much about the future😄

•

Carter@Pewterschmidt

1Yr

Stark!!!!

•

Maxi@mhu

1Yr

You can see quite well from your projection that over time your own deposits become less and less important. At some point, the deposit runs by itself. Super performance 👍🏻☺️

•

hiasi@hias1993

1Yr

I read out that you are also 30 years young?
My depot is unfortunately much smaller and I want to invest from next year 6-8k every year in addition to dividends and in addition 50% of the salary increases also in top pack I can probably not catch up with you but I hope that I get in 30 years (at 60) a cash flow through dividends so that I can significantly reduce my hours and despite my standard of living does not fall I expect the dividends the next decades on average 5% growth and whether you do strategy 1, 2 or 3 or a combination of 2 of them or all 3 is relatively unimportant as long as your goal is fixed and you do everything possible to achieve it

•

Homer@Simpson

1Yr

@hias1993 Year of construction 86 😊and only started investing at 30😁👍 but of course I had saved something in the years on the savings account 😂 where my deposit would be now if I had started at 20 🤔 well would have bicycle chain 😂

••

hiasi@hias1993

1Yr

@Simpson I started with 28 with etf and about 1 year later 4 months ago with individual shares and especially with significantly more every month and now I'm 30 since a month If I had not lived with 20-25 everything but invested as much as possible I would be significantly further Where I have also invested at the age of 22-23 over 10k in professional training which brings me since the gross over 1k more

••

Capt‘n@Wuestenschiff

1Yr

Yes, I've done the same calculation. For me, option 2 is planned - invest as much as possible for as long as possible. After retirement, the cash flow increases only through dividend increases. Ideally, retirement can even be brought forward!@Simpson Do you regularly monitor dividend payments and increases? Are there any scenarios in which you would act - i.e. sell -?

•

Homer@Simpson

1Yr

@Wuestenschiff so I do not really monitor but I carry everything in portfolio performance where you can see nicely as the cash flow steigst. I focus more on buying and there I need in my strategy dividend payers on which you can rely, cancels or cuts someone the dividend the position is no longer expanded and eventually sold

•

Keks@Dachbodentroll

1Yr

What does Marge actually say about that?

•

Robert@Zony

1Yr

In any case, I wish you every success with your plan. No matter which option you choose, you're on the right track. If I could only achieve a quarter of that, I'd be happy already. Well, in 10 years my available capital will also look different again. If everything stays the same....😅

•

Nio@Nio1

1Yr

Without knowing the portfolio size, the post is unfortunately not very meaningful, as the opportunity costs are disregarded

••

Kevin E.@KevinE

1Yr

I would not disregard inflation over a period of almost 30 years. I think 7% after inflation is too optimistic. If you realistically assume 3-5% after inflation, I think you get more realistic values, especially for periods that are still 10 years + in the future.

••

hiasi@hias1993

1Yr

@KevinC he is talking about increases and not inflation-adjusted increases

••

Kevin E.@KevinE

1Yr

@hias1993 I am aware of that. But with sums like 62,000€ cash flow in the 27th year, you should take into account that this naturally brings much less purchasing power. With a good 5k net you can live very relaxed now, I claim that in 27 years it looks significantly different. Purely looking at the numbers is important. But the interpretation is just as important.

••

hiasi@hias1993

1Yr

@KevinC it is true that looking only at numbers is important but not everything

••

Andreas@Zukunftsminister

1Yr

Stupid question, by cash flow do you mean dividends paid out?

••

Homer@Simpson

1Yr

@Zukunftsminister exactly are the dividends 😊👍

•

Andreas@Zukunftsminister

1Yr

@Simpson What is your average dividend across all dividend shares?

•

Homer@Simpson

1Yr

@Zukunftsminister have everything from 1% to 8% in the portfolio, on average on the invested sum it will be 3% net at the end of the year

•

Andreas@Zukunftsminister

1Yr

I find your idea quite interesting to consider the dividends paid out as an annuity. I just had a look at myself, I'm much lower because I'm too much in tech and growth stocks. I take your amount times as an impetus to reconsider...

••

Mr.Badman@JoeBadman

1Yr

Hi... for plan is and that it works you can see in my depot ... the same idea I had 15 years ago ... and now stand at about 20,000 euros / year ... Plus rental income of about 6000 euros / year ... the whole thing you can follow in my depot or YouTube channel

••

Mr.Badman@JoeBadman

1Yr

Theoretically everything looks easy ... but life has some surprises from time to time ... to that you must then also have quality in the depot ...

••