So if I am reading this right, you're targeting an overall dividend of roughly 4% per year, with a combination of relatively stable growth oriented low dividend percent assets mixed with the opposite?
Correct me if I am wrong, but wouldn't that mean you would need an overall investment value of 1-1.3 mil to end up at your target? If you plan to reach that in under 5 years, even assuming your investments nearly double in base value (on average) until then, that's still well over 100k cash per year invested.
That doesn't sound like a very reasonable target, so I must be missing something important here.
Correct me if I am wrong, but wouldn't that mean you would need an overall investment value of 1-1.3 mil to end up at your target? If you plan to reach that in under 5 years, even assuming your investments nearly double in base value (on average) until then, that's still well over 100k cash per year invested.
That doesn't sound like a very reasonable target, so I must be missing something important here.
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•Disclaimer: I only started actively investing reasonable amounts of money in November 2023, so take my question with a pinch of salt.
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@wealth_strategist_196 hi there nice to meet you. You are raising a valid point.
I should probably clarify that when I say 'invested', I literally mean the money put in the market (without dividend payments and price appreciation). If I continue to invest as I've done so far, I will end the year at about 5% dividend, which you are right, targeting 50k/year would require 1M invested.
By the end of this year I should be at around 150k 'invested' (meaning hopefully more with the price appreciation). Next year I should be able to invest roughly 10k/month, same for 2026. Just before retiring I then plan to sell off one property. This sale as well as the price appreciation (🤞🤞🤞) should bridge the gap (and hopefully then some).
I know it's slightly backwards thinking, but not relying on price appreciation will give you a good target to aim at. If then 10-15% (rough market data over a looong time) annual appreciation comes on top, even better...
I hope this somewhat answers your question!?
Happy investing and keep compounding!
I should probably clarify that when I say 'invested', I literally mean the money put in the market (without dividend payments and price appreciation). If I continue to invest as I've done so far, I will end the year at about 5% dividend, which you are right, targeting 50k/year would require 1M invested.
By the end of this year I should be at around 150k 'invested' (meaning hopefully more with the price appreciation). Next year I should be able to invest roughly 10k/month, same for 2026. Just before retiring I then plan to sell off one property. This sale as well as the price appreciation (🤞🤞🤞) should bridge the gap (and hopefully then some).
I know it's slightly backwards thinking, but not relying on price appreciation will give you a good target to aim at. If then 10-15% (rough market data over a looong time) annual appreciation comes on top, even better...
I hope this somewhat answers your question!?
Happy investing and keep compounding!
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•@antifreund oh, to have 10k/mo disposable income, I can only dream about that... Even if we would slash down any and all optional expenses (family of 3) we would maybe barely be reaching half of that. Realistically, after regular expenses and some reserve buffers, maybe about a quarter of that on average can go towards investments.
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•@wealth_strategist_196 yeah, I try not to mention that specifically, but since you asked I wanted to make the numbers match...
I'm fully aware that I'm in a very unique position. I live and work in China with virtually no expenses, have a very good net salary (for being employed that is, lots of business owners would laugh at this...), no kids and the will to retire ASAP 😊.
I think you guys are going great and remember that steady wins the race...
Best of luck on all your investments. Looking forward to seeing your portfolio explode. 💥
I'm fully aware that I'm in a very unique position. I live and work in China with virtually no expenses, have a very good net salary (for being employed that is, lots of business owners would laugh at this...), no kids and the will to retire ASAP 😊.
I think you guys are going great and remember that steady wins the race...
Best of luck on all your investments. Looking forward to seeing your portfolio explode. 💥
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