Very nice! Lots of savings, solid investments - now the fruits are being harvested!
As this side of the investment (pension phase) is still rarely discussed, I feel somewhat underinformed. I'm wondering what the perfect (for my profile) de-savings strategy is and what impact it has on my strategy in the savings phase. Unfortunately, there is a lot of superficial and incorrect information online.
I have sooo many questions for someone who is currently in this situation... 🤷
As this side of the investment (pension phase) is still rarely discussed, I feel somewhat underinformed. I'm wondering what the perfect (for my profile) de-savings strategy is and what impact it has on my strategy in the savings phase. Unfortunately, there is a lot of superficial and incorrect information online.
I have sooo many questions for someone who is currently in this situation... 🤷
•
2121
•
@Epi Why a "de-savings strategy"? Hands off. Collect dividends and don't sell a single share.
•
11
•@Epi if you have no transaction fees, hmm. In a prolonged bear market, partial sales are detrimental to the value. I don't take this small risk.
•
11
•Yes, that's probably true. But I assume that I've been able to save enough capital to live on with all my other income and expenses. Saving seems interesting to me if I haven't been able to save enough or don't want to bequeath anything. In addition, age-appropriate housing, doctors and nursing homes are expensive in old age, so partial sales may not be avoidable despite good dividends.
I myself live in property, rent out two apartments and don't currently need the dividends to live on. I can use them to reinvest. Returns aren't everything, I also want to be able to sleep peacefully. But without the ETF fuss with advance taxes. Everyone has to see what suits them, and that can also change in life.
I've already sold my entire portfolio twice and done something else with it. In 1999 before the crash and again in 2007. I have not regretted it.
I myself live in property, rent out two apartments and don't currently need the dividends to live on. I can use them to reinvest. Returns aren't everything, I also want to be able to sleep peacefully. But without the ETF fuss with advance taxes. Everyone has to see what suits them, and that can also change in life.
I've already sold my entire portfolio twice and done something else with it. In 1999 before the crash and again in 2007. I have not regretted it.
•
11
•@tjwr Living off dividends is already saving. If you put them back in, it's like simply holding a share without dividends. There is not much difference between partial sales or dividends.
I don't understand how the idea arises that dividends are free money that can simply be withdrawn without harm. In the same way, a growing stock could always make partial sales.
If you look at the latter, a non-dividend stock is even more flexible than a dividend stock.
I don't understand how the idea arises that dividends are free money that can simply be withdrawn without harm. In the same way, a growing stock could always make partial sales.
If you look at the latter, a non-dividend stock is even more flexible than a dividend stock.
•
33
•Harald, I see it differently. I don't know where you got the free money thing from. I don't know anyone who says that. For me, saving would be the sale of shares, I don't look at the cash component at all. I'm not interested in the book value either, I don't sell or save anything. It's easy on the nerves.
Shares without dividends can fall, in which case you have no return at all. With dividend shares, I get a return from the company every year. This constantly reduces the risk. More flexible without dividends? On the contrary, if the market falls sharply, you have to sell more shares. For me at least, it's not about capital growth, but about increasing cash flow. If you don't need that, go into growth stocks. I have everything and don't need to do anything else. If I need money or want to invest, it's already in the clearing account. Time is scarce, money is plentiful.
Shares without dividends can fall, in which case you have no return at all. With dividend shares, I get a return from the company every year. This constantly reduces the risk. More flexible without dividends? On the contrary, if the market falls sharply, you have to sell more shares. For me at least, it's not about capital growth, but about increasing cash flow. If you don't need that, go into growth stocks. I have everything and don't need to do anything else. If I need money or want to invest, it's already in the clearing account. Time is scarce, money is plentiful.
•
33
•@tjwr
I won't have an abundance of money 😂
But I have fallen on my nose several times with partial sales (keyword FIFO). This has a permanent impact on my return and so I have opted for the dividend option.
I won't have an abundance of money 😂
But I have fallen on my nose several times with partial sales (keyword FIFO). This has a permanent impact on my return and so I have opted for the dividend option.
•
22
•
@tjwr You're a real crash prophet, when will the next one come?
••
@Epi From my point of view, what you have written only makes sense if the dividends were not reinvested.
Otherwise you are destroying your own argument that dividends are value-neutral.
Otherwise you are destroying your own argument that dividends are value-neutral.
••