Circumnavigation, Two Year's Cost

[Lohi]

Originally Posted by sardinebreath

Please tell me how I can get a guaranteed 6% (after inflation, fund fees, etc.) on my nest egg. No matter what the market does. Regardless of bubbles and collapses.

I was not saying that I know a way that can guarantee 6 percent, if I did under boat name in my bio it would not say couch potato..

I was posting an ideal situation for me to sell everything and sail away.

But let's not nitpick I could squeeze with 5 percent ROI ;-)

[MBLittle]

Originally Posted by JazzyO

Money for nothing doesn't exist. Onno

Not necessarily true. For the past 50 years Coca-Cola has paid dividends of about 2.9%, every single year.

$50M in preferred stock nets you $1.5M a year for doing absolutely nothing.

Now I just gotta come up with $50M....
Anyone wanna donate to my paypal?

[Lohi]

If you have 1.5 mil $ you can draw on it 36k per year with 4% annual increase and providing you earn 2% on it your nest egg will last for 30'ish years.

But as the saying goes the first million is the hardest however..

Mr. Gates if you are by chance reading these forums i would be eternally gratefull for 2.7 million US

lohi

[SVI]

Originally Posted by MBLittle

Not necessarily true. For the past 50 years Coca-Cola has paid dividends of about 2.9%, every single year.

$50M in preferred stock nets you $1.5M a year for doing absolutely nothing.

Now I just gotta come up with $50M....
Anyone wanna donate to my paypal?

2.9% is even below real inflation in most countries
You need at least 6-8% with lots of diversification to mitigate risk. Basically min 10 risk profiles in different industries/countries. But there is always min. entry ticket, ca $100k per bank/company. So $1m min, better $2-3m.

But if you have $1-3m, you cannot suddenly stop working - you will be bored after 2-3 weeks. So the plan is to work part-time, Internet+phone is a must.

[MBLittle]

Originally Posted by SVI

2.9% is even below real inflation in most countries You need at least 6-8% with lots of diversification to mitigate risk. Basically min 10 risk profiles in different industries/countries. But there is always min. entry ticket, ca $100k per bank/company. So $1m min, better $2-3m. But if you have $1-3m, you cannot suddenly stop working - you will be bored after 2-3 weeks. So the plan is to work part-time, Internet+phone is a must.

2.9% is the dividend ratio, not a return on investment. 2.9% return on investment is very poor indeed. The dividend ratio has nothing to do with investments though. It's income that can be spent. You get that $1.5M every year as long as you have $50M in coke stock. The $50M is still there making money (hopefully, assuming stock price still goes up). And of course it's an asset.

[MBLittle]

This is how blue bloods make money for doing absolutely nothing. Take your inheritance and invest in preferred stock that pays dividends. They still have all their stock, no buying and selling needed. They just live off dividends...

[SVI]

You are right.
But stocks don't suit well the purpose of passive revenue. They don't bring enough dividends. Stock price can go under water (esp if bought at the top) for some time. Some companies (even in Dow Jones index) go bust (GM).

Emerging market bonds - this is what you need for guaranteed and high return. But you need to know the subject before investing. And diversify.

Dreaming does not help. Lay down your steps, and follow the plan. If you are young and prepared to work hard - you will get there

The main question is - how much is enough. That's different for each person...

[tropicalescape]

Originally Posted by MBLittle

2.9% is the dividend ratio, not a return on investment. 2.9% return on investment is very poor indeed. The dividend ratio has nothing to do with investments though. It's income that can be spent. You get that $1.5M every year as long as you have $50M in coke stock. The $50M is still there making money (hopefully, assuming stock price still goes up). And of course it's an asset.

Coke bought my boat for the guy that I got it from,was told that he had some money from coke stock and it was pay taxes or spend some money so he and the "bean counter" figured a way to buy a boat instead of paying the "bean collecter",what I was told anyways...

[MBLittle]

Originally Posted by tropicalescape

Coke bought my boat for the guy that I got it from,was told that he had some money from coke stock and it was pay taxes or spend some money so he and the "bean counter" figured a way to buy a boat instead of paying the "bean collecter",what I was told anyways...

Like I said, my paypal is open to anyone that's wants to help me invest in coke

[tropicalescape]

Originally Posted by SVI

You are right.
But stocks don't suit well the purpose of passive revenue. They don't bring enough dividends. Stock price can go under water (esp if bought at the top) for some time. Some companies (even in Dow Jones index) go bust (GM).

Emerging market bonds - this is what you need for guaranteed and high return. But you need to know the subject before investing. And diversify.

Dreaming does not help. Lay down your steps, and follow the plan. If you are young and prepared to work hard - you will get there

The main question is - how much is enough. That's different for each person...

"emerging markets" anything but potash in Russia..I am thinking the hottest thing out there is the Ukraine shale gas market( if Russia dosent butt in )Hot ,Hot ,Hot...If they do it(Ukraine), the USA and the EU will be there to "Protect" our interest and they(Ukraine) will become a net exporter(also!) Now can anyone tell me of any "Major" risk that may stand in the way of such a hot tip?

[MBLittle]

Nothing in life is guaranteed. Except death and taxes. And rich people have figure out one of those.

[SVI]

Originally Posted by tropicalescape

"emerging markets" anything but potash in Russia..I am thinking the hottest thing out there is the Ukraine shale gas market( if Russia dosent butt in )Hot ,Hot ,Hot...If they do it(Ukraine), the USA and the EU will be there to "Protect" our interest and they(Ukraine) will become a net exporter(also!) Now can anyone tell me of any "Major" risk that may stand in the way of such a hot tip?

This was is a typical investor that has no idea about things he invests in - high chances to be burned first.
Have you ever been in Ukraine, dealt with Ukrainian business? I lived 1.5 years in Ukraine, and would not invest a penny there

[SVI]

Originally Posted by MBLittle

Like I said, my paypal is open to anyone that's wants to help me invest in coke

Stop dreaming, and go get some job )

[barnakiel]

Originally Posted by tropicalescape

(...) Now can anyone tell me of any "Major" risk that may stand in the way of such a hot tip?

e.g. political risk

b.

[MBLittle]

Originally Posted by SVI

Stop dreaming, and go get some job )

I don't wanna!